June 2012 - University of Alaska Fairbanks

Report
Xtreme Power – Battery Based Energy Storage in Alaska
Alaska Energy Storage Workshop
June 2012
Xtreme Power, Inc.
Company Overview
Xtreme Power engineers, designs, and integrates power management and energy storage
solutions
 Founded in 2004 in Austin, Texas; ~ 270 employees
 Established Beijing Office
 Projects installed, contracted, and in final negotiations: >70 MVA, across 12 projects
 US-based operations in Austin, TX and OK, International presence
 Utility industry leadership on Board of Directors– Pat Wood, Former FERC Chairman and Foster
Duncan, Former EVP/CFO of Cinergy
 Over $70 MM in funding: SAIL Capital, Bessemer VP, Dow Chemical, Fluor, Dominion Power, BP,
POSCO, Skylake Incuvest
2
The Dynamic Power Resource® (DPR®)
Key Product Features
 Scalable solutions:
.50 MVA to 500 MVA
 Available durations:
5, 15, 30 min and 1, 2, or 4 h
 Multi-Storage Architecture
 Multiple enclosure options
 Fully integrated turnkey product
 High round trip efficiency
 Accurate, real time response in
< 3 cycles
 Re-deployable
Intelligent Control
Seamless Integration
Proven Performance
3
Truly Innovative Solutions
The DPR is an Integrated, Intelligent, Power Management Solution
that is Configurable, Modular and Scalable.
Control System





System Integration
Programmable, Flexible, and Modular
High Reliability & Cyber Security
Optimized System Performance
Web Based Real Time Monitoring
Real-time Response
Power Electronics
Battery Energy Storage
 Fully Synchronized BMS & PCS Control
 Real and Reactive Power Supply
 Fast Response
 Seamlessly Interface with the Grid
 Low Auxiliary Consumption
 Long or Short Duration
 Factory Tested and Field-Ready
 Power Precision within 10 kW
 Multi-Storage Platform Capabilities
 Operate 100 Modules as Single System
 Overload to 150% of Nameplate MVA
 Low lifecycle cost
 Safe and Reliable
4
XPOC and Test Bay
 24/7 Operations Center (XPOC)
― Monitors all installations in the field in real time
― Collects and stores data to view graphical
representations of historical and live
operational data
― Remote access via secure Virtual Private
Network
― Option to access through Tablets and
Smart Phones
― Redundant Safety Notification Alerts
 Test Bay
― 12 MVA in-house test facility
― Equipped for Factory Acceptance Tests
― Expandable to 20MVA
― Ability to perform full 4 quadrant PQ operation
― Verification of control modes such as Ramp
Control, Frequency Regulation, Voltage
Regulation, Power Leveling, etc.
5
Proven Experience
As of March 31, 2012 – Xtreme Power’s experience includes:
77
> 143,000
245
> 2.5 GWh
Megawatts
Installed by
End of 2012
Hours of
Integrated
Module
Operation
Gigabytes of
Recorded Data
Energy
Charged and
Discharged
Leading the Market with Operational Experience
6
A Growing Portfolio of Deployed Projects
Project
Customer
Application
South Pole
Telescope (SPT)
University of Chicago
Microgrid
Kahuku
First Wind
Lanai
Castle & Cook
Ford Michigan
Assembly Plant
Ford, DTE Energy
KIUC
Kaua’i Island Utility
Cooperative
Nova
Xcel Energy
Total Operating
6 Customers
KWP II (Maui)
First Wind
Fosters
Classified
Ture
Classified
KIUC II & III
Kaua’i Island Utility
Cooperative
Notrees
Renewable
Integration
Renewable
Integration
Demand
Management
Grid Support
Renewable
Integration
4 Applications
Renewable
Integration
Microgrid
Renewable
Integration
Power Rating /
Duration
Deployed Projects
COD
Services
0.5 MVA / 5 min.
4Q 2006
Peak-Shaving
15.0 MVA/ 15 min
1Q 2011
Ramp Control, Curtailment Mitigation
1.1 MVA / 15 min
2Q 2011
Ramp Control, Frequency Response
0.75 MVA / 60 min
2Q 2011
Load-Leveling, Ramp Control
1.5 MVA / 15 min
3Q 2011
Frequency Response, VAR Support
1.5 MVA / 15 min
4Q 2011
~20 MW
6 Projects
Near-Term Projects
Ramp Control, Firming & Shaping, Frequency
Response, VAR Support
7 Services
10.0 MVA / 45 min
2Q 2012
3.0 MVA / 15 min
2Q 2012
Ramp Control, Responsive Reserves, Grid
Services
Uninterruptible Power Source
1.5 MVA/ 15 minutes
2Q 2012
Ramp Control & VAR Support
Grid Support
3.0 MVA / 15 min
3Q 2012
Ramp Control
Duke Energy
Merchant
Services
36.0 MVA / 15 min
4Q 2012
Bear
Kodiak Electric
Grid Support
3 MVA/ 15 min
4Q 2012
Total Near-Term
3 New Customers
4 Applications
57 MW
5 Projects
Responsive Reserves, Regulation Services,
Grid Services
Frequency response, Responsive Reserves,
Voltage Support
9 Customers, 5 Applications & 10 Services To Date in Deployed Projects
~ 77 MVA, 154 MW Dynamic Power Range in Deployed Projects
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South Pole Telescope
5 Years Experience
Location
South Pole, Antarctica
Segment
Microgrid
DPR
0.5 MVA, 5 minute duration
Dynamic Power
1 MW
COD
Q4 2006
Services
Peak-shaving,
Load-leveling
In collaboration with several centers of higher education, the University of Chicago
chose the Xtreme Power DPR to power the 200-ton South Pole Telescope’s scan cycles
without infringing on the station’s life support system. The Telescope requires up to
259,200 cycles/month.
