Post on 08-Jan-2018
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Challenges of Storage Development - Advanced Rail Energy Storage (ARES)
Prepared for Bulk Storage Conference, Sacramento
November 20, 2015
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Today’s Discussion
• ARES Technology• Hurdles for a Start-up• Project Development Challenges
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ARES Ridgeline Technology
• Pumped storage on rails• 78 % round-trip
efficiency• No degradation with
cycling or over the project lifetime
• Load-following, regulation and long-duration (8 hours +) storage capabilities
• 50 MW to 1000 MW +3
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ARES NevadaARES’ First Commercial Regulation Facility
(Adhesion-Drive Technology)
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Specifications
Charging Capacity 57MWDischarging Capacity 44MWStorage Duration 15 minElevation Differential 2,000’Average Grade 6.9%Maximum Grade 8.0%Track length 5.5 mi.Number of Trains 6ROW Size 72 acreRamp Rate 300 MW/minOn-Line Date Sept 2019System Life 40+ yrs
ARES’ Significant Advantages
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5• Scalability -- ARES Energy Storage facilities are scalable from small ancillary services facilities up to large regional energy storage systems.
• Extensive Site Options -- ARES sites are abundant in many arid regions with wind and solar resources.
• Variable Output at a Constant Efficiency -- An ARES system operates at a constant high efficiency over its full range of power output regardless of discharge state
• Higher Efficiency – ARES’ round-trip energy storage efficiency is 78.3% – its round-trip Ancillary Services efficiency is up to 84%
• Lower Capital Cost – ARES’ cost is approximately 60% of an equivalent power pumped storage hydro facility
• No Use of Water• No Emissions• No Environmentally Troubling Materials (e.g., lithium extraction)
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Key Hurdles to Manage1) Acquire financing for ARES
Nevada project• Based on market revenue forecast• Improvements are needed for pay-
for-performance rules for regulation and mileage
2) Demonstrate capabilities by building a large demonstration project
• In discussion with 3 utilities
3) Secure long-term contracts or licensing revenues from utility-owned projects
4) Stay funded during start-up period
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Storage Project Development Challenges
In California
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FERC Order 755- Pay For Performance
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CAISO Mileage Accuracy - November 11th, 2016
Regulation Down Performance Accuracy Regulation Up Performance Accuracy
Hour
Acc
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Reg-Up Mileage Average Accuracy = 50.8 %Reg-Down Mileage Average Accuracy = 59.5.%
Existing regulation resources have poor regulation accuracy and slow ramp rates which cause: • depressed regulation and mileage prices, and• a reduced incentive for new fast ramping resources
to enter the market
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Project Development Challenges – Energy Storage Procurement Targets
Storage Grid Domain Point of Interconnection 2014 2016 2018 2020 Total
Southern California EdisonTransmission 50 65 85 110 310Distribution 30 40 50 65 185Customer 10 15 25 35 85
Subtotal SCE 90 120 160 210 580Pacific Gas & ElectricTransmission 50 65 85 110 310Distribution 30 40 50 65 185Customer 10 15 25 35 85
Subtotal PG&E 90 120 160 210 580San Diego Gas & ElectricTransmission 10 15 22 33 80Distribution 7 10 15 23 55Customer 3 5 8 14 30
Subtotal SDG&E 20 30 45 70 165Total – all 3 Utilities 200 270 365 490 1,325
Issue – Procurement quantities are small relative to the optimal size of rail storage systems
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Project Development Challenges
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5Timeline from project site selection to an approved contract is lengthy(If you were to be short-listed in an RFO)
Project Development TimelineSite Selection
EIR
CPUC Contract Approval
Build Project
RFO Timeline
Up to 3 Years
Project Design
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Questions? Nov
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