Provides electricity grid basics, why energy storage is needed, describes the behind-the-meter application, and highlights solution for commercial and industrial,

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INTRODUCTION TO ENERGY STORAGE
Philip Fischer
NEC Energy Solutions
pfischer@neces.com
1

2. ©2016 NEC Energy Solutions,Inc.All rights reserved.
Electricity Grid Basics

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• The electricity grid is a complex
system that produces and delivers
electricity to end users
• The grid can be thought of as
composed of these parts:
– Generation (Electricity Producers)
– Transmission& Distribution
– Load (Electricity Consumers)
• The grid was designed with these
characteristics in mind:
– Electricity flows from Generation
to Load and not in the other direction.
– Generation must alwaysmatch Load; there is no storage
Introduction
Electricity Grid Basics
3

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• The grid must be supplying electricity
to customers at all times.
• The grid must be operated safely and
minimize hazard to people and
equipment at all times.
• The grid must stay in balance at all
times.
How does the grid work?
Electricity Grid Basics

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Why do we need energy storage on the grid?

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• Today’s grids require more flexibility to
address:
– Increased renewable generation
– Changing load patterns
– Aging transmissionand distribution network
• Energy storage in the grid is a powerful tool
– Increase capacity utilization for generation,
transmission, and distribution infrastructure
Preparing Grids For A Renewable Future
Adding flexibility,efficiency, and reliability
Why Energy Storage for the Grid?

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• In our context, Energy Storage refers to the ability to hold
electricity safely, reliably, and economically for future use.
• Mediating between variable sources and variable loads.
• Decoupling production from consumption.
• Reducing price volatility.
• Enabling 100% renewable generation.
• Making the grid more efficient.
• Increasing reliability.
• Today, only about 2.2%of electricity is stored world-wide(1)
What is Energy Storage?
Introduction to Grid Energy Storage
Adapted from:Introduction to Bulk Power Systems,B. Kirby,EUCI course, Jun 8-92009, WashingtonDC
(1) Source: “AnnualElectricGenerator Report”,2011EIA –TotalCapacity 2009; US Energy InformationAdministration,FormEIA-860, 2011.

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Commercial and Industrial “Behind-the-Meter”
Applications

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• Behind-The-Meter indicates that the application is located on the customer side
of the electricity meter
What does Behind-The-Meter mean?
Behind-The-Meter
Electricity meter
Measures the electricity usage of
a customer
Electricity Customer
Could be a home, office building,
or a factory
Electric Utility
Responsible for serving
customers electricity
“Utility side of the meter” “Behindthe meter”

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Energy Storage for Commercial & Industrial
Optimizinghow and when energy is supplied from
the grid
• Energy Cost Optimization
– Demand charge reduction
– Simpler demand response
– Time of Use (TOU) rate management
• Energy Resiliency
– Renewables integration
– Back-up power enablement
– Power quality assurance

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How Energy Storage Provides $$$
• Reducing demand charge levied by servicing utility
– As much as 50% or more of C&I electricity costs may come from utility
demand charges
• Shifting timing of energy consumptionso as to manage time
of use rate utilization
• Increases value of PV solar
Typical Energy Tariff
Consumption with Energy Storage
Consumption Solar + Energy Storage

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For more info:
• Energy Storage Initiative (ESI)
– http://www.mass.gov/eea/energy-utilities-clean-
tech/renewable-energy/energy-storage-initiative/
• Energy Storage Association
– http://energystorage.org/energy-storage
• Phil Fischer – NEC Energy Solutions
– pfischer@neces.com