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Renewable Integration & Sustainable Energy Initiative

Greening the Grid (GTG) Program

A Partnership between USAID/India and Government of India

Battery Energy Storage Systems Overview

Battery Energy Storage Systems for Grid Applications -Training Bootcamp

28 November 2018

Today’s Agenda

1. Demand-Supply stabilization methods and cost.

2. Battery Energy Storage System (BESS) in India.

3. Benefits of storage in managing RE integration.

4. Cost, lifespan, and efficiency of different storage options.

5. Various grid application of BESS and its classification.

6. Understanding application synergies.

7. Overview of BESS pilot under GTG-RISE initiative.

8. Summary & Takeaway

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Demand-Supply Stabilization methods

Causes of demand supply instability Methods for stabilization

Instantaneous power Failure in

certain parts of the grid

Sudden loss of network due to

electrical faults

Intermittent surges or decrease in

Renewable energy generation

leading to deviations in stable

operating parameters

Unwanted operation of old

protection systems due to variations

in power flow

Instantaneous Voltage Drop due to

heavy load coming online

1. Operational Mechanism of Power system

2. Market Mechanisms

3. Optimal Load control/Curtailment

4. Generation Control/Curtailment

5. Energy Management Systems at different levels

in the power networks

6. Energy storage as a buffer for demand-supply

stabilization

Various demand supply stabilization methods have their associated costs, technical features, limitation

and the same need to be evaluated as per the requirement of the Indian grid.

Key Insight:

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Establishing standard costs for stabilization requires a detailed system modelling in various time-scales

depending upon the power system characteristics. A relative ranking of cost for different stabilization

methods is summarized as follows:-

Indicative Cost for Stabilization

Costs for Batteries have reduced significantly and is expected to go down further with large scale

requirements due to increased RE penetration as well as fueled by technological improvements in energy

density of batteries. Storage based systems would be at par with other stabilization methods in the

future.4

• Limited hands on experience with Battery Energy Storage Systems (BESS) deployment and operation.

• Energy storage has been the subject of study in India too including by a technical committee constituted

by the Ministry of Power (for large scale integration of RE, need for balancing, the Deviation Settlement

Mechanism, and associated issues), a task force constituted by MOP (on integration of RE sources in the

grid during the 12th plan and beyond) under the Chairman, Central Electricity Authority (CEA), and by

CERC (Staff paper on introduction of electricity storage system in India, January 2017). These studies have

recommended appropriate policy and regulations to promote the deployment of storage by relevant

stakeholders.

• A joint study by NREL, POSOCO and LBNL entitled “Pathways to Integrate 175 GW of Renewable

Energy into India’s Electric Grid, Vol I – National Study” conducted under GTG did not point to the

criticality of battery storage in reducing production costs or carbon emissions although it had some

impact on reducing RE curtailment. The study however limited itself to production costs on broader time-

scales and was not attempting to ascertain the value of batteries in providing ancillary services or in

alleviating transmission constraints, etc.

• Moreover, the GTG national study mentioned that its analysis is not comprehensive of the value that

batteries might contribute to the Indian Power Sector. The study further noted that studies of other

power systems have shown that batteries can be effective at providing reserves or other ancillary services,

or may have localized grid benefits.

• There is thus a need to assess operational feasibility of BESS to provide different services under the

current and forecasted grid and market operating conditions specific to India (and the ability of storage to

concurrently provide multiple services to drive the value proposition for investment in these resources).

Battery Energy Storage Systems in India

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Analysis of BESS types

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• Load leveling and

regulation

• Grid stabilizationLead Acid

Li-ion

Flow

Batteries

TypeWhat we know

currentlyChallenges

• Limited depth of discharge

• Low energy density

• Large footprint

• Electrode corrosion limits

useful life

• High energy

densities

• Good cycle life

• High

charge/discharge

efficiency

• High production cost -

scalability

• Extremely sensitive to over

temperature, overcharge and

internal pressure buildup

• Intolerance to deep discharges

• Ramping

• Peak Shaving

• Time Shifting

• Frequency regulation

• Power quality

• Developing technology, not

mature for commercial

scale development

• Complicated design

• Lower energy density

Primary

Application

• Mature battery

technology

• Low cost

• High recycled

content

• Good battery life

• Power quality

• Frequency

regulation

• Ability to perform

high number of

discharge cycles

• Lower

charge/discharge

efficiencies

• Very long life

Application/Services from BESS for Electrical Systems

Source: Mandel and Morris, "The Economics of Battery Storage," Rocky Mountain Institute

