A California public utility has brought the largest battery energy storage in North America online. Funded partially by federal stimulus funds, Southern California Edison's Tehachapi Wind Energy Storage Project is designed to demonstrate the effectiveness of large-scale battery storage systems.
Southern California Edison Company is the largest electricity supply company in Southern California. As part of the U.S. Department of Energy's implementation of the American Recovery and Reinvestment Act of 2009, the utility won funding to develop a major battery energy storage system (or BESS). The Tehachapi Wind Energy Storage project consists of an array of lithium-ion batteries capable of storing 32 megawatt-hours, deliverable as an 8 megawatt stream of energy for 4 hours. The LG Chem batteries rely on the same lithium-ion cells installed in battery packs for General Motors’ Chevrolet Volt electric vehicle, and feature 608,832 individual battery cells arrayed in 10,872 battery modules and 604 battery racks. Along with two 4MW/4.5MVA smart inverters, the project will be housed in a 6,300 square foot facility sited at SCE's existing Monolith substation.
Of the project's $49,956,528 total budget, half will be paid for by SCE, while federal funds will cover $24,978,264. In return, the project will examine whether and how the battery energy storage system improves grid performance and helps integrate wind and other large-scale variable energy resourced generation. Project performance will be measured by 13 specific operational uses, most of which either shift other generation resources to meet peak load and other electricity system needs with stored electricity, or resolve grid stability and capacity concerns that result from the interconnection of variable energy resources. These uses include: providing voltage support and grid stabilization; decreasing transmission losses; diminishing congestion; increasing system reliability; deferring transmission investment; optimizing renewable-related transmission; providing system capacity and resources adequacy; integrating renewable energy (smoothing); shifting wind generation output; frequency regulation; spin/non-spin replacement reserves; ramp management; and energy price arbitrage. In addition, the project will demonstrate how lithium-ion battery storage can provide nearly instantaneous back-up capacity, minimizing the need for fossil fuel-powered back-up generation.
Between technological advances and a series of recent policy decisions, battery energy storage could be poised for rapid growth. For example, in 2011 the Federal Energy Regulatory Commission issued Order No. 755, requiring the grid operators in
organized markets to compensate battery energy storage systems and other fast-ramping frequency regulation resources based on the
actual service they provide. Last year's Order No. 784 required public utilities to take into account the speed and accuracy of regulation resources such as batteries. Meanwhile, batteries are hoped to help balance into the grid large amounts of energy from intermittent renewable resources such as solar and wind projects.
After two years, the Tehachapi Wind Energy Storage Project will have completed its initial demonstration run. Will the project lead to greater deployment of battery energy storage systems in the U.S.?
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Showing posts with label Order 755. Show all posts
Showing posts with label Order 755. Show all posts
Grid readies for energy storage
Monday, March 26, 2012
New energy storage technologies have the potential to transform the
electric grid. Energy storage generally refers to a variety of
approaches to storing energy in a form that can be converted back into
usable electricity when needed. Some of these technologies, such as
pumped storage allow power to be produced and stored at a low cost, then
released during times of higher price or demand. Others, such as
flywheels or batteries, are able to help balance and regulate supply and
demand on the grid by providing a service known as frequency
regulation.
Last fall, federal regulators issued an order requiring most US electric grid operators to change the way they compensate frequency regulation. Historically, the way resources were paid for frequency regulation favored traditional generators able to ramp their production up and down to match demand in real time, even when alternative resources like energy storage could provide frequency regulation more efficiently and at a lower cost. In Order No. 755, the Federal Energy Regulatory Commission held that the current frequency regulation compensation practices "result in rates that are unjust, unreasonable, and unduly discriminatory or preferential."
To remedy this flaw, the FERC required grid operators to change the way they pay for frequency regulation. FERC required grid operators to propose new market rules by April 30, 2012, to take effect in late October 2012.
At least one regional grid operator thought it needed more time. In November 2011, ISO New England Inc., the regional transmission organization for the six New England states, asked the Commission for nearly four months' additional time to develop and submit the revised tariff provisions. Other stakeholders viewed as beneficiaries of Order 755 opposed the requested delay, including an electricity storage trade association and flywheel developer Beacon Power. However, the Commission denied the grid operator's request.
Grid operators of the nation's organized electric markets have now started to file their proposals on how to compensate energy storage and other frequency regulation resources. PJM's proposal has been submitted to FERC, and other regions will follow shortly. Given the Commission's ruling in Order No. 755, the energy storage market may grow significantly, as players figure out how to earn revenues by providing cost-effective frequency regulation.
