1. Smart Grid Society2011 SUMMER EVENT ALSTON & BIRD, Atlanta, GA August 30th from 11:30am - 1:30pm EVENT SPONSORS V1
2. Jack Shaw President, Breakthrough Business Technologies jack@e-com.com Jack has spoken to thousands of business executives in over 20 countries about innovations in business technology. Welcome
3. Smart Grid: A 360oView of Battery Storage 11:30 am LUNCH BUFFET 12:00 pm – SESSION BEGINS Jack Shaw – Welcome - SGS Board President, Breakthrough Business Technologies Dan Rastler – Keynote Speaker, EPRI Senior Project Manager, Energy Storage Program, Palo Alto, CA Sean Atkins – Moderator, Alston & Bird Partner, Alston & Bird, Regulatory Storage Expert, Washington, DC Ken Caird – GE Energy Senior Transmission and Distribution Systems Engineer Clifton Black – Southern Company Senior Research Engineer Vincent Pusateri – GS Battery (USA) Senior Director, New Business Development 1:30 pm SESSION ENDS OUR SPONSORS Session Agenda
4. Dan Rastler Sr. Project Manager, Energy Storage Program, Electric Power Research Institute (EPRI), Palo Alto, CA; drastler@epri.com Keynote Speaker
5. Sean Atkins Partner, Alston & Bird, Regulatory Storage Expert, Washington, DC sean.atkins@alston.com Moderator
6. Overview of Regulation of Electric Utilities The Federal Energy Regulatory Commission oversees: Transmission of electric energy Wholesale sales of electric energy (i.e., sales for resale) State authorities (e.g., Georgia Public Service Commission) regulate: Local distribution of electric energy Retail sales of electric energy (i.e., sales to end-users) Many publicly-owned electric utilities (e.g., municipal utilities) are largely self-regulating Smart Grid: A 360o View of Battery Storage
7. Classifying Electric Utility Assets Regulators set terms and conditions for adding new electric utility technologies and determine cost recovery for those technologies based on the classification of the asset as Generation, Transmission, or Distribution Smart Grid: A 360o View of Battery Storage
8. Electricity Storage Can Provide Many Services Maintaining service to transmission customers Supplying reactive power or acting as a virtual replacement transmission circuit in the event of a line trip Generation-related services Shifting electricity to periods of peak demand Providing ancillary services (e.g., frequency regulation, load-following) Distribution-related services Provide voltage support or acting as a virtual replacement distribution circuit in the event of a line trip Support for demand response Smart Grid: A 360o View of Battery Storage
9. Regulatory Uncertainty on Electricity Storage Ancillary services Some regions have already adjusted ancillary service rules to accommodate electricity storage. Proposed FERC regulations will also address this issue FERC has issued a Notice of Inquiry on other ancillary services policies and accounting treatment for storage technologies Recovery of storage costs in transmission rates FERC has reached different conclusions in two recent cases Current FERC policy on cost-recovery for electricity storage assets is to address these issues on a case-by-case basis Smart Grid: A 360o View of Battery Storage
10. State Options for Electricity Storage Utilities installing electricity storage to support the distribution system can be included in bundled retail rates In regions with integrated resource planning, electricity storage can be included in the range of available resources to meet a utility’s overall service obligations Possible specific procurement requirements/targets for electricity storage In 2010, California passed a law requiring the state utilities commission to determine appropriate targets (if any) for each utility to procure cost-effective electricity storage systems State regulation of storage is also expected to evolve Smart Grid: A 360o View of Battery Storage
16. Storage in Southern Company’s Smart Grid Vision A Facilitating Resource Smart Grid: A 360o View of Battery Storage
17. Energy Storage Applications Grid Support Generation Ancillary Services T&D Capital Deferral Renewable Integration Peak Shaving Arbitrage Volt/VAR Support Approach: Stack benefits to maximize value Customer End Use Smart Grid: A 360o View of Battery Storage
33. Energy Storage Demonstrations Evaluating 10 GreenSmith Li-Ion battery storage systems rated 6kW and 24kWh each Transportable 500kW - 2.8MWh Premium Power Zn-Br Flow Battery Smart Grid: A 360o View of Battery Storage
34. Sr. Transmission and Distribution Systems Engineer, GE Energy ken.caird@ge.com Ken Caird
43. Controlled charging can be timed to periods of greatest variable DER output, while charging rates can be controlled to provide contingency reserves or frequency regulation reserves
44. Distributed storage: EVs can partially discharge stored energy into the SmartGridCAES: Large scale grid storage, air “battery” can compensate for RE intermittency
45. Storage Applications & Technologies Comparison Energy storage applications and technologies Source: Electricity Storage Association, April 2010
47. Sr. Director, Business Development, GS Battery (USA) vincep@gsbattery.com Vincent Pusateri PV WITH STORAGE TO COMMERCIAL APPLICATIONS
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49. (3) 5kW Power Conditioning Systems with PV and battery inputs
50. (2) of the PCS units have (32) SLC70-4 batteries connected at their input for a total of 20.48kWh of storageAlbuquerque, NM Demonstrated Storage Benefits: TOU Energy Cost Management Renewable Energy Time-Shift Smart Grid: A 360o View of Battery Storage
51. Mesa del Sol Data Collection Sample Recorded Data Smart Grid: A 360o View of Battery Storage
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53. Under the current setup, the batteries are charged ONLY from PV so all energy returned to the grid is renewable energy.
54. The estimated PV production for the entire year will be approximately 27MWh. This is worth approximately $3,780 per year. The system is also set up for TOU Energy Cost Management. This is accomplished by shifting the stored renewable energy in the battery to coincide with the utility TOU On-peak time period. This is worth approximately $2,066 (See table below). Together, both these benefits are worth approximately $5,850 per year.Smart Grid: A 360o View of Battery Storage
62. GS Battery Data Collection GSB Battery Storage System Recorded Data for typical day Smart Grid: A 360o View of Battery Storage
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64. The estimated PV production for the entire year will be approximately 50MWh. This is worth approximately $8,500 per year.
65. PV/Battery system cost after federal and state grants/tax incentives was around $116,000 so the payback will be approximately 13 years.Smart Grid: A 360o View of Battery Storage
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67. GSB switched to “TOU-EO-5” electric service tariff which is summarized below along with other example rates:Smart Grid: A 360o View of Battery Storage * 12 years is based on rated 1500 cycles @ 50% DOD [batteries used 4 months (122 days) per year]
69. Battery STORAGE BENEFIT Smart Grid Utility: Improved grid reliability with stacked cumulative values , reduce CO2,Deferred Spending for Generation and T&D Customer: TOU Economics, UPS for critical loads Green Social Value The economic payback model varies by Storage location, TOU Utility rates and battery life and cost of the power system Smart Grid: A 360o View of Battery Storage
70. Battery STORAGE BENEFIT Smart Grid Charging batteries off grid with PV is most cost efficient today but TOU rates changes are needed Storage Enhances SMART GRID Communication Reliability Utility + = Customer Smart Grid: A 360o View of Battery Storage
