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 ENERGY STORAGE

Jesse Remillard – Energy & Resource Solutions

Mike Rovito – Energy & Resource Solutions

Alex J Hill – Dunsky Energy Consulting

Casey Mastro - NYSERDA

1. Introduction

2. Definitions and key terminology

3. Facility scale value streams

4. Energy storage technologies

5. Technical and market barriers

AGENDA

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To ensure power quality and level demand

For integration of renewable generation

Incentives

NYSERDA and Con Edison

$2,100/kW for batteries

$2,600/kW for thermal storage

PG&E

$1,620/kW for advanced energy storage

MODERNIZED GRIDS NEED STORAGE

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KEY TERMINOLOGY

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Power capacity = rated kW

Energy capacity = rated kWh

Discharge time =Energy capacity

Avg. power output

Depth of discharge (DOD) = capacity used

Roundtrip Efficiency

Cycle life = number of useful cycles

1. Resiliency and power quality

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

No direct monetary return but necessary to maintain production

The most common type of facility energy storage seen today

RESILIENCY AND QUALITY

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

Savings Example for 100 kW, 200 kWh System 𝟏𝟐𝟐𝐝𝐚𝐲𝐬 × $𝟏. 𝟓/𝐤𝐖 + 𝟐𝟒𝟑𝐝𝐚𝐲𝐬 × $𝟏. 𝟎𝟎/𝐤𝐖 × 𝟏𝟎𝟎 𝐤𝐖 × 𝟗𝟎%

Savings = $38,340/year

Installed cost = $200,000 • Lead acid battery, indoors at $1,000/kWh

Simple payback = 5.2 years

DEMAND CHARGE REDUCTION

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DEMAND PROFILE

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Some utilities incentivize demand reduction during peak demand events

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

Highest payback with large peak price differential

Not cost effective by itself to install energy storage at current price points

RETAIL ENERGY TIME SHIFT

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Energy storage is critical for the integration of large amounts of grid scale renewable generation

Provides power quality regulation and energy time shift.

RENEWABLES INTEGRATION

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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 5-7 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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Commercial

1. Lead acid batteries

2. Lithium ion

3. Sodium sulfur

4. Flywheels

Other Promising Emerging

1. Flow batteries

2. Sodium nickel chloride batteries

TECHNOLOGIES

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TECHNOLOGY COST CURVE

14 Source: Smart Planet, http://www.smartplanet.com/blog/smart-takes/cars-will-top-computers-as-no-1-lithium-battery-market-by-2015/18500

Status: Most mature, lowest capital cost, widely used $700 to $1,200/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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LITHIUM ION

16 Source: Smart Planet, http://www.smartplanet.com/blog/smart-takes/cars-will-top-computers-as-no-1-lithium-battery-market-by-2015/18500

Status: Recently incorporated into NYC building fire code

Con: High cost: $1,500 to $2,500/kWh

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

SODIUM SULFUR (MOLTEN SALT)

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Status: Best suited to larger capacity Competitive cost: $750 to $2,000 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%

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

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

Not practical for large capacity energy storage

FLYWHEELS

18

Flow

Sodium Nickel Chloride

Zinc Air

Promising, but unproven commercially

EMERGING TECHNOLOGIES

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High costs and limited lifetimes

Systems are large and heavy

Challenging to find suitable locations in urban environments

Chemical and fire hazard concerns

Local fire codes are especially wary of newer commercial systems

BARRIERS TO ADOPTION

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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 Remillard

jremillard@ers-inc.com

207.622.6888 x 414

Michael Rovito

mrovito@ers-inc.com

212.789.8182 x288

Alex J Hill

alex.hill@dunsky.ca

514.504.9030 x30

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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)

Co

mm

erci

al T

ech

no

log

ies

Lead

acid

$700 –

$1,000

$800 –

$1,200 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 N/A 85% - 90% > 10,000 >15 yrs