Summit Focuses Attention on Technology and Policy

April 23rd, 2010

Policy support and technology capabilities were the two main focuses of the PJM-EPRI Energy Storage Summit 2010 held April 20, 2010, near Philadelphia. The event drew more than 140 attendees from throughout the U.S. and from Europe.

The posts that follow summarize the speakers and panels.

Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission (FERC), and Kristina Johnson, under secretary of the Department of Energy, highlighted the support that exists at the federal level for developing and integrating energy storage, particularly as a means to achieve other goals linked to strengthening infrastructure and reducing carbon-dioxide emissions.

In addition to top federal speakers, three main panels of speakers represented the Electric Power Research Institute (EPRI), Southwest Power Pool, New York ISO, California ISO, TERNA (an Italian transmission system operator), the D.C. Public Service Commission, FirstEnergyGeneration, PSEG, AES Energy Storage, Beacon Power, the U.S. Senate Committee on Energy and Natural Resources and the University of Delaware.

A complete report of the proceedings and more information about the event will be available in the coming weeks on a Web page on www.pjm.com.

The Call to Action: Need verifiable data and innovative markets

April 20th, 2010
 
 

Arshad Mansoor

Arshad Mansoor, vice president of the Power Delivery & Utilization Sector, EPRI  

   

Arshad Mansoor, vice president of  EPRI, summarized his impressions of the trends uncovered during the day’s discussions. He noted that EPRI’s focus is how to integrate storage with the grid, not policy making, but it is energy and regulatory policy that will allow development and deployment of energy storage on the grid.  

“We’re doing well with energy storage technologies coupled with grid operations and transmission systems,” Mansoor said.  

On the operations side, Mansoor said we need verifiable data on real life performance, reliability and cost as well as industry standards for planning, designing operating and life-cycle management of energy storage technologies.   

He said on the policy side we need to look at innovative markets. “It’s promising that we see emerging new markets such as in California,” he said. “We are progressing, we are working in the right direction  regarding developing emerging markets.”  

He reviewed the trends in innovative rates, reliable and low cost technology and said by the end of the year we should have production and investment tax credits for energy storage.  

His closing remarks were a call to action. “Two years from now, when we meet again to review things, we must have moved the needle on storage,” Mansoor said.

Hear Mansoor’s closing summary.

Regulatory Panel – Tax credits and defining asset type are key to getting storage on the grid

April 20th, 2010

Dan Cleverdon, Alicia Jackson, Jon Wellinghoff, Anne Hoskins

Storage changes everything, according to Dan Cleverdon, technical advisor of D.C. Public Service Commission, who said this was the consensus of a group table discussion in which he participated at a long-term capacity symposium hosted by PJM last year. (Cleverdon’s presentation.) Others, like Cleverdon who participated in the Regulatory Panel shared similar remarks but also probed what was needed and what was being done at the policy level.  

Cleverdon pointed to a plan years ago in New England after the 1965 blackout when the governors, who saw that it wasn’t possible to bring more coal-generated energy into the area, looked at adding nuclear and pumped storage as solutions for meeting future energy needs. He said the value of energy storage was seen then and it has to be seen now with other energy storage technologies.  

Alicia Jackson, U.S. Senate Committee on Energy and Natural Resources, discussed several programs and policies that are aimed at invigorating energy storage goals but said that the most recent programs such as the Acela and the American Recovery Reinvestment  Act which has provided tax credits and incentives. However, the most direct support for developing energy storage will be through production and investment tax credits through the Storage Act. (Jackson’s presentation.) 

Anne Hoskins, senior vice president  of Public Affairs and Sustainability for PSEG,  said that the company’s interest in energy storage eminates from both being a generator and needing to integrate renewable power and as a partner in a new storage project. Hoskins said that more solutions are needed but they are working toward supporting the new tax incentives and production credits. (Hoskins’ presentation.)

Technical Panel – Bill Capp, Beacon Power

April 20th, 2010

Bill Capp – Beacon Power – Flywheel technology   

Flywheel-based storage technology, a newer energy storage technology, was mentioned often today in the summit as a valuable solution particularly for the frequency regulation-service market.   

Bill Capp, president and CEO of Beacon Power, explained that his company is a leading developer of flywheel technology and began operating in 2008. It has developed projects in ISO New England and in New York and is beginning a project in PJM.   

Flywheels are fast-response energy storage, Capp said. He said flywheels technical advantages are being faster and more effective than incumbent sources, being available separately without generation and having a 20-year projected life.   

“There is a growing consensus that fast-response resources, such as flywheel, should be paid a premium under pay-for-performance pricing,” Capp said, noting the value they bring to energy storage solutions.  

Hear Capp’s presentation

Bill Capp

Technical Panel – Chris Shelton, AES Energy Storage

April 20th, 2010

Chris Shelton – AES Energy Storage  

Regulation is a zero-energy service, making it an ideal candidate for supply by storage, said Chris Shelton, director of Energy Storage development for AES Energy Storage, referring to an Oak Ridge National Labs graph.  

Shelton’s parent company, AES, which owns utilities in the United States, has been involved with energy storage devices such as the one-megawatt lithium ion battery array project, currently being piloted at PJM’s facility and a 12 MW lithium ion battery installation in Chile.  

AES has demonstrated market integration with the one-megawatt battery trailer at PJM. Since the unit came on line in December 2008, it passed PJM regulation service certification to become a qualified market participant and now is a revenue-earning market participant following a PJM regulation signal.  

