1. Electric Energy Storage
Technology Options for the
Electric Enterprise
Overview of Status, Application
Value and U.S. Activities
Dan Rastler
Electric Power Research Institute
Smart Grid: A 360 View of Battery Storage
Atlanta, GA
August 30, 2011

2. Discussion Outline
• Drivers for Electric Energy Storage Solutions
• Landscape of Electric Energy Storage Options
• Overview of US activities
• Quantification of Application Value
• Paving the way for Storage Solutions
• Summary
© 2011 Electric Power Research Institute, Inc. All rights reserved. 2

3. Drivers for Electric Energy Storage Solutions
• Managing Increased Wind and PV Penetration on the Grid
• Ancillary Services – Support Renwables; Optimal use of Fossil Units
• Grid Asset Management
– Managing Grid Peaks,T&D Capital Deployment, Outage Mitigation
• Increasing the value of Distributed Photovoltaic systems
• Enhancing the value of a Smart Grid: Peak Energy Management
© 2011 Electric Power Research Institute, Inc. All rights reserved. 3

4. Industry Drivers for Energy Storage Solutions
Operating Challenges: Variability & Uncertainty
High Levels of Wind and Solar PV Will
Present an Operating Challenge!
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5. Operating Challenges Will Continue to Increase….
2009 MW (000s) 2018 MW (000s)
350 450
Installed Capacity 1,044 GW Installed Capacity 1,453 MW
Wind Capacity 28 GW Wind Capacity 256 GW
400
300
350
250
300
200 250
150 200
150
100
100
50
50
0 0
Coal Hydro Dual Wind Biomass Solar Coal Hydro Dual Wind Biomass Solar
Fuel Fuel
Gas Nuclear Oil Pumped Geothermal Gas Nuclear Oil Pumped Geothermal
Storage Storage
NERC 2018 Resource Projection
© 2011 Electric Power Research Institute, Inc. All rights reserved. 5

6. Industry Driver for Energy Storage Solutions
Increased Penetration of Photovoltaics on the Grid
Concerns: Customer Load
Customer PV (-)
• Voltage Fluctuations
• System Protection
• Power Quality
• Increased Duty
• Impact on Demand
4 6 8 10 12 14 16 18 20 22
Hour
ANSI Upper
Limit
After PV
Voltage Substation
ANSI Lower
Limit Before PV
Substation Distance End of Feeder
PV
© 2011 Electric Power Research Institute, Inc. All rights reserved. 6

7. Industry Driver: Grid Infrastructure Investments for
Delivery and Reliability
• Cost of Power Disturbances to the
US Economy $ 180 B/year
• Cost of a massive blackout
~ $ 10 B / event
• CapEx in Transmission Investments
~ $ 10 B / 2011
• CapEx in Distribution Investments ~
$ 20 B /yr 2010 growing to $ 35 B
/yr by 2030
• By 2030, the electric utility industry
will need to make a total
infrastructure investment of
$1.5trillion to $2.0 trillion. (+ $15.5 B
with Renewable Penetration)
What if we could Store and Deliver Electricity “when
and where” it was needed?
© 2011 Electric Power Research Institute, Inc. All rights reserved. 7

8. Current Landscape
Energy Storage Penetration is Very Small
Worldwide installed storage capacity for electrical energy
Compressed Air Energy Storage
Pumped Hydro 440 MWs
Sodium-Sulphur Battery
316 MWs
Lead-Acid Battery
~35 MWs
127,000 MWel Nickel-Cadmium Battery
27 MWs
Fly Wheels
< 25 MWs
Over 99% of Lithium Ion Battery
total storage capacity ~20 MWs
Redox-Flow Battery
Source: Fraunhofer Institute, EPRI < 3 MWs
© 2011 Electric Power Research Institute, Inc. All rights reserved. 8

9. Electric Energy Storage Options – Not Complete
UPS T&D Grid Support Bulk Power Mgt
Power Quality Load Shifting Pumped
Hydro
Hours
CAES
Discharge Time at Rated Power
Flow Batteries: Zn/Cl Zn-Air ZrBr
VRB PSB New Chemistries
NaS Battery
Adv. Lead Acid Battery
High Energy
Super Caps NaNiCl2 Battery
Li-Ion Battery
Minutes
Lead Acid Battery
NiCd
NiMH
Seconds
High Power Fly Wheels
High Power Super Caps SMES
1 kW 10 kW 100 kW 1 MW 10 MW 100 MW 1 GW
System Power Ratings, Module Size
© 2011 Electric Power Research Institute, Inc. All rights reserved.
2010 9

10. Overview of Energy Storage Solutions
Bulk to Distributed Storage Solutions in the Smart Grid
MWs to kWs: seconds, min, hours of energy duration
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11. EPRI Testing Several Emerging Battery Storage
Systems in Knoxville, Tn
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12. EPRI - TVA SMART Charging Project Knoxville,
TN
•EV Charging site with 6 charge
stations that are assisted by PV and
battery storage.
•GSB’s scope included providing:
• (3) 10kW battery charger/inverters
(Silent Power OnDemand)
• 3 sets of (48) SLC70‐4 batteries for
a total of 960Ah (46.08kWh) of
storage
© 2011 Electric Power Research Institute, Inc. All rights reserved. 12

