Electricity Storage:
A Key Component of Our
Emerging Energy Future
Presentation to:
THIRD INDUSTRIAL REVOLUTION:
Canadian Executive Roundtable Meeting
Toronto, Ontario
May 28, 2009
Mark J. Tinkler
Principal Energy Consultant
Emerging Energy Options Inc.
Emerging Energy Options
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Five Dimensions of the “Old” Electricity Value Chain
The Traditional Electric Utility:
• Vertically Integrated
• Large, centralized generation
• Regulated
• Single commodity offering
• Bundled price
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Six Dimensions of the “New” Electricity Value Chain
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Benefits of Energy Storage
Electricity System Challenges
Volatility
Fuel
Hedge Risk
Low Utilization
Generation
Baseload Arbitrage
Congestion
Transmission
Higher Utilization
Security
“Dirty” Power
Distribution
Services
Stability
Power Quality
Energy Storage Value Offerings
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Storage Applications Depend on Capacity: MW and MWh
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Energy Storage Value Propositions - Examples
• Arbitrage: storing and moving low-cost power into higher price markets, reducing
peak power prices.
• Security and assurance: voltage regulation, black start, frequency control,
emergency power.
• Asset optimization: reducing the cycling and dispatch of large fossil units meant for
baseload.
• Enhancing renewables: transforming “take it when you can get it” into scheduled
power. A fuel-free electricity source into the peak markets. (Also, daily wind
resource curves are often opposite the daily load demand curves)
• Transmission asset deferrals: postpone the need for new transmission assets
depending on where storage assets are placed.
• Support distributed generation: Micro/mini-grids and on-site power systems must
become at least as reliable as traditional grid-supplied electricity. Today’s
digital society/economy demands power quality several orders of magnitude
higher. Storage assets placed at distribution-voltage substations and
integrated into advanced DG devices and uninterruptible power systems.
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Typical Mismatch of Wind Generation and System Load
• Negative correlation between diurnal fluctuation of load and
onshore wind
• Implies diminished value for wind with increased penetration
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Energy Storage Options and Applications
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Worldwide Installed Energy Storage Capacity
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Worldwide Installed Energy Storage Capacity
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Historical Growth of Installed Energy Systems
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Storage Technology Comparison - Overview
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Storage Technology Comparison – Relevant Applications
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Key Application: Stabilizing Renewables
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Wind Smoothing Application: Tomamae Wind Villa Wind Farm
Field test on Hokkaido Island
by JPower and Sumitomo at
Tomamae Wind Farm
Wind farm capacity: 30 MW
VRB Flow Battery:
4 MW, 6 MWh
Wind smoothing
Sponsored by New Energy
and Industrial Technology
Development Organization
(NEDO)
One of several Sumitomo VRB
installations
Photo courtesy VRB Power Systems Inc.
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Wind Smoothing Application: Tomamae Wind Villa Wind Farm
VRB-ESS runs continuously to smooth wind farm production
Charge/discharge Control strategy designed to maintain 50%
battery depth of charge
20% of nameplate capacity smoothes wind output significantly
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Rokkasho - 51 MW wind and 34 MW NAS hybrid system
Wind farm: 51 MW
NAS Battery: 34 MW, 245 MWh
More than 50% nameplate
capacity of wind farm
Will show NAS can provide:
Wind firming for weak grids
and firm capacity
Meet forecasted profile
Time shift production to meet
peak demand
Provide regulation power and
spinning reserve
Fully Operational – Aug 2008
Courtesy NGK Insulators, Ltd.
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Solar Smoothing and Peak Shifting Application
Wakkanai, Japan
Courtesy NGK Insulators, Ltd.
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Compressed Air Energy Storage (CAES)
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Power generation based on conventional gas
turbine technology, but …..
Substitutes low cost off-peak electrical power to
compress and store air underground for later
daytime use in turbine generation cycle
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–
•
•
•
Overall efficiency comparable to CCGT, but
economics much less sensitive to gas price.
Quick start-up, fast ramp (0 to full load in less than 15 Min.)
Environmentally “friendly”
–
–
•
•
Advantage: eliminates parasitic use of natural gas
to compress air in CT or CCGT. Power plant uses
about half the natural gas for same MW output
from turbine
Typical cycle: 12-15 hr generation (day)
6 – 8 hr compression (night)
60% less emissions than simple cycle, 30% less
than combined cycle gas
(likely eligible for “alternative energy” tax incentives)
Cost approx. $750/kW for 300MW facility, $250M
Ontario has some of the best underground storage
capacity/expertise (natural gas) in North America
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Existing CAES Facilities
Huntdorf, Germany
- Built 1978, >7,000 starts
- Rated at 290 MW for 2 hrs
- Salt caverns, air @ 51-72 bar
- Originally built for peak loads
with a nuclear facility
- Still in operation, helping with
wind power intermittency
McIntosh, Alabama
- Built 1991
- Rated at 110 MW for 26 hrs
- 560,000 m3 salt dome,
air @ 46-78 bar
- Compression using off-peak
power of a nearby coal plant
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New CAES Projects in Development
Iowa Stored Energy Park
200 MW, Startup 2012
Norton, Ohio
800 MW
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Economic Analysis of CAES – Key Factors
(vs F Class GT)
Source: OPG CAES Study – April 2003.
