Prudent Energy Storage for a sustainable future The Global Leader in Advanced Energy Storage Large scale Energy storage – applications of the VRB-ESS® in providing electrical grid power solutions Timothy Hennessy June 15 2012 About Prudent Energy Company Overview • Provides proprietary VRB® Energy Storage Systems (VRB-ESS®) for grid and renewable energy storage applications between 200kW to 10MW 100MWh • 10 years operation with the VRB® technology: 200 employees • Over 20MWh commercial sales and installations in last year across 11 countries • VRB® and storage application Patents: control all substantial patents including 51 issued patents and 48 pending patent applications in 34 countries • Major Investors: MITSUI Corporation, GS Caltex, State Power Group, DFJ and DT Capital, CEL, Northern Light 2 Prudent VRB® Technology What is a Flow Battery? Regenerative fuel cell or “Cell Stack” Independent electrolyte storage tanks Pumps to circulate electrolyte Control system to manage electrolyte circulation Flow battery technologies are distinguished by electrolyte composition 3 Prudent VRB® Technology Flow Battery Cell Stack Array or “stack” of individual cells in series Each cell consists of bipolar plate 2 electrodes Membrane separator • Colors of Vanadium at different ionic states • Non Toxic • Readily available from waste streams such as flyash V+5 -> V+2 4 Prudent VRB Technology Flow Battery Advantages and Disadvantages Advantages No daily “off periods” - always on Power and energy capacity can be sized independently of one another Operates at any SOC without life impact Any Depth of Discharge (DOD) Lowest LCOE (unlimited cycles of electrolyte) Large surge capability possible Efficient over 100% DOD range < 1 cycle responses Low pressure and low temperature=safe Disadvantages Low energy storage density = big footprint Not mobile 5 The modular assembly of a MW scale VRB-ESS® in California 6 The modular assembly of a MW scale VRB-ESS® in California • • • Peak Shaving Using bio gas from onion plant Gills Onion’s California 7 MW scale VRB-ESS® in China - wind and PV smoothing 500kW 750kW pulse (10 minutes) / 1MWh Results – one of other technologies has had performance issues within a year Our performance has been solid Ambient temperatures down to -30C Provides continuous reactive energy (MVAR) 2MW * 8MWH system being commissioned in September 2012 – wind PV - grid connected 8 Microgrids – island and hybrid systems • 400kW x 500kWh diesel, PV and micro-hydro, Hybrid in Indonesia • Slovakia – smart grid 600kWh • Hawaii – islanded PV • China – smart grid wind and PV • Korea Smart grid Jeju island 9 KW class VRB-ESS® for Telecoms and commercial sites 5 to 10kW No refuelling costs Long Life (10+ years)- electrolyte never wears out No degradation on deep cycling Low maintenance Always on – no bridging power needed - SOC always known Long duration storage independent of power – scalable up to 10 hours Closed loop no emissions – no disposal issues 10 VRB® characteristics from field testing Response time ms Short circuit test 1. Response time full charge to discharge < 50ms 2. Stack Coulombic efficiency 3. Short circuit test – stack shorted max 2000 Amps. Discharged over 140 seconds. System recovered after short removed 4. Longest field operation 6 years un-manned 11 Cell stack evolution - 2002: 2012 SEI 42kW stack VRB P3 5kW- 10kW VRB P3 2010 VRB P1 5kW 2004 S5 stack 2012 12 Schematic of a conventional battery and PCS are separate VRB-ESS is a system 13 PCS – Power Conversion system • Sized in modular form ABB PCS-100 provides 4 quadrant operation, P&Q and F&S modes of operation ABB PCS 100 14 HMI Power Screen for the VRB-ESS 15 15 Future enhancements to VRB® Technology • • • Energy density of electrolyte being improved – reduces footprint and costs Footprint reduction of plant – higher efficiency of cell stacks Market driven cost reductions depends on application e.g. renewable power smoothing, peak shaving etc. • Modular 250kW • 16 40% footprint reduction 2011 to 2013 4MW 16MWh Plant 33m x 35m for delivery 2013 17 Implications of community based generation in Distribution System • Power flows no longer in one direction due to multiple sources • Complex protection coordination due to multiple