13. U.S Energy Storage Grid Integration Activities
SustainX 1 MW / 4 MWh
Isothermal CAES MA / NH
DTE 500 kW / 250 kWh Li-ion
MI (A123) NYSEG 145 MW Adv. CAES
Watkins Glen, NY (EPRI)
PGE 5 MW / 1.25 MWh Li-ion
Salem, OR (EnerDel)
NGrid 500 kW / 3 MWh ZnBr
NGrid 500 kW / 3 MWh ZnBr Everett, MA (Premium Power)
Syracuse, NY (Premium Power)
PJM 20 MW Flywheel
Chicago, IL (Beacon)
SMUD 500 kW / 3 MWh ZnBr
Sacramento, CA (Premium Power)
DTE 500 kW / 250 kWh Li Ion
MA (A123)
25 kWh Li-ion SMUD 5 kW / 9 kWh Li-ion
Berkeley, CA (Seeo) (Saft) KCP&L Li-ion
Kansas City, MO (Dow Kokam, Siemens)
25 MW Zn-Air Flow Battery Carnegie Melon Na Ion
Modesto, CA (Primus) Pittsburgh, PA (Aquila)
Amber Kinetics Flywheel
Fremont, CA (LLNL) AEP 2 MW Li-ion for CES
OH (International Battery, S&C)
PG&E 300 MW Adv. CAES
Kern County, CA (EPRI)
250 kW / 1 MWh
SCE 8 MW / 32 MWh Li-ion Iron / Chrome flow battery
Tehachapi, CA (A123) Modesto, CA (Ktech Corp )
PNM Adv, Lead Acid
Albuquerque, NM (East Penn)
Duke 20 MW TBD Wind Support
Notrees, TX
DOE and Utility Funded Energy Storage Demonstrations in the U.S.

14. What Utilities Are Doing in Energy Storage
Current / Planned U.S. Li-ion Demonstrations
Auto Major Contract
DTE: 500 kW No Auto Contract
PGE: 5 MW / (A123)
1.25 MWh *Size of star indicates
(EnerDel) AEP: 2 MW scale of demo
(Int’l Battery)
NYPA: 1 MW / 250 kWh
(Ultralife Corp)
AES: 1 MW / 250 kWh
(Altairnano)
SMUD: 5kW /
Duke Energy: 25 kW & 250 kW
9kWh
(Kokam)
(Saft)
KCPL: 1 MW
(Dow Kokam)
SCE: 8 MW / 32 MWh
(A123) Southern Co: 60 kW / 240 kWh
(GreenSmith TS)
SCE: distributed Li-ion Battery OEMs
systems, 10 kWh each UCSD: 15 kWh • A123Systems
(LG Chem) (Sanyo) • AltairNano
• EnerDel
• Saft
APS: 0.5 MW • Dow Kokam
(Electrovaya, ABB)
Progress Energy: 5 kW/ 20 kWh • International Battery
HECO: 5 kW / 20 kWh • GreenSmith / Thundersky
(GreenSmith TS)
(GreenSmith)
• Sanyo
•Ultralife
•Electrovaya
© 2011 Electric Power Research Institute, Inc. All rights reserved. 14

15. NaS Battery at Xcel – Luverne, MN
• 1.25 MVA / 1.0 MW – Outdoor Installation
• Wind smoothing
• Dispatched wind
• Peak shaving
• Energy arbitrage
© 2011 Electric Power Research Institute, Inc. All rights reserved. 15

16. NaNiCl2 Battery Systems
Application for PV Smoothing in Tuscany
PLC, Display, 30kW Bidirectional
Fan, Charger Inverter
ZEBRA
battery
Courtesy of Fiamm
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17. NaNiMx
~ 1 MW / 2 MWh
Courtesy of General Electric
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18. Advanced Lead Acid Battery
Xtreme Power 1.5 MW / 1 MWh
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19. Flow Battery Systems
Decouple Power &Energy / Positioned for >5 hrs storage
Zn / Br Systems
• 0.5 MW / 2.8 MWh Prototype
Others include:
– Vanadium Redox
– Fe / Cr
– Zn / Cl
– Zn / Air
© 2011 Electric Power Research Institute, Inc. All rights reserved. 19

20. Li-ion Battery Systems
Being Deployed in High Value Applications
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21. Global Li-ion Production Capacity
will be at a Scale to Enable Utility Grid Applications
Confluence Industry
Drivers
Use of a Common Storage Platform
© 2011 Electric Power Research Institute, Inc. All rights reserved. 21

22. Energy Storage
Key Asset in Smart Grid
• Costs and Benefits of Smart
Grid (EPRI 1022519) March
2011
• Net Investment*: $ 338 – $ 476
• Net Benefit*: 1,294 – 2,028
• Benefit-to-Cost: 2.8 – 6.0
* Billion $
© 2011 Electric Power Research Institute, Inc. All rights reserved. 22

