Tuesday, September 16, 2014 - Microsoft … · Ramp up ̶Charge the batteries at a rate of 250kW...

Utility-scale battery systems for energy storage and wind turbinesTuesday, September 16, 2014

CCET ‐ Husch Blackwell Webinar Series ‐ July, August, Sept and Oct, 2014TODAY’S WEBINAR

© 2014 All rights reserved.

Discovery Across Texas:Technology Solutions for Wind Integration in ERCOTA CCET Smart Grid Demonstration Project

Milton Holloway, Ph.D.President & COOCCET

[email protected]

electrictechnologycenter.com


Context: Continuing Investment in Wind Generation ERCOT Wind Capacity


Context: CREZ* Build-out Completion

*Competitive Renewable Energy Zones$7B cost, 3,589 miles of lines


Discovery Across Texas Project: ERCOT & Part of SPP


Discovery Across Texas - Project Team


CCET Demonstration Project: Discovery Across Texas

I. Synchrophasor system with applications (ERCOT wide grid monitoring)II. Security fabric demonstration for synchrophasor systems (demonstrated at

Lubbock/TTU/RTC)III. Utility-scale battery with companion wind farm (Lubbock/TTU/RTC)IV. Pricing trials at Pecan Street (Austin)V. Direct Load Control demonstration with dual communication paths (Dallas and

Houston)VI. Solar community monitoring (Harmony Community in Houston and Mueller

Community in Austin)VII. PEV fleet Fast Response Regulation Service demonstration (Fort Worth)

Seven Project Components:


This material is based upon work supported by the Department of Energy under Award Number DE-OE0000194."

Disclaimer: "This 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.



Audience Engagement QuestionI. When will battery storage become an integral part of the ERCOT electric

grid

II. Answers:a. By 2020b. By 2030c. When natural gas prices rise substantiallyd. Not in the foreseeable future


Milton Holloway, Ph.D.President & COO (512) 472‐3800

[email protected]://www.electrictechnologycenter.com/



Mark HarralChief Executive OfficerGroup NIRE

806.771.7722 ext. 202

[email protected]


Background on Group NIRE In 2010, TTU created the National Institute for Renewable

Energy (The Institute) to do what universities can’t do.

Within 4 months of starting, The Institute did the following: Formed Group NIRE to do all for-profit business activities; Signed a Non-binding Letter Agreement with Alstom Power Inc. Partnered with TTU for a $34M ETF grant request. $8,000,000

Awarded to TTU and NIRE

Since 2010, Group NIRE and TTU have built a research facility with $26M invested mainly from private companies


Testing & Certification Center


GroupNIREandTTUDataStreams

Hardware Systems Distribution System Wind Turbine Production 1MW/1MWh Battery Data PMU Network West Texas Mesonet (Regional Weather Data)

Overarching Systems Weather and Energy High Resolution Forecast Cyber Security Program


1MW/1MWHBatteryProjectDOE Project: A CCET $27M ARRA Regional Demonstration project funded jointly by CCET members and the Department of Energy deployed a 1MW/1MWh battery to be used in coordination with the wind turbines at the site

Strategic Advantage: The facility in Lubbock utilizes the battery to work in concert with the load, wind turbines, and future development including solar. The systems are being modeled by TTU EE Department under funding from the CCET project

Project Incorporates Utilities: Utilities in ERCOT will receive the reports from the battery test in concert with the Center for Commercialization of Electric Technologies


ModelingofBatteryinPSCAD


Extensive BESS Testing

Ramp Support Wind Speed Drop Frequency Response Demand Response Ramping Battery/Load Leveling FRRS Combinations of Above


Ramp Support

Ramp up Charge the batteries at a rate of 250kW for 15 minutes, or

until 50% SOC. Increase the charge rate to 500kW for 15 minutes, or until

50% SOC. Increase the charge rate to 750kW for 15 minutes, or until

50% SOC. Increase the charge rate to 1000kW for 15 minutes, or until

50% SOC. Ramp down – opposite of above


Wind Speed Drop

Forced the input of one wind turbine to 80% of its current output.

BESS responded by maintaining a rolling buffer of change of output of the feeder (limit the change to 250kW/Minute).

Duration of1 hour.


Demand Shaving/Peak Reduction

Reducing the annual or monthly peak for a retail customer or Coop reduces the demand charge on utility bills

Blue is battery SOCBlack is power output of battery system


Wind Ramping/Load Leveling Test

The Battery has also been programmed to respond to wind ramping of local wind generation and load leveling for the local distribution electric cooperative.

Green Line is Wind PowerBlue is FrequencyBlack is Battery SOC


FRRS TestSignals sent to the Battery system as though it were participating in the ERCOT Ancillary Service Market.

The system performed as expected during this 24-hour frequency response test.

Note the aggressive profile was weighted more on discharges than charge by the SOC (blue line) dropping from 50% to 15%.


Audience Engagement Question

What do you think the biggest operating issue is related to utility scale batteries:

A) Inverter FailuresB) Air Conditioning SystemC) Control SystemD) Battery Chemistry


Lessons Learned From the time one begins drafting a request for proposal to the date

of actual installation and operation of a system like the BESS can take as much as a year.

Financial stability of the battery system vendor is paramount, both during the development period and well beyond the date of fielding.

Equipment failures will occur, so ensure a supply of spare parts, warranty agreements, and negotiated service and maintenance.

Warranty agreement should require a letter of credit if performance matrix not met.

Make sure air conditioning unit and support systems are on a separate electrical circuit from battery.

Inverter and its cooling system need to handle extreme weather conditions.


John CrossleyPartner, Energy & Natural ResourcesHusch Blackwell

[email protected]

huschblackwell.com


Legal Issues and Energy StorageOverview Regulatory Considerations Energy Storage Agreements Tax Credits Loan Guarantees


Legal Issues and Energy StorageRegulatory Considerations Vertical Integration vs. Restructured Markets Storage is a Hybrid System

Storage resources are technically capable of providing services with respect to generation, transmission and distribution

Restrictions prevent a party from participating in the wholesale market while earning a cost of service recovery

Developers have to choose between one structure or the other, which undervalues the storage asset


Legal Issues and Energy StorageRegulatory Considerations FERC Recognizes the “Hybrid” Issue Case-by-Case Determination

Will deter development because of approval Similar Issue Exists in ERCOT

PUCT classified AEP’s NaS batter as a transmission asset Declined to set precedent for future energy storage cases

Additional ERCOT problem exists because storage systems must register as a generating entity and a controllable load


Legal Issues and Energy StorageEnergy Storage Agreement Insufficient Precedent Typical Structure:

Developer develops project Developer retains O&M responsibility Off-taker responsibility for scheduling and cost of delivery

in to project Off-taker pays Developer a capacity payment (fixed) and

O&M payment (variable)


Legal Issues and Energy StorageEnergy Storage Agreements Structural Issues Applicable Standards

“Out Clauses” Termination Damages Testing and Operations Payment Reductions


Legal Issues and Energy StoragePromoting Development Federal Investment Tax Credit

Appropriate structures lower cost Improve Financing Opportunities Structure is Key Location and Ownership


Legal Issues and Energy StoragePromoting Development Department of Energy Loan Guarantee

Project Eligibility Program Requirements Application Process


THANK YOU!

Mark HarralGroup NIRE806.771.7722 ext. 202

John CrossleyHusch Blackwell816.983.8339

Milton Holloway, Ph.D.CCET512.472.3800


Tuesday, September 16, 2014 - Microsoft … · Ramp up ̶Charge the batteries at a rate of 250kW...

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