Shakti Sustainable Energy Foundation - Energy Storage Technologies for Ancillary Services in India by Shreya Vishnoi

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Acknowledgement: This report was supported by the Shakti Sustainable Energy Foundation. Shakti Sustainable Energy Foundation works to strengthen the energy security of India by aiding the design and implementation of policies that support energy efficiency and renewable energy. The views and analyses represented in the documents do not necessarily reflect that of Shakti. The company accepts no liability for the content of this document, or for the consequences of any actions taken on the basis of the information provided. We thank Dr. Pramod Deo (former, Chairperson, CERC), Mr. S. K. Soonee (CEO, POSOCO), Mr. Vijay Sonavane (Former Member, MERC), Mr. Sushanta Chatterjee & Mr. Rakesh Shah (CERC), Mr. Pankaj Batra (CEA), Disha Agarwal and Mr. Deepak Gupta (Shakti Foundation) for their valuable inputs during development of this report. We acknowledge contributions received from numerous colleagues and industry leaders during stake holder consultations organized by IESA over past year.

Authors Dr. Rahul Walawalkar, Judith Judson, Avinash Mirajkar, Vinayak Walimbe, Raj Chintapalli & Debi Dash

Copyright © 2013-14, Customized Energy Solutions All rights reserved. No part of this publication may be reproduced in any form or by any means without prior permission of Customized Energy Solutions. All information contained herein is obtained by Customized Energy Solutions research team from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided “as is” without warranty of any kind. While every reasonable effort is made to ensure that the information provided on this site is accurate, no guarantees for the currency or accuracy of information are made. Companies / Products are identified by proprietary or trade names to help readers identify particular types of products but this is not, and is not intended to be, an endorsement or recommendation of any product or manufacturer referred to.

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Contents EXECUTIVE SUMMARY ..........................................................................................8 INTRODUCTION .....................................................................................................10 ANCILLARY SERVICES IN MODERN GRID ...................................................... 10 Types of ancillary services ................................................................................... 11 Response times required ..................................................................................... 12 Suitable technologies for ancillary services .......................................................... 16 Ancillary service procurement .............................................................................19 Ancillary service prices ........................................................................................ 22 INDIA POWER SECTOR OVERVIEW ...................................................................25 CURRENT SCENARIO ......................................................................................... 25 UNSCHEDULED INTERCHANGE (UI) MECHANISM ........................................27 GROWTH OF RENEWABLES IN INDIA ............................................................. 29 Wind energy growth ............................................................................................. 29 Solar Energy Growth ........................................................................................... 30 ESTIMATING INDIA ANCILLARY SERVICE REQUIREMENTS ........................ 30 ENERGY STORAGE TECHNOLOGIES FOR ANCILLARY SERVICES .............32 REVIEW OF ENERGY STORAGE TECHNOLOGIES .........................................32 TECHNICAL BENEFITS OF ENERGY STORAGE .............................................36 Grid Stabilization: ............................................................................................... 36 Grid Operational Support: ................................................................................... 36 Power Quality and Reliability: ..............................................................................36 Load Shifting: ......................................................................................................36 Supporting the integration of intermittent renewable energy sources: .................37 MAJOR ENERGY STORAGE PROJECTS AROUND THE GLOBE ................... 38 AES - Altairnano-PJM Li-ion Battery Ancillary Services Demo ............................. 40 AES- Los Andes Battery Energy Storage System .................................................. 41 AES Laurel Mountain .......................................................................................... 42 AES Gener Angamos Power Plant .......................................................................42 Beacon 20 MW Frequency regulation plant, NY ................................................... 43 Ecoult Grid Energy Storage demonstration, PJM .................................................44 SUMMARY OF LEADING ENERGY STORAGE TECHNOLOGIES .................... 46 4|Page