23. EPRI identified 10 key applications along the entire
electric value chain … the list is not comprehensive
Whole Sale Energy Services Stationary T&D Support C&I Energy Mgt Home Energy Mgt
Renewable Integration Transportable T&D Support C&I PQ and Rel. Home Back-up
Distributed Storage ESCO Aggregated
ISO System Level Utility Grid Support Customer Energy Mgt
© 2011 Electric Power Research Institute, Inc. All rights reserved. 23

24. Energy Storage Systems must be able to realize multiple
operational uses across the energy value chain
Benefit Utility
Type Time End User Distribution Transmission System ISO
Higher Value for
Energy Storage
Energy Energy T&D Energy
($/kWh) Management Investment Renewable Arbitrage
($/kWh)
Deferral Integration
System
Reliability Capacity
($/kW)
Minutes
Reliability
Discharge Capacity
Renewable
Higher Value for
Power Smoothing Ancillary
($/kW)
Services
($/kW)
Power
Seconds
Operations T&D System Support
Quality
($/kVAR & DESS
$/kW)
10s kW 100s kW 10s MW 100s MW
Size of Application
© 2011 Electric Power Research Institute, Inc. All rights reserved. 24

25. Summary of Application Value Analysis
Total Resource Cost Test (TRC)
Customer-
Side
Applications*
Caveat: Energy storage systems to address
each application will vary in cost, depending on
DESS size, location, and system power-to-energy ratio.
Substation
Grid Support Best economics for near-term utility-scale storage
Frequency
Regulation
*Values calculated from customer perspective.
Value: $/kW-h of usable energy storage
TOU rates and demand charge savings represent loss of utility revenue
© 2011 Electric Power Research Institute, Inc. All rights reserved. 25

26. Gap Analysis
Benchmarking Value to Storage System Cost
Trans T&D Support
• Summary of Energy Storage $2,500
Cost Options from EPRI’s
detailed Cost Data Base $2,000
Present Value $/kW-h (AC)
$1,500
• Benefit / Cost Gap Analysis
for each application $1,000
$500
• Analytic foundation for utility
benefit & cost value analysis $0
© 2011 Electric Power Research Institute, Inc. All rights reserved. 26

27. Paving the Way for Storage Solutions
• EPRI’s goal: Safe, reliable, cost-
effective, grid-ready energy
storage solutions
– Identify where storage brings
the most value
– Define clearly what the
storage system has to do
– Test, evaluate, and validate
the storage product
– Determine the effects on the
grid
– Assess the true value of
storage in real-life
applications.
© 2011 Electric Power Research Institute, Inc. All rights reserved. 27

28. Paving the Way for Storage Solutions
Storage must be a complete product...
Power Conditioning System Balance of Plant
• DC to AC conversion • Data acquisition and controls
• Charging control • Thermal management
• Reactive power • Physical structure
management
Storage
Energy • Shipping and Installation
• Integration point
to the grid
Storage
Storage
All components must be safe, reliable, low-cost,
and seamlessly integrated
© 2011 Electric Power Research Institute, Inc. All rights reserved. 28

29. Paving the Way for Storage Solutions
Storage must be integrated with the grid
Grid
Smart Grid
Operations
• Regulatory framework • Communications and control
Energy protocols
• Market framework Storage • Object models
• Operational algorithms
• Cybersecurity
• Protection schemes
• Understanding capacity
Distribution implications
Infrastructure • Islanding
• Interface with public and local
agencies
© 2011 Electric Power Research Institute, Inc. All rights reserved. 29

30. Paving the Way for Storage Solutions
Storage must make economic sense
For Photovoltaic
Illustration Peak Shift Customer Side
Only Demand Peak Applications
Reduction
Regulation Services
Market
Balance of Plant Voltage Support Applications
Inertia Support
Power Electronics
Power Quality and
Reliability Rate Based
Battery Cost T&D Upgrade Deferral Applications
Costs of Benefits of
Storage Storage
© 2011 Electric Power Research Institute, Inc. All rights reserved. 30

31. Summary
Key EPRI Energy Storage Resources
• Key Reports:
• Electric Energy Storage
Technology Options: A White
Paper Primer on Applications,
Costs and Benefits
(EPRI 1020676)
• Executive summary
(EPRI 1022261)
• Functional Requirements for
Electric Energy Storage
Applications on the Power
System Grid (EPRI 1022544)
© 2011 Electric Power Research Institute, Inc. All rights reserved. 31

32. Summary
• Storage will be a key asset in the Smart
Grid
• Grid Energy Storage Deployment is in its
Infancy
• CAES – lowest cost (near-term) option for
Bulk Storage > 10 hrs; Large Demos
Planned.
• Li-ion – potentially lowest cost (longer-
term) for distributed storage < 4 hrs
• Several new technologies in the pipeline
that look promising for significant cost
reduction - stay in tuned!
• Work Together to Pave the Way for Energy
Storage Solutions!
© 2011 Electric Power Research Institute, Inc. All rights reserved. 32