2012 Storage Report: Progress and Prospects Recommendations for the U.S
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2012 Storage Report: Progress and Prospects Recommendations for the U.S. Department of Energy A Report by: The Electricity Advisory Committee October 2012 Photo Credit: AES Energy Storage, LLC Photo Credit: Xtreme Power Inc. ELECTRICITY ADVISORY COMMITTEE ELECTRICITY ADVISORY COMMITTEE MISSION The mission of the Electricity Advisory Committee is to provide advice to the U.S. Department of Energy in implementing the Energy Policy Act of 2005, executing the Energy Independence and Security Act of 2007, and modernizing the nation's electricity delivery infrastructure. ELECTRICITY ADVISORY COMMITTEE GOALS The goals of the Electricity Advisory Committee are to provide advice on: • Electricity policy issues pertaining to the U.S. of Energy • Recommendations concerning U.S. Department of Energy electricity programs and initiatives • Issues related to current and future capacity of the electricity delivery system (generation, transmission, and distribution, regionally and nationally) • Coordination between the U.S. Department of Energy, state, and regional officials and the private sector on matters affecting electricity supply, demand, and reliability • Coordination between federal, state, and utility industry authorities that are required to cope with supply disruptions or other emergencies related to electricity generation, transmission, and distribution ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 The Energy Storage Technologies Subcommittee of the Electricity Advisory Committee was established in March 2008 in response to Title VI, Section 641(e) of the Energy Independence and Security Act of 2007 (EISA). This report fulfills requirements of EISA Title VI, Section 641(e)(4) and (e)(5). Section 641(e)(4) stipulates that “No later than one year after the date of enactment of the EISA and every five years thereafter, the Council [i.e., the Energy Storage Technologies Subcommittee, through the Electricity Advisory Committee], in conjunction with the Secretary, shall develop a five-year plan for integrating basic and applied research so that the United States retains a globally competitive domestic energy storage industry for electric drive vehicles, stationary applications, and electricity transmission and distribution.” EISA Section 641(e)(5) states that “the Council shall (A) assess, every two years, the performance of the Department in meeting the goals of the plans developed under paragraph (4); and (B) make specific recommendations to the Secretary on programs or activities that should be established or terminated to meet those goals.” Electronic copies of this report are available at: http://energy.gov/oe/services/electricity-advisory-committee-eac 2012 Storage Report: Progress and Prospects October 2012 More Information about the EAC in Available at: http://energy.gov/oe/services/electricity-advisory-committee-eac Letter from the Chair October 2012 On behalf of the members of the Electricity Advisory Committee (EAC), I am pleased to provide the U.S. Department of Energy (DOE) with this report, “2012 Storage Report: Progress and Prospects”. This report provides recommendations that the Electricity Advisory Committee (EAC) offers for the DOE’s consideration as it continues to develop and implement its energy storage program, as authorized by the Energy Independence and Security Act of 2007. These recommendations were developed through a systematic process undertaken in 2012 by the EAC. The members of the EAC represent a broad cross-section of experts in the electric power delivery arena, including representatives from industry, public interest groups, utilities, and state government. I want to especially thank Ralph Masiello, Senior Vice President, KEMA Inc. for his leadership as Chair of the EAC Energy Storage Technologies Subcommittee and to the EAC members who served on the Subcommittee. Thanks also go to Patricia Hoffman, Assistant Secretary for Electricity Delivery and Energy Reliability, U.S. Department of Energy, David Meyer, Senior Policy Advisor, DOE Office of Electricity Delivery and Energy Reliability and Designated Federal Officer of the Electricity Advisory Committee, and to Matthew Rosenbaum, DOE Office of Electricity Delivery and Energy Reliability. The members of the EAC recognize the vital role that the DOE can play in modernizing the nation’s electric grid. The EAC looks forward to continuing to support DOE as it develops and deploys energy storage technologies, policies, and programs to help ensure an effective, resilient, 21st century electric power system. This report also fulfills the requirements in Section 641(e)(5)(B) of the Energy Independence and Security Act of 2007. Sincerely, Richard Cowart, Chair Electricity Advisory Committee ELECTRICITY ADVISORY COMMITTEE MEMBERS *INDICATES MEMBERS OF THE ENERGY STORAGE TECHNOLOGIES SUBCOMMITTEE Paul Hudson Richard Cowart Stratus Energy Group Chair Regulatory Assistance Project Val Jensen Commonwealth Edison Irwin Popowsky* Vice-Chair Susan Kelly Pennsylvania Consumer Advocate (Ret.) American Public Power Association William Ball Barry Lawson Southern Company National Rural Electric Cooperative Association Linda Blair Ralph Masiello* ITC Holdings Corporation KEMA Rick Bowen Vice Admiral Dennis McGinn* Alcoa American Council On Renewable Energy Merwin Brown* Clair Moeller* California Institute for Energy and Environment Midwest Independent Transmission System Operator, Inc. Ralph Cavanagh* Natural Resources Defense Council M. Granger Morgan* Carnegie Mellon University Paul Centolella The Analysis Group David Nevius* North American Electric Reliability Corporation Robert Curry* CurryEnergy Chris Peters Entergy Services Inc. Clark Gellings* Electric Power Research Institute Wanda Reder* S&C Electric Company Dian Grueneich Dian Grueneich Consulting, LLC. The Honorable Phyllis Reha Minnesota Public Utilities Commission Michael Heyeck* American Electric Power Brad Roberts* Electricity Storage Association Gordon van Welie* Chris Shelton* Independent System Operator of New England AES Energy Storage, LLC (ISO NE) The Honorable Tom Sloan* The Honorable Rebecca Wagner Kansas House of Representatives Nevada Public Utilities Commission David Till Mike Weedall Tennessee Valley Authority Bonneville Energy Administration (Ret.) Table of Contents Executive Summary ................................................................................................................... 1 1 Introduction ......................................................................................................................... 7 2 Storage Applications ..........................................................................................................10 2.1 Generation and Renewables Integration .....................................................................10 2.2 Transmission and Distribution .....................................................................................15 2.3 Stationary End-user Applications ................................................................................16 2.4 Portable Power ...........................................................................................................17 2.5 Conclusions ................................................................................................................17 3 Projects ..............................................................................................................................19 3.1 Worldwide Energy Storage Projects ............................................................................19 3.2 Project Examples ........................................................................................................24 3.3 Research & Development (R&D) Activity ....................................................................28 3.4 Market Perspective .....................................................................................................38 3.5 Energy Storage Manufacturing Capacity .....................................................................41 3.6 Conclusions ................................................................................................................46 4 Government Activities ........................................................................................................48 4.1 State Legislative and Regulatory Activities Related to Electricity Storage ...................48 4.2 Energy Storage Standards ..........................................................................................49 4.3 Other...........................................................................................................................56 4.4 Conclusions ................................................................................................................56 5 Potential Barriers to Widespread Storage Deployment and Policy Alternatives ..................57 6 Recommendations .............................................................................................................69 Appendix A. DOE Large-Scale Energy Storage Project Database ........................................71 Appendix B. ESA Survey of State Legislative and Regulatory Bodies ..................................75 Figures Figure 1: Applications for Storage Systems on the Grid ............................................................ 8 Figure 2: AES Lithium-Ion Battery Plant near a Wind Farm in West Virginia .............................10 Figure 3: Community Energy Storage Unit ................................................................................16