Energy Storage and Solar:

What Does, and Doesn’t, Lie on the Horizon

ESA MEMBERS

Redox Flow Batteries

Energy stored is decoupled from power delivery๏ system energy storage capacity independent from system power capacity

๏limited electrical & thermal hazard

๏high life cycle sustainability

๏configuration optimized to project

๏ normalized system cost curve matches the storage value curve

๏system scaling is less complex

๏commercially-available components

๏regional supply chain & factory assembly

http://www.nysenate.gov/press-release/aubertine-legislation-expand-energy-storage-technology

Services Storage Provides

Electric Energy Time Shift(aka – ‘Peak Shifting’)

Solution: Energy Storage for Peak Shaving

• Duration: variety of technologies operate wide range of

hours

• Frequency: field experience confirms 24/7/365

operation

• Permanence: dedicated grid assets to provide services

over long haul

40 GW Peak Generation Needed in Next 15 Years

Load Following and Ancillary Services

Solution: Energy Storage as Flexible Resource

Renewables and Storage

• Smooths power output, intermittency

• Storage systems prevent large local spikes from renewables

• Mitigates system level issues caused by high renewable penetration

• Goal is not necessarily to create 24/7 ‘on-demand’ solar – systems are scaled based on cost-benefit analysis

• Storage enables greater deployment, larger system size for renewables

Policy Drivers

Policy Brings Capitol Investment, Lower Cost

EquityProfits

Revenues Costs

e.g. Pay For Performance, additional competitive markets FERC/ISO’s

e.g. Investment Tax Credit, MLP’s, leveling the playing field Congress

DebtRisk

Revenue Certainty Technology Risk

e.g. PPAs, RFPs, IRP, TOU Rates States, FERC

e.g. Loan guarantees, ARPA-e, NY-BEST States, DOE, Congress

Sample System with Incentives

• Hypothetical system installed in CA could take advantage of:• SGIP - $2/watt for ES• Fed Tax Credit – 30%• TOU Rates -

$500/kWh over system lifetime

• System could cost over $1400 per kWh, or $7000 for a 5 kWh system, and still breakeven

• When markets reward storage’s flexible, dynamic attributes, the entire grid benefits

Where to Continue the Conversation?

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