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Advances in Energy Storage and Implementing a Peak Shaving Battery at Fort Carson

Travis Starns

Business Development Manager - AECOM

Nov. 20, 2018

2

Agenda

Applications for

energy storage

Advances in energy

storage technologies

Fort Carson peak

shaving battery

Applications for Energy Storage

3

4

Changing Landscape in Electricity Generation

Utilities plan more renewables and distributed

energy resources

Source: U.S. Energy Information Administration, Annual Energy Outlook 2018, Feb. 6, 2018

Annual Electricity Generating Capacity Additions and Retirements (GW)

Gig

aw

att

s (

GW

)

Flexible generation needed

– Mediate supply and load in locations with high renewables

– Positive impact on GHG emission targets

IN LAST 5 YEARS:

Non-renewables: 43 GW

Renewables: 55 GW

FROM 2009 - 2017:

Wind/solar account

for ~50% of

utility-scale additions.

Permitting and installation of new grid infrastructure

– Challenging in many areas

Wide deployment of electric vehicles is

driving battery prices to decline.

5

Trends in Energy Storage

Lithium-Ion Battery Cell Price ($/kWh)

Source: Bloomberg NEF

Solar industry is adopting energy storage

to drive business.

– Increased self consumption

– Solar firming/intermittency

– Ramp control

– Leverage available tax credits

– Demand reduction during shoulder hours

6

Energy Storage Technology Survey by Market Segment

Generation/

wholesale

Transmission

and distribution

End-user

or aggregator

Utility scale

storage

– Batteries

– Pumped Hydro

– Compressed Air Energy Storage (CAES)

T&D Management

– Batteries – Flywheels – CAES

Behind the meter

– Batteries – Thermal

7 Presentation Title

Behind-the-Meter Energy Storage

Drivers

Time of Use load shifting

Backup/security (resiliency)

Wholesale arbitrage

Fuel saving (Electric Vehicles)

Demand charge management

Ancillary services

8 Presentation Title

Behind-the-Meter Energy Storage

Incentives Challenges

+ Cost, cost and cost…

+ Demand charge management

+ TOU load shifting

+ Automotive fuel savings, Utility

bundled solutions

+ Renewable pairing

‒ Cost, cost and cost…

‒ Grid interconnection capacity

‒ Electricity forecast uncertainty

‒ Participation/eligibility of storage

in electricity markets

‒ Tariff structure

+

Utilities focus on electricity system:

• Reliability: withstand uncontrolled events

• Security: withstand attacks (physical, cyber)

• Resilience: adapt to changing conditions and

recover from disruptions

Non-residential (C&I) customers:

• Accounted for 63% of electricity sold in 2017

• Account for ~13% of utility customer base

• Rate schedules typically include demand

charges that can account for 70% of electricity

costs

9

Interest in Behind-the-Meter Storage Systems by Utilities

Source: “Sales_Ult_Cust_2017” www.eia.gov/electricity/data/eia861/

2017 US Electricity Sales (MWh) by Market Segment

Demand response

Grid infrastructure deferral

Regulatory mandates

Virtual power plant

Aggregation

Local grid support

10

Utility Interest in Behind-the-Meter BESS

Residential

C&I, Federal Facilities

EV’s

Electric Utility Meter

Standard Residential Load

Phoenix - AZ

Advances in Energy Storage Technology & Applications

11

12

Energy Storage Technology Summary

Bulk Power

1 kW 10 kW 100 kW 1 MW 10 MW 100 MW 1 GW

Se

co

nd

s

Min

ute

s

Ho

urs

Dis

ch

arg

e T

ime

at

Ra

ted

Po

we

r

Fast Response Systems Grid Support and Balancing

Typical Efficiency 45-70% 70-85% >85%

Compressed Air

Energy Storage

Fly Wheel

Flow Batteries Sodium Sulphur

Pumped Hydro Storage

Super Capacitor

Advanced Lead Acid

Lithium-Ion

13

Battery Storage and Gas Turbine Hybrid

Southern California Edison retrofit gas peaker stations with Li-Ion BESS

– Provides spinning reserves

– Ancillary and grid support services

– Reduce fuel and water consumption

during operations

• Saves 2 million gallons of water

• Reduce emissions by 60%

– Reduced operations & maintenance

– Maintains flexibility in balancing

demand and variable generation from

renewable resources

Flow batteries consist of two liquid tanks, membrane and two electrodes

Multiple chemistries offered:

• Iron-Chromium

• Vanadium Redox

• Zinc-Bromine

Technically viable solution for applications > 4 hrs.