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Kodiak Electric Cooperative
Expanding Xtreme Power’s Microgrid Experience
Location
Kodiak, AK
Segment
Microgrid
DPR
3.0 MVA, 15 minute duration
Dynamic Power
6.0 MW
COD
Q4 2012
Services
Ramp Control, Frequency
and Voltage Response
Kodiak Electric will employ the 3.0 MW DPR to smooth the output of the Pillar Mountain
Wind Project, so that the utility can utilize the Terror Lake Hydro facility to manage grid
stability and frequency regulation. Additionally, the utilization of the DPR will reduce
diesel fuel consumption by allowing a higher penetration of renewable assets.
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Microgrid Operators
Challenges
 Expensive Diesel Operating Costs
― Can be >$4/gal in remote locations
― High cost and risk of fuel delivery
― Few alternatives available
 Unstable and Unsecure Grid
― Weak electrical distribution system can lead to
loss of critical loads
― Poor power quality may require purchase of
additional electrical equipment
Actual Wind Output Without DPR
― Insufficient response time for diesel generators
 Inefficient Use of Grid Resources
― Generators operate at reduced output for
reliability
― Common curtailment and limited integration of
renewable generation
― Constant cycling of units leads to more frequent
O&M and greater fuel consumption
10
Microgrid Operators: Case Study
Microgrid Challenge
Example Case Study Scenario Outline
Microgrid Peak Load
5 MW
― 2 MW of solar curtailed down to 1.2 MW
Diesel Generators
3 x 2 MW each
― 4.5 MW of wind curtailed down to 2.5 MW
Solar Farm Nameplate Capacity
2 MW
― Requires more generation from diesel
Wind Farm Capacity
4.5 MW
Diesel Fuel Cost
$1.25/liter
 Grid Instability Limits Renewable Energy Delivered
 Inefficient Diesel Operation Consumes More Fuel
― Contingency requirements force generators to
operate at low levels
Solution 1: Utilize Diesel Generators to Balance Grid
― Average loading of generators = ~52%
― Spinning reserves cause additional curtailment
of renewables
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Microgrid Operators: Case Study
Example Case Study Scenario Outline
Microgrid Solution
Microgrid Peak Load
5 MW
― Wind and solar farms operate at full nameplate
Diesel Generators
3 x 2 MW each
― DPR balances intermittency of renewables and
acts as reserves without adding generation
Solar Farm Nameplate Capacity
2 MW
Wind Farm Capacity
4.5 MW
Diesel Fuel Cost
$1.25/liter
 DPR Maximizes Renewable Energy Delivered
 Efficient Asset Utilization Yields High Cost Saving
― Average loading of generators = ~70%
Solution 2: Utilize 2 MVA/1 h DPR for Grid Balancing and Reserves
Diesel Fuel Savings Summary
Fuel Consumed without DPR
90,000 liters/week
Fuel Consumed with DPR
75,000 liters/week
Estimated Annual Fuel Savings
780,000 liters/year
Cost of Diesel Fuel
Total Annual Savings
Decrease Fuel
Consumed by > 17%
$1.25 /liter
$975,000
/year
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Microgrid Operators
Xtreme Power Solutions
 Increase Reliability and Reduce Diesel Consumption
― Allow diesels to operate in optimal range to
reduce fuel consumption
― Reduce need for fuel shipments
― Support energy independence
 Correct Grid Imbalances
― Act as back up power source to keep critical loads
online
― Maintain high power quality with VAR support
Actual Wind Output Without DPR
― Respond 40-50 times faster than diesel generators
 Maximize Productivity of Grid Assets
― Reduce strain on the electrical distribution system
caused by intermittency
― Decrease diesel consumption through less
curtailment of renewable resources
― Decrease cycling to reduce O&M and fuel
consumption
13
Renewable Developers & Operators
Challenges
 Intermittent supply
― Variable, inconsistent production decreases
market value
― Difficult to maintain sufficient power quality
― May require additional balancing services
 Curtailed Production
― Frequent curtailment reduces annual production
― Unable to capitalize on PPA without guarantees
― Prolonged return on investment
Actual
DPR
ActualWind
WindOutput
OutputWithout
Without
DPR
 Uncorrelated Generation & Demand
― Inconsistent generation profile vs. consistent load
profile
― Peak output does not match peak load
― Unable to capture full market value
