facility scale battery storage

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Main Headquarters: 120 Water Street, Suite 350, North Andover, MA 01845 With offices in: NY, ME, TX, CA, OR www.ers-inc.com FACILITY SCALE BATTERY STORAGE Jesse Remillard – Energy & Resource Solutions

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Page 1: Facility Scale Battery Storage

Main Headquarters: 120 Water Street, Suite 350, North Andover, MA 01845 With offices in: NY, ME, TX, CA, OR www.ers-inc.com

FACILITY SCALE BATTERY STORAGE

Jesse Remillard – Energy & Resource Solutions

Page 2: Facility Scale Battery Storage

05/01/2023

To ensure power quality and level demand

For integration of renewable generation

Others?

Incentives NYSERDA and Con Edison

$2,100/kW for batteries PG&E

$1,620/kW for advanced energy storage

WHY ENERGY STORAGE

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Page 3: Facility Scale Battery Storage

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GRID VS DISTRIBUTED ENERGY STORAGE

Source: http://www.rmi.org/electricity_battery_value

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1. Introduction2. Definitions and key terminology3. Facility scale value streams4. Energy storage technologies5. Technical and market barriers

AGENDA

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KEY TERMINOLOGY

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Power capacity = rated kW

Energy capacity = rated kWh

Depth of discharge (DOD) = capacity used

Roundtrip Efficiency

Cycle life = number of useful cycles

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1. Supply = Power Plant a. Energy = kWhb. Demand = kW

2. Transmissiona. Wires and polesb. Controlsc. Maintenanced. Oversight

UTILITY BILLS

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EXAMPLE UTILITY BILL

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1. Power quality and dependability

2. Demand charge reduction

3. Demand response

4. Retail energy time shift

5. Renewables integration

FACILITY BENEFITS

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Systems that require high power quality or uninterruptible power supply (UPS) Data centers or

telecommunications, emergency response, medical, industrial

The most common type of facility energy storage seen today

POWER QUALITY AND DEPENDABILITY

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Page 11: Facility Scale Battery Storage

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Arguably the most important emerging application

Facilities with >50% of their electric bill from demand charges are key candidates.

Simple payback approximately 5 years

DEMAND CHARGE REDUCTION

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EXAMPLE DEMAND PROFILE

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Some utilities incentivize demand reduction during peak demand events

Peak demand events are typically during hot summer days and are not known until just prior

Cost savings of $10,000 to $15,000 for a 100kW system installed in NYC

DEMAND RESPONSE

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Shifting use from high cost periods to low cost periods On peak = price of electricity during

the on peak periods (daytime) Off peak = price of electricity during

off peak periods (nighttime)

RETAIL ENERGY TIME SHIFT

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Energy storage is critical for the integration of large amounts of grid scale renewable generation Retail = price you pay per

kWh Wholesale = price they pay

you per kWh

RENEWABLES INTEGRATION

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Value of systems increases greatly with stacked services Demand charge reduction/demand

response and retail energy time shift

Demand response and emergency response

Demand charge reduction and demand response

UPS and grid support

DUAL PURPOSE SYSTEMS

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Page 17: Facility Scale Battery Storage

Case Study 1 Peak Demand Reduction and

Emergency Backup Barclay Tower during Hurricane Sandy

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Demand charge reduction and demand response

The owners of Barclay Tower, Glenwood Management 1 MW across portfolio in NYC

CASE STUDY 2

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Demand response and emergency response

The Irving Company – largest landlord in Orange County 10 MW $$$ “Tens of millions” over 10 year

contract with SoCal Edison

CASE STUDY 3

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Page 20: Facility Scale Battery Storage

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Power quality and grid support Regional transmission

organization PJM DE, IL, NJ, NC, OH, PA, TN, VA, WV,

DC Incentive of $40/MWh for frequency

regulation

CASE STUDY 4

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Purpose Power Discharge Usage Payback (w/o incentives)

Resiliency and power quality

100 kW to 1 MW

≤ 15 minutes Variable NA (Critical to

production)

Demand charge reduction

50 kW to 1 MW 1 to 4 hours Daily 4-6 years

Demand response 50 kW to 1 MW 4 to 6 hours Infrequent >> equipment

life

Retail Energy Time Shift

100 kW to 1 MW 1 to 6 hours Daily >> equipment

life

Renewables integration

100 kW to 500 MW

several hours Daily >> equipment

life

VALUE STREAM SUMMARY

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Commercial1. Lead acid batteries2. Lithium ion3. Sodium sulfur4. FlywheelsOther Promising Emerging5. Flow batteries6. Metal air7. Magnesium salt