ANCILLARY SERVICES IN UNITED STATES .................................................... 50 FREQUENCY REGULATION SERVICE .............................................................. 51 FERC Order 755 ..................................................................................................51 IMPLEMENTATION STATUS ................................................................................53 PJM Frequency Regulation Market SIZE.............................................................. 55 CAISO Regulation Market Size .............................................................................56 NYISO FREQUENCY REGULATION MARKET SIZE ..............................................56 ERCOT NEW ANCILLARY SERVICES MARKET DESIGN ......................................57 SYNCHRONOUS AND SUPPLEMENTAL RESERVES .......................................60 PJM ..................................................................................................................... 60 CAISO .................................................................................................................61 NYISO .................................................................................................................62 ERCOT ................................................................................................................64 OTHER NEW ANCILLARY SERVICES PRODUCTS FOR STORAGE ...............64 CAISO .................................................................................................................64 MISO ................................................................................................................... 65 ERCOT ................................................................................................................67 RECENT REGULATORY INITIATIVES AT FEDERAL LEVEL .......................... 68 Storage 2012 Act .................................................................................................68 FERC Order 719: DR .......................................................................................... 68 FERC Order 890 ..................................................................................................69 FERC Order 1000 ................................................................................................ 70 FERC Order 784 ..................................................................................................70 STATE LEGISLATION .......................................................................................... 72 CA AB 2514 implementation ....................................................................................... 72 Texas SB 943 & Project No. 39917 ................................................................................73 RECOMMENDATIONS ........................................................................................... 74 APPENDIX ...............................................................................................................79 A: ANCILARY SERVICE PROVISIONS IN INDIAN REGULATIONS .................79 Ancillary Services in India- Statutory Provisions under IEGC .............................. 79 Brief on 2012 Grid Blackout ................................................................................83 CERC Whitepaper on ancillary services: 2013 ..................................................... 84

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B: REGIONAL PRACTICES FOR ANCILLARY SERVICES IN US .................... 86 D: KEY ENERGY STORAGE INSTALLATIONS AROUND THE WORLD ..........95

List of Figures Figure 1: Typical Response times for different ancillary services in US markets .........14 Figure 2: Comparison of load following and frequency regulation (Source: B. Kirby) ..15 Figure 3: Roles of ancillary services during a disturbance on grid (Source: NPTEL, MHRD, India) .............................................................................................................16 Figure 4: Generator dispatch for energy, regulation and synchronous reserves (Source: PJM) .......................................................................................................................... 17 Figure 5: Comparison of response of conventional generator and storage to regulation signal (Source: Beacon) .............................................................................................. 18 Figure 6: Opportunity cost calculation for ancillary services (Source: PJM) ................21 Figure 7: All in cost for energy for consumers in NYISO (Source: NYISO State of market Report 2013) ..............................................................................................................24 Figure 8: Installed Generation Mix in India (Source: CEA data) ..................................25 Figure 9: All India Load Curve (Source: NLDC) ........................................................... 26 Figure 10: India grid frequency over 30 hours (Source: CES Data Acquisition Services) ..................................................................................................................................27 Figure 11: Evolution of grid frequency control in India...............................................28 Figure 12: India Cumulative Wind Power Capacity Projections (2011-2030) (Source: GWC) ......................................................................................................................... 30 Figure 13: Summary of available energy storage technologies (Power vs Discharge Duration) .................................................................................................................. 34 Figure 14: Current installed and under construction energy storage capacity in US (Source: US DOE) ......................................................................................................38 Figure 15: International energy storage projects listed in the US DOE Energy Storage Database (Source: US DOE) ....................................................................................... 39 Figure 16: AES - Barbados, PJM Frequency Regulation Project using Li-Titanate batteries from Altairnano ........................................................................................... 40 Figure 17: AES- Los Andes Project - Chile (Source: AES) ..........................................41 Figure 18: AES Laurel Mountain Energy Storage Facility (Source: AES) ..................... 42 Figure 19: AES Gener Angamos Power Plant with 20 MW Li-Ion energy storage for providing spinning reserves in Chile ..........................................................................43 Figure 20: Beacon 20 MW Frequency Regulation Plant, NY (Source: Beacon Power)...44 Figure 21: Ecoult PJM Frequency Regulation Signal response ...................................45 Figure 22: Summary of key regulatory changes in US over past decade ..................... 50 Figure 23: Comparison of response of conventional generator and storage to regulation signal from ISO-NE Regulation Pilot...........................................................................52 Figure 24: Components of Pay for Performance mechanism proposed under FERC order 755 ................................................................................................................... 53 6|Page

