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Federal and State Energy Storage Policies and Efforts
New Mexico Energy Storage Task Force
September 19, 2013
Dhruv Bhatnagar
SAND2013-4747
Sandia National Laboratories is a multi-program laboratory managed and operated by Sandia Corporation, a wholly owned subsidiary of Lockheed
Martin Corporation, for the U.S. Department of Energy’s National Nuclear Security Administration under contract DE-AC04-94AL85000.
Agenda
 Introduction
 Federal Initiatives
 FERC Order 755 and 784
 FERC Order 1000
 State and Regional Efforts
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New Mexico
Colorado
California
Texas
Hawaii
New York
New Jersey
Other states
2
Federal Storage Policy Developments
FERC Orders 755: Pay for performance for frequency
regulation
 Implemented in PJM, MISO, NYISO, CAISO. 2015 for ISO-NE
3
Federal Storage Policy Developments
FERC Order 1000: Regional Transmission Planning
 The order specifies how public utility transmission providers plan for
new transmission projects and allocate those costs.
 Reliability transmission upgrades, market efficiency transmission
upgrades and public policy transmission upgrades
 Order 1000 is broken into three main requirements.
 Planning: non-transmission solutions considering public policy
requirements
 Cost allocation requirements across beneficiaries
 Nonincumbent developer requirements: merchant transmission
encouragement.
4
Federal Storage Policy Developments
FERC Order 784: 3rd Party Provision of Ancillary Services
 Allows 3rd party ancillary service procurement for transmission public
utilities
 Requires a consideration of speed and accuracy
 Simplifies and streamlines storage accounting procedures
 Production, transmission and distribution
Storage Act in Congress
 Storage Technology for Renewable and Green Energy Act of 2013
(STORAGE)
 30% ITC for businesses, 20% ITC for grid-scale energy storage
5
State Energy Storage Developments
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New Mexico
Colorado
California
Texas
Hawaii
New York
New Jersey
Other states
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New Mexico
Existing Resources
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PNM Prosperity Project (500kW PV with 750 kW energy storage)
Mesa del Sol PV and Energy Storage
Japan-US Collaborative Smart Grid Project, 1MW NaS, Los Alamos
NEDO New Mexico Smart Grid Demonstration Project , 800kW, Los
Alamos
Current Initiatives
 Energy Storage Task Force
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Colorado
Existing Resources
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Cabin Creek Pumped Hydro Plant 359MW.
Mount Elbert pumped hydro system, 200 MW.
Flatiron pumped hydro system 94.5 MW
SolarTAC 1.5MW sodium sulfur (NaS) battery (demonstration).
25kW FIAMM
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Colorado
Current Initiatives
 2009 two storage developers bid into PSCo’s open bid process for
1,200 MW of generation and capacity but the PUC did not find them
to be competitive with other proposed resources
 Section 123 Resources- initiative established in state law, enacted
through the PUC to provide funding for emerging technologies
 requires the commission to provide complete consideration and possible
rate based financing to alternative technologies without a need for them
to be economically competitive. There must however, be a compelling
reason for their use, primarily that the resource shows a potential of
being economically competitive with other resources in the near future.
