Value of Energy Storage for Grid Applications

Abstract

NOTICEThis report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof. Printed on paper containing at least 50% wastepaper, including 10% post consumer waste.iii AcknowledgmentsThe authors would like to thank the following individuals for their valuable input and comments during the analysis and publication process: Kerry Chung, Mary Lukkonen, Trieu Mai, Robin Newmark, Ramteen Sioshansi (who also provided the price-taker value in Section 4.1), and Aaron Townsend. Any errors or omissions are solely the responsibility of the authors.iv ForwardThis report is one of a series stemming from the U.S. Department of Energy (DOE) Demand Response and Energy Storage Integration Study. This study is a multi-national-laboratory effort to assess the potential value of demand response and energy storage to electricity systems with different penetration levels of variable renewable resources and to improve our understanding of associated markets and institutions. This study was originated, sponsored, and managed jointly by the Office of Energy Efficiency and Renewable Energy and the Office of Electricity Delivery and Energy Reliability.Grid modernization and technological advances are enabling resources, such as demand response and energy storage, to support a wider array of electric power system operations. Historically, thermal generators and hydropower in combination with transmission and distribution assets have been adequate to serve customer loads reliably and with sufficient power quality, even as variable renewable generation like wind and solar power become a larger part of the national energy supply. While demand response and energy storage can serve as alternatives or complements to traditional power system assets in some applications, their values are not entirely clear. This study seeks to address the extent to which demand response and energy storage can provide cost-effective benefits to the grid and to highlight institutions and market rules that facilitate their use.The project was initiated and informed by the results of two DOE workshops: one on energy storage and the other on demand response. The workshops were attended by members of the electric power industry, researchers, and policymakers, and the study design an...

Overview of distributed energy storage for demand charge reduction

“…Traditional storage technologies include hydroelectric storage, compressed air storage, and lead acid battery storage. 4 Pumped hydro storage accounts for 98% of US national energy storage capacity and works by pumping water from a low elevation reservoir to a higher reservoir to charge the system and then releasing the water through a turbine between the two reservoirs to discharge the system. 5 Pumped hydro is economical when built into sites that already have water elevation change and is usually built into existing hydroelectric dams.…”

“…for a 300 MW storage device with 75% roundtrip efficiency providing arbitrage for a Colorado utility. 4 Other studies report energy arbitrage values that range from $37 to $115 $/kW year (Table 1).…”

“…3 NREL valued ES devices at $65/kW year when used to provide reserve power capacity and $109.8/kW year when used to regulate grid frequency. 4 Other studies report values for ancillary services that range from $38 to $248/kW year (Table 2).…”

Stationary energy storage system based on modular high voltage battery modules

“…In the dc voltage loop, a notch filter at 120Hz is added to the feedback path to eliminate the second harmonic component of dc voltage. The d-q decoupled control is implemented based on equation (1). If a term dc q V i L is added to d dˆ, then in the d axis control loop, there will not have any influence from q axis.…”

“…Energy storage technology can help contribute to the overall system reliability because of its ability to provide backup power for emergency situations. So modernizing the grid will require a substantial deployment of energy storage [1] [8].…”