Figure 25: Status of ISO/RTO Order 755 Implementation..........................................54 Figure 26: Proposed ancillary service framework in ERCOT (Source: ERCOT) ............58 Figure 27: Comparison between current and proposed ancillary services framework (Source: ERCOT) ........................................................................................................59

List of Tables Table 1: Types of ancillary services in US energy markets (Source: Sandia) ...............12 Table 2: Summary of ancillary services (Response times, duration and cycle time) (Source: B. Kirby).......................................................................................................13 Table 3: Summary of technology suitability for various ancillary services .................. 19 Table 4: Summary of frequency regulation prices across US markets (2005-13) (Source: CES GOLD) ..................................................................................................22 Table 5: Summary of synchronous reserve prices acoross US markets (2009-13) (Source: CES GOLD) ..................................................................................................23 Table 6: Summary of non-synchronous prices across US Markets (2009-13) (Source: CES GOLD) ................................................................................................................23 Table 7: Energy Storage technology comparison ........................................................ 35 Table 8: Summary of key international projects (Source: US DOE)............................. 39 Table 9: Comparison of US system operators (Source: CES Research) ....................... 51 Table 10: Comparison of Pay for Performance market design across US Markets .......55 Table 11: Anticipated growth in frequency regulation requirements under various renewable penetration scenarios (Source: PJM) ......................................................... 56 Table 12: Anticipated changes in NYISO frequency regulation requirements based on wind penetration........................................................................................................57

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EXECUTIVE SUMMARY

Managing variability of electricity load has been a nightmare for the grid operators in India, especially as over 59% of power generation capacity is met by coal thermal plants which do not have the capability to respond quickly to fluctuations in the power demand and supply. Apart from this, to make things worse for system operators in the country, rise in the wind power and other renewable energy supply, which consist of over 12% of the generation mix in India, has led to uncontrolled variability on the generation side. Such a scenario has led to questions on Indiaâ&#x20AC;&#x2122;s preparedness to maintain grid stability, especially after the grid failure in 2012. In the structured power markets, like those in the US, ancillary services include the amenities that support the provision of energy to support power system reliability and security. The ancillary services markets are tied with the design of the energy market which needs careful consideration of the power system economics. This report reviews the ancillary service markets in the US, the various technologies and the pricing mechanisms which these markets are following. As understood from the US market, energy storage technologies have better capabilities to cater to ancillary services like frequency regulation, load following, voltage support, reactive power supply, black start and others than the thermal, gas and renewable energy power plants. ESS (Energy Storage System) can provide ancillary services with much better response time. Although most of these technologies are technically viable for utility-scale systems, some are believed to have more potential than others for providing ancillary services as demonstrated by examples of various operational projects in this report. Last 3-4 years have witnessed rapid reduction in prices in energy storage technologies due to the increasing commercialization and manufacturing scale up. India could accelerate this trend by providing a huge market for such technologies. Currently most of the international technology developers are exploring local manufacturing or localization of these technologies. Introduction of ancillary service requirements in a technology neutral manner will accelerate such localization efforts and will help in bringing down the costs further. However, working of levelized cost of ancillary services may indicate that some of the technologies may require additional financial support during initial deployment phase for 2-3 years. Indian grid regulations have tried to address some of the technical characteristics of ancillary services through existing mechanisms such as Unscheduled Interchange (UI) mechanism and power factor incentives. These mechanisms have served their purpose by improving the grid conditions as compared to prevalent issues but need to get augmented / replaced by systematic introduction of ancillary services in the coming years.

