Comparison of the Costs of Energy Storage Technologies for

A. Nourai - July 2004 1

Select Application

Comparison of the Costs of Energy Storage Technologies

for T&D Applications

Based on EPRI-DOE Handbook of

Energy Storage for T&D Applications

Ali Nourai

American Electric Power

www.electricitystorage.org


Select Application

Notice:

The data used for the analyses and charts in this document is derived from EPRI-DOE Handbook of Energy Storage for Transmission and Distribution Applications, issued in December 2003 [EPRI Product No. 1001834]. The Handbook may be obtained from EPRI for $250 by calling 1-800-313-3774 and requesting the product number.

The comparisons are based on the cost information provided by manufacturers, as quoted in the Handbook, assuming an installation in 2006. This information is approximate and only for initial screening. Interested parties need to check with the technology suppliers for more accurate cost figures. A detailedbenefit analysis for each application in this comparison may be found in the Handbook, to which the reader is referred for additional information.

Notice:

The data used for the analyses and charts in this document is derived from EPRI-DOE Handbook of Energy Storage for Transmission and Distribution Applications, issued in December 2003 [EPRI Product No. 1001834]. The Handbook may be obtained from EPRI for $250 by calling 1-800-313-3774 and requesting the product number.

The comparisons are based on the cost information provided by manufacturers, as quoted in the Handbook, assuming an installation in 2006. This information is approximate and only for initial screening. Interested parties need to check with the technology suppliers for more accurate cost figures. A detailedbenefit analysis for each application in this comparison may be found in the Handbook, to which the reader is referred for additional information.

http://www.epri.com/target.asp?program=267782&value=04T094.0

http://www.epri.com/target.asp?program=267782&value=04T094.0



T&D Applications of Energy Storage(Costs are based on 10MW Systems except for PSB=50MW)

Click on Text to View Cost Comparisons or Definition of the Applications

Grid Angular Stability

Define

Grid Angular Stability

Define

Short Duration Power Quality

Define

Short Duration Power Quality

Define

Grid Voltage Stability

Define

Grid Voltage Stability

Define

Grid Frequency Excursion Support

Define

Grid Frequency Excursion Support

Define

Grid Freq. Excursion Support plus angular & voltage stability and Reg. Control

Define

Grid Freq. Excursion Support plus angular & voltage stability and Reg. Control

Define

10-Hour Load Shifting

Define

10-Hour Load Shifting

Define

10-Hour Load Shifting plus Regulation Control and Spinning Reserve

Define

10-Hour Load Shifting plus Regulation Control and Spinning Reserve

Define

10-Hour Load Shifting plus Regulation Control, Spinning Reserve and Short Duration P.Q.

Define

10-Hour Load Shifting plus Regulation Control, Spinning Reserve and Short Duration P.Q.

Define

3-Hour Load Shifting plus Reg. Control, Spinning Res. & Short Duration P.Q.

Define

3-Hour Load Shifting plus Reg. Control, Spinning Res. & Short Duration P.Q.

Define

3-Hour Load Shifting plus Reg. Control, Spinning Res. & Long Duration P.Q

Define

3-Hour Load Shifting plus Reg. Control, Spinning Res. & Long Duration P.Q

Define

Financial ParametersFinancial Parameters

NoticeNoticeLong Duration Power Quality

Define

Long Duration Power Quality

Define



GASSelect Application

Grid Angular Stability (GAS)

263415 376 459

621 638227

185281

402

234

279

0

200

400

600

800

1000

1200

L/A E.C.Cap SMES Flywheel NiCd ZnBr

Based on EPRI-DOE Handbook of Energy Storage for T&D Applications-2003

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- $/

kW AnnualCapital

Alternative: Transmission and/or generation upgrade $500-$1000 /kW

Note: The alternative solution does not include all the benefits offered by energy storage in this application. See Handbook for details.



