Transcript Electricity Storage: _x000b_Status, Prospects, and Challenges

Electricity Storage:
Status, Prospects, and Challenges
Florence School of Regulation
September 23, 2011
Richard Cowart
Director, European Programmes
The Regulatory Assistance Project
48 Rue de Stassart
Building C, BE-1050
Brussels, Belgium
Phone: +32 2-894-9300
web: www.raponline.org
The Regulatory
Assistance Project (RAP)
• RAP is a global, non-profit team of experts providing technical and policy
assistance to government officials on energy and environmental issues.
RAP has advised governments in more than 25 nations and 45 states and
provinces, and in Europe coordinates work with the European Climate
Foundation.
• Richard Cowart is the Director of European Programmes for RAP, based
in Brussels.
A member of the IEA DSM Executive Committee, he served 12 years
as Chair of the Vermont PSB (utilities regulator), Chaired the NARUC
Committee on Energy & Environment, and the National Council on
Competition and the Electric Industry. He is now also Chair of the US
Department of Energy’s Electricity Advisory Committee.
Contacts : [email protected]
www.raponline.org
2
Overview
1. What is storage, why is it needed?
2. Storage technologies and options
3. Recent policy steps, research and
demonstrations in the US
4. (A few) policy issues facing storage
providers, utilities, and regulators
3
What is Storage?
• Narrow View: Storage is the conversion of grid-connected
electricity into another form of energy, holding it for future use, and
then delivering it back to the grid as electric power at another time.
• System view: Low-carbon power systems need a set of
capabilities to balance preferred generation and load across time
and place. This includes thermal storage, “smart charging” (one-way
storage) and consumer demand response – not just “round trip”
electricity storage.
• Policy conclusion: Expanding basic storage choices is
important – but more important are policies and technologies that
will deliver the capabilities needed for a low-carbon, high-reliability
power system (and a low-carbon economy more broadly).
4
80% carbon reduction by 2050 only possible
with zero-carbon power supply
GtCO e per year
2
EU-27 total GHG emissions
.
Sector
Power
5.9
5.2
5.3
5.4
1.2
1.2
1.2
0.9
0.9
1.0
0.5
0.6
0.7
1.1
1.0
1.0
-80%
1.2
0.9
0.9
0.9
0.2
0.5
0.3
0.4
0.3
0.3
2010
2030
2050
95% to 100%
0.6
0.1
0.2
2050
abated
Fuel shift
>95%
Road
transport
95%
20%
75% (electric
vehicles, biofuels
and fuel cells)
Air & sea
transport
50%
30%
20% (biofuels)
Industry
40%
35% (CCS3)
5% (heat pumps)
Buildings
95%
45% (efficiency
and new
builds)
50% (heat
pumps)
Waste
100%
100%
Agriculture
20%
20%
Forestry
-0.25 GtCO2e
Carbon sinks
0.1
0.4 0.1
-0.3
1990
Abatement
Within
sector1, 2
1 Based on the McKinsey Global GHG Cost Curve
2 Large efficiency improvements are already included in the baseline, especially for industry
3 CCS applied to 50% of industry (cement, chemistry, iron and steel, petroleum and gas, not applied to other industries)
SOURCE: McKinsey Global GHG Abatement Cost Curve; IEA WEO 2009; US EPA; EEA; Team analysis
Why Storage? Wind Generation in PJM
50,000
Cumulative Nameplate MW
.
45,000
40,000
43,623
If you like wind…
35,000
30,000
25,000
20,000
…You have to
love Storage
15,000
10,000
5,000
0
1999
www.pjm.com
In planning 1/4/2011
2001
2003
2005
2007
2009
2011
2013
2015
2017
Wind – Variable Generation Problem
.
Solar PV Is Variable Too
-- Rapid 90% drop at the 4.6 MW TEP Solar Array (Arizona)
kW
3000
2000
1000
(b)
0
250
750
Minutes since start of day
www.pjm.com
1250
Source: Carnegie Mellon University
Swings in residential load in an area with air
conditioning (much of the US)
EPB Residential August 2009 Hourly Load
.
600,000
500,000
kW
400,000
300,000
200,000
100,000
.
-
Hour
www.pjm.com
will now need to shape, not just shave, demand
And energy efficiency is needed to keep overall
system costs affordable in the power system
Source: ECF Roadmap 2050 Study
10
Smart Storage for a Smart Grid
• Many capabilities needed: frequency
regulation, renewable energy
integration, black start, diurnal storage,
T&D deferrals etc
• Many electric technologies: Pumped
Hydro, Compressed Air, Batteries,
Flywheels, Ultra-Capacitors
• Load & supply matching technologies
too
Storage Options
Pumped Hydro
Stationary Battery
Compressed Air
Flywheels
Mobile Batteries
Water Heaters
Pumped Storage Hydro Dominates
Global Active Storage Mix
13
Pumped Storage Hydro
Dominates in US Also
14
Recent US initiatives to promote
electricity storage
• Recovery Act (“economic stimulus bill”) provides
funding for storage projects:
– $185 Million for batteries, flywheels, compressed air, other
• National Labs and Dept of Defense R&D
– $1.25 Billion for EV batteries and vehicle drives
– Advanced Research Projects Agency for Energy (ARPA-E):
$55 Million for grid storage R&D; 2012 proposals much higher
• Federal Energy Regulatory Commission
– Recent rulings address difficult policy and jurisdictional issues
– Rulemaking on policies for storage
• California legislation (AB2514)
– Requires PUC and utilities to consider procurement targets for
storage
15
2009 Recovery Act – Federal Funds to
Accelerate Storage Trials
16
Compressed Air Energy Storage –
responsive and large-scale
•
•
•
•
CAES -- Combines gas turbine with compressed air in an underground site.
Compressor operates at low load periods; gas turbine serves load as needed
Smoothes out load/supply profile with quick response
Generation side uses about 1/3 as much natural gas as conventional CCGT
Norton, Ohio: Large size provides significant advantage
•
Approximately 130,000 MWhs of storage --338 million cubic foot limestone mine
•
Longer storage period than typical
pumped hydro (2 days+ at high output)
• Can add capacity in 150 MW increments,
up to 2,700 MW total
• Fully dispatchable by PJM
• Project was not built 2001+, now revived
by First Energy – to pair with wind
www.pjm.com
Lithium-Ion Batteries
Efficiency ….
>> 95%
Energy Density….
50% reduction in weight & volume
Response time….
50 msec
Depth of Discharge…. > 80%
Cycle Life….
>> 3000 cycles
Charge time….
15 minutes to 2 hrs
Low self-discharge…. << 3% per month
No maintenance
Cost Reduction & Innovation Roadmap
Adoption by other industries
Continuous Investment and innovation
Economy of Scale
Large Format Prismatic Cells