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CERC (Central Electricity Regulatory Commission) and NLDC (National Load Dispatch Centre) are considering on introducing ancillary services. Regulatory body should consider clear technology neutral specification for identification of various ancillary services and quantify the magnitude at regional / national level. Some of the ancillary services will need to be procured on state / regional basis considering the transmission infrastructure availability as well as nature of ancillary services. Regulations should have a clear roadmap for deployment of ancillary services under various scenarios, which can provide clear investment signals for potential project developers and technology developers. There is a need for proper enforcement for procurement of ancillary services. Failure of enforcing ancillary service procurement and payment mechanism could create significant hurdles in meeting the goals. Initially, some demonstration projects may be set up under the ownership of transmission companies and operated by State/Regional Load Dispatch Centers as these agencies may operate such assets in an unbiased way and may keep grid security as only priority. Simultaneously, market rules may be created for introduction of such services through exchanges. Powergrid Corporation of India ltd. (PGCIL) has already announced a tender for 3 demonstration projects at Puducherry for demonstration of LI-Ion, Advanced Lead Acid as well as other advanced batteries for frequency regulation. Indian regulators and policy makers could utilize learning from such demonstration projects for framing the ancillary service requirements. Rapid advances in both conventional and emerging technologies will make it possible for India to significantly improve the power quality and reliability. Such transformation could be achieved by 2020 as most of the technologies required are already commercially available and sufficient insights are available for introduction of ancillary services based on experiences of developed countries from around the world. As estimated by Customized Energy Solutions and Indian Energy Storage Alliance, the ancillary service market in India has a potential of almost 5 GW through 2020 and ESS technologies can supply over 1 GW of this market.

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INTRODUCTION

Indian electricity sector is developing rapidly to support the ongoing economic development and social goals set up by policy makers. Currently India operates one of the largest electric grids in world with total installed capacity of over 237 GW. Over past 2 decades various policies and initiatives have focused on meeting the energy needs through centralized generation (such as large hydro projects, ultra mega power projects, nuclear power generation) as well as distributed generation sources such as wind, solar and biomass power. The next step in the development of Indian grid is introduction of ancillary services, which are critical for providing reliability and power quality for the electricity supply. This report is designed to provide readers an introduction to the ancillary services and their relevance to the Indian grid in current as well as future supply â&#x20AC;&#x201C; demand scenarios. The report will also provide information on various energy storage technologies that could become part of the solutions for meeting ancillary services in India in coming decade. Authors have drawn insights from introduction of various policies in US that have facilitated introduction of both ancillary services as well as emerging technologies (such as energy storage and demand response) in past decade. Finally by using the understanding of the Indian power system and international experiences, a roadmap is suggested for deployment of ancillary services and introduction of emerging technologies to the Indian electric grid. ANCILLARY SERVICES IN MODERN GRID

Ancillary services have been developed in many of the restructured power system regions especially in the developed and deregulated electricity markets. Ancillary services include the services that support the provision of energy to support power system reliability and security. The ancillary services markets are tied with the design of the energy market therefore need careful consideration of power system economics. To support the scheduling of energy on power systems, operators require ancillary services. Ancillary services may include a number of different operations which include frequency support, voltage support, and system restoration. To encourage the individual participants of the market to provide these services, ancillary services markets need to be created.

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Types of ancillary services The following ancillary services are defined by the US Federal Energy Regulatory Commission (FERC) in its Order 888, Promoting Wholesale Competition Through Open Access Non-discriminatory Transmission Services: 1) Scheduling, system control and dispatch: This is the service that the Independent System Operator (ISO) or Regional Transmission Organization (RTO) provides. 2) Reactive supply and voltage control from generation service: Reactive power is essential for maintaining transmission line voltages within acceptable limits to deliver power. Reactive power supply and voltage control is generally supplied as a cost-based service. 3) Regulation and frequency response service: Regulation is typically supplied and priced by dynamic markets in ISO/RTO regions. It is used to assist in controlling frequency. However, frequency response, as defined by the droop response of governors immediately in response to frequency is generally not included in any dynamic markets nor is it given cost-based rates. 4) Energy imbalance service: Energy imbalance is usually the service of the realtime markets balancing out the imbalance from the forward markets and therefore is priced by the real-time energy markets. 5) Synchronized reserve service: This service is typically supplied and priced by dynamic markets in ISO/RTO regions. 6) Supplemental reserve service: This includes non-synchronized 10 minute and 30 minute operating reserve service. This service is typically supplied and priced by dynamic markets in ISO/RTO regions Ancillary service could also be grouped as Primary, Secondary and tertiary.

