Thermal Energy Storage Challenges and Opportunities February 26, 2020 www.energystorage.org www.energystorage.org Webinar Instructions This webinar is being recorded. We will send the slides and recording to all registrants within two business days. All lines will be muted during the webinar. To submit questions, please use the chat box on the left-hand side of your screen at any time throughout the presentation. www.energystorage.org Antitrust Guidelines All meetings and teleconferences of the Energy Storage Association are held in accordance with our antitrust guidelines. We ask that you abide by these guidelines during today’s webinar. The full guidelines are available in the Members Only area of the ESA website. www.energystorage.org ESA Membership ESA works to ACCELERATE markets, CONNECT members and EDUCATE all stakeholders. 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The hotel block closes Monday March 2! • Visit https://esacon.org/accommodations/ to get the best rate www.energystorage.org Today’s Speakers Evan Berger Collin Coker Corey Blackman Sales Leader, VP Sales & Marketing, Head of Technology, CALMAC – Northern US & Viking Cold Solutions SaltX Canada www.energystorage.org Ice Thermal Storage in the U.S. Challenges & Opportunities February 2020 Thermal Storage: a quick background Efficient, cost-effective way to store power • Each tank is a 15-25kW “thermal battery” for 6 to 10 hours • Design life is 40 years; no degradation of storage capacity • Roughly 1/3 of the cost of battery storage • Trane has installed over 500 MW / 3.4 GWh of CALMAC® thermal storage in the U.S. University, Philadelphia University, Arizona New York Class A Office 250 kW / 2 MWh 4 MW / 27 MWh 20 MW / 150 MWh of installations in NYC 8 The opportunity Big market with compelling financials – simple energy arbitrage Thermal storage saves customers money by shifting power from expensive on-peak hours to the nighttime, when energy can be much cheaper. The savings mechanisms are demand charges (utility and grid) and time-of-day rates, which are available to non-residential customers. With available state and utility incentives, we are able to see 3-7 year paybacks across the U.S. 3D Histogram of active thermal storage projects Our biggest markets are K12, hospitals, universities, and office, and the opportunity is essentially limitless. Over 1 GW (4,000+ projects) of CALMAC® thermal batteries installed worldwide 9 #1 Challenge is Awareness • Almost no one understands commercial demand charges. • Even fewer understand Grid demand charges (PJM, ISO-NE, NYISO, etc.). • Plurality of deregulated market customers are on fixed priced contracts that cost more, year after year, than default option “Everyday customers” like schools, hospitals and universities are unsophisticated in terms of energy – rate and tariff design is opaque, and utility reps are typically insufficiently trained to provide them with the necessary clarity. There is no unbiased resource they can turn Trane marketing piece from August 2018 to for help. 10 Utility Bills Cloud Understanding Some states require no itemization at all • “here’s your bill, pay up” Typical 3rd Party Supply Bill • “blended” electric rate of 7.5 cents/kWh Default Service Customer • No mention of PJM’s Capacity or NITS • Itemization, but no explanation charges, which are peak-related 11 Thought Experiment Cable bill vs. Grocery Bill • One you receive up front; the other comes in the mail two weeks after the fact • One is itemized in a way that you can easily follow; the other is littered with unexplained fees and surcharges • One is naturally easy for the human mind to grasp; the other is based on abstract telecommunications concepts and is determined by a legal proceeding between the FCC, your public utility commission, and the providers Which one do you actually understand? 12 Summary These are exciting times for all of us in the energy storage industry • Thermal storage business is growing steadily, thanks to new incentives and new appreciation • The technology has been compelling for a long time • The greatest challenge by far is awareness of how C&I customers are charged for their power 13 © 2020 Trane. All Rights Reserved. Trane, the Circle Logo, CALMAC, the Square Logo, and Ice Bank are trademarks of Trane in the United States and other countries. All trademarks referenced are the trademarks of their respective owners. Intelligent Thermal Energy Storage Long-Duration | Efficiency | Resiliency Energy Storage Basics for Cold Storage Conventional Electrical Storage Generation Battery Future (Electricity) Consumption Thermal Energy Storage (TES) Generation Refrigeration TES Consumption (Cold