1. Ben Kaun Sr Project Manager Energy Storage Program 7/28/15
Energy Storage Benefit-Cost Analysis Publicly Available Software Development
Ben Kaun Sr Project Manager
Energy Storage Program
7/28/15

2. The Electric Power Research Institute
Independent Objective and scientifically based Non-profit Chartered to serve the public benefit Collaborative Bring together researchers, industry experts, and policy makers
Independent
Nonprofit
Collaborative
Together… Shaping the Future of Electricity

3. Today’s Agenda
Explain the vision
Introduce the new software project
How you can help
Q&A

4. The Vision

5. The Issue: Where and When Does Energy Storage Make Sense?
Behind the Meter
Frequency Response
Renewables Integration
Transactive Energy
Regulation Energy Management
Solar Backup
EV Charging
Peaker Replacement
T&D Deferrals
Demand Charge Management
Microgrids
Real time Energy
FRACMOO2(…?)
Generation-sited
FlexiRamp
It Depends Who You Ask…

6. Vision for Desired Outcomes
Publicly available tools and methods to fairly, transparently, and consistently estimate the benefits and costs of energy storage projects across all cases
Grid Services
Technologies and Sizes
Locations
Ability to identify and characterize high value locations to deploy energy storage, so that early successes in energy storage maximize value to all stakeholders

7. Discussion needs to evolve to be about real situations
The Upshot…
Discussion needs to evolve to be about real situations
Not about the “modeling process”
Bounding ranges of costs and benefits is more important
than the “exact answer”, which doesn’t exist…

8. The Project

9. An Opportunity: Publicly Available Energy Storage Valuation Software funded by California Energy Commission
What is it?
Cloud-Hosted Energy Storage Valuation Software
Customized for California Needs
Available in 2016
Goals
A software platform for transparent, validated estimation of energy storage project benefits and cost
Include all CPUC use cases and storage technologies under consideration
Achieve broad stakeholder buy-in on approach and support highest value uses

10. Project Description (Continued)
Resources
$1.9M Budget = $1M CEC + $0.9M Cost Share from EPRI + Partners
Leverage the technical community of the Energy Storage Integration Council (ESIC)
Project Team
EPRI
Energy and Environmental Economics (E3)
Lumina Decision Systems
Customized Energy Solutions
Udi Helman (consultant)
Strategen Consulting (organizer of CESA)
Build off Prior Efforts with Energy Storage Valuation Tool (ESVT)

11. Forum for Input: Energy Storage Integration Council (ESIC)
Mission Statement:
To advance the integration of energy storage systems through open, technical collaboration:
guided by the vision of universally accessible safe, secure, reliable, affordable, environmentally-responsible electricity

12. ESIC Working Groups: Analysis Working Group will be the Venue for Technical Input / Review of the Model
ESIC
WG1
Applications
WG2
Performance
(Testing)
WG3
System Development
(Products)
WG4
Grid Integration
WG5
Analysis

13. Over 150 participating organizations, including:
Participation in ESIC
Over 150 participating organizations, including:
Electric Utilities
ISOs
Energy Storage Vendors
System Integrators / Project Developers
Researchers and Universities
Regulators
Contact
Send full contact info (name,title, , phone, company address)
No cost to participate

14. ESVT will serve as technology and knowledge starting point
Model Background Work: Energy Storage Valuation Tool (ESVT) – What it is
Focus on energy storage project benefit-cost techno- economic analysis
Highly customizable input fields
Price taker type model
Diverse energy storage technologies
Grid services covering generation, transmission, distribution, and behind-the-meter value propositions
Evaluation of individual and “stacked benefits”
ESVT will serve as technology and knowledge starting point
for this project

15. Quick Recap: Energy Storage Valuation Tool (ESVT)
INPUTS
MODEL
OUTPUTS
Cost / Benefit
Define Grid Services
Simulate
Storage Operation
Detailed Financials
Define Financial Perspective
Storage Operation
Define Storage Capability

16. A prior version ESVT was used in the 2013 Energy Storage Proceeding R
Report Describes the Model in Detail and Provides Assumptions and Results of Over 30 Model Runs
Available for Download:

17. How You Can Help

18. Functional Use Cases: Who Will Use This Tool and How Will they Use It
We Need Input and Review on Multiple Topics to Define Software Functional Requirements and Interface Specs
Functional Use Cases: Who Will Use This Tool and How Will they Use It
Energy Storage Use Cases: What Are All the Circumstances Where Storage May be Deployed
Locations
Grid Services
Technologies

19. First Step: Define the Highest Priority Functions for each Stakeholder – What are you trying to answer for what purpose?
Functional Use Cases: Who Will Use This Tool and How Will they Use It
As a Stand-alone Analysis Tool…
Data Sets
New Storage Valuation Tool
Outputs
Inputs
...or as a Stage in Another Analysis Methodology
Data Sets
Another Tool
New Storage Valuation Tool
Outputs
Inputs

