Energy Storage State Programs and the Energy Storage Technology Advancement Partnership (ESTAP) Todd Olinsky-Paul Clean Energy States Alliance March 12, 2014
The current total electricity storage capacity of the US and of the globe is less than 1% (mostly pumped hydro)
Global Electricity Storage Capacity
Why are states interested in energy storage? Two Main Drivers: 1) Integration of Renewables 2) Resilient Power Solution
Why are states interested in energy storage? Two Main Drivers: 1) Integration of Renewables (Utility Scale) 2) Resilient Power Solution (Facility/Campus/ Microgrid Scale)
Energy Storage Services
Grid Services Valued Differently in Different Locations Market Evaluated Energy Arbitrage Location Years Evaluated PJM a 2002-2007 NYISO b 2001-2005 Annual Assumptions Value ($/kw) $60-$115 12 hour, 80% efficient device. Range of $87-$240 (NYC) $29-$84 (rest) efficiencies and sizes evaluated 15 10 hour, 83% efficient device. Range of efficiencies and sizes evaluated. USA c 1997-2001 $37-$45 80% efficient device, Covers NE, No Cal, PJM CA d 2003 $49 10 hour, 90% efficient device. $163-248 Regulation NYISO b 2001-2005 Contingency Reserves USA e 2003-2006 USA e 2004-2005 $236-$429 PJM, NYISO, ERCOT, ISONE $66-$149 PJM, NYISO, ERCOT, ISONE
Each Service Area Is Operated Differently
And They Operate Under Different Rules (FERC 755)
So Choose the Right Technology for the Service and Location!
State Energy Storage & Microgrids Initiatives in the Northeast Connecticut Microgrids Grant and Loan Pilot Program for critical infrastructure resiliency New Jersey energy storage program for critical infrastructure resiliency Vermont Single Project Energy Storage RFP Massachusetts Resilient Power & Microgrids Solicitation New York Microgrids Prize Maryland Resilient Power Through Microgrids Task Force
Connecticut Microgrids Grant & Loan Pilot Program - $45 M / 3 Years Round 1: 9 Projects Funded Lessons learned: Municipalities need more time to design projects and apply Municipalities need help with financing (state grant did not cover generation assets or storage) More definite financing plans needed up front Scoring of proposals not weighted heavily enough toward renewables. Result: too much fossil fuel generation Legislative changes needed to allow sale of electricity across street (without violating utility franchise)
Connecticut Microgrid Grant and Loan Pilot Program First Round Results: 9 Projects Funded Project Facilities Generation Grant Value UConn Depot Campus/Storrs Campus Buildings 400 kw fuel cell, 6.6 kw PV $2,144,234 City of Bridgeport-City Hall/Bridgeport City hall, Police Station, Senior Center (3) 600 kw natural gas microturbines $2,975,000 Wesleyan/Middletown Campus, Athletic Center (Public Shelter) (1) 2.4 MW and (1) 676 kw Natural Gas Combined Heat and Power Reciprocating Engine $693,819 University of Hartford- St. Francis/Hartford Dorms, Campus Center, Operation Building (2) 1.9 MW diesel (existing), 250 kw diesel, 150 kw diesel $2,270,333 SUBASE/Groton Various Buildings and Piers 5 MW cogen turbine, 1.5 MW diesel $3,000,000 Town of Windham/Windham Town of Woodbridge/Woodbrid ge City of Hartford- Parkville Cluster/Hartford Town of Fairfield- Public Safety/Fairfield 2 Schools (Various Public Purposes) (2) 130 kw natural gas, 250 kw solar, 200 kwh battery; (2) kw diesel, $639,950 Police Stations, Fire Station, Department of Public Works, Town Hall, High School, Library 1.6 MW natural gas, 400 kw fuel cell $3,000,000 School, Senior Center, Library, Supermarket, Gas station 600 kw natural gas $2,063,000 Police Station, Emergency 50 kw natural gas recip engine, 250 kw Operations Center, Cell Tower, Fire natural gas recip engine, 27 kw PV, 20 Headquarters, Shelter kw PV $1,167,659
Connecticut Microgrid Grant and Loan Pilot Program First Round Results: 9 Projects Funded Project Facilities Generation Grant Value UConn Depot Campus/Storrs Campus Buildings 400 kw fuel cell, 6.6 kw PV $2,144,234 City of Bridgeport-City Hall/Bridgeport City hall, Police Station, Senior Center (3) 600 kw natural gas microturbines $2,975,000 Wesleyan/Middletown Campus, Athletic Center (Public Shelter) (1) 2.4 MW and (1) 676 kw Natural Gas Combined Heat and Power Reciprocating Engine $693,819 University of Hartford- St. Francis/Hartford Dorms, Campus Center, Operation Building (2) 1.9 MW diesel (existing), 250 kw diesel, 150 kw diesel $2,270,333 SUBASE/Groton Various Buildings and Piers 5 MW cogen turbine, 1.5 MW diesel $3,000,000 Town of Windham/Windham Town of Woodbridge/Woodbrid ge City of Hartford- Parkville Cluster/Hartford Town of Fairfield- Public Safety/Fairfield 2 Schools (Various Public Purposes) (2) 130 kw natural gas, 250 kw solar, 200 kwh battery; (2) kw diesel, $639,950 Police Stations, Fire Station, Department of Public Works, Town Hall, High School, Library 1.6 MW natural gas, 400 kw fuel cell $3,000,000 School, Senior Center, Library, Supermarket, Gas station 600 kw natural gas $2,063,000 Police Station, Emergency 50 kw natural gas recip engine, 250 kw Operations Center, Cell Tower, Fire natural gas recip engine, 27 kw PV, 20 Headquarters, Shelter kw PV $1,167,659
Connecticut Microgrids Grant & Loan Pilot Program Round 2: RFP Released March 6 Microgrids must serve at least 2 critical facilities Must serve a mix of public and private critical facilities Must be able to operate in islanded mode for 4 consecutive weeks Greater focus on clean, renewable generation No more than 25% of generation may be diesel Renewables must be paired with energy storage to be counted toward generation capacity Generation mix (plus storage) must provide 80% minimum availability (7,000 hrs/yr) Fueled generators must have uninterruptible fuel source or 2 week minimum fuel supply on-site CEFIA is helping to provide finance strategies More time allowed for applications
