Transcript Slide 1

Energy Storage Technologies
for Utility Applications
GRIDSCHOOL 2010
MARCH 8-12, 2010  RICHMOND, VIRGINIA
INSTITUTE OF PUBLIC UTILITIES
ARGONNE NATIONAL LABORATORY
Vladimir Koritarov
Center for Energy, Economic, and Environmental Systems Analysis
Decision and Information Sciences Division
ARGONNE NATIONAL LABORATORY
[email protected]  630.252.6711
Do not cite or distribute without permission
MICHIGAN STATE UNIVERSITY
With the Advance of Renewable Energy Sources,
Energy Storage Is Becoming Increasingly Important
 Energy storage is not a new concept for electric utilities
 Although extremely desirable, wider deployment of energy storage
has been limited by the economics/costs and available locations
 Pumped-storage hydro, large hydro reservoirs, and a few pilot CAES
plants were the only way to store energy
 Small quantities of electricity were also possible to store in batteries
and capacitors
 Large-scale implementation of energy storage (both system and
distributed) is considered to be the key for enabling higher
penetration (>20%) of renewable and variable generation sources,
such as wind and solar
 Energy storage is also expected to contribute to more efficient and
reliable grid operation, as well as to reduced emissions from the
power sector
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There are a Variety of Energy Storage Applications
 System storage (e.g., pumped-storage
plants, CAES, large-scale battery storage
 Currently 22 GW of pumped-storage in
the U.S.
 Renewable energy support (e.g., energy
storage combined with wind plant, etc.)
 Distributed energy storage (demand-side
storage, customer installations, PHEV &
EV batteries, etc.)
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A Number of Energy Storage Technologies Are Being
Developed
 Lead-acid (L/A) batteries
 Flooded L/A batteries
 Valve-regulated lead-acid (VRLA) batteries
 Sodium-sulfur (NaS) batteries
 Flow batteries
 Sodium bromide sodium polysulfide
 Zinc bromine (Zn/Br)
 Vanadium-redox (V-redox)
 Nickel cadmium (Ni/Cd) batteries
 Lithium-ion (Li-ion) batteries
 Compressed air energy storage (surface and underground)
 Flywheels
 Super-capacitors
 Superconducting magnetic energy storage (SMES)
 Hydrogen storage
 Concentrated solar with molten salt energy storage
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Requirements for Energy Storage
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Energy density
High power output
Cycle efficiency
Cycling capability
Operating lifetime
Capital cost
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Cycle Efficiency of Energy Storage Technologies
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Energy Storage Capital Costs Requirements
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Size and Weight of Energy Storage
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Energy Storage Can Provide Services at all Levels of the
Power System Value Chain
 Electricity supply
 Load shifting (load-leveling, time-shift, price
arbitrage)
 Generation capacity
 Ancillary services
 Load following
 Regulation service
 Contingency reserve (spinning and supplemental)
 Transmission stability support
 Voltage support
 Grid system reliability
 Transmission congestion relief
 T&D upgrade deferral
 Substation backup power
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Energy Storage Can Provide Services at all Levels of the
Power System Value Chain (cont’d)
 Integration of renewable and variable energy
sources
 Capacity firming
 Renewable energy time-shift
 Renewable energy integration (power quality,
ramping and load following)
 Utility customer
 Time-of-use energy cost management
 Capacity charge management
 Improved power quality and reliability
 Environmental benefits
 Reduced fossil fuel consumption
 Reduced environmental emissions
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Operating Characteristics of Energy Storage Technologies
Determine their Suitability for Different Applications
 Flywheels, super-capacitors, SMES, and other
storage technologies with the short-term power
output (minute time scale)
 Regulation service
 Spinning reserve, etc.
 NaS batteries, flow batteries, hydrogen fuel
cells, CAES, pumped storage can provide
several hours of full capacity:
 Load shifting
 Electricity generation
 T&D deferral, etc.
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Energy Storage Requirements for Utility Applications
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Operation of Storage Driven by Supply/Demand Balance,
Ancillary Services Requirements, and Market Values
 Short-term storage (seconds to minutes)
 For services such as frequency regulation, reactive power supply and
voltage support
• Requires fast/secure communications for automatic control
 For contingency reserves (e.g., spinning reserve)
• Requires communication to verify the requirement to operate and to
confirm the available capacity
 Longer term storage (minutes to hours)
 Energy/price arbitrage, load following and ramping
 Scheduling of charging and discharging requires information on current
value of energy and the expected future value of energy (may include
value of capacity and energy)
 Information on constraints on total capacity, ramping, and total energy
limits of the storage system
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Typical Operation of Pumped-Storage Hydro Plant for
Energy/Price Arbitrage
200
100
180
90
160
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120
60
100
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80
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60
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40
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20
10
0
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Monday
Tuesday
Wednesday
Production
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Friday
Pumping
Saturday
€ / MWh
MW
Aguieira - Week 39 2007
Sunday
Projected Prices
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The Case for Storage: Price Arbitrage in the Midwest
140
140
Wisconsin
Average Peak/Off-Peak Price Spreads [$/MWh]
Average Peak/Off-Peak Price Spreads [$/MWh]
Manitoba
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120
100
100
80
60
40
Average Peak/Off-Peak Price Spreads [$/MWh]
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20
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
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40