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California
Existing Resources
System
Type
Castaic Pumped-Storage Plant
Open Loop Pumped Hydro Storage
Edward Hyatt (Oroville) Power Plant
Open Loop Pumped Hydro Storage
San Luis (William R. Gianelli) Pumped Storage
Open Loop Pumped Hydro Storage
Hydroelectric Powerplant
Big Creek (John S. Eastwood) Pumped Storage
Open Loop Pumped Hydro Storage
O'Neill Powerplant
Open Loop Pumped Hydro Storage
Southern California Edison Tehachapi Wind Energy
Lithium Ion Battery
Storage Project
Los Angeles Community College District
Ice Thermal Storage
PG&E Yerba Buena Battery Energy Storage Pilot
Sodium Sulfur Battery
Project
SCPPA Thermal Energy Storage Program
Ice Thermal Storage
PG&E Vaca Battery Energy Storage Pilot Project
Sodium Sulfur Battery
Disney California Adventure
Chilled Water Thermal Storage
Alameda County RDSI CERTS Microgrid
Lithium Ferrous Phosphate
Demonstration Santa Rita Jail Smart Grid
Capacity
(MW)
1247
819
424
199.8
25.2
8
4.62
4
2.427
2
2
2
10
California
Current Initiatives
 SGIP storage incentives for behind the meter (customer) projects
(funded from customer bill surcharge)
 $2/W up to 3MW for renewable powered energy storage
 SCE 50 MW procurement target for 2021 + designation as a preferred
resource
 AB2514: Assigned Commissioner's Ruling setting storage procurement
targets: 1.325 GW proposed for IOUs for 2020 (Carla Peterman)
 Requires procured storage to be “viable” and “cost-effective” currently
proposed through a reverse auction bid mechanism
 Transmission interconnected: 700 MW
 Distribution interconnected: 425 MW
 Customer side of the meter: 200 MW
 Utility proving cost unreasonableness or lack of competition could relive
portion of requirements
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California
Current Initiatives
 AB2514: Assigned Commissioner's Ruling setting storage procurement
targets: 1.325 GW proposed for IOUs for 2020 (Carla Peterman)
12
Texas
Existing Resources
 32MW/28MWh Battery at Notrees Wind Farm
 4MW/28MWh NaS Battery in Presidio, TX
 1 MW AES Energy Storage System
Current Initiatives
 State Bill 943
 Defines energy storage as a generation asset that must register as such
when used to sell energy or ancillary services in the wholesale marketsame interconnection rights and transmission access
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Texas
Current Initiatives
 PUCT Docket 39917 and ERCOT Nodal Protocol Revision 461
 energy storage, during both charge and discharge modes, would be
considered a wholesale transaction and settled at the node, rather than
zonally like load and face retail rates and associated retail transmission
and ancillary services charges
 Fast Responding Regulation Service (FRRS) Pilot
 Similar to FERC Order 755 for ERCOT (Electric Reliability Council of Texas)
 Emerging Technologies Working Group in ERCOT
 identifies potential revisions to ERCOT rules to help increase the
participation of emerging technologies
14
Hawaii
Existing Resources
from the Hawaii Renewable Energy Development Venture
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Hawaii
Current Initiatives
 The Hawaii Electric Companies modeled energy storage as a supplyside resource option in their 2013 IRP (integrated resource plan).
 Maui is actively considering the installation of energy storage to
address wind curtailment.
16
New York
Existing Resources
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Beacon Flywheel 20MW
Johnson City Li-ion 8MW
Blenheim-Gilboa Pumped Storage Power Project 1.16 GW
7-Eleven Distributed Li-ion 100 kW
Current Initiatives
 NY-Best: NY Battery and Energy Storage Technology Consortium
supported by NYSERDA (New York State Energy Research and
Development Authority)
 NYSERDA funding for energy storage demonstration projects
 NY State $1 billion Green Bank initiative
 New York Energy Highway
 NYSERDA and NYPA (New York Power Authority) electric vehicle
charging initiative -3,000 public chargers over 5 years
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New Jersey
Existing Resources
 Yards Creek Station, pumped hydroelectric storage system, 400 MW
capacity in Warren County, NJ.
Current Initiatives
 NJ Clean Energy Program
 societal benefits charge on electricity rates to fund the program
 energy storage incentives currently under consideration, $2.5 million
budget reserved (renewable connection required, special consideration
for resiliency applications)
 NJ Critical Infrastructure Bank, expectation of $500 million
 New Jersey’s market potential study, released in August of last year,
informs state support for emerging technologies. The most recent
study includes energy storage but indicates that the state does not
believe there is a significant market for the resource in the state
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Other States
Washington
 Utilities and Transportation Commission (UTC) requested that utilities
include energy storage as a resource option in their next IRP.
Oregon
 Portland General Electric (PGE) included energy storage as an RFP
storage option for 2012 (request for proposals).
Connecticut, Massachusetts and Maryland are evaluating energy
storage and microgrid deployment for smart grid enablement
and grid resiliency.
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Energy Storage Project Database
 A publicly accessible database of energy storage projects,
research and state and federal legislation.
Available at energystorageexchange.org
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Questions?
Contact Information
Electric Power Systems Research Group
 Dhruv Bhatnagar | [email protected] | 505-844-7716
21
Energy Storage Regulatory Reports
 Bhatnagar D. and Loose V. “Evaluating Utility Procured Electric
Energy Storage Resources: A Perspective for State Electric
Utility Regulators.” Sandia National Laboratories. SAND20129422. November 2012.
 Bhatnagar D. et al. “Market and Policy Barriers to the
Deployment of Energy Storage.” Sandia National Laboratories.
SAND2013-7606. September 2013.
Available at sandia.gov/ess
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The Institutional Barriers of Energy Storage Integration