Source: Energy Storage – A Cheaper, Faster, & Cleaner Alternative to Conventional Frequency Regulation (CESA)
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Renewable Developers & Operators: Case Study
Renewable Developer Challenge
Example Case Study Scenario Outline
Solar farm Capacity
3 MW
― Uncurtailed ramp rate > 3x limit (±1.9 MW/min)
Ramp Rate Requirement
± 500 kW/min
― Must curtail to 950 kW to meet requirement
PPA Compliance Requirement
99%
Solar PPA Price
$135/MWh
Solution 1: Limit Maximum Capacity
950 kW
 Ramp Rate Limit Requires Curtailment
 Curtailment Decreases Energy Delivered
― Capacity factor @ nameplate 3MW = 19.3%
― Capacity factor @ limited 950 kW = 11.5%
― Annual production decreased by over 40%
Curtailment Ramp Rate
Setpoint (MW) (kW/min)
3.00
1900
2.50
1700
1.50
1000
1.25
800
1.00
550
0.95
500
0.75
400
Capacity
Factor
19.34%
19.29%
15.38%
13.77%
11.91%
11.48%
9.59%
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Renewable Developers & Operators: Case Study
Renewable Developer Solution
Example Case Study Scenario Outline
Solar farm Capacity
3 MW
― DPR able to maintain ramp rate requirement
Ramp Rate Requirement
500 kW/min
― No curtailment required to meet PPA
PPA Compliance Requirement
99%
Solar PPA Price
$135/MWh
Solution 2: DPR Size
1.5 MVA/15 min duration
 1.5 MW DPR Reduces Intermittency
 Increase Energy Delivered & Project Revenues
― Maintain capacity factor of 19.3%
― Capture incremental Ancillary Service revenue
― Increase Project Revenues by > 95%
Energy Storage Value Summary
Project Revenue without DPR
Energy @ 11.5% NCF
3,022 MWh
Total Annual Revenue $ 407,997 /yr
Project Revenue with DPR
Energy @ 19.3% NCF
Energy Revenue $
A/S Revenue* $
Total Annual Revenue $
5,072 MWh
684,725 /yr
123,188 /yr
807,913 /yr
Annual Revenue Boost $
399,916 /yr
*Assumes in Reg Market 10 h/day at price of $25/MW
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Renewable Developers & Operators
Xtreme Power Solutions
 Smooth Generation Variability
― Reduce intermittency, Avoid penalties
― Improve power quality
― Provide grid balancing services
 Optimize Asset Value
― Mitigate Curtailment, Increase energy delivered
― Enable restructured Power Purchase Agreements
― Boost revenue with additional service offerings
 Reshape Output to Meet Demand
― Mitigate forecast error market penalties
Actual Wind Output With DPR®
― Shape power to capture peak pricing opportunities
― Firm power to access premium pricing
17
Utilities, Cooperatives & Municipalities
Challenges
 Grid Stability & Power Quality
― Growth in renewables drives need for additional
balancing services
― Inefficient grid balancing service offerings
increases operating costs
― Power Quality issues must be solved locally
 Rigid and Costly T&D Congestion Solutions
― Transmission congestion can lead to high
wholesale prices
Actual Wind Output Without DPR
― T&D infrastructure is sized to meet a future peak
demand, but rarely used at that level
― Congestion requires capital intensive T&D
infrastructure upgrades
 Complex T&D Project Planning & Logistics
― NIMBY area restraints
― Prolonged lead times increase project risks
― Onerous permitting process increases costs
― Strict siting limitations reduces solution efficiency
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Utilities, Cooperatives & Municipalities
Xtreme Power Solutions
 Improve Grid Stability & Power Quality
― Smooth intermittency or firm and shape power
delivered from renewable resources
― Balance grid fluctuations accurately and efficiently
without adding unneeded energy
― Siting flexibility delivers power quality solutions
directly to problem source
 Enable Flexible, Economic Congestion Solutions
― Enhance reliability and decrease congestion
― Increase load carrying capacity of the transmission
system
Actual Wind Output Without DPR
― Provide incremental capacity to defer an oversized
T&D upgrade investment
 Expedite Turnkey Project Execution
― Integrate all key components into a utility-scale
system and shorten project lead times
― Operate with existing/planned infrastructure
― Site anywhere with non-hazmat technology
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Tom Noelle
Vice President, Business Development
[email protected]
5513 Silentbrook
Rolling Meadows, IL 60008
847-348-7453
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