1. Electric Energy Storage Systems
for the Electric Enterprise
Trends and Opportunities
Future of Energy Summit
MaRS Discovery District
Toronto, Canada
Dan Rastler
Electric Power Research Institute
Presented by:
Mark Tinkler
Principal Energy Consultant June 8, 2012
Emerging Energy Options

2. Key Takeaways
• Key Technical Challenges in the Electric Enterprise offer
New Business Opportunities
• The Evolving Smart Grid Landscape is a channel to new
products and services; business models
• Energy Storage Solutions / Services are a key thread and
part of this evolving landscape;
• Opportunities for the right enabling technology(ies),
services solution(s), providers, business model(s)
• Global markets vary & require different solutions
• Barriers and economics are also challenging – but that is
why there is the opportunity for Innovation!
© 2012 Electric Power Research Institute, Inc. All rights reserved. 2

3. EPRI’s Role…
Help Move Technologies to the Commercialization Stage…
Technology Accelerator!
© 2012 Electric Power Research Institute, Inc. All rights reserved. 5

4. Key Strategic Technical Issues in the Electric Enterprise
Solutions and services in each of these areas are potential
growth & new business opportunities
Smart Energy Long-Term
Grid Efficiency Operations
Renewable Resources Near Zero Water Resource
and Integration Emissions Management
© 2012 Electric Power Research Institute, Inc. All rights reserved. 7

5. Today’s Power System …
is Evolving, Creating New Opportunities for Products and Services
Central generation, one-way power flow, passive consumers
© 2012 Electric Power Research Institute, Inc. All rights reserved. 8

6. Tomorrow’s Power System …
will require expertise and know how in a variety of disciplines/services
Distributed generation & Storage, two-way power flow,
© 2012 Electric Power Research Institute, Inc. All rights reserved. 9

7. Drivers and Opportunities for Electric Energy Storage
Solutions in the U.S.
• Managing increased wind and PV penetration on the grid
• Increased need for flexible grid: Ancillary Services, balancing
• Transmission and Distribution grid asset management
– Managing grid peaks, T&D capital deployment, outage mitigation
• High penetration of distributed PV systems on the grid
• Enhancing the value of a Smart Grid: peak energy management;
end-use energy management.
© 2012 Electric Power Research Institute, Inc. All rights reserved. 10

8. The Roles of Storage on the Grid
Utility or customer side of meter; central to distributed; “silent & clean capacity“;
energy management when and where it is needed.
Bulk Storage
Ancillary Services
Thermal
Distributed Storage
Storage
Distributed
Storage
Commercial
Storage
Residential V2G
Storage
© 2012 Electric Power Research Institute, Inc. All rights reserved. 11

9. Categorizing Energy Storage Applications
Source: Sandia Report: Energy Storage for the Electricity Grid, Feb ruary 2010
Emerging Energy Options E2 O

10. Application-Specific Benefits and Market Potential (US)
Source: Sandia Report: Energy Storage for the Electricity Grid, Feb ruary 2010
Emerging Energy Options E2 O

11. Technology Trends and Readiness
Electric Energy Storage Options
Research Development Demonstration Deployment Mature Technology
NaS
Flow Batteries
ZnCl FeCr ZnBr
Anticipated Level of RD&D Investment
NaNiCl2 Pumped Hydro
Superconducting Magnetic
Energy Storage (SMES)
Advanced Lead Acid Lead Acid
Nano-capacitors
Na-ion
Flywheels
Li-ion
Adv Li / metal Zn / Air
Adiabatic CAES
Super-capacitors
Compressed Air Energy Storage (CAES)
2nd Generation 1st Generation
Left end of arrow indicates current status;
Right end of arrow indicates estimated 2020 development level.
Time
© 2012 Electric Power Research Institute, Inc. All rights reserved. 14

12. Energy Storage Demonstrations in the U.S.
Planned or Underway – List is Not Complete
SustainX 1 MW / 4 MWh
Isothermal CAES MA / NH
DTE 500 kW / 250 kWh Li-ion
MI (A123) NYSEG 145 MW Adv. CAES
Watkins Glen, NY (EPRI)
NGrid 500 kW / 3 MWh ZnBr
NGrid 500 kW / 3 MWh ZnBr Everett, MA (Premium Power)
Syracuse, NY (Premium Power)
Xcel Energy 1.5 MW / 1.0 MW
PG& E NaS Battery Denver, Co (Xtreme Power)
(NGK) 25 kW / 50 kWh NaNiCl2
PJM 20 MW Flywheel
(FIAMM)
Chicago, IL (Beacon)
SMUD 500 kW / 3 MWh ZnBr
Sacramento, CA (Premium Power)
DTE 500 kW / 250 kWh Li Ion
MA (A123)
25 kWh Li-ion SMUD 5 kW / 9 kWh Li-ion
Berkeley, CA (Seeo) (Saft) KCP&L Li-ion
Kansas City, MO (Dow Kokam, Siemens)
25 MW Zn-Air Flow Battery PJM 3MW Adv Lead Acid
Modesto, CA (Primus) Lyon Station, PA (East
Amber Kinetics Flywheel Penn, Ecoult)
Fremont, CA (LLNL) AEP 2 MW Li-ion for CES
OH (International Battery, S&C)
PG&E 300 MW Adv. CAES Carnegie Melon Na Ion
Kern County, CA (EPRI) Pittsburgh, PA (Aquila)
250 kW / 1 MWh
SCE 8 MW / 32 MWh Li-ion Iron / Chrome flow battery
Tehachapi, CA (A123) Modesto, CA (Ktech Corp )
PNM Adv, Lead Acid
Albuquerque, NM (East Penn)
Vanadium ReDox
(Prudent Energy)
Duke 20 MW TBD Wind Support
Notrees, TX
© 2012 Electric Power Research Institute, Inc. All rights reserved. 16

