Battery Storage ProjectsUW Energy & Environment Seminar

November 13, 2014

Patrick Leslie, Emerging Technologies

2

Service Territory

3

Generation Capacity (MW)

677

828

823

1,618

996

1,256

612

Simple Cycle CT

Combined Cycle CT

Hydro

Short-Term Import

Wind

Long Term Contracts

Coal

4

Energy Supply (MWh)

5

Resources cover 16 Washington counties and 2 states

6

A century of hydro power

7

Electron

8

Baker Fish Hatchery

9

Lower Baker Fish Collector

10

Mint Farm Combined-Cycle Combustion Turbine

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Wind power

12

Wild Horse Solar Project

13

PSE’s Battery Storage Projects

PRIMUS PROJECT GLACIER PROJECT

Size 0.5 MW / 1.0 MWh 2.0 MW / 4.4 MWh

Tech Zinc-Bromine Flow Battery Lithium-Ion Battery

Location To be annoucned Glacier, WA (remote community)

Est. COD Q2 2015 Q4 2015

Purpose Substation peak shaving, peaking

capacity, ancillary services, outage

mitigation

Outage mitigation, peaking capacity, ancillary

services.

Partners BPA, Primus Power, PNNL, 1Energy

Systems, U.S. Dept. of Energy

WA Dept. of Commerce, RES Americas,

1Energy Systems, PNNL, U.S. Dept. of Energy

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Storage projects are scaling-up*

AES Laurel Mountain

Capacity: +32/-32 MW

Energy: 7.5 MWh

COD: 2011 Q4

Location: W. Virginia

Use: Frequency

Regulation

Duke Notrees

Capacity: +36/-36 MW

Energy: 24 MWh

COD: 2012 Q4

Location: Texas

Use: Frequency

Regulation

*for certain

applications

15

Storage projects are scaling-up*

BYD - Shenzen

Power: +20/-20 MW

Energy: 40 MWh

COD: 2014

Location: China

Uses:

• Frequency regulation

• Peak shaving

• Arbitrage

Golden Valley Electric

Power: +40/-40 MW

Energy: 10 MWh

COD: 2003

Location: Ohio

Uses:

• Spinning reserve

• Load following/AGC

• VAR support

*for certain

applications

16

Future projects could be even larger

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• Example 50 MW / 200 MWh lithium-ion configuration

• Footprint is ~two acres of occupied land. Total land requirement

depends on setback requirements.

• Overnight indicative capex = ~$50 million per 50MW / 200MWh block

17

Behind-the-meter storage is emerging

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10 MW+ in development;

500+ interconnection requests in CA.

15 MW+ development

pipeline

Storage systems shave peaks, reduce demand charges, shave TOU rate

blocks, and provide backup power. Installed under lease or PPA terms.

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Tesla ‘Gigafactory’

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Lithium-ion manufacturing ramping up, 80% cost

reduction in last five years.

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We are

here

ACTUAL FORECAST

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Total System Cost – More than Just Batteries

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Room for cost reduction in grid-scale storage

Glacier Project Tesla Model S

Price $8,800,000 $79,000

Battery Size 4,400 kWh 85 kWh

Cost / kWh $2,000 $929

One-off projects Organized for scale

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PNNL Phase 1 Report

November 18, 2014 23

Energy Storage Applications

November 18, 201424

Num. Application Value Derived from Energy Storage

CapacityValue based on incremental cost of peaker; alternative method based on avoided incremental cost of firm transmission from Mid-C

Distribution UpgradeDeferral

Deferred costs of proposed distribution upgrades

Outage MitigationReduced outages to end-use customers assuming no foreknowledge and perfect foreknowledge

Balancing ServicesAURORA and a PSE internal mixed integer linear programming (MILP) model used to determine the inc.and dec. balancing service price

ArbitrageAURORA model used to determine energy price differentials (peak vs. off-peak) minus efficiency losses

1

2

3

4

5

25

Local Peak Shaving

• Battery is used to reduce periods of peak demand on substation.