1. Primary frequency control is a local automatic control that rapidly (within seconds) adjusts generator output or load to offset large changes in frequency. Primary frequency control acts to arrest a sharp drop or spike in frequency. It is designed to keep the frequency within speciďŹ ed limits in response to the forced outage of a generator or the loss of a large load. Primary frequency response is the combination of primary frequency control and system inertia acting to arrest frequency decline. System inertia is a term describing the ability of a power system to resist changes in frequency, and is measured in MW-seconds. 2. Secondary frequency control (frequency regulation) is a central automatic control that acts to adjust active power production to restore the frequency and power interchanges with other systems to their nominal levels following an imbalance. Automatic generation control (AGC) that acts on a time frame of

A Survey of Operating Reserve Markets in U.S. ISO/RTO-managed Electric Energy Regions; Sandia National Labs; 2012

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several seconds to counteract frequency deviations is used for providing frequency regulation service. 3. Tertiary frequency control consists of manual changes in scheduled unit commitment and dispatch levels in order to bring frequency and/or interchanges back to nominal values when secondary frequency control is unable to perform this task. This includes synchronous (spinning), nonsynchronous (non-spinning) and operating (or supplemental) reserves.

Table 1: Types of ancillary services in US energy markets (Source: Sandia)

Response times required The primary and tertiary frequency control is required for maintaining reliability of the grid, while the secondary frequency control (frequency regulation) is essential for providing power quality. Following chart represents the typical response time for each of these ancillary services. 1. Frequency Regulation: Most of the system operators in US utilize a regulation control signal that varies every 4-6 seconds to regulating resources. In recent years US has adopted a pay for performance mechanism (explained later in the report) for providing incentives for technologies that can provide faster and accurate response to this regulation control signal. 2. Synchronized and non-synchronized reserves: In most of the us markets both the synchronous and non-synchronous reserves are provided by units that can provide response within 10 minutes. Synchronous reserves are provided by 12 | P a g e

generation resources or demand response that are already synchronized to the grid. The non-synchronous reserves are provided by quick start units that are not synchronized but can still respond within 10 minutes. 3. Operating reserves or supplemental reserves are used in case of emergencies where synchronous or non-synchronous reserves are not sufficient to bring the grid frequency to pre-disturbance level and typically provide 30 mins of response time. 4. Reactive Power or Voltage support service is a localized service and is procured on a continuous basis to keep the distribution voltage levels within permissible limits. Table 2: Summary of ancillary services (Response times, duration and cycle time) (Source: B. Kirby)

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Figure 1: Typical Response times for different ancillary services in US markets

Following chart shows the difference between load following and frequency regulation, which are ancillary services utilized during the normal operation of grid. Tertiary reserves (synchronous, non-synchronous and operating reserves) are utilized for recovering the system from a contingency or disturbance such as tripping of a generator or a transmission line or sudden change in generation.

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Figure 2: Comparison of load following and frequency regulation (Source: B. Kirby)

Following figure explains the sequence of events during a disturbance on grid. In this, it is assumed that at 7:45 A.M., a big generator is suddenly disconnected. This is the situation when reserve services should come into play. Depending upon the minimum time in which the generation should start providing corrective action, different ancillary services kick in and help in restoring the grid frequency.

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Figure 3: Roles of ancillary services during a disturbance on grid (Source: NPTEL, MHRD, India)

Suitable technologies for ancillary services Various generation, energy storage and demand response technologies could be utilized for providing these ancillary services. Suitability of any technology for a particular ancillary service depends on min response time required, duration of energy delivery necessary and the technical parameters for each technology. Following chart shows how a conventional generator can provide energy, regulation and synchronous reserve services at same time. The quantity of each service can be optimized based on the co-optimization run by the system operator. Such optimization requires consideration for energy cost, variable operations and maintenance cost as well as opportunity costs that a generator may incur by providing ancillary services.

