Feeder Advanced Storage Transaction (FAST)

Battery Storage for a Smarter Grid

Presented to our client, PGEThe EverReadys:

Naresh Bokka, Michael Broda, RK Karduri, Cynthia Kan, Ken Nichols, Anil Palliboina, Victor Shestakov

Tuesday, June 15, 2010

Feeder Advanced Storage Transaction (FAST): What is it?

Ever

Ready

Inverter

1,300 kWh Battery

5,000 kW

Oxford Substation in Salem

Why Battery Storage?Issues with current “not smart”

grid:• Electricity cannot be

stored, it is created & consumed at the same time

• Battery storage can provide power during peak demand

• Transient nature means a short term bridge is needed to allow time for backup generators to kick in

Source: Esource

Why Battery Storage?Issues with current “not smart” grid:

• Renewables: may not be available during peak periods (or may be available during off peak)

Goals of the FAST projectPart of the PNW Smartgrid Demonstration Project, funded

by ARRA as a research project for PGE to explore how storage capacity will provide local and grid-wide benefits ($20 million for PGE)

(1) Anchor a high reliability island or microgrid(2) Provide power during peak demand(3) Firming intermittent renewable resources

5 MW

• 5 MW of customer backup generators (diesel) DSG• 113 kW Solar PV at Kettle Chips plant• Implement 1,300 kWh battery (EnerDel), a 5 MW PCS (Eaton) as part of

“Islanding”• Demand Response programs

Residential Demand Response

FAST Environment

FAST and the Smart Grid

http://mendocoastcurrent.files.wordpress.com/2009/07/smartgrid-graphic.jpg

• Intentional Islanding an SG technical feat.

• Monitor and Control. Existing GenOnsys – ethernet radio and modbus.

• Current human control signals >> price based signals

• GenOnsys expand to manage more DER

Energy Storage

Reference: Energy Storage and the Smart Grid TiE Oregon Clean Energy Special Interest Group100421

Battery Technology: Lifetime behavior

Reference: Altairnano Lithium Titanate Cycle Life versus depth of discharge

Frequency regulation and Voltage support

Energy, Power, Power Quality

FAST Benefits

Peak Discharge/Off Peak Charge

Source: Esource

CHARGE

DISCHARGE

CHARGE

Savings ValuationPeak Power at Off Peak Prices

Assumptions:Battery discharges 1 MW during peak, charges 1 MW off peakVolume negligible (no price elasticity effect)Data from Dow Jones Mid Columbia Price IndexJune 2005 – May 2010 time period (5 yrs)

Average price differential is $9.80/MWSavings is $17,802

Battery Economics – Peak Shaving

Battery Battle:

Utility Scale vs Electric Vehicles

Policy Analysis• PNW ISO

•Managing renewable generation

•Price signals (shorter blocks, shorter duration)

• CA AB 2514. 5% storage rate by 2020, or 3,400 MW in CA.

“Ratepayers pay for manufacturing jobs”

•NO Price Caps. CAISO current cap is $1,000/MWh energy.

“you can cut my power for $1,000/MWh”

• SG Industry to Federal Leadership:

“thanks for the $3.4 Billion, all we really needed was a CO2 tax”

• Utilities/PUC challenged to forecast in volatile policy environment

• FERC to consider allowing distributed resources to sell power.

Policy Analysis Interests Coincide

• Project Transparency• Economic

Development (Jobs)• Social Responsibility• Sustainability• Renewable Energy

Integration• Reliability• Business Case

FASTStakeholders

Common Principles

•PGE Develop economy

•BPA

•City of Salem

•Commercial Meet social expectations •Residential

•DOE/Batelle

•Tech PartnersMeet environmental requirements

•Utility Partners

•Environmentalists

United Nation’s World Summit 2005

Sustainability• FAST project – a perfect example of sustainable development

“Sustainable development requires the reconciliation of environmental, social and economic demands - the “three pillars” of sustainability.” United Nation’s World Summit 2005

• Improved quality of life

Chart 1. Balancing three “pillars” of sustainability

• Jobs created

• Renewable energy integration

• Reduced GHG emissions • Jobs created

• Green economy growth• Fossil fuels energy facility construction avoided

• Renewable energy infrastructure growth

• “Green collars”

• Energy security

• Energy independence

PGE SG Challenges & Opportunities

1. Technical challenge of intentional islanding 2. Transparent pricing for power and ancillary services >>

Ratecase risk3. Develop smart tools such as market and forward pricing4. Expand GenOnsys to incorporate new distributed resources5. Demand Response via 3rd parties, with smart meter analytics6. Look for SG opportunities when considering T&D investment7. Support EV cars through pricing program, ratepayers should not

pay for capital

Acknowledgements to our Technical Advisors at PGE

• Mark Osborn, Manager Distributed Resources• Conrad Eustis, Director Retail Technology

Discussion QuestionsDo think public policy should support use of the city right-of-way for the distribution

system battery storage? E.g. a battery-inverter storage system that is 8 feet long, 4 feet deep, and five feet high ever half-mile.

 Market interest in Power reliability:

For a commercial or industrial high reliability zone? E.g. a square mile where a high reliability micro grid is created for the property owners/tenants. How should the incremental cost be recovered?

For residential customers an optional home back-up system? The system backs up the home in the event of a grid outage. The utility owns and maintains the systems and uses it to support renewables integration. The customer would pay about $10 a month for the back-up service.

 The lack of a transparent and liquid market for power services in the Pacific Northwest

makes the introduction of certain resources very difficult. Do you think the region should create (as most US regions already have) an independent system operator that manages a transparent market mechanism? What entities should drive the creation process?

 What key issues have we missed on our analysis?