GVSSelect Application

Grid Voltage Stability (GVS)

263415 376

227

185 234

0

100

200

300

400

500

600

700

L/A E.C. Cap SMESBase d on EPRI-DOE Handbook of Ene rgy S t orage f or T&D Applic at ions-2003

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Capital AnnualAlternative: Locational VAR support $250-$750 /kW




GFSSelect Application

Grid Frequency Excursion Support (GFS)

579 600

281 280

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400

600

800

1000

1200

L/A NiCdB ased o n EPR I-DOE Hand b oo k o f Energ y S torag e fo r T&D A p p licat io ns -20 0 3

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AnnualCapital Alternative: Spinning reserve

and/or transmission upgrade $500-$1000 /kW




SPQSelect Application

Short Duration Power Quality (SPQ)

263456 459 511 558 621 638

227

144

299279

362

281282

0

200

400

600

800

1000

1200

L/A E.C. Cap Flywheel SMES NAS NiCd ZnBr

B as ed o n EP R I-DOE Handbo o k o f Energy S to rage fo r T&D A pplicatio ns -2003

Tota

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Annual

Capital

Alternative: Dual feeds plus short duration energy storage $500-$1500 /kW




Select ApplicationLS10

10-hour Load Shifting (LS10)

8301514

2268 2622910

1010

988922

0

500

1000

1500

2000

2500

3000

3500

4000

CAES PSB NAS VRBBase d on EPRI-DOE Handbook of Ene rgy S t orage f or T&D Applic at ions-2003

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AnnualCapital

Alternative: Substation upgrade $500-$1000 /kW




GFS+Select Application

Grid Frequency Excursion Support (GFS)Plus Grid Voltage & Angular Stability and Reg. Control

579 600

1010

281 280

320

0

200

400

600

800

1000

1200

1400

L/A NiCd NAS

B ased o n EPR I-DOE Hand b o o k o f Energ y S to rag e fo r T&D A p p licat io ns -2 00 3

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AnnualCapital

Alternative: Additional generation for spinning reserve and VAR support $500-$1000 /kW




LS10++Select Application

10-hour Load Shifting (LS10) plus Reg. Control, Spinning Res. & Short Dur. P.Q.

8091094

1828291

650

652

0

500

1000

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2000

2500

3000

NAS PSB VRBB ased on EPR I-DOE Handb o o k o f Energ y S to rag e fo r T&D A pp lications-2 0 03

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$/kW

AnnualCapital

Alternative: Dual feed and/or short duration energy storage and/or substation upgrade $1000-$2000 /kW




Select Application LS3+

3-hour Load Shifting (LS3)Plus Reg. Control, Spinning Res. & Short Dur. P.Q.

587 638809 893

10281294

363 402

587

466

301

666

0

200

400

600

800

1000

1200

1400

1600

1800

L/A ZnBr NAS NiCd PSB VRBB ased o n EPR I-DOE Handb o ok o f Energy S to rage fo r T&D A p p licatio ns -2 00 3

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$/kW

Capital Annual

Alternative: Dual feed plus short duration energy storage and/or substation upgrade $1000-$2000 /kW




Select Application LS3++

3-hour Load Shifting (LS3)Plus Reg. Control, Spinning Res. & Long Dur. P.Q.

1482 15731912 1989

2442

966 1047

1191728

878

0

500

1000

1500

2000

2500

3000

3500

4000

PSB L/A NAS ZnBr VRBB as ed o n EP R I-DOE Handbo o k o f Energy S to rage fo r T&D A pplicatio ns -2003

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$/kW

AnnualCapital

Alternative: Dual feed plus short duration energy storage and/or substation upgrade plus gensets $1500-$2500 /kW




LS10+Select Application

10-hour Load Shifting (LS10) Plus Regulation Control & Spinning Reserve

8301514

2268 2622960

932

938882

0

500

1000

1500

2000

2500

3000

3500

4000

CAES PSB NAS VRB

Based on EPRI-DOE Handbook of Energy Storage for T&D Applications-2003

Tota

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- $/k

W

AnnualCapital

Alternative: Substation upgrade $500-$1000 /kW




Select Application

Grid Angular StabilityGrid Angular StabilityEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application A: Grid Angular Stability (GAS) –mitigation of power oscillations by injection and absorption of real power at periods of 1 to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 20 oscillatory cycles, cumulatively equivalent to a full power discharge (FPD) of 1 second duration and subsequent charge cycle; 1 event per day; 10 events per year. Valued at the cost of alternative solutions. ”

“Application A: Grid Angular Stability (GAS) –mitigation of power oscillations by injection and absorption of real power at periods of 1 to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 20 oscillatory cycles, cumulatively equivalent to a full power discharge (FPD) of 1 second duration and subsequent charge cycle; 1 event per day; 10 events per year. Valued at the cost of alternative solutions. ”



Select Application

Grid Voltage StabilityGrid Voltage StabilityEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application B: Grid Voltage Stability (GVS) –mitigation of degraded voltage by additional reactive power plus injection of real power for durations up to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 1 second FPD, 1 event per day, 10 events year. Valued at the cost of alternative solutions. ”

