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Grid Storage Solution - th.nec.comˆ’ Frequency can fluctuate due to mismatches between generation...

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THE NEED FOR FREQUENCY REGULATION Electric power grids must maintain frequency at 60Hz or risk a blackout Frequency can fluctuate due to mismatches between generation and load, or disturbances in generation, load, or transmission infrastructure Frequency Regulation resources stabilize the grid’s frequency in the minutes time scale Ramp up and down in response to a balancing authority’s control signal (e.g. the Automatic Generator Control (AGC) signal from ISO/RTO in US deregulated markets) Generation assets can provide Frequency Regulation but typically are unable to respond instantaneously or match the control signal exactly APPLICATION: Frequency Regulation (US) GSS Grid Storage Solution Load without Frequency Regulation Load with Frequency Regulation Load > Generation (Regulate Up) Load < Generation (Regulate Down) (MW) Time Regulation Up Capacity Regulation Down Capacity 0 = Regulation Base Point MW MW Regulation Up Capacity Regulation Down Capacity If Demand > Supply Reg Up If Demand < Supply Reg Down Regulation Base Point (Energy market sale) TRADITIONAL GENERATOR ENERGY STORAGE GSS Generator Power Output Time GSS is capable of much faster response times (in milliseconds) and power output ramp rates than traditional generators. THE VALUE PROPOSITION In certain regions, higher performing resources will earn more for Frequency Regulation services than lower performing resources FERC Order 755 in the US provides performance payments for faster, more accurate, and higher MW- mileage resources THE ROLE OF ENERGY STORAGE A battery energy storage system can more effectively provide frequency regulation than traditional generation assets. The NEC Energy Solutions GSS has been successfully providing high performance frequency regulation in the United States’ PJM region since 2011 Full utilization of an energy storage system’s dynamic power range (charge and discharge) can effectively double utilization of its interconnect
Transcript

THE NEED FOR FREQUENCY REGULATION

�� Electric power grids must maintain frequency at 60Hz or risk a blackout

− Frequency can fluctuate due to mismatches between generation and load, or disturbances in generation, load, or transmission infrastructure

�� Frequency Regulation resources stabilize the grid’s frequency in the minutes time scale

− Ramp up and down in response to a balancing authority’s control signal (e.g. the Automatic Generator Control (AGC) signal from ISO/RTO in US deregulated markets)

�� Generation assets can provide Frequency Regulation but typically are unable to respond instantaneously or match the control signal exactly

application:

Frequency Regulation (US) GSS™

Grid Storage Solution

Load withoutFrequency Regulation

Load withFrequency Regulation

Load > Generation(Regulate Up)

Load < Generation(Regulate Down)

(MW

)

Time

Regulation Up Capacity

Regulation Down Capacity

0 = RegulationBase Point

MWMWRegulation Up Capacity

Regulation Down Capacity

If Demand > Supply Reg UpIf Demand < Supply Reg Down Regulation Base Point

(Energy market sale)

TRADITIONAL GENERATOR ENERGY STORAGE

GSS™

Generator

Pow

er O

utp

ut

Time

GSS™ is capable of much faster response times (in milliseconds) and power output ramp rates than traditional generators.

THE VALUE PROPOSITION

�� In certain regions, higher performing resources will earn more for Frequency Regulation services than lower performing resources

− FERC Order 755 in the US provides performance payments for faster, more accurate, and higher MW-mileage resources

THE ROLE OF ENERGY STORAGE

�� A battery energy storage system can more effectively provide frequency regulation than traditional generation assets.

− The NEC Energy Solutions GSS™ has been successfully providing high performance frequency regulation in the United States’ PJM region since 2011

Full utilization of an energy storage system’s dynamic power range (charge and discharge) can effectively double utilization of its interconnect

�� In 2011, a 32MW, 8MWh GSS™ was installed at a wind farm on Laurel Mountain in West Virginia (between Bellington and Elkins) to provide frequency regulation services

�� In 2013, a 20MW, 5MWh GSS™ was transplanted from upstate New York to Ohio to participate in the PJM frequency regulation market as well

�� Both sites have been providing frequency regulation in commercial revenue service at over 98% availability

�� These two sites represent two of the largest battery-based grid energy storage facilities in the US connected to the grid in commercial service

�� Since implementation of FERC Order 755 in PJM, high performance resources like the GSS™ are able to earn bonus payments, boosting their overall revenue generating potential

− Unlike the old PJM frequency regulation market, the new market uses two separate payment types - one for Capability and one for Performance. The Performance payment is multiplied by the additional amount of power ramping fast resources achieve compared to slower traditional ones, resulting in a bonus Mileage payment.

case study:

PJM* (United States)

*PJM is a regional transmission organization (RTO) in the United States that coordinates the movement of wholesale electricity in all or parts of 13 States and the District of Columbia.

0

20

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60

80

100

Jan-

2012

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Ap

r

May

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Oct

-201

2

Nov

Dec

Jan-

2013

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Ap

r

May

Jun

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2014

Feb

Mar

Ap

r

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$/M

W p

er h

our

Month

Mileage Payment

Performance Payment

Capability Payment

Oct 2011 – Sep 2012

$14.61/MW-hr

Prior to Pay forPerformance

Pay for PerformanceImplemented

Oct 2012 – Jun 2014

$48.71/MW-hr

Old Payment

NEC Energy Solutions, Inc.155 Flanders Road Westborough, MA 01581 (508) 497-7319 www.neces.com© 2014 NEC Energy Solutions, Inc. All rights reserved. MD100130-002 1

PJM Monthly Average Regulation PricesEffect of Pay for Performance (FERC Order 755) since October 2012

High performance frequency regulation resources like the GSS™ are earning over 3x more than in previous markets.

Price Multiple3.4x


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