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Grid Applications of Battery Energy Storage System (BESS)

Classification of applications based on BESS technical characteristics

Maximum DoD level (extent to which battery can be discharged) and C-rate (rate of discharge) of batteries are the

deciding factors for the grid applications

BATTERY ENERGY STORAGE SYSTEM

ENERGY CONFIGURATION

T & D UPGRADE DEFERRAL

ENERGY TIME-SHIFT

TRANSMISSION CONGESTION

RELIEF

PEAK SHAVING

POWER CONFIGURATION

ANCILLARY SERVICES

RE INTEGRATION

SOLUTIONS

If increasing growth in demand is notproportionate to the evolution of transmissionsystem, this gap could be filled by the distributeddeployment of storage systems

Involves storage of energy when the requirement/ tariffs are low for use at a time when therequirement / tariffs are high

This application is suitable for areas having highdemand at particular periods of time. Deployingthis application can help in the reduction oftransmission congestion.

Energy Storage Systems can increase the peaksupply capacity of the system, thus avoiding theneed for extra peak generators

Owing to its high ramping capability, BESS cansupport various ancillary services such as adaptivefrequency regulation, Voltage control, etc.

Smoothening of output from RE generatorsthrough RE capacity firming

Curtailing additional RE generation as perrequirement of grid

Requiring a high power

output for a relatively

short period of time

(typically 15 minutes or

lower).

Require discharge of

many minutes to

several hours at or

near the storage

system’s nominal

power rating

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Classification of BESS based on duration and frequency of use

Application TypeDischarge Duration

(hrs)

Electric Service Reliability 5 min – 1 hr

Area & Frequency Regulation <30 min

Transmission Congestion Relief 3 hr – 6 hr

Renewables Energy Time-shift 3 hr– 5 hr

Renewables Capacity Firming 2 hr – 4 hr

Demand Charge Management 5hr – 11 hr

Electrical Supply Reserve Capacity 1 hr– 2 hr

Electric Service Power Quality (LD) 10 sec – 4 hr

Voltage Support 15 min – 1 hr

Electric Service Power Quality (SD) <5 sec

Transmission Support 2 sec – 5 sec

Load Following 2 sec – 4 sec

Wind Generation Grid Integration 10 sec -1 min

Electrical Energy Time-shift 2 hr – 8 hr

T&D Upgrade Deferral 3 hr – 6 hr

Electrical Supply Capacity 4 hr – 6 hr

Time-of-use Energy Cost Management 4 hr– 6 hr

Long Duration

Frequent

charge/discharge

Long-duration/

Infrequent

charge/discharge

Short duration/ Frequent-

charge/discharge

Short-duration/

Infrequent

charge/discharge

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Example Value Stack

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Energy-related applications when used in right locations and when discharged at