13. Current / Planned U.S. Li-ion Demonstrations
List is Not Complete
Auto Major Contract
DTE: 500 kW No Auto Contract
(A123)
*Size of star indicates
AEP: 2 MW scale of demo
(Int’l Battery)
NYPA: 1 MW / 250 kWh
(Ultralife Corp)
AES: 1 MW / 250 kWh
(Altairnano)
SMUD: 5kW /
Duke Energy: 25 kW & 250 kW
9kWh
(Kokam)
(Saft)
KCPL: 1 MW
(Dow Kokam) Southern Co: 25 / 75 kWh
SCE: 8 MW / 32 MWh (RW Beckett)
(A123) Southern Co: 60 kW / 240 kWh
(GreenSmith TS)
Battery OEMs
SCE: distributed Li-ion • A123Systems
systems, 10 kWh each UCSD: 15 kWh
• AltairNano
(LG Chem) (Sanyo)
• EnerDel
• Saft
APS: 0.5 MW
• Dow Kokam
(Electrovaya, ABB) • International Battery
HECO: 5 kW / 20 kWh
Progress Energy: 5 kW/ 20 kWh • GreenSmith / Thundersky
(GreenSmith)
(GreenSmith TS) • Sanyo
HECO: 1 MW / 15 min • Ultralife
(Altairnano) • Electrovaya
• Kokam
• Boston Power
Field Trials of Li-ion Systems has Accelerated in the past 2 years
© 2012 Electric Power Research Institute, Inc. All rights reserved. 17

14. Present Value Installed Cost in $/kWh
Accounting for both capital and operating costs
Notes: All costs in 2012$; Costs will vary significantly based on site-specific conditions;
Financials: IOU ownership; 15 year life; $30/MWH off-peak charging costs; natural gas @ $3/MBtu for CAES
© 2012 Electric Power Research Institute, Inc. All rights reserved. 19

15. The Value of Storage
Present value of benefits expressed in $/kWh is a proxy
for total allowable installed cost
$2,000
$1,800
In ISO NE, there may be a few
places where storage costing up to
$1,600 $650/kWh is justified.
System Capacity
$1,400
PV $/kWh of Energy Storage
But in most places in ISO NE,
$1,200 storage must cost less than VAR Support
$350/kWh to be justified.
$1,000 Distribution Losses
$800 Defer Dist. Investment
$600 Voltage Support
$400 Power Reliability
$200
$0
Target High Target High Target High Target High Target High
CAISO ERCOT ISONE NYISO PJM
© 2012 Electric Power Research Institute, Inc. All rights reserved. 20

16. The Value of Storage
$2,000
$1,800 Regulation services offer a way to improve
value…
$1,600
…assuming storage is
$1,400
PV $/kWh of Energy Storage
allowed to bid into the Regulation
$1,200 market
System Capacity
$1,000 VAR Support
$800 Distribution Losses
Defer Dist. Investment
$600
Voltage Support
$400
Power Reliability
$200
$0
Target High Target High Target High Target High Target High
CAISO ERCOT ISONE NYISO PJM
© 2012 Electric Power Research Institute, Inc. All rights reserved. 21

17. Opportunities in the Energy Storage Value Chain
DC Storage Power
Materials System Electronics System Integration Service Provider
Packages Controls
• Anode • DC Packs • 1-phase • Application • Application solution
solution provider
• Cathode • Firmware for • -3phase provider
SOC Mgt • IPP
• Electrolyte • Bi-directional • Turn key
• Packaging • ESCO
• Packaging • Islanding system
• Lower cost provider • Smart Grid Integration
• New enabling • Lower cost
sub systems • O&M Support and
materials systems • Smart Grid
Integration Services
• Smart
Inverters • O&M Support • Tools & software to
and Services monetize value
streams and support
• Planning &
business case
Analysis tools
and services • Aggregation &
management
© 2012 Electric Power Research Institute, Inc. All rights reserved. 22

18. Some Key Areas to Consider
• PV and Storage Solutions
– Max Penetration of PV on Distribution Grid
– Storage / non-storage solutions
• Customer Premise Energy Solutions
– Development of win-win solutions for customer / utility
– Natural gas DG + Storage - “the killer app?”
• Centre of Excellence for Storage / DG in Smart Grid
– Industry cluster; Public/Private Partnership
– Inter-governmental collaboration
© 2012 Electric Power Research Institute, Inc. All rights reserved. 23

19. Together…Shaping the Future of Electricity
Dan Rastler
Sr. Mgr. Strategic Initiatives and
Demonstrations
Electric Power Research Institute
drastler@epri.com
650-855-2034
Presented by:
Mark Tinkler
Principal Energy Consultant
Emerging Energy Options
tinkler.energyoptions@sympatico.ca
Tel: 705-745-1243
© 2012 Electric Power Research Institute, Inc. All rights reserved. 25