generation sources storage • Microgrid or community grids contains both generation and load • Managed independently of main distribution system and can operate even if main transmission source is cut Courtesy Brad Williams Oracle 18 Germany Current Situation Reports on critical grid conditions [Reference: Paul-Fredrik Bach: Frequent wind power curtailments 14 April 2012] Recently “Welt Online” reported on “alarm level yellow” for German power grids on 28 and 29 March 20121.. During first quarter EON Netz has issued 257 interventions.. Thus there have been interventions active for 23.1% of the hours in first quarter. Part of the solution is storage backed microgrids owned by communities 19 Comparisons of Wind and PV systems with energy storage for municipal owned microgrids Net Power with 9MW Wind and No PV Net Power with 9MW PV and No Wind 12 10 4 Hours Storage Duration 6 Hours Storage Duration 4 Hours Storage Duration 6 Hours Storage Duration 10 8 8 Power, MW Power, MW 6 4 2 6 4 2 0 0 -2 -2 0 100 200 300 400 500 Time, Days 600 700 800 0 100 200 300 400 500 Time, Days 600 700 4 cases: Objective to minimize grid demand and reduce volatility of power sold to grid. • PCC= 9MW: Below zero in graphs indicates grid purchases i.e. NON FIRM renewable resource • Smoothing effects and ramp rate (stability) management provided by energy storage • Cases examine mixes of PV and wind generation along with 2.5MW of storage with durations of 1, 2, 4 and 6 hours all at 2.5MW FIRM PPA with utility • Finding is that between 4 to 6 hours of storage yields lowest volatility and minimum grid purchases. 20 800 Firmness provided by storage in islanded micro grids Net Power with 5MW Wind and 4MW PV Net Power with 5MW Wind and 4MW PV 12 12 10 10 8 8 6 6 Power, MW Power, MW 4 Hours Storage Duration 6 Hours Storage Duration 1 Hour Storage Duration 6 Hours Storage Duration 4 4 2 2 0 0 -2 -2 0 100 200 300 400 500 Time, Days Grid purchases when storage sized at 1hour 600 700 800 0 100 200 300 400 500 Time, Days Wind (MW) Grid purchase (times/year) Grid purchase (times/year) Energy purchases (MWh) 6 hours storage duration Grid purchase (times/year) Energy purchases (MWh) 21 800 4 Energy purchases (MWh) 4 hours storage duration 700 5 PV (MW) 1 hour storage duration 600 230 604.7 152 35.8 8 2.7 Peaking generation enhancing the value of OCGT using Energy Storage Also reduces CO2 emissions Ref: PJM USA markets 22 Energy trading using flow batteries in Germany IRR over ten years > 15% 23 Summary of Alternative Grid Energy Storage Solutions Electrochemical energy storage is the most preferred practical solution for distributed grid energy storage applications but one size does NOT fit all Pumped Storage Compressed Air Energy Storage (CAES) Hydrogen Open Cycle Gas Turbines, Diesels or Coal Fire Station Electrochemical Energy Storage • Medium CAPEX • High impact on environment • Low average efficiency • Risky gas supply • Fast delivery • Low operating cost • Environmentally friendly • Higher initial CAPEX Solutions Comments Fit for Commercial Grid Storage Applications • Mature • Long lead time • Geographical limitation • Large scale • Lowest cost Exists – part of mix not distributed • Limited by geology • Central type plant • Long lead time • Large scale • Long duration • Expensive with low efficiency • Risky • Highest energy density • Central type plant Possible part of mix Possible part solution 24 Yes part of mix Distributed essential part of solution Summary and observations Energy Storage can be used to “FIRM” variable generation resources both centrally and distributed Electrochemical Storage prices are coming down GAS fired generation combined with storage for fast acting reserve is more economic than standalone gas fired generation alone. Distributed Storage must form part of any SMART GRID in order to manage power flows An approach to microgrids allowing communities to island their resources will occur and regulations applying to these should be developed Long term storage is essential for stability and energy management in distributed generation grids Government and regulatory bodies must lead the way in setting appropriate policy and tariffs such as locational marginal pricing to direct storage investments 25