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Figure 4: Generator dispatch for energy, regulation and synchronous reserves (Source: PJM)

In past 3-4 years, various studies have demonstrated suitability of new type of resources such as energy storage and demand response can also provide various ancillary services including frequency regulation and synchronous reserves. In fact, some of the technologies may be even better suited for fast ramping ancillary services such as frequency regulation as demonstrated in the charts below. Based on these studies US Federal Energy Regulatory Commission has introduced Pay for performance mechanism for frequency regulation services in US in recent years as discussed later in this report.

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Figure 5: Comparison of response of conventional generator and storage to regulation signal (Source: Beacon)

The left hand chart in figure above shows response from a typical thermal generator to AGC signal, while the chart on the right hand side demonstrates capability of fast ramping flywheel to instantaneously meet the AGC command and provide a much better response to frequency regulation signal. Similar performance has been demonstrated by various advanced Li-Ion battery units as well as demand response resources such as water heaters. Following table provides a quick summary of technocommercial suitability of various technologies for providing different ancillary services.

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Table 3: Summary of technology suitability for various ancillary services

Frequency Regulation

Thermal

Coal Gas - CC Gas - CT Nuclear Diesel Generator

Renewable

Hydro Wind Solar Lead Acid

Energy Storage Technologies

Li-Ion Flow Batteries Other batteries Flywheel Pumped Hydro CAES Demand Response

Non Synchronous Synchronous Operating Reserves Reserves Researves

Voltage Support / Reactive Power

Load Following / Energy Imbalance

25% 100% 100% 0% 50% 100%

100% 100% 100% 25% 100% 100%

0% 100% 100% 0% 100% 100%

25% 50% 50% 25% 0% 50%

100% 100% 100% 0% 100% 100%

25%

50%

0% 100% 50% 50% 100% 100% 100% 25%

100% 100% 100% 100% 100% 100% 100% 100%

50% 50% 50% 50% 50% 50% 50% 25%

100% 100% 100% 100% 0% 100% 100% 25%

It is important to note that certain services could be provided by resources only when they are also providing energy. e.g. a gas turbine is suited to provide synchronous reserves, but it can only provide those reserves if the unit gets selected for energy dispatch as part of economic dispatch first. While a demand response resource can provide synchronous reserve service whenever load is connected to the grid. Some technologies also may have opportunity costs associated with providing ancillary services, which needs to be considered while dispatch decisions. e.g. most of the conventional technologies can provide reactive power to the grid, but it results in reduced output for energy, thus some generators may choose not to provide reactive power without appropriate financial incentives or regulatory requirements. Ancillary service procurement In most of the US regions, system operators are responsible for managing ancillary services. Distribution utilities or Load Serving Utilities have the obligation to procure appropriate amount of ancillary services based on their load share as compared to peak system load. 19 | P a g e

Ancillary services markets can either be dynamic with hourly or faster prices set based on system conditions, or they can be cost-based where set rates are made in advance to ensure the supply. Many of the ancillary services that assist in active power balance and frequency support will have dynamic markets since they are tied to the energy markets. Other services, like black start, will have cost-based services. Cost based ancillary services   

Scheduling, System Control & Dispatch Voltage Support Black Start

Market price based ancillary services   

Frequency Response Operating Reserves Energy Imbalance

In most of the regions in US, generators or load resources that provide ancillary services get paid for the services through system operators. Distribution utilities have option to either provide the ancillary services using their own resources or sign bilateral contracts from other resources capable of providing these services or purchase these ancillary services from the system operator. Opportunity cost is important part of the regulation and synchronous reserve price. As part of co-optimization of energy and ancillary services, in most of the US regions, system operators consider the lost revenue (when market price for energy is higher than the marginal cost for energy from the generator) or uplift cost (if the market price is lower than the marginal cost of the generator) along with the regulation or synchronous price bids submitted by generators. This is explained in the chart below.