Last fall, federal regulators issued an order requiring most US electric grid operators to change the way they compensate frequency regulation. Historically, the way resources were paid for frequency regulation favored traditional generators able to ramp their production up and down to match demand in real time, even when alternative resources like energy storage could provide frequency regulation more efficiently and at a lower cost. In Order No. 755, the Federal Energy Regulatory Commission held that the current frequency regulation compensation practices "result in rates that are unjust, unreasonable, and unduly discriminatory or preferential."
To remedy this flaw, the FERC required grid operators to change the way they pay for frequency regulation. FERC required grid operators to propose new market rules by April 30, 2012, to take effect in late October 2012.
At least one regional grid operator thought it needed more time. In November 2011, ISO New England Inc., the regional transmission organization for the six New England states, asked the Commission for nearly four months' additional time to develop and submit the revised tariff provisions. Other stakeholders viewed as beneficiaries of Order 755 opposed the requested delay, including an electricity storage trade association and flywheel developer Beacon Power. However, the Commission denied the grid operator's request.
Grid operators of the nation's organized electric markets have now started to file their proposals on how to compensate energy storage and other frequency regulation resources. PJM's proposal has been submitted to FERC, and other regions will follow shortly. Given the Commission's ruling in Order No. 755, the energy storage market may grow significantly, as players figure out how to earn revenues by providing cost-effective frequency regulation.
Frequency regulation and Order 755
Wednesday, January 18, 2012
Managing an electric grid requires a constant balancing act: instantaneously matching supply and demand. Grid operators maintain this real-time balance using a variety of tools, from traditional generation dispatch to innovative demand response.
Among the many parameters that must be balanced is the frequency of the alternating current on the grid. Each element of the grid must operate not only in synch but at the same frequency -- in the U.S., typically about 60 hertz. If supply and demand become imbalanced, the frequency of the grid power shifts away from 60 Hz, causing equipment damage, reliability problems, and even safety risks.
Traditionally, grid operators instructed generators to ramp up or ramp down small amounts as needed to maintain frequency regulation. While this generator-based approach works by injecting additional power into the transmission grid where needed, new technologies exist that may be able to provide frequency regulation more effectively. Compared to generation resources, flywheels, batteries, and other energy storage technologies may be able to regulate the grid's frequency not only at a lower cost but also with fewer emissions and other environmental impacts, as they do not rely on incremental fuel consumption. Storage is considered more capable of matching the grid operator's constantly-changing regulation signal.
Energy storage resources can also respond more quickly to grid frequency disturbances, providing a valuable fast-response frequency regulation service.
A recent federal order is designed to compensate those who can provide fast-response frequency regulation most effectively. FERC Order 755 (123 page PDF) requires grid operators to compensate frequency regulation resources based on the actual service they provide. Previously, grid operators paid fast responders the same price for frequency response as that paid to other providers, without regard to the more valuable speed and power quality provided by fast responders.
Under Order 755, grid operators will have to pay fast-responding frequency regulation resources a quality-based price. Given the energy storage technologies now under development, many anticipate that Order No. 755 will give birth to an expanded frequency regulation industry. For example, estimates of the total frequency regulation market size for the organized electric markets in the U.S. range from 4,000 megawatts to 7,500 MW.
Among the many parameters that must be balanced is the frequency of the alternating current on the grid. Each element of the grid must operate not only in synch but at the same frequency -- in the U.S., typically about 60 hertz. If supply and demand become imbalanced, the frequency of the grid power shifts away from 60 Hz, causing equipment damage, reliability problems, and even safety risks.
Traditionally, grid operators instructed generators to ramp up or ramp down small amounts as needed to maintain frequency regulation. While this generator-based approach works by injecting additional power into the transmission grid where needed, new technologies exist that may be able to provide frequency regulation more effectively. Compared to generation resources, flywheels, batteries, and other energy storage technologies may be able to regulate the grid's frequency not only at a lower cost but also with fewer emissions and other environmental impacts, as they do not rely on incremental fuel consumption. Storage is considered more capable of matching the grid operator's constantly-changing regulation signal.
Energy storage resources can also respond more quickly to grid frequency disturbances, providing a valuable fast-response frequency regulation service.
