© 2013 Chevron

Kern County Energy Summit

Energy Storage Panel

David S. Potter

Chevron Energy Solutions

November 13, 2013

© 2013 Chevron

Chevron Energy Solutions

Who We Are

Chevron Energy Solutions, a division

of Chevron U.S.A., Inc., partners with

organizations, businesses, and

governments to help our customers

achieve their business goals

Designed and implemented 900+

projects throughout the U.S.

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Why the sudden interest in Energy Storage?

The increased need for electricity storage to facilitate the

adoption of renewable energy generation sources.

Energy Storage can provide a cost effective method to

increase the capacity of the existing utility grid, increase

system efficiency and improve reliability.

Advances in technology inspired by mobile electronic devices

and electric vehicles have reduced cost, increased efficiency

and increased the cycle life of batteries.

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Size Range of Technologies and Applications

0.01

0.1

1

10

100

1000

10000

0.001 0.01 0.1 1 10

Discharge Time Scale (hr)

Po

wer

Scale

(M

W)

- Bulk storage for renewables- Peak shaving

= Emerging/

experimental/demo phase

- Grid powerquality/reliability

- Uninterruptible power supply- Black start capability

Ultracapacitor (UCap)

Lead-acid Battery (PbA)

Flywheel (FW)

Sodium-Sulfur Battery

(NaS)Flow Battery

Compressed Air (CAES)Super-

Conducting Magnetic (SMES)

Pumped Hydro

(PHES)

Lithium-ion Battery (Li-ion)

H2 + Fuel Cell

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Utility Applications for Energy Storage

Generator-Sited Storage

Transmission System Storage

Distribution System Storage

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Customer Applications for Energy Storage

Rate arbitrage for “Time of Use” tariffs

Peak Shaving

Power Quality / Power Reliability improvements

Integration of On-Site Renewable With Storage

EV Charging Demand Reduction

Off Grid Systems

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Value Stacking

Battery systems can often provide

multiple valuable services.

The 2 MW / 4 MW battery at Santa

Rita Jail provides the following

services

In the future we plan on adding to

the value stack

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Projected Market Growth

Growth from $6 Billion in 2012 to $16 Billion in 2020**

**Electronics.CA- http://www.electronics.ca/store/global-energy-storage-system-market-forecast.html

© 2013 Chevron

Lithium-Ion Battery Cost Reduction Projection

“lithium-ion battery packs could fall from $600 per kilowatt hour (kWh)

today to about $200 per kWh by 2020”*

*Mckinsey - http://www.mckinsey.com/insights/energy_resources_materials/battery_technology_charges_ahead

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Utility Targets for Large Scale Energy Storage in

California

AB2514 Mandates that the California Utilities Install 1325 MW of Battery

Storage by 2020.

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Local Large Scale Storage Projects

PG&E Helms Pumped Storage

– It has been in service since 1984.

– The plant capacity is 1,212 MW.

– It was designed to complement Diablo Canyon Power Plant to store energy at night and generate during the day.

SCE Tehachapi Wind Energy Storage Project

– 32 MWh Lithium Ion battery

– The battery is capable of providing the electric to supply 100 homes for one month

– Equivalent battery size to 2,000 Chevrolet Volt automobiles

– The objective of the project is to evaluate the capability of utility scale lithium-ion battery technology to improve grid performance and assist in the integration of variable energy resources into the SCE grid.

– The battery will be connected to SCE’s Antelope-Bailey 66 kV system and will reside inside SCE’s Monolith substation in Tehachapi, California.

– This system is scheduled to go into service in December of this year.

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Santa Rita Jail Microgrid

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When a disturbance to the utility grid occurs, the automatic disconnect switch enables the facility to “island” itself from the main utility grid and independently generate and store its own energy.

The distributed energy resources management system (DERMS) serves to reduce peak demand during normal grid-

connected operation or during a demand response event.

Two 1.2 MW backup diesel generators

Distributed Energy Resources Management System (DERMS)

2 MW advanced energy storage system

1 MW fuel cell

1.2 MW rooftop solar photovoltaic

system

Five 2.3 kW wind turbines

PG&E utility interconnection or “Point of Common

Coupling” and static disconnect

switch

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Lithium Ion Stationary Applications

Santa Rita Jail, Dublin – 2 MW / 4 MWh

Angamos Power Plant, Chile – 20 MW / 5 MWh

Los Andes Substation, Chile – 12 MW / 3 MWh

Laurel Mountain, West Virginia – 32 MW / 8 MWh

Auwahi Wind Farm, Hawaii – 12 MW / 4.5 MWh

Wailea Substation, Hawaii – 1 MW / 1 MWh

Tehachapi Wind Farm, California – 8 MW / 32 MWh

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Performance Metrics

Roundtrip efficiency

The ratio of energy discharged from the storage system to the energy

used to charge the system.

Energy density

The amount of energy storage capacity per unit volume or unit mass

(also referred to as specific energy).

Cycle Life

The number of times the device can be charged and discharged

(dependent on depth of discharge, typical 80% DOD) and the length of

time it can be in service before its energy capacity falls below a certain

level (80% of its initial rated capacity for batteries).

Operating Temperature

The temperatures range at which the device can operate without

permanent damage.