No energy degradation

Low cost of ownership

Long useful life

14

Long Duration Battery Storage Technologies:

Flow Batteries

2MW/8MWh Vanadium Redox Flow Battery

Air turns to liquid -196°C

Store liquid air in insulated,

unpressurised tanks

Thermal expansion used to drive turbine

Bulk storage capability with

no geographic constraints

15

Long Duration Energy Storage Technologies:

Liquid Air Energy Storage (LAES)

Source: Highview Power

Convert electricity into compressed air

Store compressed air in underground

accumulator

• Isobaric

• Hydrostatically compensated

• Significantly smaller volume required

compared to traditional (diabatic)

CAES

Flexible siting characteristics

No hazardous chemicals or fossil fuels

16

Source: Hydrostor, Inc.

Long Duration Energy Storage Technologies:

Advanced Compressed Air Energy Storage (A-CAES)

Industrial site in Australia

– Peak Load: ~140 MW

– Demand charges have increased by 90% over last 18 months

– Solar: 120 MW

– Storage: 20 MW (discharge rating)

Business Case – Drive Operational Savings

– Reduce demand charges

– Reduce need for new grid infrastructure

– Provide reliability services to the grid

• Voltage support

• Synchronous inertia

– Leverage additional operational savings as a source of back-up power during operation

17

A-CAES Plus Solar for Baseload (20 MW)

17

A-CAES + Solar PV – Industrial Site Demand

0

20

40

60

80

100

120

140

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47

MW

Half Hour

Firm commitment (Solar direct & Storage)

Direct PV to Site

Operations

(White Area)

Grid Power

(Grey Area)

Fort Carson: Peak Shaving Battery

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Fort Carson Background

Fort Carson: ~137,000 acres

Pinon Canyon Maneuver Site:

~ 235,000 acres

Training installation with over

26,000 Soldiers assigned

Over 14 MSF of facility space

Three government-owned

substations

Fort Carson & Surrounding Military Communities

Air Force

Academy

Buckley

AFB

Pinyon

Canyon

Fort

Carson

Cheyenne

Mountain

Air Station

Schriever

AFB

Peterson

AFB

Emerging Approach – ESPC to Deliver BESS

Rate 2017

ONP Demand (kW) $17.28

OFFP Demand (kW) $9.34

ONP Supply (kWh) $0.0480

OFFP Supply (kWh) $0.0228

0.14%

Significantly reduce electricity

demand charges

Right-size BESS to optimize

project ROI

Potential use-cases to consider

at your facility:

• TOU shifting

• Solar-firming

• Frequency/voltage support

• Microgrid support

The maximum savings per month is a function of maximum BESS discharge rate

With a smaller capacity battery:

– Choice of discharge point determines savings

– Increase discharge rate to increase savings

Limiting factors:

– Maximum discharge rate (MW)

– Total battery capacity (MWh)

– Accuracy of peak forecast

BESS for Peak Shaving

21

Baseline load

Modified load

Battery capacity (MWh)

Lo

ad

(M

WV

) Five consecutive days in August 2015

Denotes on-peak demand period

Fort Carson: Load Profile (August 2015)

Billing demand –

the greatest 15-

minute load during

on-peak hours in

the billing period

34,401

Lo

ad

(M

WV

)

15-minute interval data – August 2015

Fort Carson: Peak Demand Reduction (August 2015)

The difference

between peak and

the battery

engagement level is

where the peak

demand charge is

reduced.

34,401

31,050

Lo

ad

(M

WV

)

Actual demand

Battery discharge level

Days where ceiling for peak demand is established

Fort Carson: Peak-Shaving Sequence

$58,000 in on-peak

demand charge

savings for the

month of August.

15-minute interval data – August 2015

Ft. Carson BESS System Summary

2017 GridStar – 300 kW/600 kwh

Power Rating 4,200 kW (14 modules)

Energy Rating 8,500 kWh (14 modules)

Voltage 480 VAC

Round Trip % ~86%

Dimensions 144 x 60 x 96 inches/module

Control System GELI - EOS

Operational Life Expectancy 21 years

Fort Carson ESPC: Estimate of Demand Savings

$436,000 Year 1 savings

$713,000 Year 19 savings (Assumes 4% escalation rate)

Est. 83 full cycles/annum Duty cycle

26

Year 1 – Demand Charge Savings

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ax

is T

itle

df

Control system and predictive modeling

Existing/planned distributed energy resources

Tariff/rate structure

000

27

Considerations for Battery Energy Storage

Importance of interval data

– Analysis and design

– Power and energy requirements

– Duty cycle (impact to system degradation)

Presentation Title

Key Takeways

000

Escalation of demand charges

are likely to continue

Li-Ion BESS are expected to continue to dominate market share as cell costs continue to decline

ESPC delivery model

is emerging approach to BESS

deployment

Energy storage technology

selection and right sizing for optimal ROI

• Independent of commodity escalation

• Established framework for equitable allocation of risk

• Guaranteed performance of BESS

• Multiple use cases for cost savings and resiliency

Travis Starns

Business Development Manager – AECOM

travis.starns@aecom.com

+1-303-740-3856