Energy) TES Levelized Cost of Energy (LCOE) < 2¢ per kWh vikingcold.com Customer Freezer Applications 1,000 to 200,000+ ft2 -20° to 32° Fahrenheit Run nearly 24/7 5 kW to 2+ MW per installation Thousands of facilities vikingcold.com TES - Permanent & Safe Thermal Mass Phase Change Material: PCMs store and release energy as they transition between solid and liquid states Latent Heat Absorption (vs Sensible Heat) 300x more heat capacity than frozen food 8x heat transfer rate of frozen food Natural Convection PCM absorbs rising heat Releases cold that falls across the food vikingcold.com TES Absorbs & Consolidates Heat vikingcold.comvikingcold.com TES - Intelligent Controls, Monitoring, Notifications Flexibility: Efficiency and Demand Management Strategies Consumption reduction Demand, time-of-use, peak avoidance Easy Integration Subsystem of existing controls Control and platform agnostic Secure cloud connection API or BACnet interface Visibility & Actionable Intelligence 24/7 Real-time intelligence Performance tracking and trends Customizable dashboards & reports Notifications via text, email, or call Identifies issues prior to becoming costly problems vikingcold.com TES Also Adds Resiliency No power required Holds temperatures 3X longer Power outages & other grid challenges Natural disasters Mechanical failures Wildfires & Scheduled Brown Outs Mechanical Failures Ice Storms Hurricanes Wildfiresvikingcold.com Frozen Food Warehouse 93,000 Ft2 in PG&E Territory 13-Hour Daily Peak Period 43% NET CONSUMPTION (kWh) 29% PEAK DEMAND (kW) 50% TEMPERATURE STABILITY vikingcold.com Successful Utility Supported TES Projects California Energy Commission Energy Storage Program: Self Generation Incentive Program (SGIP) SCE SDG&E PG&E 8 installations targeting ICAP hours Custom Incentive Programs VCS provides M&V data within the service offering Deemed/Prescriptive Programs vikingcold.com Utility-Sponsored TES Cold Storage Program 8 Customer installations o Largest foodservice distributor (Sysco) o Largest cold storage 3PL (Americold) o Food processors o Greater Boston Food Bank Average facility ~50,000 ft2 Largest Facility 157,000 ft2 1.3 MW of Curtailment Average install period: 127 days from agreement to commissioning vikingcold.com Utility Sponsored Solar + Storage Program Third-Party M&V Study Average Compressor kW 6,000 ft2 158 kWh 124 kWh Existing PV system Decrease in Increase in Energy Energy TES stores excess solar from the Grid from Solar energy Discharges stored solar kW energy at night 39% Annualized Energy Savings 95% Overnight Grid Energy Reduction vikingcold.com Levelized Cost Of Energy < 2¢ per kWh EfficiencyOperational | Flexibility & Maintenance: | Sustainability $0 No mechanical components Uses existing refrigeration system Software updated digitally 20-year+ system life, with no capacity degradation Round trip efficiency: 100% Requires no additional real estate Discharge depth: 80% Improves average efficiency ~25% Discharge length: 2 to 13 hours vikingcold.com Energy Industry Recognition of TES in 2019 Technology Pioneer Platinum Project of the Year Top Green Provider Energy Institute Behind-the-Meter Best Large-Scale Solar Top Software & Technology Innovation Award Technology Finalist Storage Product 2019 Technology Provider vikingcold.com Why Thermal Energy Storage ? vikingcold.comvikingcold.com Energy Storage + Efficiency No additional real estate No roundtrip energy loss Long-Duration:13-Hour Discharge LCOE < 2¢ per kWh Zero maintenance Improved temperature stability 20+ year system life No additional energy required Easy retrofit installation Back-Up Resiliency High C&I participation rate Collin Coker VP Sales & Marketing Thanks! [email protected] vikingcold.comvikingcold.com EnerStore Large-Scale Long-Term Thermal Energy Storage Thermochemical Energy Storage with CaO Corey Blackman Head of Technology 2020-02-26 This is SaltX Swedish innovation company 15 experienced staff members Focus on large scale energy storage Several patents (materials, methods & systems) Publicly traded with 18 000 shareholders Our Vision To accelerate the proliferation of renewable energy sources to decarbonise the current energy system. Why thermal energy storage? Source: 1414 degrees based on extracted data from PWC 2015, Sterner et al. Source: https://greentechnewstoday.com/renewable_energy/ The EnerStore Solution Renewable Energy Integration In Sweden, electricity prices were negative for the first time Wind in February 2020. &/or solar energy Energy Energy Day 1/ Day 2/ Month 1 Month 2 SaltX SaltX SaltX SaltX SaltX Electric Thermal Energy Storage - an emerging market Highlights - An economic superiority of a thermal energy storage