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Energy Storage in the Grid Workshop Panel 1: Value and Benefits of Grid Energy Storage

For the Definition of National Priorities for Research Technological Development and Human Resources Training for the MexicanEnergy Sector

November 14, 2017

Janice Lin

Founder and CEO, Strategen

Co Founder & Executive Director, California Energy Storage Alliance (CESA)

Co Founder & Chair, Global Energy Storage Alliance (GESA)

Co Founder & Chair, Energy Storage North America

Introduction

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Strategen Consulting (www.strategen.com) provides insight to global corporations, utilities and public sector leaders,helping them to develop impactful and sustainable clean energy strategies

The California Energy Storage Alliance (CESA) (www.storagealliance.org) is a 501c(6) membership-based advocacygroup committed to advancing the role of energy storage in the electric power sector through policy, education,outreach, and research.

The Global Energy Storage Alliance (GESA)(www.globalesa.org) is a 501(c)3 non-profit organization founded in 2014whose mission is to advance education, collaboration, knowledge and proven frameworks about the benefits of energystorage and how it can be used to achieve a more efficient, cleaner, reliable, affordable and secure electric powersystem globally.

Energy Storage North America (ESNA) (www.esnaexpo.com) is the largest gathering of policy, technology and marketleaders in grid-connected energy storage. Join 2,000+ market leaders from over 26 countries at ESNA 2018: November6-8, 2018 in Pasadena California.

Focus of today: How to build flexibility into market design

Future Energy Grid: Clean, Renewable, Highly Flexible

The First and Second Long-Term Auction will

contribute to Mexico’s clean energy generation by

1.9% and 3% starting in 2018 and 2019,

respectively.

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Renewables have surpassed coal last

year to become the largest source of

installed power capacity in the world.

With the Third Long-Term

Auction it will be possible to

achieve the established goal

for 2024

Mexican law establishes clean power generation targets

Source: President Alcocer’spresentation at ESNA 2017.

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Source: IRENA, 2017

Evolution of average solar prices in auctions, January 2010- September 2016

2030 CA Grid Operations with Renewables: Spring

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Today: Net load is met by Flexible Gas, Baseload Gas, Nuclear, Geothermal, Imports/Exports, and Curtailments

Source: CAISO OASIS data (2016) Source: CAISO OASIS data (2016), 2030 IRP Proposed Reference System Plan Scenario

2030: Net load will need to be met by a combination of Flexible Resources, Imports/Exports, and Curtailment

Energy storage is the ultimate flexibility tool for the grid!

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More Flexible Thermal and Renewable

Generation with Energy Storage

Standalone

Energy Storage

Customer Participation and DR with Energy Storage

Economic Curtailment

Regionalization

Opportunities

• Flexible capacity in addition to annual

capacity product

• Value ramping speed and low

Pmin

• Value ‘negative generation’

contributions (charging)

• Short duration products to manage

uncertainty in forecast

• Frequency response

• Aggregation

• Multi use value stacking

Energy Storage: the Ultimate Flexibility Tool

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Electro-Chemical Mechanical Bulk Mechanical

Thermal Bulk Gravitational Transportation

Energy storage: perfect tool to address ramping

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Abundant renewable energy is transforming California’s net load shape throughout the year

CAISO Net Load Curve

California’s 2017 ‘duck belly’ is ahead of schedule and frequently reached below

estimated 2020 levels during YTD 2017

(Lowest so far: 8,453 MW)

CAISO Monthly 3-Hour Upward Ramps 2016-2020

Source: CAISO (2013) Source: CAISO (2017)

Much more flexible ramping needed for CA’s 50% RPS

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Source: CAISO OASIS data (2016) Source: CAISO OASIS data (2016), 2030 IRP Proposed Reference System Plan Scenario

By 2030 expected 1 hour and 3 hour ramps will be significantly larger

Same

Scale

Energy storage can provide fast ramping short duration services to effectively deal with forecast error

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Source: CAISO Flexible Resource Adequacy Criteria and Must Offer Obligation Working Group Meeting 9/26/17

Energy storage is ideally suited for primary frequency response (PFR)

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• Efficient provider: ≈ 100% of any MW of storage capacity can provide PFR

• Autonomous, instantaneous response & contribution

• Most storage has sufficient energy, e.g. ≥ 15 min., for PFR service

• Storage can be programmed for any desired PFR responses

• Fully configurable: rate of response, time-delay, deadband

• Bi-directional if required (under and over freq. support)

Source: https://www.neces.com/assets/CIGRE-Frequency-Response-from-

Autonomous-Storage-Units1.pdf

Aggregation and Value StackingGamechangers video: SCE LCR procurement example

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Play Gamechangers video

Hybrid Energy Storage – Peaker Integration

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GE’s LM6000 Hybrid EGT

Battery Storage (10 MW) & Gas Turbine

Hybrid

• ES allows the turbine to operate in

standby mode without using fuel.

