Overview of Value Proposition fo

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Overview of Value Proposition fo Powered By Docstoc
					       Energy Storage, The
       Key Enabler for the
       Future Smarter Grid

       Dale Bradshaw
      CEO Electrivation
dtbradshaw@electrivation.com
        423-238-4052
    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
    capacity
•   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




           Hour
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
              Breakthroughs
• 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
     $3,500/kW
• Large battery complexes are being built in >1 Mw sizes
• Acceptable efficiency of 70% or more
           Lithium Ion (Li-ion) Battery
                    Attributes
      Attribute                   Rating
                                                     AltairNano Li Ti 1 MW for 15
                                                     minutes at 750 to 1050 V
Capital cost             Poor - $800/kW-hr to
                         $3,000/kW-hr
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
                         $800/kW-hr

Round trip efficiency    Fair – 70 to 75%


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

       Attribute                   Rating

Capital cost             Fair - $400/kW-hr to
                         $500/kW-h

Round trip efficiency    Good–80% to 90%


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

         Cells
                          Modules
         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
        Module
    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
  discharge
• 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
  provide:
  –   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
  $2500/kW)
• 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




                     $8,000
                     $7,000                                 Improved off peak
                     $6,000                                 efficiency
                     $5,000                                 Frequency Regulation
   Pre se nt Value
                     $4,000
        (2%  )
                     $3,000                                 Avoided T&D credit
                     $2,000
                     $1,000                                 Capacity credit
                       $-
                              low   expected   high         Arbitrage value
       ZnBr price for
       7.4 hours is           Range of Assumptions
       about $2500/kW
       installed
  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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posted:9/24/2010
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