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Summary: CAES Benefits
• Allows Storage of Off-Peak Energy for On-Peak Generation
• Quick Start-Up/Ramp-up Supports Ancillary Services :
- Operating/Spinning Reserve; ~50% synchronized in 10 min
- Voltage Regulation; Frequency Support from Generator and
VAR Support from Compression Motors
• Increases Utilization of Transmission System During Off-Peak
• Supports Variance in Generation and Load
- ‘Sink’ for off-peak power allows for more efficient operation of conventional generation (coal, CCGT, nuclear) by avoiding turn-down
- Allows storage of inconsistent supply from sources such as wind
power (an emerging issue of concern for Ontario)
- Consistent operation profile allows efficient Load Following
- Minimal impact on performance due to ambient temperature
The time is right for a detailed reassessment of CAES
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Hydrogen as an Energy Carrier
Biomass
Transportation
Hydro
High Efficiency
and Reliability
Wind
Solar
Oil
Coal
Natural
Gas
With Carbon Sequestration
Nuclear
Distributed
Generation
Zero/Near Zero
Emissions
Source: U.S. Department of Energy.
Hydrogen Production and Use Diagram
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The Emerging Energy Supply Picture Distributed Generation & Hydrogen??
H2 System for
Load Leveling
H2
Production
Transport
to Users
H2
H2
H2
H2
H2
eH2
HES
H2
HES = Hydrogen Energy Station
NG/Reformer
HES
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Competitive Energy Storage Technologies
Days
Hydro
Flow Batteries
ZnBr
Hours
VRB
PSB
Compressed Air
Energy Storage
NaS Batteries
High Energy Super Capacitors
Fly Wheels
Long Duration
Renewable
Energy Storage
Pumped
Hydrogen Energy Storage
Metal-Air Batteries
Lead-Acid Batteries
Ni-Cd
Li-ion
Other Adv. Batteries
Minutes
Small Power
Storage
High Power Fly Wheels
Seconds
Power Quality
Discharge Time at Rated Power
System Power Ratings
High Power Supercaps
1 kW
10 kW
100 kW
1 MW
Source: Electricity Storage Association
www.hydrogenics.com
Superconducting
Magnetic
Energy
Storage
10 MW
100 MW
1 GW
Hydrogen Energy Storage System
Wind
Solar
Industrial Hydrogen
Grid
Balancing
Hydrogen Fueling
Electrical
grid
Hydrogen Generation
and Compression
Module
Hydrogen
Storage
Module
Fuel
Cell
System Integration
Software
Power Electronics
OPPORTUNITY
Hydrogen can be produced and stored
Remote
Community
Power
BENEFITS
Match intermittent renewable energy supply
with demand
economically for instantaneous electricity
production
Fuel cells can be used as electricity generators
and over time replace conventional combustion
power plants and diesel generators
Enable renewable energy to be used for
baseload power eliminating high cost and
carbon emitting power plants
Enable load profiling including grid optimization
and peak shaving opportunities
www.hydrogenics.com
Diesel/Hydrogen Storage Cost Parity
Diesel fuel is the
primary source of
electricity in several
thousand remote
communities
Fuel transport costs
represent a significant
component of fuel
expenditures
Hydrogen-based
energy storage and
power systems are
competitive with diesel
generators today, in
many remote power
applications
Cost of Delivered Power ($/kWh)
Generator/Fuel Cell
Diesel Fuel
Electrolyzer
Compression
Storage
Electricity
$0.90
$0.80
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$0.00
Diesel Genset
($7/USgal)
Diesel Genset
($10/USgal)
Current remote diesel power
application costs vary based
on transportation cost
Hydrogen (Now )
Hydrogen (Target) Hydrogen (Future)
In remote power applications our
hydrogen storage and power solution is
cost competitive with $10/USgal diesel
Key assumptions: Diesel power cost of $600/kW, diesel cost of 12.5kWh / gallon, hydrogen system
roundtrip efficiency of 30%, wind power cost of $0.06/kWh, and hydrogen energy storage (150kW + 5 days
storage).
www.hydrogenics.com
Case Study – Renewable Power Generation
PROBLEM STATEMENT
Cost and storage issues
associated with intermittent/
renewable energy generation
HySTAT™-A Hydrogen Station at Ramea Island, Nfld.
OUR SOLUTION
BENEFITS
Wind-hydrogen advanced power
Excess wind power is stored and
system
Combine wind turbines with hydrogen
generation to maximum contribution
by the intermittent wind resources
Provided continuous high quality
power
used when needed
Option of turning off diesel
generators when demand is low
Can run solely on wind and
hydrogen
www.hydrogenics.com
Concluding Thoughts (with thanks to Rob Brandon, NRCan)
Storage Technologies are now providing the reliability and performance
required; life time cost is still high but reducing as volumes increase
From an Ontario utility perspective, T&D deferral and wind/transmission
opportunities would seem to be the ones to investigate first.
Targeted demonstrations are needed now, using the experience of US
and international projects to first carry out studies of the expected value
propositions in each of three cases:
Identification of a T&D capital deferment project plus capacity
and
arbitrage in Ontario
Customer based storage
There may be in Ontario an interesting opportunity to enable
storage to allow more wind systems to be constructed, perhaps
in good wind areas that have transmission constraints
and …
Consider the case for CAES
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Electricity Storage:
A Key Component of Our
Emerging Energy Future
Presentation to:
THIRD INDUSTRIAL REVOLUTION:
Canadian Executive Roundtable Meeting
Toronto, Ontario
May 28, 2009
Mark J. Tinkler
Principal Energy Consultant
Emerging Energy Options Inc.
Questions ?
Tel: 416-757-5438
tinkler.energyoptions@sympatico.ca
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