right times are capable of serving other applications – Application Synergies

ElectricEnergyTime-shift

ElectricSupplyCapacity

LoadFollowing

AreaRegulation

ElectricSupplyReserveCapacity

VoltageSupport

TransmissionSupport

TransmissionCongestionRelief

T&DUpgradeDeferral

Substation On-sitePower

Time-of-use EnergyCostManagement

DemandChargeManagement

ElectricServiceReliability

ElectricServicePowerQuality

Renewables EnergyTime-shift

RenewablesCapacityFirming

WindGenerationGridIntegration

Electric EnergyTime-shift

√ √ √ √ √ √ √ √ √

Electric SupplyCapacity

√ √ √ √ √ √ √ √ √

Load Following √ √ √ √

AreaRegulation*

√ √ √ √

Electric SupplyReserveCapacity*

√ √ √ √ √ √ √ √ √ √ √

Voltage Support √ √ √ √ √ √ √ √ √

TransmissionSupport*

√ √ √ √

TransmissionCongestionRelief

√ √ √ √ √ √ √

T&D UpgradeDeferral

√ √ √ √ √ √ √ √ √

Time-of-useEnergy CostManagement

√ √ √ √

Demand ChargeManagement

√ √ √ √ √ √ √ √ √ √ √ √

Electric ServiceReliability

√ √ √ √ √ √ √ √ √ √ √ √

Electric ServicePower Quality

√ √ √

RenewablesEnergy Time-shift

√ √ √ √ √ √ √ √ √ √ √

RenewablesCapacity Firming

√ √ √ √ √ √ √ √ √

Wind GenerationGrid Integration

√ √ √ √ √ √ √ √

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Application synergies

Excellent Synergies

Good Synergies

Fair Synergies

Poor Synergies

Incompatible

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1. USAID/India is funding a five-year project to help India meet its ambitious RE targets. This project,

known as Greening the Grid (GTG), is assisting the Government of India (GOI) in integrating large-

scale, variable renewable energy (VRE) into the existing power grid.

2. Critical to it is rigorous analytical support to identify grid stability issues, options for optimizing

dispatch, and sources of potential flexibility. Pilot projects are at the core of the GTG Program.

3. These projects are multi-implementer work programs aimed at testing and evaluating building blocks

to improve RE integration into India’s state and national power grids. USAID/India’s GTG project

combines three components, which interact with each other. These are:

a) Power system planning reforms and targeted analysis for large RE parks and RE integration

pilots implemented by U.S. Department of Energy (DOE) Laboratories;

b) Renewable Integration and Sustainable Energy (RISE) initiative to implement innovation pilots,

aimed at testing and evaluating building blocks to improve the integration of RE; and

c) Peer-to-peer exchanges between U.S.-India system operators (System Operator Partnership)

and regulators (India Regulatory Partnership).

Greening the Grid (GTG) Program

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Renewable Integration and Sustainable Energy (RISE)

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Scope & Outcome

Pilot Scope

• Enhancement of existing BESS facility Puducherry and assessment of economic value of

storage systems.

• Technical design and demonstration of array of BESS applications viz. dynamic

frequency regulation, Renewable energy time shift, capacity firming etc. in providing

grid support.

• Detailed modelling study on the need, quantity and location of storage systems in India

in sub-15 minute time scale.

Outcomes

• Specific recommendations for operation of battery energy storage system and

required enhancements based on Indian grid conditions

• Optimize usability of BESS under the capacity and limitation of the battery.

• Economic evaluation of BESS operation in grid support.

• Development of a scalable roadmap for policy makers and regulators

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Schematic diagram of the BESS integrated to the grid

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Following applications are proposed on three different battery technologies (Advance Lead Acid, Lithium

ion and Flow), at PGCIL’s Sub-station, Puducherry:

Demonstration of various BESS applications

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1. Dynamic frequency regulation

2. Voltage/reactive power support

3. Load following

4. Peak shaving

5. Renewable energy capacity firming

6. Renewable energy time shift

7. Integrated applications- A combination of two

or more of the above applications

• Higher penetration of RE will change the economics of battery storage: Battery energy storage

systems would provide critical ancillary service support

• Storage will compete with other flexible resources. Best practice is to define technology neutral

needs of the system and allow different resources to compete to efficiently meet system needs.

• In power systems with increasing levels of variable RE, deploy utility scale storage…..

Of TYPES that will deliver services that are underprovided and/or likely to diminish as the

power grid evolves.

WHEN storage technologies are more cost effective than other sources of power system

flexibility

IF storage is cost effective and policy, regulatory and market frameworks clearly monetize value

stream(s)

In QUANTITIES commensurate with the market share for the particular service(s) storage

can cost-effectively provide

WHERE it can provide the most value at the system level, or strategically as a hybrid with

other generators (not just RE)

Summary & Takeaways

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1919

• RISE Contracting Officer Representative: Monali Zeya Hazra, USAID India, mhazra@usaid.gov

• Chief of Party: Shubhranshu Patnaik, RISE, spatnaik@deloitte.com

Satish Kumar Singh, Pilot Manager RISE M: +0971 7070 868satishsingh@deloitte.com | www.deloitte.com