Energy StorageWPUI Conference

June 25, 2019

Carter Scott – Ranger Power

Energy Storage

• Technology, Design and Configuration• What technologies provide energy storage?

• How is an energy storage system configured?

• How is an energy storage system connected?

• Market Participation, System Savings and Project Revenue• Why do we want to add an energy storage into the Market?

• What revenues can the battery receive from the Market?

• What is happening today in the Energy Storage Space?• Federal and State Policy and Activities

Definition of Electric Storage Resource

• “A resource capable of receiving electric energy from the grid and storing it for later injection of electric energy back to the grid.”

• “definition is intended to cover ESRs, regardless of their storage medium (e.g., batteries, flywheels, compressed air, and pumped-hydro)”

• “ESRs located on the interstate transmission system, on a distribution system, or behind the meter fall under this definition”

- FERC Order 841 Paragraph 29

Technology, Design and ConfigurationWhat technologies provide energy storage?

How is an energy storage system configured?

How is an energy storage system connected?

What technologies provide energy storage?

NREL, 2018

How is an energy storage system configured?• Example: Lithium Ion

Battery + Solar Facility• 20-40% of the

nameplate of a solar resource when co-located.

• 100 MW Solar facility might have a 30 MW Battery.

• 4-hour run time at maximum output

• 20 MW / 80MWhr Battery

How is an energy storage system configured?

How is an energy storage system connected?

• Distributed vs. Transmission System

• Behind or “in front” of the meter

• Independent Location

• Co-located with solar or wind

• Tied into the AC Collection

• Tied into the DC Collection

Project POI

DC Connected“behind” The Inverter

ESR Operating Characteristics

MISO ESTF

Market Participation, System Savings and Revenue

Why do we want to add an energy storage into the Market?

What revenues can the battery receive from the Market?

Arbitrage and System Savings: Energy storage utilizes lower cost energy during low demand to replace higher cost peak energy.

Typical Load Profile throughout the week.

Source: NREL Energy Storage 101Presentation 8/17/2017

Typical Load Profile throughout the week.

Add in Solar, and you save on the Energy side (free fuel) but you have just shifted the peak demand to a later hour in the day.

Typical Load Profile throughout the week.

Add in Solar, and you save on the Energy side (free fuel) but you have just shifted the peak demand to a later hour in the day.

Add in a battery, and you save on both energy and demand, covering the full peak period and actually lowering the peak demand.

Savings on both demand and energy.

Revenue Streams to Support Storage

• Market Based Revenue• Energy (MWhr)

• Capacity (MW-Day)

• Ancillary Services• Balancing Resource

• Spinning Reserves

• Frequency Response

• Reliability Revenue• Schedule 2 - Reactive Supply and

Voltage Control

• Schedule 33 – BlackstartResources

System CostsGo Down

Project IncomeIncentivizes

Development

MISO Day Ahead Market Scenario – Energy and Ancillary Services with Oscillating Pricing

What is happening today in the Energy Storage Space?

Federal and State Policy and Activities

GTM Storage Deployment Forecast

Costs

Image Source: NREL

FERC Order 841 – Energy Storage Resources

States with Energy Storage Activities/Goals

• Massachusetts• 2017 – DOER Goal 200 MW by 2020

• Study showed benefits:• 1.8GW of Storage

• $970M Cost

• $2.3B System Benefits

• New York• NYPSC Goal 1.5GW by 2025

• New Retail and Bulk Incentives

• Arizona• Smaller storage incentives $1-4M

• Proposal for 3GW by 2030

• California• 1.3GW of Storage

• 500MW of BTM or DG

• By 2025

• Nevada• New Residential and Commercial

Incentive Program

• Oregon• Large utilities required to have 5MW

of storage by 2020

Thank You!

Contact InformationCarter Scott

Ranger Powercarter@rangerpower.com