“Application B: Grid Voltage Stability (GVS) –mitigation of degraded voltage by additional reactive power plus injection of real power for durations up to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 1 second FPD, 1 event per day, 10 events year. Valued at the cost of alternative solutions. ”



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Grid Frequency Excursion SuppressionGrid Frequency Excursion SuppressionEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application C: Grid Frequency Excursion Suppression (GFS) – “prompt” spinning reserve (or load) for mitigating load-generation imbalance. Requires energy storage to discharge real power for durations up to 30 minutes. The reference duty cycle for analysis is standby for infrequent events characterized by 15 minute FPD, 1 event per day, 10 events per year. Valued at the cost of alternative solutions. ”




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Regulation ControlRegulation ControlEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application D: Regulation Control (RC) – system frequency regulation in concert with load following. The reference duty cycle for analysis is characterized by continuous cycles equivalent to 7.5 minute FPD and charge cycle (triangular waveform), 2 cycles per hour deployed with 10 minutes advance notice. Valued at market rates. ”




Select Application

Spinning ReserveSpinning ReserveEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application E: Spinning Reserve (SR) – reserve power for at least 2 hours with 10 minute notice. The reference duty cycle for analysis is standby for infrequent events characterized by 2 hour FPD, 1 event per day, 10 events per year. Valued at market rates. ”




Select Application

Short Duration Power QualityShort Duration Power QualityEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application F: Short Duration Power Quality (SPQ) –capability to mitigate voltage sags (e.g. recloser events). The reference duty cycle for analysis is standby for infrequent events characterized by 2 seconds FPD, 1 event per hour, 5 events per day, 100 events per year. Valued at the cost of alternative solutions. ”

“Application F: Short Duration Power Quality (SPQ) –capability to mitigate voltage sags (e.g. recloser events). The reference duty cycle for analysis is standby for infrequent events characterized by 2 seconds FPD, 1 event per hour, 5 events per day, 100 events per year. Valued at the cost of alternative solutions. ”



Select Application

Long Duration Power QualityLong Duration Power QualityEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application G: Long Duration Power Quality (LPQ) –SPQ, plus capability to provide several hours reserve power. The reference duty cycle for analysis is standby for infrequent events characterized by SPQ plus standby for 4 hours FPD, 1 event per year. Valued at the cost of alternative solutions. ”

“Application G: Long Duration Power Quality (LPQ) –SPQ, plus capability to provide several hours reserve power. The reference duty cycle for analysis is standby for infrequent events characterized by SPQ plus standby for 4 hours FPD, 1 event per year. Valued at the cost of alternative solutions. ”



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3-Hour Load Shifting3-Hour Load ShiftingEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application H: 3-hr Load Shifting (LS3) – shifting 3 hours of stored energy from periods of low value to periods of high value. The reference duty cycle for analysis is scheduled 3-hour FPD, 1 event per day, 60 events per year. Valued at market rates. ”




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10-Hour Load Shifting10-Hour Load ShiftingEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application I: 10-hr Load Shifting (LS10) – shifting 10 hours of stored energy from periods of low value to periods of high value. The reference duty cycle for analysis is scheduled 10-hour FPD, 1 event per day, 250 events per year. Valued at market rates. ”




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Combination C1Combination C1“Application C: Grid Frequency Excursion Suppression (GFS) – “prompt” spinning reserve (or load) for mitigating load-generation imbalance. Requires energy storage to discharge real power for durations up to 30 minutes. The reference duty cycle for analysis is standby for infrequent events characterized by 15 minute FPD, 1 event per day, 10 events per year. Valued at the cost of alternative solutions. ”


“Application A: Grid Angular Stability (GAS) – mitigation of power oscillations by injection and absorption of real power at periods of 1 to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 20 oscillatory cycles, cumulatively equivalent to a full power discharge (FPD) of 1 second duration and subsequent charge cycle; 1 event per day; 10 events per year. Valued at the cost of alternative solutions. ”

“Application A: Grid Angular Stability (GAS) – mitigation of power oscillations by injection and absorption of real power at periods of 1 to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 20 oscillatory cycles, cumulatively equivalent to a full power discharge (FPD) of 1 second duration and subsequent charge cycle; 1 event per day; 10 events per year. Valued at the cost of alternative solutions. ”

