Overview of Value Proposition fo by pengxiuhui


									       Energy Storage, The
       Key Enabler for the
       Future Smarter Grid

       Dale Bradshaw
      CEO Electrivation
    Why is Energy Storage Critical to
          Improving Affordability and
                       Reliability and make wind
    Shift wind and solar to meet the peak
    and solar dispatchable.
•   Provide demand reduction or avoid need for new
•   Buy low cost electricity at night and run during high cost
    daily peaks
•   Provide for fast (<4 cycle) backup power for hours to
    improve system reliability
•   Delay or avoid the need to build new transmission or
    distribution lines in high cost areas
•   Provide frequency regulation and spinning reserve
•   Reduce carbon emissions
•   Reduce consumption of oil and natural gas
Typical Wind Farm Output
Month    Pattern

Battery Energy Storage Systems
         History Review

             Golden Valley Electric Association
             NiCad – 27 MW BESS for 15
             minutes for reliability
             improvement (3 to 82 outages
             covered each year)
             Advanced Battery
• Long Life (defined by number of charge and discharge
  cycles is needed)
   – Cycle lifetime of 5,000 to 10,000 cycle is now possible
   – Charging and discharging daily implies 300 or more
     cycles a year, 9,000 cycles in 30 years
• Costs have decreased by 30% to 50%
   – $2,000/kW now for 7 hours of storage instead of
• Large battery complexes are being built in >1 Mw sizes
• Acceptable efficiency of 70% or more
           Lithium Ion (Li-ion) Battery
      Attribute                   Rating
                                                     AltairNano Li Ti 1 MW for 15
                                                     minutes at 750 to 1050 V
Capital cost             Poor - $800/kW-hr to
Round trip efficiency    Excellent – 90 to 95%

Lifetime in Cycle Life   Excellent (7,000 to
                         16,000 DOD cycles and
                         28,000 to 250,000 partial
                         discharge cycles )
         Vanadium Redox Battery (VRB)
           Attributes-Prudent Energy

      Attribute                   Rating

Capital cost             Fair - $500/kW-hr to

Round trip efficiency    Fair – 70 to 75%

Lifetime in Cycle Life   Excellent (10,000
     NAS battery Attributes and Ratings
          S&C Electric and NGK

       Attribute                   Rating

Capital cost             Fair - $400/kW-hr to

Round trip efficiency    Good–80% to 90%

Lifetime in Cycle Life   Good (4,000 to 5,000
Sodium Sulfur (NAS) Construction

         ZnBr Battery Attributes
    Premium Power Corporation & ZBB

       Attribute                   Rating

Capital cost             Excellent - $250/kW-hr

Round trip efficiency    Fair–70% to 75%

Lifetime in Cycle Life   Excellent (>10,000 cycles)
Basic Zinc-Flow Technology (Plating
       and de-plating of Zinc)
Zinc-Flow Battery Tower
    Premium Power Corporation TransFlow 2050-7
Zinc Bromide battery on a trailer 500 kW, 7.4 hours and
               3.8 MW-Hr & ~$1 million
      Why Interest in the Premium Power
      Corporation Zinc Bromide Battery?
• Lifetime of more than 10,000 cycles of deep charge and
• Lowest cost battery of all the advanced options based on
  CRN due diligence report
• Potentially very low environmental impacts
• PPC ZnBr is UL, FCC, and NFPA certified
• PPC has recently completed the production of its first
  TransFlow 2050-5 (500 kW, 2.8 MWh, 5.6 hours)
• PPC has production capacity to meet the needs of the
  participating co-ops in this proposal.
• The PPC ZnBr batteries are made in the U.S.
• PPC is well capitalized.
• PPC ZnBr has the potential for fast frequency regulation and
  nearly unlimited cycle life.
         NRECA CRN projects
• Confirmed addition of a TF-2050-7 for Kotzebue
  Electric Association (KEA) in Kotzebue Alaska to
  –   Time shift wind to daily peak
  –   Frequency regulation and spinning reserve
  –   Arbitrage
  –   Reduce diesel generator start-ups and O&M
  –   Emergency back-up
  –   Blackstart
  –   Improved fossil plant efficiency
• Other possible future projects in Kauai, South
  Carolina, and Floriday
  Possible Value Streams for Energy Storage
        (Potential Net Present Values)
• Capacity credit or demand charge reduction ($500/kW to
• Arbitrage value (Buy low and sell high ranging from $900/kW
  to $1500/kW)
   –   Firming and Shifting Renewables (wind and solar)
   –   Improved thermal plant efficiency
   –   Reduce CO2 emissions from thermal plants
   –   Improve Thermal Plant Reliability
• T&D capital asset deferral ($200/kW to $1300/kW)
   – Avoid or delay need for second transformer or transformer bank
   – Reduced congestion and line losses
• Frequency regulation ($1600/kW to $4000/kW)
• Dynamic VAr Support ($100/kW)
• Improved service reliability
Range of Values for 6 hours of Energy Storage assuming 2% real discount rate
      low gas of $3/MBtu, wind energy off-peak, 70% gas on peak, etc.
                          Value for 6 hour Energy Storage

                     $7,000                                 Improved off peak
                     $6,000                                 efficiency
                     $5,000                                 Frequency Regulation
   Pre se nt Value
        (2%  )
                     $3,000                                 Avoided T&D credit
                     $1,000                                 Capacity credit
                              low   expected   high         Arbitrage value
       ZnBr price for
       7.4 hours is           Range of Assumptions
       about $2500/kW
  Future Trends with Advanced Batteries
• Costs in $/kW-hr will drop (mass production) as the value for
  installing batteries will increase (increased costs for natural
  gas and oil, for carbon emissions, new capacity, etc.)
• Commercial feasibility of advanced batteries will be
  established in 2010 with large orders possible by 2011
• Example of expansion (PPC ZnBr batteries):
   – 100 MW-hr capacity in 2008
   – 400 MW-hr capacity in 2009
   – 1500 MW-hr to 4000 MW-hr in 2010
• G&T’s with distribution coops should examine/evaluate
  where application of advanced batteries can add value and
  reduce cost of electricity and rates.
• Advanced batteries compete with CAES when natural gas
  price exceeds $8/MBtu with CAES at $1,000/kW or $3/MBtu
  at $2,000/kW assuming no carbon tax. Currently significant
  uncertainty in CAES capital cost and natural gas prices
Residential Scale via RedFlow’s
     ZnBr at 5 and 10 kW

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