A recent federal order is designed to compensate those who can provide fast-response frequency regulation most effectively. FERC Order 755 (123 page PDF) requires grid operators to compensate frequency regulation resources based on the actual service they provide. Previously, grid operators paid fast responders the same price for frequency response as that paid to other providers, without regard to the more valuable speed and power quality provided by fast responders.
Under Order 755, grid operators will have to pay fast-responding frequency regulation resources a quality-based price. Given the energy storage technologies now under development, many anticipate that Order No. 755 will give birth to an expanded frequency regulation industry. For example, estimates of the total frequency regulation market size for the organized electric markets in the U.S. range from 4,000 megawatts to 7,500 MW.
FERC Order 755 promotes energy storage
Wednesday, December 21, 2011
New technologies have the promise to help electric grid operators perform the challenging task of balancing supply and demand at all times. This means making sure there the exact amount of electricity is being generated across the region as is demanded by consumers at that very moment. Line losses and the constraints of each local transmission and distribution system add complication. If the grid gets out of balance, problems arise with the electricity's frequency and power quality. In the worst case, failure can lead to cascading blackout, and safety can be at issue.
Historically, the balancing act has involved sending coordinated dispatch instructions to generators and demand response resources. Rules typically guide the grid operator in telling individual generating units to operate at specific levels. For example, flows through hydroelectric turbines can be varied, or fuel can be added to boilers or combustion turbines at a faster or slower rate. Through careful management, these conventional generation resources have been used to balance supply and demand, providing services known as frequency response and frequency regulation.
Though it is partly automated and well-practiced, this conventional resource dispatch process does take some time to take effect. Energy storage technologies such as flywheels, and batteries can not only provide frequency regulation, but can engage and ramp up much faster than conventional resources can. These faster-ramping resources could provide the grid relief in real time, as opposed to ramping up more slowly like conventional generation.
In most US markets, providers of efficient fast-ramping frequency regulation have been compensated the same as when conventional units provide regulation service, even when using fast-ramping resources is more efficient. At times this has meant that conventional resources have been dispatched when fast-ramping ones would have been lower-cost (and less polluting). For these reasons, this October the Federal Energy Regulatory Commission found that the current frequency regulation compensation practices "result in rates that are unjust, unreasonable, and unduly discriminatory or preferential."
In Order No. 755, FERC issued a final rule requiring the grid operators in organized markets to compensate frequency regulation resources based on the actual service they provide. Under Order 755 (123 page PDF), this must include separate payments for capacity (the marginal unit’s opportunity costs of being available) and for your actual performance.
Winners under Order 755 include providers of fast-ramping frequency response. These could include developers and operators of flywheel energy storage companies like Beacon Power, battery storage facilities, and compressed air energy storage, and other resources still in the conceptual phase. Winners also include energy consumers in the markets affected by Order 755, who should benefit from lower costs through improved operational and economic efficiency.
Historically, the balancing act has involved sending coordinated dispatch instructions to generators and demand response resources. Rules typically guide the grid operator in telling individual generating units to operate at specific levels. For example, flows through hydroelectric turbines can be varied, or fuel can be added to boilers or combustion turbines at a faster or slower rate. Through careful management, these conventional generation resources have been used to balance supply and demand, providing services known as frequency response and frequency regulation.
Though it is partly automated and well-practiced, this conventional resource dispatch process does take some time to take effect. Energy storage technologies such as flywheels, and batteries can not only provide frequency regulation, but can engage and ramp up much faster than conventional resources can. These faster-ramping resources could provide the grid relief in real time, as opposed to ramping up more slowly like conventional generation.
In most US markets, providers of efficient fast-ramping frequency regulation have been compensated the same as when conventional units provide regulation service, even when using fast-ramping resources is more efficient. At times this has meant that conventional resources have been dispatched when fast-ramping ones would have been lower-cost (and less polluting). For these reasons, this October the Federal Energy Regulatory Commission found that the current frequency regulation compensation practices "result in rates that are unjust, unreasonable, and unduly discriminatory or preferential."
In Order No. 755, FERC issued a final rule requiring the grid operators in organized markets to compensate frequency regulation resources based on the actual service they provide. Under Order 755 (123 page PDF), this must include separate payments for capacity (the marginal unit’s opportunity costs of being available) and for your actual performance.
Winners under Order 755 include providers of fast-ramping frequency response. These could include developers and operators of flywheel energy storage companies like Beacon Power, battery storage facilities, and compressed air energy storage, and other resources still in the conceptual phase. Winners also include energy consumers in the markets affected by Order 755, who should benefit from lower costs through improved operational and economic efficiency.
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