ML19270D584
| ML19270D584 | |
| Person / Time | |
|---|---|
| Issue date: | 09/25/2019 |
| From: | NRC/OCM |
| To: | |
| Shared Package | |
| ML19270D537 | List: |
| References | |
| M190925 | |
| Download: ML19270D584 (15) | |
Text
Order No. 841 Electric Storage Participation in
, rkets Operated by RTOs and IS0s Anuj Kapadia Office of Electric Reliability September 25, 2019 888
Disclaimer The views expressed herein are mine, and do not necessarily reflect the views of the Commission, individual Commissioners, Commission staff, or individual Commission staff members 2
Agenda
- Wholesale Market Participation - Order No. 841
- Overview of Electric Storage Resources 3
NOPR on Electric Storage Participation int Organized Wholesale Electric Markets:
Pr Inary Reforins In response to the information received in AD16-20-ooo, the Commission issued NOPR in November 2016 proposing to require each RTO/ISO to revise its tariff to:
(1) establish a participation model consisting of market rules that, recognizing the physical and operational characteristics of electric storage resources, accommodates their participation in the organized wholesale electric markets and (2) allow distributed energy resource (DER) aggregators, including electric storage resources, to participate directly in the organized wholesale electric 4 markets.
Order No. 841 - Electric Storage Participation in the Organized Wholesale Electric Markets The Commission required that RT0s/IS0s establish a participation model consisting of market rules that ensure:
- Electric storage resources are eligible to provide all capacity, energy, and ancillary services they are technically capable of providing.
- Electric storage resources are able to be dispatched and set the wholesale market clearing price as both a wholesale seller and wholesale buyer.
- RTO/ISO tariffs establish a minimum size requirement for electric storage resources not to exceed 100 kW.
- Electric storage resources be able to pay the wholesale price for charging energy that they resell back into the wholesale markets.
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Timeline
- February 2018: Order 841 was issued
- December 2018: RTO's/ISO's filed their compliance filings
- May 2019: Order 841-A was issued
- December 2019: Order 841 Implementation date
- Commission is in the process of reviewing compliance filings and will provide direction back to RTO's/ISO's 6
OVERVIE~ OF ELECTRIC STORAGE RESOURCES
What are electric storage resources?
- Electric Storage Resources have bidirectional electric energy and storage capabilit.ies, and are characterized by both their power capacity (MW) and energy capacity (MWh).
- Order No. 841 definition: "a resource capable of receiving electric energy from the grid and storing it for later injection of electric energy back to the grid."
- Due to the requirement that the resource be capable of injecting electric energy, this definition includes technologies such as batteries, flywheels, compressed air, and pumped-hydro
- Does not include thermal storage technologies (e.g. ice and hot water) that only modify load. s
Examples of Electric Storage Technologies Solid State Batteries - a range of electrochemical storage solutions, including advanced chemistry batteries and capacitors Flow Batteries - batteries where the energy is stored directly in the electrolyte solution for longer cycle life, and quick response times Flywheels - mechanical devices that harness rotational energy to deliver instantaneous electricity Compressed Air Energy Storage - utilizing compressed air to create a potent energy reserve Pumped Hydro-Power (open and closed loop) - creating large-scale reservoirs of energy with water Advanced Rail Energy Storage - electric traction drive shuttle-trains, operating on closed rail lines that are angled uphill such that the mass of the train becomes the storage medium 9
Examples of Electric Storage Projects - Currently Underway
- Aliso Canyon capacity projects- to solve constraints on the grid due to gas leakage- three projects totaling to 70 MW/280MWh
- PG&E replacing 3 gas plants with 568 MW/ 2,270 MWh energy storage
- SoCal Edison Long Beach Generation Enhancement-paired with a combined cycle gas-fired plant (100 MW/400MWh)
- New Pumped Hydro Project in Arizona- 2,000 MW 10
Utility Scale Battery Storage Capacity - Cumulative U.S. utility-scale battery storage power capacity (March 2019) megawatts (fvlW) 3,000 annual capacity 2,500 additions 2 000 1,500 operating 1,000 capacity 500 0
2003 2005 2007 2009 2011 2013 2015 2017 20 19 2021 2023 eia Source: _ S ::nerg*. lnfornatlcr Adr1m1strat1or Arinual Electric Gener-ator Reoort and *he Pre./im*nary Monr11.'y Elecrr1c Generaro~ f."lven ory 11
Operating Battery Storage by State U.S. operating utility-scale battery storage by state (top 10, March 2019) megawatts (MW)
California Illinois Texas West Virginia Hawaii Alaska New Jersey Arizona Ohio Pennsylvania rest of U.S.
0 50 100 150 200 250 Source: US ::nergy Information Adr1mistra:1cr. Annual Electric Gene.rator Re:xY1 and the Pref,mm ary .1ontl'Jiy Electri'c Generator Inventory 12
Potential Storage Applications
~
t_. _ . 1Ge.ne.ra1tion : Transmission D1i stribution Storage applications Storage applications Address supply disruptions Defer transmission upgrades
- Defer distribution upgrades Address variability ,o f Relieve transmission
- Provide backup power renewable resources congestion during -outages Provide pealking capacity Provide grid (ancillary) services
- Support microgrids
- R,educe demand charges Source : GAO iillustration based on s~udies and d ocumenls. I GA0-18-402 13
Drivers of Electric Storage Development
- Federal and state policy
- Convergence of industry innovation
- Declining costs (batteries and renewables)
- Creation of a resilient and flexible grid
- Increasing custonier deniand
- Iniproved control software and capabilities 14
Questions?
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