Battery Energy Storage:
Its Time is Now
IPL Advancion® Energy Storage Array
Indiana Conference on Energy Management
August 17, 2016
Storage Makes Sense
Agriculture
Storage
 Storage plays a role in most critical
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commodities for society
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800
Consumption
Harvest
 In agriculture, storage allows crops
to be consumed throughout the year
 Grain silos, warehouses, storage
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400
tanks are so common and go
unnoticed
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 Electricity is unique in that until
0
Time
recently there has been almost no
significant storage in the system
 Electricity must be produced and
consumed at exactly the same time
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20MW Grid-Scale Battery at IPL Harding
Street Station, Indianapolis, IN
 Capacity: 20 MW
 Energy: 20 MWh
 COD: May 20, 2016
 Technology: AES
Advancion
 Number of
Advancion Nodes:
244
 Number of lithium-
ion batteries: 97,600
 Interconnection
voltage: 138 kV
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Recognized at the White House
 White House Summit on Renewable Energy, Energy
Storage and Smart Markets (June 16, 2016)
 IPL and AES were among 16 US companies invited,
along with other government and NGO leaders
 Ken Zagzebski announced the commercial
operation of the Harding Street project
 Others announced 1,300 MW of additional storage
procurement or deployment in the next five years
 Council of Economic Advisors Report on
incorporating renewables into the electric grid
https://www.whitehouse.gov/sites/default/files/page/file
s/20160616_cea_renewables_electricgrid.pdf
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Grid-scale Energy Storage is Here Today
 Energy storage is commercially viable today
 As battery costs continue to decline, energy storage becomes even
more competitive
 With energy storage, existing resources are better utilized which makes
the grid more resilient, efficient and clean
 Complements and promotes use of renewables
 Improves the efficiency of existing grid assets
 Reduces costs and emissions
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Massively Parallel Design
Cells
Trays
Racks
Grid Storage Arrays
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AES and Energy Storage
Largest fleet of battery-based energy storage, eight years commercial operating experience.
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Importance of Maintaining Electric Grid
Frequency
Electric Grid Frequency
Balance
 Grid frequency must be maintained
at a constant 60 Hz in the US (50 Hz
is some other locations)
 If supply and demand (“source and
sink”) are not matched, the grid will
not remain at the right utility
frequency (60 Hz)
 Variations of 0.1% away from the
60 Hz is the US and parts of Asia/the Americas
50 Hz elsewhere
utility frequency can cause
significant problems including
involuntary loss of load (e.g.
customer outages)
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Maintaining Grid Frequency
 Grid frequency will suffer unless generation and load are kept in
balance
 Problems include:
 Power plants trip off to protect generation equipment, leading to
brownouts or blackouts
 Damage to business and personal equipment including motors, process
equipment, and computers
 Transformer malfunctions
 Disruptions in illumination
 Energy storage will play a big role in making sure generation and
load stay in balance even in the new, two-way electric grid
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Importance of Maintaining Grid Frequency
The Old Grid
 Power flows from utilities to customers
Coal/ Nat Gas
UTILITY
Hydro
Balance
 Although there are unexpected
Nuclear
variations, generation and load are
generally predictable
 Utilities maintain “peaker plants” to
balance unexpected changes
 Coal-fired central stations have
governors which can adjust to small
incremental changes on a minute-tominute basis
 Thermal generators provide inertia to the
grid from their large rotating mass and
this “slows down” rate of frequency
changes, allowing grid operators more
time to respond to supply and demand
imbalances
Adapted from IBM “Information Technology (IT) and Operations Technology (OT) Convergence”.
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Importance of Maintaining Grid Frequency
The New Grid
Balance
Combined
Heat & Power
 Power flows multiple directions
 Customers can change their profile
through demand response and self
generation
UTILITY
 Increase in intermittent resources
Coal/
Nat Gas
Nuclear
Solar
Hydro
Energy
Storage
Wind
(“variable energy resources”) that
are synchronous and provide no
inertia to the grid
 Aging coal-fired central stations
being retired
 The grid must still be maintained at
Solar
Demand
Response
Energy
Storage
60 Hertz with more unpredictable
factors and less stability from
generation inertia
Wind
Adapted from IBM “Information Technology (IT) and Operations Technology (OT) Convergence”.
