IMPLEMENTING ENERGY STORAGE - TPPA · • Evaluate offer strategy with a deep dive into the system...

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IMPLEMENTING ENERGY STORAGE PRESENTED BY: Carolyn E. Shellman Chief Legal Officer TPPA 2019 Annual Meeting July 30, 2019

Transcript of IMPLEMENTING ENERGY STORAGE - TPPA · • Evaluate offer strategy with a deep dive into the system...

Page 1: IMPLEMENTING ENERGY STORAGE - TPPA · • Evaluate offer strategy with a deep dive into the system control methodology 5 ... FlexPower Bundle • Blended energy approach for adding

IMPLEMENTING ENERGY STORAGEPRESENTED BY:

Carolyn E. ShellmanChief Legal Officer

TPPA 2019 Annual Meeting July 30, 2019

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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Thank You