New Jersey Energy Storage Program: First Round RFP Due This Spring Energy Storage must be paired with clean generation Batteries may not be charged by grid power or dirty generators Limits value streams available to energy storage May limit size and utility of energy storage Projects should be completed within 1 year Desire to build a sustainable energy storage market Presence of storage can firm PV production to allow facilities to participate in other available incentive programs such as demand response, etc. $10 million state incentive over 4 years NJ has also proposed a $210 million Resilience Bank (similar to a green bank) that would use CDBG funds to support resilient power projects (Pending HUD approval)
Vermont Energy Storage RFP Emphasis on renewables integration Eligible projects were utility owned or partnered $50,000 state grant $250,000 additional grant secured from DOE OE WATCH THIS SPACE
Massachusetts Resilient Power & Microgrids Solicitation: RFP Due March or April $ coming from ACP payments Focus is on clean energy solutions for critical infrastructure Municipalities will apply $40 million state incentive State has just completed a microgrids study Additional energy storage projects contemplated for fueling stations, public housing, and casinos
New York Microgrids Prize $40 million funding Approximately 10 microgrids to be funded statewide Details TBD ConEd has proposed a $161 million plan to replace the Indian Point nuclear generator with a mix of energy efficiency and demand response, including battery storage. NY BEST (Battery and Energy Storage Technology Consortium) promotes energy storage solutions in NYS
Maryland Resilient Power Through Microgrids Task Force Task force initiated March, 2014 Intent for qualifying projects to apply for DE-FOA-0000997 (Microgrid Research, Development, and System Design grant) Details TBD Maryland Energy Administration s Game Changer Awards have supported several energy storage projects including a PV-powered microgrid and an innovative PV/EV/ES project.
Post-Sandy Litigation May Result In New Legal Obligations For Cities: Resilient Power At Shelters A federal court in New York found that New York City violated the Americans with Disabilities Act because it failed to provide reasonable accommodation to protect its disabled citizens during and after Hurricane Sandy. The disabled could not access shelters and services that did not have electricity. The court said: These Plaintiffs contend that the City's emergency preparedness program fails to accommodate their needs by, among other things, inadequately planning for the evacuation of people with disabilities, from multi-story buildings and generally; failing to provide a shelter system that is accessible within the meaning of the ADA; ignoring the unique needs of people with disabilities in the event of a power outage; failing to communicate adequately with people with special needs during an emergency; and failing to account for the needs of people with disabilities in recovery operations following a disaster. If upheld, this decision could have national implications. It highlights the legal obligations of public agencies across the county to provide for better adaptation requirements in planning, electric power, and transportation after future disasters to help their most vulnerable populations.
ESTAP (DOE/Sandia/CESA) Role in State Energy Storage & Microgrids Programs: Technical Assistance Participate in Working Groups/Task Forces Assist in RFP development Informational outreach to potential applicants Webinars Speaking engagements Help to evaluate project proposals Assist with feasibility studies, engineering, system design Monitor and evaluate project performance once complete Funding Assistance Potential DOE $ contribution to qualifying project(s)
ESTAP* Overview Purpose: Create new DOE-state energy storage partnerships and advance energy storage, with technical assistance from Sandia National Laboratories Focus: Distributed electrical energy storage technologies Outcome: Near-term and ongoing project deployments across the U.S. with co-funding from states, project partners, and DOE * (Energy Storage Technology Advancement Partnership) States/ Vendors Other Municipalities partners
Oregon: Initiating State Energy Storage Effort New Jersey: $10 million, 4- year energy storage solicitation New York $40 Million Microgrids Initiative Vermont: PV/energy storage RFP & Airport Microgrid Massachusetts: $40 Million Resilient Power/Microgrids Solicitation New Mexico: Energy Storage Task Force Kodiak Island Wind/Hydro/ Battery & Cordova Hydro/flywheel projects ESTAP Project Locations Northeastern States Post- Sandy Critical Infrastructure Resiliency Project Connecticut $45 Million Microgrids Initiative Rounds 1 & 2 Pennsylvania Battery Demonstration Project Maryland Game Changer Awards: Solar/EV/Battery & Resiliency Through Microgrids Task Force
Resilient Power Project With foundation support, Clean Energy Group is working with a core group, consisting primarily of Northeastern states that were hit hard by Superstorm Sandy, and are seeking resilient power solutions: Connecticut Massachusetts New Jersey New York Rhode Island Maryland California Ohio Oregon There is interest from other states as well, and we intend to grow this into a national effort
A Modest Proposal: In FERC-compliant service territories, states could incentivize third-party energy storage developers to co-locate with PV at designated critical infrastructure, install islanding equipment, and provide a local resiliency benefit when the grid goes down. State designates critical facilities, provides incentives PV vendor provides PV, sells power Result: Islandable critical facility powered by solar PV and energy storage, provides community benefits Storage vendor provides battery and inverter, sells services to grid, agrees to provide resiliency to host site in event of grid failure
Thank You Todd Olinsky-Paul Clean Energy States Alliance Energy Storage Technology Advancement Partnership Todd@cleanegroup.org