renewables...storage...what's next?

CHARGED 2020 CHARGED 2020 The Global Energy Storage Forum

2010The Global Energy Storage Forum

2010

Driving sustainable innovation along the energy storage and smart-grid value chain

Driving sustainable innovation along the energy storage and smart-grid value chain

Renewables... Storage... What is next?Renewables... Storage... What is next?

Terry MohnTerry MohnChief Innovation Officier, Balance Energy

Vice Chairman, GridWise Alliance

Chief Innovation Officier, Balance EnergyVice Chairman, GridWise Alliance

30 June-1 July, San Diego-USA30 June-1 July, San Diego-USA

© 2010 Balance Energy All Rights Reserved

Renewables…Storage…

What’s next?

Terry Mohn

Chief Innovation Officer, Balance Energy

Vice Chairman, GridWise Alliance

Charged2020: Energy Storage ForumJune 30 – July 1, 2010University of San Diego, San Diego, CA


Societal Interest in Alternatives to Fossil Fuel


Large Wind and Solar Farms

NREL 2009 Report• Since 2000, renewable electricity installations in the

United States (excluding hydropower) have nearly tripled, and in 2008 represent 42 GW of installed capacity.

• Wind and solar PV are the fastest growing renewable energy sectors. In 2008, wind capacity installations increased by 51% and solar PV grew 44% from the previous year.


Transmission Difficult to Site

Apr 4, 2010 - Chicago Tribune• The key challenge facing developers is that existing transmission lines, substations

and transformers are inadequate to handle the amount of energy expected to come from wind farms

• "It's easy to be green and say let's build wind but we have to think about - how are we going to deliver that?" said Thomas O'Neill, chief operating officer at Chicago-based Exelon Transmission Co., a unit of Exelon Corp.

• The estimated cost to move that wind power east could range from $64 billion to $93 billion in 2009 dollars and would require 17,000 to 22,000 miles of transmission lines to be built in the eastern half of the country alone, according to National Renewable Energy Laboratory.

• It isn't feasible for businesses to pay costs associated with the transmission upgrades. Many withdraw their requests to hook in once they realize the significant upgrades that would be needed, according to Midwest ISO.


Renewable Energy Standards

Climate Legislation – 17% by 2020 in House


Estimated Cost of New Generation

PV SolarBioPower


Storage Types


2010 Electric Grid ….. and then?

Generation•47%•17,342 units

Generation•47%•17,342 units

Transmission•~43%•164,000 miles

Transmission•~43%•164,000 miles

Distribution•~34%•3 million miles

Distribution•~34%•3 million miles

Consumer Systems•<1%•12.3 M DG

Consumer Systems•<1%•12.3 M DG

500 wind parks50 solar parks500 wind parks50 solar parks 5,000 distributed wind

5,000 utility solar5,000 distributed wind

5,000 utility solar

2 M architectural wind5 M building solar

2 M architectural wind5 M building solar

25 M residential solar25 M residential solar

1 M PHEV/PEV1 M PHEV/PEV



100,000 Buildings as PP100,000 Buildings as PP

Continued increase in energy intensity

Prices increasing, in some regions faster than gasoline at

the pump

Changeover to more and more digital

loads

Consumer choices


Changes in the Network

• Consumer engagement with resources to solve power issues locally

• Two-way power flow in Distribution• As prices increase, local renewables will increase

in residential, commercial, and industrial• Imperative to transform from passive to active

control in Distribution• New ways for Distribution to become a

Transmission resource


Pending Legislation Referencing Microgrids

• H. R. 5230 - Mesa Act: The term `microgrid' means an integrated energy system consisting of interconnected loads and distributed energy resources (including generators, energy storage devices, and smart controls) that can operate with the utility grid or in an intentional islanding mode.


Microgrids

• Japan• Denmark cell control• Kythnos Island• CERTS, AEP, University of

Wisconsin 100KW pilot at Dolan

• Significant action worldwide in multi-agent communities

DOE RDSI• San Diego Microgrid ($16M)• Fort Collins Mixed Distributed

Resources ($11M)• WV Super Circuit ($10M)• ATK Rocky Mountain Power ($4M)• Santa Rita Jail Chevron, PG&E, et al

($14M)• conEd Consumer Enablement ($13M)• IIT Galvin Microgrid ($12M)• Hawaii Management of Distribution

Resources ($15M)• Pulte Homes UNLV GE ($21M)


Essential Role of Microgrids

• Address local reliability challenges• Address local economic issues (community objective)• Enable energy arbitrage (community objective)• Aggregate control of multiple sources (DG, storage, consumer DER, DR, switches,

Cap Banks, DA, etc.)

• Campus• Business Park• Electric Cooperative• Municipality• Utility Distribution• Military Base


Campus MicroGrids connected to utility

• Grid reliability• New asset mix• Transparency into asset

performance• Neighborhood storage


Networked MicroGrids

• Central storage• Within municipality districts• Now in states where there are no franchises• As critical mass is reached on franchised utilities• Changes to regulatory policy


Ancillary services

• Aggregate markets– New business

operators– Utilities are

enablers• Geographically

strategic storage

Centralized Control Goal(System Automation)

Constraints

Demand Response

Dynamically orchestrate the shedding and adding of load and generation.Dynamically orchestrate the connection of power generation and storage devices.

Distributed GenerationControl and optimize the generation of power based on cost of energy, reliability and environmental constraints.

Energy StorageControl and optimize the storage of energy based on cost of energy, reliability and environmental constraints.

Energy Metering Measure, aggregate, analyze and publish energy usage.

Energy Forecasting

Analyze and predict consumption, price, generation and failure risk.Generate system and power profile optimization programs.

Energy Market Trading Perform price monitoring, negotiation and settlement.

System Monitoring

Analyze cyber security, information flow, information quality, business processes and topology.Generate reports and programs to optimize system performance and provide control center visualization.


MicroGrid Market

Worldwide Capacity Market Sector Breakdown


Summary• MicroGrids allow generation, storage, and loads to operate

autonomously, balancing out voltage and frequency issues.• MicroGrids facilitate parallel placement of small generation,

storage, and load devices in a modular manner that scale up to higher levels.

• Current weak link is cost-competitive storage. Some larger MicroGrids are using thermal storage, but electrical storage remains a key need.

• As with Demand Response and Distributed Generation, Distributed Storage becomes a new market opportunity.

• Commercial MicroGrids are a viable business opportunity, but the Utility remains very interested in their emergence and potential critical mass.


Thank You

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renewables...storage...what's next?

Technology

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