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Figure 6: Opportunity cost calculation for ancillary services (Source: PJM)

Resources that want to provide these ancillary services need to undergo appropriate performance and validation tests to ensure that they are capable of providing the necessary ancillary services and meet the operational criteria specified for selected service. Apart from the initial certification and validation, system operators can also monitor the performance of individual resources during actual operation, and reserve the rights to penalize under performance or even remove the resources from corresponding markets if a performance criterion is not met. Most of the system regulators in US procure frequency regulation service s 0.9 â&#x20AC;&#x201C; 1.2% of the daily peak load. Quantities for other ancillary services such as synchronous, non-synchronous and operating reserves are determined based on detailed system studies that consider the largest contingency in the network. Various studies have also identified relationship between increasing share of variable renewables on the grid for increasing this requirement. For 10-15 % renewable penetration it is anticipated that the regulation requirement could increase by ~10-20%, while for significantly higher renewable share such as 20%, it is anticipated that the frequency regulation requirements may double for regions such as CAISO and PJM. 2 In addition CAISO and MISO are also considering introduction of new ancillary services for ramping and flexible capacity to meet grid balancing requirements under higher penetration of

Source: PJM Renewable Integration Study report 2014.

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renewables. Appendix B provides summary of regional practices and procedures regarding ancillary services across US. Ancillary service prices As discussed earlier each ancillary service is procured by the system operators based on either market based or cost based pricing mechanism. Table below provides summary of the ancillary prices across US over past 5 years. As you can notice the ancillary services prices have deviated a lot from year to year. There are various factors that have contributed to this including, but not limited to   

Changes in the fuel prices (coal, natural gas etc.) that has a direct impact on energy price and opportunity costs Changes in market design or market rules Changes in the supply – demand of resources providing ancillary services

Frequency Regulation Service ($/MWh)

Table 4: Summary of frequency regulation prices across US markets (2005-13) (Source: CES GOLD)

NYISO

PJM

CAISO

2005

40.01

64.02

37.24 $

2006

51.18

31.23

35.91 $

2007

56.32

35.30

26.13 $

2008

59.45

40.08

33.36 $

2009

37.20

23.51

10.34 $

2010

28.80

18.01

10.61 $

2011

11.80

16.41

16.13 $

2012

$ $

10.41 $ 10.11 $

22.93

10.04 $

34.89 $

7.81 $

2013

ERCOT 37.84 23.07 21.45 42.22 16.95 18.08 31.26 13.18 13.46

MISO

$ $ $ $ $

14.23 13.02 11.88 8.64 10.56

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Synchronous Reserve Prices ($/MWh) Table 5: Summary of synchronous reserve prices acoross US markets (2009-13) (Source: CES GOLD)

PJM

CAISO

2009

1.65 $

2010

1.92 $

2011

2.66 $

2012

1.45 $

2013

1.90 $

3.73 4.07 7.22 3.27 2.74

ERCOT

MISO

$ 9.96 $ $ 9.09 $ $ 22.92 $ $ 9.76 $ $ 9.77 $

3.08 3.43 3.01 2.54 3.32

Non Synchronous Reserve Prices ($/MWh) Table 6: Summary of non-synchronous prices across US Markets (2009-13) (Source: CES GOLD)

PJM 2009 2010 2011 2012

2013

CAISO

$ $ $ 0.62 $ 0.13 $

1.44 0.60 0.98 0.95 0.20

ERCOT

MISO

$ 2.31 $ $ 4.25 $ $ 11.77 $ $ 3.67 $ $ 3.47 $

0.37 1.65 1.50 1.42 2.02

As can be seen from the tables above, frequency regulation is the most valuable ancillary service in US markets, followed by synchronous reserve and nonsynchronous reserve service. Apart from looking at the ancillary service market prices that are paid to the resources providing these services, another way to consider these costs is the cost paid by consumers for ancillary services as part of overall cost of energy. Following chart shows this data for different regions with in NYISO for past 3 years. As seen below the ancillary service all in costs are typically <2% of the total energy costs in wholesale electricity markets (even without considering the distribution and transmission charges and other taxes). This would relate to the total cost of < 0.06 Rs / kWh in the Indian context, considering average price of wholesale electricity at ~ Rs 3.00 / kWh.

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Figure 7: All in cost for energy for consumers in NYISO (Source: NYISO State of market Report 2013)

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INDIA POWER SECTOR OVERVIEW CURRENT SCENARIO Energy is crucial for fuelling the ambitious 6-10 per cent growth rate India is aiming for in coming decade. The installed capacity has increased from barely about 1,350 MW at the time of independence to 237,743 MW by February, 2014. The private sector contribution in capacity addition is gradually increasing and at present it is about 33%. The Central Public Sector Undertakings have a share of 29% and the State Generating Companies have 38% share.

