grid storage solution - th.nec.comˆ’ frequency can fluctuate due to mismatches between generation...
TRANSCRIPT
THE NEED FOR FREQUENCY REGULATION
�� Electric power grids must maintain frequency at 60Hz or risk a blackout
− Frequency can fluctuate due to mismatches between generation and load, or disturbances in generation, load, or transmission infrastructure
�� Frequency Regulation resources stabilize the grid’s frequency in the minutes time scale
− Ramp up and down in response to a balancing authority’s control signal (e.g. the Automatic Generator Control (AGC) signal from ISO/RTO in US deregulated markets)
�� Generation assets can provide Frequency Regulation but typically are unable to respond instantaneously or match the control signal exactly
application:
Frequency Regulation (US) GSS™
Grid Storage Solution
Load withoutFrequency Regulation
Load withFrequency Regulation
Load > Generation(Regulate Up)
Load < Generation(Regulate Down)
(MW
)
Time
Regulation Up Capacity
Regulation Down Capacity
0 = RegulationBase Point
MWMWRegulation Up Capacity
Regulation Down Capacity
If Demand > Supply Reg UpIf Demand < Supply Reg Down Regulation Base Point
(Energy market sale)
TRADITIONAL GENERATOR ENERGY STORAGE
GSS™
Generator
Pow
er O
utp
ut
Time
GSS™ is capable of much faster response times (in milliseconds) and power output ramp rates than traditional generators.
THE VALUE PROPOSITION
�� In certain regions, higher performing resources will earn more for Frequency Regulation services than lower performing resources
− FERC Order 755 in the US provides performance payments for faster, more accurate, and higher MW-mileage resources
THE ROLE OF ENERGY STORAGE
�� A battery energy storage system can more effectively provide frequency regulation than traditional generation assets.
− The NEC Energy Solutions GSS™ has been successfully providing high performance frequency regulation in the United States’ PJM region since 2011
Full utilization of an energy storage system’s dynamic power range (charge and discharge) can effectively double utilization of its interconnect
�� In 2011, a 32MW, 8MWh GSS™ was installed at a wind farm on Laurel Mountain in West Virginia (between Bellington and Elkins) to provide frequency regulation services
�� In 2013, a 20MW, 5MWh GSS™ was transplanted from upstate New York to Ohio to participate in the PJM frequency regulation market as well
�� Both sites have been providing frequency regulation in commercial revenue service at over 98% availability
�� These two sites represent two of the largest battery-based grid energy storage facilities in the US connected to the grid in commercial service
�� Since implementation of FERC Order 755 in PJM, high performance resources like the GSS™ are able to earn bonus payments, boosting their overall revenue generating potential
− Unlike the old PJM frequency regulation market, the new market uses two separate payment types - one for Capability and one for Performance. The Performance payment is multiplied by the additional amount of power ramping fast resources achieve compared to slower traditional ones, resulting in a bonus Mileage payment.
case study:
PJM* (United States)
*PJM is a regional transmission organization (RTO) in the United States that coordinates the movement of wholesale electricity in all or parts of 13 States and the District of Columbia.
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-201
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$/M
W p
er h
our
Month
Mileage Payment
Performance Payment
Capability Payment
Oct 2011 – Sep 2012
$14.61/MW-hr
Prior to Pay forPerformance
Pay for PerformanceImplemented
Oct 2012 – Jun 2014
$48.71/MW-hr
Old Payment
NEC Energy Solutions, Inc.155 Flanders Road Westborough, MA 01581 (508) 497-7319 www.neces.com© 2014 NEC Energy Solutions, Inc. All rights reserved. MD100130-002 1
PJM Monthly Average Regulation PricesEffect of Pay for Performance (FERC Order 755) since October 2012
High performance frequency regulation resources like the GSS™ are earning over 3x more than in previous markets.
Price Multiple3.4x