• Battery is filled back up during periods of low demand.

25.00

30.00

35.00

40.00

45.00

50.00

55.00

Example Battery Impact on Murden + Winslow Load - February 6, 2014

With Battery

Status Quo

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System-Wide Peak Shaving

• Battery can be dispatched like a power plant to supply power to

the grid during periods of high demand.

• Example:

0

1000

2000

3000

4000

5000

6000

0 5 10 15 20

De

man

d (

MW

)

Hour

System Wide Demand - Dec. 10, 2009

Battery Discharge

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‘Balancing’

• Battery can be used to fill the minute-to-minute gaps between

supply and demand.

0

1000

2000

3000

4000

5000

6000

0 5 10 15 20

De

man

d (

MW

)

Hour

System Wide Demand - Dec. 10, 2009

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Backup Power

• PSE may test the capability of the battery to provide limited

backup power to the Island Church during extended outages.

• Given the small size of this project, it cannot provide large

amounts of backup power.

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How does it hook up? 624205-158359

225 kVA

3-ph

Island Church

624117-158322

15 kVA

B-ph

MUR-16

100T

17-1053

624146-158333

25 kVA

B-ph

Sp

ort

sm

an

Clu

b R

d N

E

16

battery

3-p

h, 1/0

Al

RJ

Proposed

Existing

N

Point of

Interconnection

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Interconnection Detail

Results Summary – Bainbridge Island(NPV benefits and revenue requirements over

20-year time horizon)

November 18, 2014 31

Random Outages – Mid-C Capacity

Value

Projected Outages – Mid-C Capacity

Value

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Primus Power – Original Layout

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Rev 1

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Rev 2

35IRP Advisory Group | 9/25/2014

Glacier Project

1) Battery System• Size 2.0MW / 4.4MWh

• Technology: BYD Lithium-ion

• Site: Glacier, WA

• Cost: $9.8 million

• Est. COD: Q3 2015

Primary Goals:• Enhance service reliability (outage mitigation)

• Demonstrate provision of peaking capacity and balancing resources/ancillary services.

• Automatically dispatch the system using advanced software and IT

2) Support MESA (Modular Energy Storage Architecture) • Utilize MESA standards to connect ESS to SCADA, EMS, & other grid control

systems

• Advance and publish MESA interfaces via standards organizations:

• IEEE 2030.2 Energy Storage Working Group

• IEC TC-120 Electric Energy Storage technical committee

Seattle Bellevue

Similar 4MW/2MWh BYD system; Ontario, Canada

36IRP Advisory Group | 9/25/2014

Glacier Project

Issue: Frequent

transmission-line outages

due to vegetation.

Solution: Locate ESS near

Glacier substation to provide

backup power to GLA-12.

Phase 1:

Use storage system to

provide backup power to the

“downtown” area for

businesses.

Phase 2:

Attempt to develop a full

microgrid with the storage

system and Nooksack Hydro

(highly complex).

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Glacier Distribution System

38IRP Advisory Group | 9/25/2014

Glacier Draft Layout (2.0MW / 4.4MWh)

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• Value Analysis - GlacierUse Case Value Methodology % of Value

System

Peaking

Capacity

Avoided levelized annual incremental cost

of a new gas-fired SCCT40%

System

Flexibility

Avoided cost for providing balancing

reserves with hydro and out-of-merit SCCT

dispatch

39%

Outage

Mitigation

Financial value placed cost of outages to

customers (used for prioritizing T&D

projects)

20%

Conclusions: • Glacier project is cost-effective with grant funding. • Cost must reduce by roughly 40% for unsubsidized cost-effectiveness.

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“MESA” Modular Energy Storage Architecture

Standards are required for any

technology to be deployed at scale.

MESA: an open, non-proprietary

standard developed by utilities and

suppliers.

MESA accelerates interoperability,

scalability, safety, and affordability.

Standard connections between

components frees utilities and vendors

to focus on delivering cost-effective

systems.