Utility Scale Energy Storage Systems Benefits, Applications, and Technologies Rachel Carnegie Douglas Gotham David Nderitu Paul V. Preckel State Utility Forecasting Group June 2013 Table of Contents List of Figures ............................................................................................................................... iii List of Tables ................................................................................................................................ iv Executive Summary .......................................................................................................................1 1. Introduction ........................................................................................................................4 1. Time-shift of Energy Delivery ....................................................................................6 2. Capacity Credit ...........................................................................................................7 3. Grid Operational Support ............................................................................................8 4. Transmission and Distribution Support ......................................................................8 5. Power Quality and Reliability .....................................................................................8 6. Integration of Intermittent Renewables Generation ....................................................8 2. Terms and Definitions .....................................................................................................12 1. Power vs. Energy ......................................................................................................12 2. Response Time and Discharge Duration ...................................................................13 3. Depth of Discharge, Frequency of Discharge, and Efficiency .................................13 3. Applications .....................................................................................................................14 1. Long-duration Applications ......................................................................................15 2. Short-term Applications ............................................................................................15 3. Infrequent Discharge ................................................................................................16 4. Frequent Discharge ..................................................................................................16 5. Combined Applications ............................................................................................17 4. Technologies .....................................................................................................................20 1. Mechanical ...............................................................................................................22 a. Pumped hydroelectric storage ....................................................................22 b. Compressed air energy storage ..................................................................25 c. Flywheel energy storage ............................................................................31 2. Electrochemical Energy Storage ..............................................................................34 a. Electrochemical batteries ...........................................................................34 3. Electrical and Magnetic Field Storage ......................................................................56 a. Electrochemical capacitors ........................................................................56 b. Superconducting magnetic energy storage ................................................59 4. Thermal Energy ........................................................................................................62 5. Comparison of Technologies ...........................................................................................64 References .....................................................................................................................................74 State Utility Forecasting Group Page i Appendices: Appendix A - Valuation of the Benefits of Energy Storage ..............................................77 Appendix B - Application Technical Descriptions ............................................................79 Appendix C - ARRA Funding from DOE .........................................................................84 State Utility Forecasting Group Page ii List of Figures 1.1 The electric power system ..................................................................................................6 1.2 Daily load leveling ...............................................................................................................7 1.3 Daily peak shaving ...............................................................................................................7 1.4 2012 United States installed wind generation capacity by state ......................................... 9 1.5 Logic of a dispatch curve ...................................................................................................10 1.6 Hypothetical dispatch curve for summer 2011 ..................................................................10 3.1 Discharge duration and discharge frequency matrix ........................................................14 4.1 2011 energy storage capacity (MW) in the United States by technology .........................21 4.2 Classification of energy storage according to energy form ...............................................22 4.3 Pumped hydroelectric energy storage system ...................................................................23 4.4 Map of existing pumped hydroelectric storage projects in the United States (2009) ........24 4.5 Compressed air energy storage system ..............................................................................25 4.6 Combination wind and CAES opportunities in the United States .....................................27 4.7 Geologic opportunities for CAES plant sites in the United States ....................................28 4.8 Flywheel energy storage components ................................................................................31 4.9 Lithium ion battery function and components ...................................................................41 4.10 Map of planned and existing lithium ion battery demonstrations (2009) ..........................42 4.11 Sodium sulfur cell construction .......................................................................................44 4.12 Flow battery construction ..................................................................................................47 4.13 Component costs of a VRB as a percentage of total capital cost (2006$) .........................51 4.14 Present capital costs estimates of VRB systems ................................................................52 4.15 Capacitor construction ......................................................................................................57 4.16 Superconducting magnetic energy storage ........................................................................59 5.1 Rated power, energy, and discharge duration ....................................................................64 5.2 Power rating and discharge duration at rated power ..........................................................65 5.3 Efficient lifecycle of energy storage technologies .............................................................66 5.4 Storage applications and technologies maps ......................................................................67 5.5 Matrix of applications to technologies ...............................................................................68 5.6 A comparison of technology maturity and anticipated R&D expenditure ........................69 5.7 Power and energy capital costs and response time ............................................................70 5.8 Per unit energy and power capital costs by technology .....................................................71 5.9 Installed revenue opportunity by technology in world markets (2010-2020) ....................72 State Utility Forecasting Group Page iii List of Tables 3.1 Application operational requirements ................................................................................14 3.2 Combined applications .....................................................................................................17 3.3 Applications technical characteristics ................................................................................19 4.1 ARRA-funded energy storage projects by intended application .......................................21 4.2 PHS technical characteristics and costs (2010$) ..............................................................24 4.3 Capital costs of bulk CAES storage by geology ................................................................28 4.4 Small (10 MW) CAES costs by application (2003$) .........................................................29 4.5 Bulk (300 MW) CAES costs by applications (2003$).......................................................30 4.6 CAES energy storage costs by benefit (2010$) .................................................................31 4.7 Flywheel energy storage system costs by application (2003$) ..........................................33 4.8 Flywheel