“Application B: Grid Voltage Stability (GVS) – mitigation of degraded voltage by additional reactive power plus injection of real power for durations up to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 1 second FPD, 1 event per day, 10 events year. Valued at the cost of alternative solutions. ”

“Application B: Grid Voltage Stability (GVS) – mitigation of degraded voltage by additional reactive power plus injection of real power for durations up to 2 seconds. The reference duty cycle for analysis is standby for infrequent events characterized by 1 second FPD, 1 event per day, 10 events year. Valued at the cost of alternative solutions. ”





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Combination C2Combination C2“Application F: Short Duration Power Quality (SPQ) – capability to mitigate voltage sags (e.g.recloser events). The reference duty cycle for analysis is standby for infrequent events characterized by 2 seconds FPD, 1 event per hour, 5 events per day, 100 events per year. Valued at the cost of alternative solutions. ”

“Application F: Short Duration Power Quality (SPQ) – capability to mitigate voltage sags (e.g.recloser events). The reference duty cycle for analysis is standby for infrequent events characterized by 2 seconds FPD, 1 event per hour, 5 events per day, 100 events per year. Valued at the cost of alternative solutions. ”









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Combination C3Combination C3“Application F: Short Duration Power Quality (SPQ) – capability to mitigate voltage sags (e.g.recloser events). The reference duty cycle for analysis is standby for infrequent events characterized by 2 seconds FPD, 1 event per hour, 5 events per day, 100 events per year. Valued at the cost of alternative solutions. ”

“Application F: Short Duration Power Quality (SPQ) – capability to mitigate voltage sags (e.g.recloser events). The reference duty cycle for analysis is standby for infrequent events characterized by 2 seconds FPD, 1 event per hour, 5 events per day, 100 events per year. Valued at the cost of alternative solutions. ”









Select Application

Combination C4Combination C4

“Application G: Long Duration Power Quality (LPQ) – SPQ, plus capability to provide several hours reserve power. The reference duty cycle for analysis is standby for infrequent events characterized by SPQ plus standby for 4 hours FPD, 1 event per year. Valued at the cost of alternative solutions. ”

“Application G: Long Duration Power Quality (LPQ) – SPQ, plus capability to provide several hours reserve power. The reference duty cycle for analysis is standby for infrequent events characterized by SPQ plus standby for 4 hours FPD, 1 event per year. Valued at the cost of alternative solutions. ”









Select Application

Combination C5Combination C5









Select Application

Financial Parameters & Electric RatesFinancial Parameters & Electric RatesEPRI-DOE Handbook of Energy Storage for T&D Applications has applied the following financial parameters and electric rates to calculate the Net Present Values of different energy storage systems.

Dollar Value 2003

System Startup June 2006

Project Life, years 20

Discount rate (before tax), % 7.5

Property Taxes & Insurance, % / year

2

Fixed Charge rate, % / year 9.81

Load Shifting on Peak Period 3 hr 10 hrNumber of Cycles / year 60 250On-Peak Energy, $/MWh 120 80Off-Peak Energy, $/MWh 20

Yearly Avg Energy Charge, $/MWh 38

Regulation Control, $/MW-hr (power) 16

Spinning Reserve, $/MW-hr (power) 3

Trans. Demand Charge, $/kW-mo 5



LPQSelect Application

Long Duration Power Quality (LPQ)(including 4-hour discharge)

1482 15131989

2442

403 547

890

1035

0

500

1000

1500

2000

2500

3000

3500

L/A NAS ZnBr VRBPart ially B ased on EPR I-DOE Hand bo ok o f Energy S torage fo r T&D A p p licatio ns-20 03

Tota

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$/kW

Capital Annual

Alternative: Dual feed plus short duration energy storage plus gensets $1000-$2000 /kW




Select Application

Long Duration Power QualityLong Duration Power QualityEPRI-DOE Handbook of Energy Storage for T&D Applications defines this application as follows:

“Application G: Long Duration Power Quality (LPQ) –SPQ, plus capability to provide several hours reserve power. The reference duty cycle for analysis is standby for infrequent events characterized by SPQ plus standby for 4 hours FPD, 1 event per year. Valued at the cost of alternative solutions.”

“Application G: Long Duration Power Quality (LPQ) –SPQ, plus capability to provide several hours reserve power. The reference duty cycle for analysis is standby for infrequent events characterized by SPQ plus standby for 4 hours FPD, 1 event per year. Valued at the cost of alternative solutions.”


Documents

Comparison of the Costs of Energy Storage Technologies for