TECHNOLOGIES

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LI-ION COST CURVE

23Source: Bjorn Nykvist and Mans Nilsson 2015

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Status: Most mature, lowest capital cost, widely

used $500 to $700/kWh Widely accepted by building codes

Con: Performance lacking 300 to 500 cycle life, 3 to 5 year shelf life efficiencies of 70% to 80%

Pro: Advanced lead acid batteries improve

performance Easily recycled

LEAD ACID

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Page 25: Facility Scale Battery Storage

LITHIUM ION

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Status: Recently incorporated into NYC building

fire code Con:

High cost: $1,000 to $2,000/kWh Pro:

High performance 2,000 to 5,000 cycles 10 to 15 year lifetime Efficiencies upwards of 98%

05/01/2023

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SODIUM SULFUR (MOLTEN SALT)

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Status: Best suited to larger capacity Competitive cost: $750 to

$2,000/kWh Not widely accepted by codes

Con: Limited manufacturers High operating temp (>300F)

Pro: Good performance 2,000 to 4,500 cycle life 10 to 15 year shelf life Efficiencies of 70% to 80%

Page 27: Facility Scale Battery Storage

Several commercial suppliers in the USA, but costs very high: $2,000 to $4,000/kW

Performance and lifetime is very good: indefinite lifetimes and high efficiencies

Not practical for large capacity energy storage

Emerging low cost technology https://www.youtube.com/watch?v=yXhKNq-R-Lw

FLYWHEELS

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TECHNOLOGY SUMMARY

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Market Battery Type

Installed Energy Cost ($/kWh)

Roundtrip Efficiency

Useful Life

Outdoors Indoors Cycle

Life

Expected Lifetime (Years)

Commercial Technologies

Lead acid

$400 - $700

$500 – $700

70% – 80%

500 – 1,500 3 – 5

Lithium ion

$1,000 –

$2,000

$1,500 – $2,500

85% – 98%

2,000 – 5,000 10 – 15

Sodium Sulfur (salt)

$750 – $900

$1,000 – $2,000

70% – 80%

2,500 – 4,500 10 – 15

Flywheel$2,000 - $4,000 $400? 85% -

90%>

10,000 >15 yrs

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Flow Liquid Metal Zinc Air Sodium Nickel Chloride Magnesium Salt

Breakthrough technology yet to come?

EMERGING TECHNOLOGIES

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Page 30: Facility Scale Battery Storage

Status SunEdison to buy 1,000

Imergy flow batteries for rural India Solar

Con Large footprint pumps

Pro Extremely high life Easy to add energy

capacity $500/kWh potentially as

low as $300/kWh

FLOW BATTERIES

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Status Multiple startups targeting it: Eos,

ZAF, Fluidic Cons

Inherent problems with charging Up to 5,000 cycle life, same as Li-ion

Pros Costs supposedly as low as $160/kWh

ZINC AIR

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Status Available now from Aquion

Cons Lifetime – 5 years = not much better than

Pb acid Pros

Cheap ~ $250/kWh Most environmentally benign

MAGNESIUM SALT

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Status Progression of sodium sulfur batteries

Cons High temperature Cycle life not as long as some other

emerging techs Pros

Cheaper Safer than NaS batteries

SODIUM NICKEL CHLORIDE

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Page 34: Facility Scale Battery Storage

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Status Based on research at MIT Ambri postponed release of product

to spring 2016 Cons

High temperature Not suitable for mobile applications

Pros Cheap

LIQUID METAL

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Page 35: Facility Scale Battery Storage

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Yet unknown what dominant technologies will be

Cheaper Targeting $160/kWh to $300/kWh

Longer lifetimes Targeting 3,000 to 10,000+ cycles

More attractive marketing

EMERGING TECHNOLOGIES SUMMARY

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High costs Limited lifetimes Large Heavy Toxic Fire hazards

TECHNICAL BARRIERS

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Public perception of hazards Challenging to find suitable

locations in urban environments Local fire codes are especially

wary of newer commercial systems

MARKET BARRIERS

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Page 38: Facility Scale Battery Storage

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Future grids will need energy storage to some extent

Many questions, but research is on-going

CA goal of 33% generation from renewables by 2020 will create market pull for storage

Costs are coming down Utilities, code officials, and facilities

need to work together to integrate energy storage to mutual benefit

SUMMARY

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CONTACTS Jesse [email protected] x 414

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Multiple battery type energy storage systems?

Future uses when batteries are cheaper?

Most promising battery technology?

DISCUSSION

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