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Policy and regulations governing BESS for grid support applications USAID Battery Energy Storage System (BESS) Training Program November 28 th , 2018
Policy and regulations governing BESS for grid supportapplications
USAID Battery Energy Storage System (BESS) Training ProgramNovember 28th, 2018
Fluence is the global leader in energy storage
16 Countries
600 MW
10+ Years
68 Projects
Created and backed by two industry powerhouses
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Transform the way we power our world to create a more sustainable future
Our Mission
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2017
805.6TOTAL MW
Storage adoption is accelerating across the US
Source: GTM ResearchFront of meter battery or flywheel energy storage installations, cumulative
2008 2013
TOTAL MW TOTAL MW
224.038.7
2018 YTD
• CA: 567.5 MW procured by PG&E
• Nevada: 100 MW procured (solar + storage) by NV Energy
• Arizona: 50 MW (solar + storage) procured by APS; 25 MW by SRP
• Hawaii: 14 MW (solar + storage) procured by KIUC
• … and several other projects that were announced
Storage growth is expected to continue
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Source: DOE database
2014: 80 projects;108 MW Commissioned
2011: 38 projects;66 MW Commissioned
2015: 77 projects; 350 MW Commissioned • Broad market acceptance
• Winners are consolidating market• Growth of new applications• > 5 GW/year installations*
FLUENCE VIEW: Growth will be higher than average expectation; more upside opportunity than downside potential
Market expectation:CAGR of 10-30%
Introduction Strong Growth Growth
2007 20232018* Not including residential
Storage applications continue to expand
0
100
200
300
400
500
600
700
800
900
1000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$/kW
hSteep battery price decline enables more applications in more markets to be deployed economically
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Frequency regulation Microgrid & Islands
Critical Power Energy Cost Control
Generation Enhancement
Capacity Peak Power
Renewable Integration T&D Enhancement
0.5 – 1h Up to 4h
Up to 1h Up to 4h
Up to 1h Up to 6h
Up to 4h Up to 4h
8
6
4
21
3
5
7
Cost development: Energy Storage Energy storage market applications
Battery Cell Price, 2010-2025 ($/kWh)Average market view
30 MW of energy storage for San Diego Gas & Electric, California, United States
Largest energy storage project in North America• 30 MW / 120 MWh• Contract to online in 6 months • Sited on 1 acre, where a power plant could not be permitted
BATTERY CABINET
BATTERY MODULES
What is energy storage? Large-scale batteries for industrial applications.Modular, scalable arrays of proven technologies integrated at utility and industrial scale.
BATTERY PACKS
BATTERY CELLS
Power Control Electronics Low voltage and medium voltage components
HVAC
Fire detection and extinguishing system
Battery cabinets and battery management system
Intelligence: Array Controls & Application Software
Connection:Electrical & Other Balance of Plant
Energy storage allows grid operators to serve grid peaks with renewable energy
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CEA – 2018 National Electricity Plan Highlights the Ramping ConcernIn addition to ancillary services, storage provides the best form of flexible peaking capacity that the Indian Market needs.
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57 GW ramp in 6 hours
http://www.cea.nic.in/reports/committee/nep/nep_jan_2018.pdf
Storage is “always on” to provide multiple servicesNet charging profile:
Services profile:
Charging Discharging Charging Discharging Charging
Regulation Ramp support / on-peak energy
RegulationRegulation / on-peak energy
Regulation
COMPOSITE DISPATCH PROFILE:
100 MW storage array for load following / ramping
100 MW frequency regulation except HE18-20
Key Results from CEA Analysis Indicate Extent of Flexible Capacity NeedStorage as a flexible capacity resource can replace pumped hydro which takes several years to develop
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http://www.cea.nic.in/reports/committee/nep/nep_jan_2018.pdf
46 GW of peaking capacity required by
2027
Utilities are expanding to new applications and scaling up projects
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RENEWABLE INTEGRATIONSOLAR + STORAGE PEAKING CAPACITY
Announced a65 MW solar + 50 MW storage 15 year PPA
BEGIN SERVICE IN 2021
DISTRIBUTION SYSTEM RELIABILITYMcMicken2 MW / 2 MWh
2017 2018
DISTRIBUTION SYSTEM RELIABILITYFestival Ranch 2 MW / 2 MWh
T&D DEFERRALPunkin Center2 MW / 8 MWh
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Transmission Enhancement / Trading
AusNet / Energy Australia Ballarat, VIC, Australia , 30 MW / 30 MWh(Under Construction)SERVICES• Local Capacity• Peak/Off-peak Management• FCAS/ Ancillary Services
IMPACT• Competitive selection • Maximizes transmission• Strengthens Network
World’s largest contracted energy storage project
Peaking capacity
Southern California EdisonLong Beach, California, United States100 MW / 400 MWh
SERVICES• Local capacity• Peak/Off-peak management• Ramping/ Ancillary Services
IMPACT• Competitive selection over thermal gas
peaker• Maximizes transmission• Meets emission targets
Paving the way forward
Include all benefits of storage in
modeling and evaluation
Planning and Procurement are Two Key Pillars
Energy storage key takeaways
A. Cost effective– Energy storage is already more economic than
traditional assets in different applications
B. Bankable– Technology is proven– Large energy storage projects have already
been financed under 20-year PPAs
C. Systems operate autonomously– Built with standard electrical equipment found at
most power plants– Typical power plant O&M job scope
D. Regulatory environment is evolving across the globe– Growing number of markets are including energy
storage in grid planning
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Way forward in new markets
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1. Stop and check before building:– Pumped Hydro or Peaking Gas: Is
storage or RE + Storage cheaper?
2. To fit energy storage into existing planning (resource planning, T&D)
3. High-level targets drive economic adoption (NESM)
