Energy Storage: a U.S. overview EIA Energy Conference June 5, 2018 | Washington, DC By Lisa Cabral, Electricity Analyst Energy Information Administration U.S. Energy Information Administration Independent Statistics & Analysis www.eia.gov Outline 1. Definitions 2. Summary of small scale battery storage 3. Overview of large-scale battery storage: - regional trends - applications - installed costs - projections Lisa Cabral, Washington DC June 5, 2018 2 Key takeaways • As of end 2017, the US has 664 MW of power, 742 MWh of energy in operational large-scale battery capacity • Most batteries are lithium-ion • The majority are installed in CAISO or PJM • State policy, wholesale market rules, and retail rates play a central role in where opportunities for battery storage exist • Installed capacity is expected to grow as costs decline and market rules are updated Lisa Cabral, Washington DC June 5, 2018 3 Definitions • Power capacity: the maximum instantaneous amount of power output Energy Battery (MWh) • Energy capacity: the total amount of energy that can be stored or discharged Power • Large scale: grid-connected, single Inverter (MW) installation of 1MW or greater in nameplate capacity Grid Lisa Cabral, Washington DC June 5, 2018 4 U.S. Small-Scale Storage by Sector, 2016 power capacity megawatts 700 600 500 400 300 200 100 0 large-scale small-scale battery storage storage Source: U.S. Energy Information Administration, Form EIA-861, Annual Electric Power Industry Report Lisa Cabral, Washington DC June 5, 2018 5 U.S. Small-Scale Storage by Sector, 2016 power capacity share of total small-scale storage megawatts power capacity (66 MW) 700 600 30% 500 2% 400 300 Non-CA 7% 200 5% 54% 2% 100 0 large-scale small-scale residential commercial battery storage industrial direct connected storage Source: U.S. Energy Information Administration, Form EIA-861, Annual Electric Power Industry Report Lisa Cabral, Washington DC June 5, 2018 6 U.S. Small-Scale Storage by Sector, 2016 power capacity share of total small-scale storage U.S. Small-Scale Energy Storage megawatts power capacity (66 MW) Outside of California by State, 2016 megawatts 700 New York 600 Hawaii 30% 500 Georgia 2% Michigan 400 Illinois 300 Non-CA 7% Virginia Ohio 200 5% 54% 2% Texas 100 Indiana 0 Louisiana large-scale small-scale residential commercial rest of U.S. battery storage industrial direct connected storage 0.0 0.5 1.0 1.5 Source: U.S. Energy Information Administration, Form EIA-861, Annual Electric Power Industry Report Lisa Cabral, Washington DC June 5, 2018 7 U.S. Large-Scale Battery Storage Capacity by Region, 2012 Sources: U.S. Energy Information Administration, Form EIA-860M, Preliminary Monthly Electric Generator Inventory; U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report Lisa Cabral, Washington DC June 5, 2018 8 U.S. Large-Scale Battery Storage Capacity by Region, 2018 Sources: U.S. Energy Information Administration, Form EIA-860M, Preliminary Monthly Electric Generator Inventory; U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report Lisa Cabral, Washington DC June 5, 2018 9 Applications Served by U.S. Large-Scale Battery Storage, 2017 power capacity energy capacity megawatts megawatthours installed capacity frequency regulation ramping/spinning reserve voltage/reactive power… load following PJM arbitrage CAISO ERCOT system peak shaving MISO load management ISO-NE excess wind/solar generation AK/HI backup power Other transmission/distribution… co-located renewable firming 0 100 200 300 400 500 600 700 800 0 100 200 300 400 500 600 700 800 Source: U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report Lisa Cabral, Washington DC June 5, 2018 10 U.S. Large-Scale Battery Storage Capacity, 2003-2017 power capacity energy capacity megawatts megawatthours annual additions annual additions 300 300 PJM PJM 250 250 CAISO CAISO ERCOT ERCOT 200 MISO 200 MISO ISO-NE ISO-NE 150 AK/HI 150 AK/HI Other Other 100 100 50 50 0 0 2003 2005 2007 2009 2011 2013 2015 2017 2003 2005 2007 2009 2011 2013 2015 2017 Sources: U.S. Energy Information Administration, Form EIA-860M, Preliminary Monthly Electric Generator Inventory; U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report Lisa Cabral, Washington DC June 5, 2018 11 U.S. Large-Scale Battery Storage by Region and Ownership Type, 2017 power capacity energy capacity megawatts megawatthours 2% 8% 3% 10% 400 5% 400 3% 8% 350 350 3% 24% Independent 300 52% 300 Power Producer 25% 57% Investor-Owned 250 250 Utility 200 Overall 200 Overall Cooperative Commercial/ 150 150 Industrial 100 100 State-Owned Utility 50 50 Municipally- Owned Utility 0 0 Source: U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report Lisa Cabral, Washington DC June 5, 2018 12 U.S. Large-Scale Battery Storage Capacity by Chemistry, 2003-2017 power capacity energy capacity megawatts megawatthours annual additions 300 1% 2% 3% 250 6% 200 150 88% lithium-ion 100 nickel-based sodium- based 50 lead-acid other 0 2003 2005 2007 2009 2011 2013 2015 2017 Source: U.S. Energy Information Administration, Form EIA-861, Annual Electric Power Industry Report Lisa Cabral, Washington DC June 5, 2018 13 Installed Cost of U.S. Large-Scale Battery Storage Systems, By Duration (2013-2016) power capacity costs energy capacity costs dollars per kilowatt dollars per kilowatthour 4,500 4,500 4,000 4,000 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 75th percentile 1,500 1,500 median average 1,000 1,000 Series4 25th percentile 500 500 0 0 short- medium- long- all short- medium- long- all duration duration Source: U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report Lisa Cabral, Washington DC June 5, 2018 14 Installed Cost of U.S. Large-Scale Battery Storage Systems, By Duration (2013-2016) power capacity costs energy capacity costs dollars per kilowatt dollars per kilowatthour 4,500 4,500 4,000 4,000 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 75th percentile 1,500 1,500 median average 1,000 1,000 Series4 25th percentile 500 500 0 0 short- medium- long- all short- medium- long- all duration duration Source: U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report Lisa Cabral, Washington DC June 5, 2018 15 U.S. Wind, Solar, and Battery Storage Capacity, 2020-2050 (power) capacity gigawatts wind solar photovoltaics storage 180 180 180 160 160 160 140 140 140 120 120 120 100 100 100 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 2020 2030 2040 2050 2020 2030 2040 2050 2020 2030 2040 2050 Source: U.S. Energy Information Administration, Annual Energy Outlook 2018 Lisa Cabral, Washington DC June 5, 2018 16 States that require storage in resource or energy plans DC Source: U.S. Energy Information Administration Lisa Cabral, Washington DC June 5, 2018 17 Key takeaways • As of end 2017, the US has 664 MW of power, 742 MWh of energy in operational large-scale battery capacity • Most batteries are lithium-ion • The majority are installed in CAISO or PJM • State policy, wholesale market rules, and retail rates play a central role in where opportunities for battery storage exist • Installed capacity is expected to grow as costs decline and market rules are updated Lisa Cabral, Washington DC June 5, 2018 18 Thank you U.S. Energy Information Administration Independent Statistics & Analysis www.eia.gov.