Energy when it is Needed, John Frederick

Energy when it’s needed

Energy when it is Needed

John FrederickSenior Vice President


Energy Quiz

When is wind production the highest?

Question:

70% of wind production happens at night

Answer:


Energy Quiz

When is solar production the highest?

Question:

80% of all solar production happens between 9am and 2pm

Answer:

Peak SolarProduction


Energy Quiz

When do electric utilities experience peak daily demand?

Question:

Peak electrical demand typically occurs between 4pm and 7pm

Answer:

Peak SolarProduction

UtilityPeak Demand


Energy Quiz

How many states have passed Renewable Portfolio Standard Laws?

Final Question:


Energy Quiz

Answer:


Utility Scale Energy Storage Technologies

• Despite recent advances in “Utility Scale” storage technology, all current technologies cost between $1,000 and $2,500 per KWh*

• Distributed, utility controlled, customer sited energy storage can be below $1000 per KWh

*$1,000 and $2,500 per KWh includes all balance of system components (i.e. power electrics, switch gear, etc)


Distributed Storage Value Curve


0

500

1000

1500

2000

Distribution Capital Deferral(site dependent)

Firming & Shifting Renewables(source dependent)

Improved Service Reliability(site dependent)

Dynamic VAR Support

Generation Capacity

Frequency Regulation and other Ancillary Values

(large variability)

Energy Arbitrage

~850

~650

~250

~150

~500

~450

~150

Distribution Value

Generation Value

Value of Storage for Utilities

NPV$/kW


Community Energy Storage Value Streams

Energy Storage for the Electricity Grid: Benefits and Market Analysis GuideJim Eyer and Garth Corey

CES provides many valuestreams versus bulk storage


time

Demand kWh

Typical Residential Household Using 40 kWh per day“On Peak” Period From 2pm to 8pm

Silent Power stores the excess Solar PV for use during the “On Peak” period

Solar Peak Shifting…


Residential Energy Storage Value Streams

RES provides even morevalue streams

Energy Storage for the Electricity Grid: Benefits and Market Analysis GuideJim Eyer and Garth Corey


Substation Storage vs CES vs RES Analysis

Features Substation CES RES

Reliable Backup Power to end customers (closer) No Limited Yes

Effective in providing Voltage Support No Yes Yes

Likely to be standardized commodity (low cost) No Yes Yes

Ability to shift end customer renewable sources No Limited Yes

Synergy with Electric Vehicle batteries (competition) No Yes Yes

Easier installation and maintenance (120 / 240 V) No Yes Yes

Unit outage less critical to the grid (smaller) No Yes Yes

Lower resistive loss in distribution (close to customer) No Yes Yes

Good fit into Micro Grid / Smart Grid architectures No Yes Yes


Cost Advantages of RES vs CESRES is being installed as part of new Solar PV installations

Features CES RES

Site Engineering 100 % Paid by Utility Part of Solar PV install

Installation Costs 100 % Paid by Utility Part of Solar PV install

Customer Acceptance NIMBY, low Opt in

Communication Costs 100 % Paid by Utility End customer broadband

Balance of system and inverter reuse

None Reuses solar inverter and components

30% Federal Investment Tax Credit Applicability

None 100%

Volume to drive down cost 1,000(s) 10,000(s)


CES Challenges

• Shown here is the transformer at John Frederick’s home

• John does not want his nice new landscaping disrupted with a CES device

• John’s neighbor has a huge swimming pool that will consume all the CES backup energy when it is engaged

• Integrating renewables at his location would be a challenge

• Utility bears 100% of the cost for the CES device plus installation


OnDemand Energy Appliance….Features


Economics for Residential Energy Storage

Silent PowerOnDemand

Energy Appliancewith 10 KWh of battery storage

• Incremental cost to add storage to standard Solar PV system is $14,000

• 30% federal investment tax credit applies to $14,000 incremental cost

• Net cost of 10 kWh of storage is $9,800 ($980 / KWh)

Lithium Ion battery example


Silent PowerOnDemand

Energy Appliancewith 10 KWh of battery storage

• Backup power system for critical circuits- UPS switchover times

• Continued solar production during grid outage

• Improved solar system ROI - TOU/Feed-in tariff adoption

Consumer Benefits for Residential Energy Storage

Residential Standby Power Facts


• 2.3 % of the 73 million single family households in the United States have standby power*

― Predominately in the top 50% of income households

• The average installed cost of a residential standby generators is $6000-$7000

• Over 31 million people lost power in 2008 according to Generac

• Power outages cost homeowners $1.5 billion dollars each year**

• Causes of Outages

*Source: NPD 2008 Generator Owner Study

**Source: Propane Education & Research Council


Value of Storage for End Users

Time ofUse Pricing

Summer Months

Winter Months Summer Rates Winter Rates

Annual Arbitrage Savings

Peak Off Peak Peak Off Peak Arizona Public Service 0.5 0.5 $0.28 $0.07 $0.23 $0.07 $242.06 Pacific Gas & Electric 0.5 0.5 $0.29 $0.08 $0.10 $0.09 $142.92 Public Serice New Mexico 0.25 0.75 $0.17 $0.06 $0.14 $0.06 $118.95 Jackson Electric 1 0 $0.33 $0.06 N/A N/A $352.30 Southern California Edison 0.33 0.67 $0.34 $0.10 $0.14 $0.09 $143.10

Time Of Use Pricing Examples

• There is some value associated with end user energy arbitrage – anywhere from $118 to $352 per year using current rates– this could easily go to $400 to $800 per year

• The real value for home owner is backup power


Market Potential for adding Storage to Residential Solar PV

• Adding a small amount of storage to every new residential solar install would have a big impact

• Average Solar PV installation 4.7 kW

• Average storage attached to each Solar PV installation is 10 kWh

• Starting today (2010), adding storage to every new solar home would equal 5.5 GW through 2015

New

Sol

ar P

V In

stal

ls

Meg

awatt

s of

Sto

rage

US Residential Solar PV Forecast


Market Potential for adding Storage to Commercial Solar PV

• Adding a small amount of storage to every new commercial solar install would have a big impact

• Average Commercial Solar PV installation 50 kW

• Average storage attached to each Solar PV installation is 50kWh

• Starting today (2010), adding storage to every new solar business would equal 6.14 GW through 2015

US Commercial Solar PV Forecast

New

Sol

ar P

V In

stal

ls

Meg

awatt

s of

Sto

rage


MWh

Number of Customers

150

100150

200

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

0.01 MWh

.5 MWh

1.0 MWh

1.5 MWh

2 Mega Watt Hours!

200 Residential Energy Storage customers equals a 2 megawatt virtual power plant

Communication & Aggregation


Residential Energy Storage Pilots


SMUD Distributed Storage Project

• SMUD believes that bulk and distributed storage will be needed in the long run

• SMUD will be piloting both RES and CES— 3 CES devices— 15 RES devices

• Other Project participants include GridPoint, Navigant Consulting, Sunpower, and Saft

• Silent Power is working with SMUD on economics for full scale deployment


Summary

• Residential Energy Storage should be part of every utility’s energy storage portfolio

• Residential Energy Storage provides the maximum number of values streams for both the utility and end user. Highest societal benefit.

• Residential Energy Storage is the lowest cost form of utility energy storage


Thanks for your time

John Frederick

[email protected]

Date post:	23-Jun-2015
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Energy when it is Needed, John Frederick

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