70x more energy in one large prismatic
cell than in one 26650 cylindrical cell
Monitoring and control of each
individual cell enables a more efficient
and reliable system
Typical cylindrical Lithium cell
vs. 7”x11”x3” cell
71 m
Passed UN 3480 certification testing
and other rugged abuse and safety
tests
117 m
m
285 mm

m
193 mm
Integrated pressure release protection
for added safety
m
26650
2.3 Ah Cell
46 m

173 m
m
IB-B-FHE-40
40 Ah Cell
IB-B-CHE-200
200 Ah Cell
Distributed Storage Systems
Utility Grade
.
AEP Community Energy Storage
(CES)
28 kWh
< 500 kg
No liquid cooling
Operating temperature: - 30 C
to +50 C
Humidity: 10 % - 100 %
Building Code: Zone 4
No maintenance first 5 years
Load-side Energy Storage
 Key feature: balance the grid from the customer side,
not just the supply side
 Customer storage: end-use customers store energy for
their own later use – not to return it to the grid
 Differs from traditional demand response/cutting load
at peaks
 Key opportunities:
 Hot water thermal storage
 Smart-charging electric vehicles
 Ice storage to cool buildings
 The potential is much larger and cheaper than grid-togrid electric storage.
21
1,000 Autos (GM Volts) – PJM + General
Motors
.
PJM Study finds they could
Interconnect 1 million PHVs
In the Washington DC region
with little system upgrade
required
-- if charging times are
controlled
www.pjm.com
70 US smart grid pilots:
Huge variation in peak load reductions from different
pricing and metering regimes
23
Converting vehicle fleets
• Fleets may be the quickest way to
. implement smart charging at scale
• E.g., 480,000 school buses in
United States
• Average ~66 miles per day
• MPG = ~7
• Parked 12 hours at same location
• Parked for 3 months
• Great public visibility
• 90 GW potential storage
Hot Water and Ice
 Thermal storage – low tech solution
 But opportunity is large-scale, inexpensive, widely
distributed
 “Ice Energy: A battery for your air conditioner”
 Example: 53 million connected water heaters in PJM
 Converted to storage, each has 60% more storage
capability than “smart-charging” an electric vehicle.
 30 GW of hot water heaters = >the 24GW of pumped
storage on the PJM system today
 “So if we had a Smart Grid to do the controls and the water heaters,
most of our problems on regulation go away.” –Terry Boston, CEO
PJM Interconnection
25
Fast Regulation: Water Heaters
Respond Extremely Well



Water heaters
respond quickly
and accurately to
system operator
requirements
(Red) PJM
Frequency
Regulation
Signal (RegA)
(Blue) Response:
Water heater
power
consumption +/2.25 Kw base
point
Electrification R&D – US Dept of Defense
.
Price of fuel on the battlefield:
+/- $300/gallon
Project Focused on Four Areas:
1. Volume Pricing
• 10,000 units annually
2. Battery Right-sizing
• 6,000-3,000 miles/year
3. Infrastructure Planning
4. Ancillary Services
*Largest fuel consumer in non-tactical fleet: 43M gallons of petroleum/year
www.pjm.com
How – Policy Options and Questions
1)
DOE: Create efficiency standards with total system needs in
view
– Example: Storage water heaters to enable renewables will save more energy gridwide than efficiency standards for heat pump water heaters >55 gallons
– Should we permit “oversized” water heaters for this purpose?
2) FERC: allow low-risk cost recovery for some storage, rolled into
transmission tariffs
– Like Transmission, storage benefits the entire system and enables renewables –
should some storage investments be rolled into those tariffs?
3)
FERC and ISOs: Pay-for-Performance for Quick, Responsive
Resources
–
Load-based Frequency Control (LFC): Compensate for the advantages
that diversity, speed and accuracy bring to the system
Policy Options and Questions (2)
4) Predictable cost recovery for storage
– Longer-term markets for capacity/ancillary services
– Allow Distribution Company tariffs to include “community storage” in
distribution tariffs (supports a digital economy)
5) States adopt time-of-use retail rates or real-time pricing, at
least for major load-side options:
– Expedite the use of electric vehicles as storage
– Should “smart charging” meters be REQUIRED for EVs and PHVs?
6) Incentives/loans for fleet conversion
– Fleets (school buses, DOD, post office) have huge storage potential
7)
25% of RPS = Storage Portfolio Standard
Thank You
Safe, Reliable, Clean and Affordable
.
Thanks to the following for many of the images and
data in these slides: Terry Boston, CEO PJM
Interconnection; David Pomper, NRRI; Ahmad
Faruqui, Brattle Group; Ake Almgren, CEO
International Battery Incorporated