20. Functional Use Cases Starting Point for Consideration Source: Initial EPRI Brainstorming and Socialization
Stakeholder Group
Possible applications of the tool for storage cost-benefit analysis
Utilities
Resource planning / Transmission planning functions
Distribution planning functions
Storage procurement – offer ranking
Customer facing program execution (e.g. SGIP, DR, etc)
Real-time uses to forecast storage operations in the wholesale market
Regulators
Analysis of storage in oversight of utility procurement planning
Evaluation and benchmarking of utility storage procurement decisions
Assessment of storage as Resource Adequacy capacity resources
Assessment of integrated renewable and storage projects (RPS procurement)
Regional System Operators
Evaluation of storage benefits in transmission planning
Assessment of how storage operations could affect wholesale market design
Calculation of benchmark storage market value, for various uses, e.g., in annual “State of the Market” reports
Project Developers
Valuation and pricing of projects for utilities and regulators; determination of optimal size and technology for projects
Locational value of energy storage projects, or aggregate distributed resources
Optimization of new product capabilities to maximize value
Electricity Customers
Understanding of cost-effectiveness potential of storage at different customers
Determination of appropriate storage/DER products under particular rate structures
Effect of storage on value/utilization of other DER
Researchers
Common platform for storage model extensions; repository of models and datasets

21. Functional Use Cases: Who Will Use This Tool and How Will they Use It
Next Step: Energy Storage Use Cases are Considered within Context of Functional Use Cases
Functional Use Cases: Who Will Use This Tool and How Will they Use It
Energy Storage Use Cases: What Are All the Circumstances Where Storage May be Deployed

22. Energy Storage Use Cases Starting Point
From CPUC Decision D

23. Energy Storage Use Cases are Converted to Feasible Combinations of Grid Services, Locations, Technologies
Functional Use Cases: Who Will Use This Tool and How Will they Use It
Energy Storage Use Cases: What Are All the Circumstances Where Storage May be Deployed
Locations: Requirements and Adjustment Factors
Grid Services: What Storage Does to Produce Value
Technologies: Generic Models that can be Customized for Specific Projects

24. Grid Services Starting Point: CPUC CEP “Applicable End Uses”

25. Grid Services Starting Point: CPUC CEP “Applicable End Uses”
Services currently modeled in ESVT
Strong consistency with ESVT to start from…
Detailed socialization required and some new development

26. Locations Starting Point
Initial Siting Locations to Consider
Fossil Generation
Renewable Generation
Transmission Substation
Distribution Substation
Along Feeder
Service Transformer
Behind the Meter (industrial)
Behind the Meter (commercial)
Behind the Meter (residential)
Locations are important for..
Solving problems
Not creating problems
Loss factors
Voltage impacts
Etc.

27. Requires close look from storage technology community
Technology Starting Point: Generic Technology Classes Currently Represented in ESVT Model
Batteries / Flywheel
CAES
Pumped hydro
Gas Turbine
Requires close look from storage technology community
to ensure accurate representation

28. Summary of Input Needs from the Stakeholders
Functional Use Cases
What Questions Do you Need to Answer? How would you like to use it?  DEVELOP USE CASES
Energy Storage Use Cases
Ensure all the likely storage deployment scenarios are compatible with the tool
Grid Services
Ensure services are modeled in a credible way -> Requirements + Benefit/Cost calculation approach
Technologies
Ensure all applicable storage technologies are considered with socialized inputs from the developer community – Not the performance per se, only the critical parameters to define
Locations
Consider the locational requirements and adjustment factors that are important for the model
We envision a working subgroup to advance each of these topics

29. Planned Project Schedule
Stakeholder Interviews & Software Use Case Development
Model Architecture Development
Functional & Interface Requirements
Model Development
Alpha Model Review (Testing Features)
Beta Model Review (Debugging & Feature Freeze)
Software Delivery & Tech Transfer
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4

30. Planned Project Schedule
Stakeholder Interviews & Software Use Case Development
Tell Us if We Need to Adapt Schedule to Maximize Value
Model Architecture Development
Functional & Interface Requirements
Model Development
Alpha Model Review (Testing Features)
Beta Model Review (Debugging & Feature Freeze)
Software Delivery & Tech Transfer
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4

31. Planned Project Schedule
Stakeholder Interviews & Software Use Case Development
NEXT STEP: DEVELOP A DETAILED
MODELING AGENDA FROM YOUR
INPUTS
Model Architecture Development
Functional & Interface Requirements
Model Development
Alpha Model Review (Testing Features)
Beta Model Review (Debugging & Feature Freeze)
Software Delivery & Tech Transfer
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4

32. Opportunities to Engage
Participate in the Energy Storage Integration Council – Analysis Working Group – No Cost
Working group meetings monthly and topic subgroups meet more regularly
Next webcast: August 14, 10am Pacific time
For meeting invites, send full contact info to:
Use Case Workshop September 1st EPRI in Palo Alto (by invitation)
and for invite request and justification (Need a small, balanced group of ~30 people to be successful)
Separate Interviews with Key Stakeholders:
Ben Kaun at

33. Questions and Comments?
Contact Information:
Ben Kaun
Office Phone:

34. Together…Shaping the Future of Electricity