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Ancillary Services to Maintain Electric
Grid Frequency
 Unmitigated deviations in electric grid frequency can damage
consumer electronics, electric motors and more
 Severe unmitigated deviations can lead to generation failure and
ultimately brown or blackouts
 Primary Frequency Response (PFR)
 Manages frequency in seconds
 For unexpected deviations on the grid
 Such as the loss of a generating unit
 Also provides Regulation Control automatically
 Mitigates the normal and anticipated deviations on the grid
 Such as real time changes in generation and load
 Working with MISO to develop market and dispatch rules to
accommodate batteries in the existing Regulation centrally
dispatched market and any other centrally dispatch market of
the future
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Ancillary Services Example
Harding Street – July 15-16
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Balancing Generation and Load
Using conventional power plant versus energy storage
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Frequency Response
Using Energy Storage to respond to frequency variations
AES Angamos BESS in Chile
Response to Grid
 Event in Chile (50 Hz System)
where there was a loss of a
generating unit
 AES energy storage unit responded
with rapid increase of output from 0
to 20 MW
 Autonomous response according to
programmed profile
 Output sustained until stability
restored
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Frequency Response Experience in Chile
 AES has 52 MW in
operation or construction
in Chile
 The units respond to
AES Los Andes
Atacama, Chile
2009
50 – 75 events/year
 $37 million annual grid
savings
 Have avoided load
shedding and curtailment
of customers
AES Angamos
Mejillones, Chile
2012
 Increased system
security
 Inertia-like performance
AES Cochrane
Mejillones, Chile
2016
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Frequency Regulation
Keeping supply and demand (“source and sink”) in balance
PJM (before batteries)
PJM (with batteries)
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Frequency Regulation
64 MW of AES assets in operation in the eastern United States
 Provides frequency regulation – balancing supply and demand
 $20 million in savings annually
 Estimated 62,000 ton reduction in CO2 annually
AES Tait
US, Ohio
2013
AES Laurel Mountain
US, West Virginia
2011
AES Warrior Run
US, Maryland
2015
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What Else Can Batteries Do?
Additional uses of battery energy storage
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How Energy Storage May Help Business
Uses which may provide benefits to C&I Customers in the future
Demand Charge Reduction
Discharge at times of peak demand to
avoid or reduce demand charges
Backup Power/
Improved Power Quality
Provide intermediate backup power in the
event of a grid interruption, or improve the
power quality for industrial uses
Time of Use Energy
Management
Minimize electricity purchases during peak
electricity consumption hours when time-ofuse (TOU) rates are the highest
Demand Response/
Utility Ancillary Services
Reduce net energy consumption in
response to signals from the grid to
alleviate peaks in system load
Onsite Generation Self
Consumption
Maximize consumption of onsite electricity
generation to avoid unfavorable rate
structures for the injection of excess energy
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The Challenge to the Grid from Variable
Energy Resources (VERs)
Variability of Solar Resources
Effect on Grid Operations
 Managing the transmission system
was never easy
 More predictability of load and
generation in the past however
 Increased integration of wind, solar
and natural gas on the grid
 Low carbon resources may not
always match the load profile (and
vice versa)
 On a per capita basis, Indianapolis
has the second highest installed
solar PV in the United States
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Solar PV Variability
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Ramp Up and Ramp Down
Batteries provide fast ramping & help in over-generation situations
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Both Frequency Regulation
and Ramp (20 MW / 20 MWh Example)
Supply and Load from Battery (MW)
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5
0
‐5
‐10
‐15
‐20
‐25
Power (MW)
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Scientific American: World’s Largest
Battery Will Power Los Angeles
Artist Rendering
 AES Selected by SCE in competitive solicitation
 20 year PPA (Power Purchase Agreement)
 100 MW peak power for 4 hours (100 MW / 400 MW
HTTP://WWW.SCIENTIFICAMERICAN.COM/ARTICLE/WORLD-S-LARGEST-STORAGE-BATTERY-WILL-POWER-LOSANGELES/?WT.MC_ID=SA_TW_ENGYSUS_NEWS
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Energy Storage
System benefits with batteries
 Improve grid reliability by providing faster response (less than
a second)
 Improve system efficiency
 Allows generators to run at most efficient set point
 Avoids having generators “chase” load (uses batteries instead)
 Reduce emissions
 Reduces generator ramping and start/stops
 Charge battery with resource with lower GHG-emissions as
compared to a peaker
 Energy storage makes the grid more resilient, efficient and
cleaner than ever before
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For More Information
Richard L. Benedict
Director, Project Development
Indianapolis Power & Light Co.
One Monument Circle,
Indianapolis, IN 46204
(317) 261-5009
[email protected]
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