1. Hawaii Energy Storage Seminar: Utility Regulation Service
John D. Boyes
Sandia National Laboratories
Energy Storage and Distributed Resources
June 16, 2010
Sandia is a multi-program laboratory operated by Sandia Corporation, a Lockheed Martin Company, for the United States Department of Energy’s National Nuclear Security Administration under contract DE-AC04-94AL SAND P

2. Energy Storage for Non-Peak Shaving Applications
Energy Storage Systems with short duration discharges (~15 min max)
Applications
Frequency regulation
Power quality (UPS)
Renewable integration and ramping
Technologies
Batteries
Flywheels
Supercapacitors

3. How Regulation Works
Regulation – balancing utility generation with demand
Up regulation – when demand exceeds generation (discharge)
Down regulation – when demand is below generation (charge)
ISO regulation signal every 4 seconds
Conventional generators must respond within 5 minutes
Storage systems can respond within seconds
Current business models require a market mechanism
Discharge
Charge
Courtesy: Beacon Power

4. Example of Regulation Demand from AES
Frequency Regulation is a near zero-energy service compensating for the minute to minute fluctuations in total system load and uncontrolled generation. Thus it is an ideal candidate to be supplied by storage.

6. Storage Significantly Reduces CO2 emissions
80% Reduction
From KEMA study: 20MW of Regulation over a 20-year operating life
Courtesy: Beacon Power

7. Market Changes Are Necessary for Energy Storage to Provide Regulation Service
Business model for Beacon and AES
Own and operate the storage system
Sell regulation service into an open, day ahead market
FERC and ISO’s have developed ancillary market rules for storage
Regulation Service is the first example
Energy storage is a separate asset class
Dispatch fast performers first
ISO manage storage state of charge (SOC)
Adjust set point every 5 minutes
15 minute storage duration provides 100% coverage

8. Wind Ramp Rate Control = ~ +180 MW/ 30 min
For 60 minute ramp requires absorbing 45MWh into storage
= ~ -120 MW/ 2 ½ hrs
For 5 hour ramp requires discharging 150MWh from storage
A 20 MW, 15 minute Beacon Flywheel system contains 5 MWH
PNM
Data from a 200 MW wind system
Red line is wind system output
Blue line is the Area Control Error (ref only)
Black line is eyeball linear ramp rate
Green line is eyeball doubling of ramp duration

9. 1st 20 MW Flywheel Regulation Plant NYISO – Stephentown, NY
May FERC approved market rules
July DOE Loan Guarantee
October NY PSC approved project
November Ground breaking
4Q MW capacity
1Q MW capacity

10. 2nd 20 MW Flywheel Regulation Plant PJM Interconnection
Awarded $24M DOE stimulus grant
Established site control at two potential sites in PJM area
Interconnection agreements under negotiation

11. Operational 2 MW Advanced Lithium-ion regulation system at an AES Substation

14. Spinning Reserve Capacity 12 MW Los Andres, Chile
Largest Lithium-ion battery system
in service on the power grid

15. Energy Storage Systems Serve High Power/High Cycle Applications
Regulation Service is a reality
Regulatory changes were required
Renewable integration is becoming a reality
As penetration levels increase, storage will become a viable option
Renewable ramping requires large systems