• Enable immediate response to

changing energy dispatch needs.

• Reduce natural gas consumption and

emissions

Source: https://www.gepower.com/services/gas-turbines/upgrades/hybrid-egt

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November 6-8, 2018 Pasadena, California

Join us at ESNA 2018 (www.esnaexpo.com)

“In storage, I don't see other forums like ESNA. This is the only one I have identified, and I think by

the presence of all of these important stakeholders and authorities, it is the leader in this regard.”

- Guillermo García Alcocer, President Commissioner, Mexico's Energy Regulatory Commission (CRE)

Thank You!

Questions?

jlin@strategen.com

Cell: 415-595-8301

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Janice Lin

Founder and CEO

Energy Storage - NEER

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20-MW Lee/DeKalb Battery

Energy Storage System.

• 170,000 cells in nearly 3,000

batteries.

• The facility stores energy from

the power grid in the batteries

and dispatches the stored

energy when required by the

operator of the electric grid.

Source: NextEra Energy. http://www.nexteraenergyresources.com/what/energy-storage.shtml

Energy Storage - Tesla

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Tesla Powerpack

• 13 50kW continuous

• 100kWh

• 4765lbs total

• offer commercial consumers

and energy providers greater

control, efficiency and reliability

across the electric grid.

Source: Tesla https://www.tesla.com/powerpack

Energy Storage – ESNA Innovation Awards (Distributed)

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Axiom Exergy refrigeration battery pilot• world’s first thermal energy storage solution

• designed to integrate with central refrigeration

systems and provide behind-the-meter energy

storage services

Sterling Municipal Light District energy storage

project• 2 MW, 3.9MWh GSS® grid ES system

• Benefits: energy arbitrage, frequency regulation,

reduction in monthly network load, reduction in capacity

payments to ISO-NE, and grid resiliency.

Source: http://www.axiomexergy.com/ Source: http://www.energysterling.com/batterystorage.asp

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Marcus Garvey Village (Demand Energy)

Solar + storage + fuel cell microgrid• 1.2 MWh

• Optimized in a multi-dwelling environment

• In affordable housing project. Contribute to energy equity.

Pena Station Next

Solar + storage microgrid• 1.6 MWdc carport solar PV

• 259 kWdc rooftop solar PV

• 1 MW / 2 MWh battery energy storage system (BESS)

Energy Storage – ESNA Innovation Awards (Distributed)

Source: http://demand-energy.com/wp-content/uploads/2017/04/Marcus-

Garvey-Fact-Sheet-Final-LowRes.pdfSource: http://www.penastationnext.com/pan-clean-energy.html

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Energy Storage – ESNA Innovation Awards (Centralized)

SDG&E Expedited energy storage project• Largest lithium-ion battery in the world

• 37.5 MW and 150 MWh

• Four separate distribution feeders

• Ability to shift peak demand using cheap, off-peak electricity

Aliso Canyon: Altagas Pomona energy storage• provides 20 MW, 80 MWh of energy capacity

• lithium-ion batteries

• completed in less than four months

Source: http://sdgenews.com/battery-storage/sdge-unveils-

world%E2%80%99s-largest-lithium-ion-battery-storage-facilitySource: https://www.altagas.ca/our-infrastructure/operations/pomona-

energy-storage

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Energy Storage – ESNA Innovation Awards (Centralized)

Southern California Edison hybrid enhanced gas

turbine (GE)• 10 MW of lithium-ion batteries sited with a gas turbine

• Storage adds value to multiple generation assets

• More efficient operation using additional services like

spinning reserve

Imperial irrigation District ES system• 30MW/20MWh Battery Energy Storage System(I-BESS)

• 60MWs of bi-directional fast flexible regulation

• 30MWs of spinning reserve capability

• Enabeled IID operators to shut down gas fired generation

operating at minimum power

Source: https://www.gepower.com/services/gas-turbines/upgrades/hybrid-egt Source: http://www.iid.com/energy/renewable-energy/current-projects/battery-

energy-storage-system