Hear Shelton’s presentation

Chris Shelton

Technical Panel – Willet Kempton, University of Delaware

April 20th, 2010
 
 
 

Willet Kempton

 

   

Willet Kempton, Associate profession University Of  Delaware, MAGICC   

Plug-in electric vehicles (PEVs) are an underutilized resource as an energy storage device, according to Willet Kempton, associate professor of the University of Delaware. Kempton is instrumental in the MAGICC initiative, the MidAtlantic Grid Interactive Car Consortium.   

Kempton and his research team at the University of Delaware worked with PJM and other companies to develop the model plug-in electric vehicle demonstrated at the Energy Storage Summit today.   

“There are 23 hours a day you have an expensive piece of equipment sitting there in your driveway,” Kempton said referring to the average number of hours a day a car is not in use but could potentially earn money by providing regulations service by sending electricity back into the system or charging on demand.   

He explained the technology of the PEV and its potential in a bigger scale of supplying power back to the grid.   

Hear Kempton’s presentation

 

Technical Panel – Gary Leidich, FirstEnergy

April 20th, 2010

Gary Leidich, Executive Vice President and President of FirstEnergy Generation

First Energy Generation, one of the largest generators in the country, has ventured into compressed air energy storage.  While the company operates several wind generation plants, it needs to balance renewable energy with energy storage.

According to Gary Leidich, executive vice president and president of FirstEnergy Generation, the company sees the direct effects of abundant wind in the Dakotas – even though the transmission lines between the wind-rich areas and population centers have yet to be built. Specifically, the company has occasionally backed down super-critical coal units to accommodate the influx of wind energy.

The company has a propsoed compressed air energy storage (CAES) project near Akron, Ohio with up to 2,700 megawatt (MW) capability.

Leidich said CAES can increase the  system’s overall efficiency, promotes renewable energy,  lowers overall emissions and offers greater flexibility in meeting customer demand.

“We produce a product (electricity) that is on demand by the customers, “ Leidich said. “There is very little flexibility in that demand.  The customers dictate when utilization of the electricity occurs and that is the challenge with renewables — nature decides when renewable power is available.”

“The beauty of CAES is that when the wind shows up, I know what to do,” he said. “I have a significant resource that can levellize the impact of wind, and I can ensure the customer is getting what they want when they want it.”

Hear Leidich’s presentation.

Technical Session Panel – Flywheel, Batteries, Compressed Air, PHEVs Drive Fast Response Energy Storage

April 20th, 2010
 
 
Robert Schainker

Robert Schainker

   

Robert Schainker, Senior Technical Executive for EPRI   

    

Some  types of energy storage are more appropriate and economical for certain  types of needs depending on the time frame for storage, according to one member of the Technical Panel this afternoon. Panelists representing an energy company, a university development department, an industry research organization and flywheel and compressed air technologies spoke to challenges and developments of energy storage technology.   

Robert Schainker, senior technical executive for EPRI, summarized different energy storage technologies and the most appropriate use of them. He also discussed the associated costs and how costs factors into the best uses for each technology.   

Schainker said energy storage to support wind and solar renewable sources is a higher priority than storage to balance the ramping down period of generation or maintaining frequency regulation.   

For 10-15 hours of storage, compressed air energy storage and pumped storage may be the best technologies used. However, for 15 seconds to a minute to meet regulation service needs batteries might be more appropriate, he said.   

Although the largest amount of the world’s existing storage is pumped hydro storage, with 110,000 megawatts of it throughout the world, it accounts for only 2.5 percent of total U.S. generation.   

He said that the U.S. needs an alternative to pumped storage  to meet the renewable energy growth. 

Hear Schainker’s presentation.

ISO Panel: Carlo Sabelli, TERNA

April 20th, 2010

Carlo Sabelli – Terna

As Italy’s transmission system operator, Terna faces the implications of integrating renewable energy  into the grid, partly because of a heightened concern over reliability.  

Carlo Sabelli, dispatching manager for Terna, said that, in Europe, research and activities are heavily affected by: renewables and 20/20/20 objectives, Smart Grid and the security of supply.

He noted that, in 2003 and 2006, Europe experienced major outages that have made his country as well as the others even more concerned with the growth of renewable generation on the system and the continued reliability of the grid.

Sabelli also echoed SPP’s comments that the transmission network is a key issue to integrating renewables and energy storage. For Italy, he said ,energy storage currently is 100-percent pumped storage.

He noted that energy storage is not the responsibility of transmission system operators to implement. However, they are involved in study cases and scenario evaluations, he said.

Currently, Terna is looking at the residual capability of pump storage.

Hear Sabelli’s presentation.

 

ISO Panel: Rob Pike, New York ISO

April 20th, 2010

Rob Pike,  New York ISO

New York ISO is optimistic that there is a convergence of factors that will allow  the system operator to expand the role of storage on its system.

Rob Pike, director of New Market Design for New York ISO, said that the amount of wind power capacity on the NYISO system tripled from 2008 to 2009, growing from 424 megawatts (MW) to 1,275 MW.  However, although the economic climate is slowing down wind growth, wind is the major renewable source in New York.

The NYISO has established a regulation-only product in its market  to accommodate limited energy storage resource’s capabilities and limitations.

The NYISO has a wind forecasting system in place, which helps to manage output levels when facing congestion.  Also, in addition to wind, New York ISO has had pumped storage in place for 40 years and is now exploring the potential for compressed air technology and flywheel technology.

Hear Pike’s presentation.