IMPLEMENTING ENERGY STORAGE - TPPA · • Evaluate offer strategy with a deep dive into the system...
Transcript of IMPLEMENTING ENERGY STORAGE - TPPA · • Evaluate offer strategy with a deep dive into the system...
IMPLEMENTING ENERGY STORAGEPRESENTED BY:
Carolyn E. ShellmanChief Legal Officer
TPPA 2019 Annual Meeting July 30, 2019
OBJECTIVES & TAKEAWAYS
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• LEGISLATIVE/REGULATORY ACTIVITY
• OVERVIEW OF PILOT PROJECTS
• JOURNEY TO FURTHER ADOPTION
• ENERGY STORAGE USE CASES
• IMPORTANT THINGS TO CONSIDER
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REGULATORY & LEGISLATIVE ENVIRONMENT
Legislature
• SB 1012 – Clarification of battery storage ownership for MOUs and cooperatives (passed into law)
• SB 1941 – Storage ownership for IOUs (did not pass)
Public Utility Commission (PUC)
• Project No. 48023 – Rulemaking to address the use of non-traditional technologies in electric delivery service
ERCOT Currently Considering Operational Framework
ENERGY STORAGE PILOT PROJECTS
Project 1 - Storage Only
• Installed and operating since 2016
• Cooperation agreement between OCI and CPS Energy; gaining battery experience
• 1 MW/250 kWh LG Chem Battery with Younicas Inverters
• Over 1,500 deployments per month
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ASTRO 1 MW Battery StorageAlamo 1 solar site in South Bexar County
ENERGY STORAGE PILOT PROJECTS
Lessons Learned
• Metering Set-up
– Storage system should have its own point of interconnection
• System needed modifications to CPS Energy systems
• Size and design were challenging for other market services
• Evaluate offer strategy with a deep dive into the system control methodology
5Collaboration With a Knowledgeable ESS Vendor is Key
ASTRO 1 MW Battery StorageAlamo 1 solar site in South Bexar County
ENERGY STORAGE PILOT PROJECTS
5 MW AC Solar PV Facility
10 MW Battery Storage System
Project 2 - Solar + Storage:
• 10MW/10MWh Energy Storage System co-located with 5 MW solar site
• Partnership with Southwest Research Institute
Applications:
• Solar shifting (5 MW/2 hours)
• Fast Responding Regulation Service (FRRS) energy storage facility in ERCOT
• Flexible Configuration• 10 MW FRRS with 1 hour duration• 5 MW stored energy with 2 hour duration
ENERGY STORAGE PILOT PROJECTS
5 MW AC Solar PV Facility
10 MW Battery Storage System
Project Status:
• Storage System – Energized and interconnected with completion scheduled July 2019
• Solar – Installation in progress with completion scheduled September 2019
Benefits:
• Energy storage research
• Renewable energy, reduced emissions, operational experience
• Community recognition and data sharing
PUC Rulemaking
•IOU ownership, ERCOT market, grid reliability, etc.
Team Formation
•Work sessions with cross-functional SMEs
Education
•Learning sessions on regulatory & market considerations, etc.
Brainstorming
•Internal Discovery
•Strategic Needs & Questions
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ENERGY STORAGEJOURNEY TO FURTHER ADOPTION
Use Case Options
Strategy Development
Strategy Refinement
Strategy Approval
Implementation
Where We Started
Where We Are Heading
Where We Are NowRefine as Needed
• Analysis of Retail, Wholesale, T&D
ENERGY STORAGEJOURNEY TO FURTHER ADOPTION
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• What are our objectives?
• How would we benefit?
– Solve a Problem
– Save money
– Generate Revenue
– Provide a Service
• Who are the stakeholders?
• What is needed to go to market?
• How do we recover costs?
• How do we implement/use?
• What are the regulatory issues?
Brainstorming sessions focused on key strategic questions
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ENERGY STORAGEUSE CASES
Peak Capacity
Off-peak to on-peak shifting
Solar/Wind shifting
Ancillary Services
Quick Start Hybrid
Congestion Management
Load Shape Management
Capital Deferral/Capacity
Resiliency/Microgrid
Power Quality
Community Storage
Mobile Storage Restoration
EV Fast Charging
BTM Solar + Storage
Resiliency Service
Vehicle to Grid
Community Storage
Mobile Battery Service
Battery Storage for DC Fast Charging
Customer Capital Deferral
Off Grid
Wholesale
Transmission & Distribution
Retail
ENERGY STORAGECHALLENGES & OPPORTUNITIES
• Generation Portfolio
• Safety Considerations
• Resiliency
• Customer cost impacts related to utility cost recovery (i.e. rate implications)
• T&D planning impacts
• Ownership decisions
• Tax Implications – ITC Phase out
• Technical challenges
• Control system coordination
• Rate structure
11*Photo reference: http://www.soissonandassociates.com/services/meeting-facilitation-group-process-design.html
Key Considerations for the risk/reward value proposition
ENERGY STORAGE PATH FORWARD
FlexPower Bundle
• Blended energy approach for adding capacity– Solar – 300-900 MW
– Storage – 10-50 MW
– Gas – 300-500 MW
• Utilizes existing generation assets with incremental transition to newer generation technologies
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As technologies improve and costs decline, renewables and storage will support affordability & reliability.
Thank You