Long Duration Storage Value in Electricity Markets Operations and Planning for High Renewable ...

23 Pages·2017·1.25 MB·English

by  Tuohy, Aidan

Long Duration Storage
Value in Electricity Markets
Operations and Planning for
High Renewable Futures
Aidan Tuohy, PhD
EPRI Grid Operations and Planning R&D Group
Lead, Bulk System Renewable Integration
ARPA-E Long Duration Storage
Dec 7-8, 2017
© 2017 Electric Power Research Institute, Inc. All rights reserved.
Title and Content

Wholesale Electricity Markets and Energy Storage
– Wholesale market operations
– Current sources of value and remuneration
– How markets operate energy storage

Challenges with high penetrations of renewables
– Need for flexibility
– Market participant challenges

Value of storage in future system
– Modeling challenges
– Survey of recent studies
2
© 2017 Electric Power Research Institute, Inc. All rights reserved.
Wholesale Market Operations and Energy Storage
3
© 2017 Electric Power Research Institute, Inc. All rights reserved.
Wholesale Markets – Common Functions
 Day Ahead Markets
– Day Ahead Security Constrained Unit Commitment
– In US: Nodal markets used in all ISOs
– Procure Ancillary Services as Well as Energy (next slide)
 Hour Ahead Security Constrained Unit Commitment
– Update based on new information
– Quick starting generation can come online
 Security Constrained Economic Dispatch
– Sometimes done hour ahead
– Real time – 5 minute intervals
 Financial Transmission Rights
– Form of hedging to ensure transmission congestion can be managed
– Firms purchases financial rights to injection/consumption points
– Longer time horizon – months or years
 Capacity markets
– Not in all ISOs
– Forward market for energy
4
© 2017 Electric Power Research Institute, Inc. All rights reserved.
Wholesale market prices are decreasing
80
70
60
50
h
W
M40
/
$
30
20
10
0
Mass Hub NYISO ZJ PJM West Into Southern ERCOT North SPP South Indiana Hub Palo Verde Mid-Columbia CAISO NP15
2016 2015 2014 2013 2012
5
© 2017 Electric Power Research Institute, Inc. All rights reserved.
Energy storage in ISO markets - state of the art
 Most areas with pumped storage have ways that pumped
storage can participate in various markets
– Bid as a load resource to consume energy and provide non-spin reserve
when in pump mode
– Bid as a generator (similar to thermal plant) to provide energy, regulation,
spin as a generator
– Typically cannot bid as both in same hour
 Some areas have or are proposing/developing storage
optimization models for pumped storage
– PJM hydro optimizer, NYISO TEC, ISO-NE DARD pump
– PJM is most advanced and implemented in DA market
– Previous EPRI work showed increase in profits by of up to 80% if
optimized versus fixed schedule
 Current discussions, including recent FERC Notice:
– Are the current models for pumped storage sufficient?
– Can the advanced pumped storage models be applied to limited energy
storage (batteries), and if so what changes are required?
– When is ISO management of SOC warranted
– How can limited energy storage participate in other markets beyond
regulation?
6
© 2017 Electric Power Research Institute, Inc. All rights reserved.
Helms Operation – Typical 1990-2010 Summer Week
400
Generating
Unit 1
300
W)200
M
ut (100
p 0
ut
O
-100 Pumping
-200
-3000 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 102 105 108 111 114 117 120 123 126 129 132 135 138 141 144 147 150 153 156 159 162 165 168
Hour
400
Generating
300
Unit 2
W)200
M
ut (100
p 0
ut
O
-100
Pumping
-200
-3000 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 102 105 108 111 114 117 120 123 126 129 132 135 138 141 144 147 150 153 156 159 162 165 168
Hour
400
Generating
300 Unit 3
W)200
M
ut (100
p 0
ut
O
-100 Pumping
-200
-3000 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81Ho84ur87 90 93 96 99 102 105 108 111 114 117 120 123 126 129 132 135 138 141 144 147 150 153 156 159 162 7165 168
7
Courtesy PG&E © 2017 Electric Power Research Institute, Inc. All rights reserved.
Preview of future - Helms Operation - Pumping Mid-day is Now Common

Thursday, 08/06/15
Started Generating @
1635 @ 83 MW & SEP
@ 2048. This appears to
August be for spinning reserve.
2015,
Fresno
area
temp’s in
90’s

Thursday, 08/06/15
Started Pumping @
1345 & SEP @ 1536
8
8
© 2017 Electric Power Research Institute, Inc. All rights reserved.
High Wind Penetration and Impact on Storage Operations
Pacific NW – one week of actual wind and load Storage reservoir when managing wind
From “Technical Analysis of Pumped Storage and Integration with Wind Power in the Pacific Northwest: Final Report” by MWH Americas
9
© 2017 Electric Power Research Institute, Inc. All rights reserved.
Potential Changes in How Storage Is Treated in Markets and
Operations
DOE-EPRI Hydro Value Project Recommendations Potential Storage Asset Class
Operations
1. Identify and make efficiency improvements by
modifying unit operations
2. Use hydro to address system variability,
providing flexible reserves, reducing wear and
tear on thermal fleet, and increasing efficiency
3. Recognize hydro for allowing generation
diversity/options, enhancing energy security and
maintaining reliability
Markets
4. Settle energy markets sub-hourly, increasing
arbitrage opportunities
5. ISO scheduling of hydro to co-optimize
resources
6. Treat pumped storage as a storage asset class
10
© 2017 Electric Power Research Institute, Inc. All rights reserved.