20
July 2008
120
0
80
0
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09
100
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60
40
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0
WI
MI
IL
MN
IA
OH
MO
IN
ND
MB
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How May Wind Affect Prices and Price Spreads:
Real-Time Prices in Illinois (ComEd) Hub in 2008
 Over 300 hours (3.4%) with negative prices
 Over 650 hours (7.5%) with prices below $10/MWh
500
500
Illinois Hub (ComEd) Real-Time Prices 2008
Illinois Hub (ComEd) Price Curve 2008
300
300
200
100
0
0
730 1460 2190 2920 3650 4380 5110 5840 6570 7300 8030 8760
Real Time Price [$/MWh]
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Real Time Price [$/MWh]
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200
100
0
0.0
-100
-100
-200
-200
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-300
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1.0
How May Wind Affect Prices and Price Spreads
MISO-Minnesota Hub, 5/11-5/17/2009
250
4,000
90
3,500
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3,000
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3,000
30
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2,000
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-30
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Wind Power [MW]
Price [$/MWh]
4,000
Price [$/MWh]
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Real-Time Price
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Day-Ahead Price
Wind power
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1,000
500
Real Time price
Day Ahead price
Wind power
0
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Wind Power [MW]
MISO-Minnesota Hub, 5/13/2009
The Case for Storage: Advanced Wind Forecasting to
Reduce Uncertainty, Storage to Manage Variability
Current forecast tools do reasonably well
Mean absolute error is low (9.3%)
Forecasting ramps still an issue
Source: Iberdrola, 2009
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The Case for Storage: Advanced Wind Forecasting to Reduce
Uncertainty, Storage to Manage Variability (& Reduce Curtailments)
Source: ERCOT, 2009
With limited or no wind forecasting, and constraints in the system, wind
curtailments may occur; strategically located storage could alleviate the situation
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Coordinated Operations of Wind with (Hydro) Storage May
Reduce Wind Curtailments in Congested Areas (up to 75%)
35%
30%
25%
20%
15%
10%
5%
0%
SINTEF
KTH (exjobb)
Skelleftekraft
KTH (coord.
algorithm)
Curtailments without coordination in % of unconstrained production
Curtailments with coordination in % of unconstrained production
Source: Matevosyan, 2008
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Without Energy Storage, Large Wind Integration
Poses a Challenge to Electric Power Systems
 Utility systems can relatively easily
absorb small penetration of wind
energy (<10-15%)
 Higher wind energy penetration
(>20%) presents a challenge
 Wind energy production in Denmark
in 2008 amounted to 19% of the total
electricity generation
 German utility E.ON: “The more wind
power capacity is on the grid, the
lower the percentage of traditional
generation it can replace.”
 Firm capacity from wind in 2007:
about 7% of installed capacity
 Firm capacity in 2020 is expected
to drop to 4%.
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Source: E.ON Wind Report 2005
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The Case for Storage: Example of On-Site Wind Farm
Storage Operations Driven by Economics
Off-Peak
Off-Peak
Peak Period
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Peak Period
Source: Faias et al, 2008 Koritarov - 022
Large Wind Integration Will Require Significant Use
of Energy Storage
 Energy storage coupled with wind farms
would provide for:
 Firming of wind capacity
 Time-shifting of electricity generation
 Reduced need for backup capacity
 Reduced ramping or conventional units
 Lower reserve requirements
 Questions:
 What is the optimal amount of storage?
 What type of storage is best for use
with wind farms?
 Similar issues exist for solar and other
variable energy resources
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Source: E.ON Wind Report 2005
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The Case for Storage: Example of On-Site Wind Farm
Storage Operations Driven by Economics
Source: Faias et al, 2008
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Plug-in Hybrid and Battery Electric Vehicles: A Challenge
or an Asset?
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180,000
30,000
WECC April 2020 Aggressive PHEV Case:
Charge When Arriving @ Home
150,000
PHEV Aggressive
Baseload
25,000
Base + PHEV Aggressive
20,000
Total Load [MW]
PHEV Load [MW]
120,000
90,000
15,000
60,000
10,000
30,000
5,000
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180,000
30,000
WECC April 2020 Aggressive PHEV Case:
Smart Charging
150,000
25,000
PHEV Aggressive Smart
Baseload
Base + PHEV Aggressive Smart
20,000
PHEV Load [MW]
120,000
Total Load [MW]
 Impacts to the electric grid, especially to
the distribution system (e.g.,
transformers)
 Charging patterns and behavior
 Vehicle to grid (V2G) services:
 Contingency reserve
 Frequency regulation
 Dispersed energy storage
 Vehicle to home (V2H) services
 Backup power
 Demand response (load shifting)
 Storage for distributed renewable
sources
 Impacts on electricity prices
 Impacts on emissions
90,000
15,000
60,000
10,000
30,000
5,000
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0
0
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48
72
96
120
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168
In Conclusion, Energy Storage is the Key for Large-Scale
Integration of Renewable and other Variable Sources
 Energy storage provides opportunity for price arbitrage

Arbitrage opportunities vary by region and season

Are current price spreads sufficient to justify investment at current costs?
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What are the trends in price spreads and storage costs?
 Energy storage can provide ancillary services
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With large ramp-up in wind, the need for regulation and spinning reserve
will increase
The importance of storage, both system and distributed, will also increase
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