Figure 8: Installed Generation Mix in India (Source: CEA data)

Indiaâ&#x20AC;&#x2122;s energy generation has a mix of all the resources available including renewables. At present India's coal dependence is borne out from the fact that 59% of the total installed electricity generation capacity is coal based. Large size Hydro power based capacity accounts for 17%. Other renewables such as wind, geothermal, solar, and small hydro represent a 12% share of the Indian fuel mix. India's electricity sector is amongst the world's most active players in renewable energy utilization, especially wind energy. As of January 2014, India had an installed capacity of about 30.18 GW of new and renewable technologies-based grid interactive power. Nuclear holds just 2% share.

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During the Eleventh Five Year Plan, nearly 55,000 MW of new generation capacity was created. The Twelfth Five Year Plan (Year 2012-17) envisages capacity addition of 88,537 MW. As per CEA monthly report for February, 2014, 33,162MW have been added in twelfth Plan so far. In February, 2014, all India basis overall energy deficit observed was 3.8% and peak shortage of 3.3%. Although with the new installed capacity coming online during next couple of years is expected to reduce the peak demand shortfall, the key challenge for the system operators in India is the variability in both the load as well as generation sources (particularly with the ever growing renewable generation resources). Following chart shows the variability in the load shape through a day.

Figure 9: All India Load Curve (Source: NLDC)

In most of the developed countries, gas based generation units provide both intermediate and peaker capacity to meet the variability in the generation. Current generation mix in India is very heavily dominated by base load units and new policies are being proposed to incentivize peaker units. Apart from this, currently India does not have provision for procuring ancillary services which are essential for providing reliability and power quality for grid. Instead, the state utilities use Automatic Generation Control (AGC) on large generation units, as well as under frequency load 26 | P a g e

relays for automated load curtailment. Indian grid code requires that each thermal and hydro Generating Unit shall be fitted with a turbine speed governor having an overall droop characteristic as provided in the Central Electricity Authority (Technical Standards for connectivity to the Grid) Regulations, 2007. Each Generating Unit is expected to be capable of instantaneously increasing output by 5% when the frequency falls below set thresholds. Following chart provides actual data for western grid frequency for 30 hr period which shows deviations from 49.4 Hz to 50.3 Hz. Our online monitoring system have recorded extreme deviations in past 18 months from 48.8 Hz to 51 Hz, which present significant challenge for industry and end consumers as well as generation equipment. Unfortunately, issues such as grid frequency cannot be addressed by individual customers in a synchronized grid, and requires strategic efforts from regulators and system operators in resolving the issue.

Figure 10: India grid frequency over 30 hours (Source: CES Data Acquisition Services)

UNSCHEDULED INTERCHANGE (UI) MECHANISM

Since 2004 India has used Unscheduled Interchange (UI Mechanism) to address this grid discipline, but the UI mechanism has its limitations and we need to explore other 27 | P a g e

potential solutions. UI mechanism attempts to penalize generators and loads for deviating from the day ahead scheduled operations through financial penalties based on 15 minute average grid frequency. The below chart explains the evolution of the grid frequency control in India, where CERC regulations currently require the average frequency to be maintained within the range of 49.7 – 50.05 Hz.

Figure 11: Evolution of grid frequency control in India

Under the UI mechanism, when the average 15 minute grid frequency goes below 49.7 Hz, generator that are under delivering, or load that is leaning on the system have to pay a penalty of 8.24 Rs / kWh. This penalty increases if the 15 minute frequency drops below this level. The UI mechanism has resulted in significant improvement in grid discipline over the past decade, but this is not an alternative for ancillary services as the mechanism works on the 15 minute average frequency. In some ways UI mechanism in India is performing the role of “Real Time Energy market” or “Imbalance market” by providing price signals to generators and load over 15 minute period to adjust the supply – demand imbalance.

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Power Systems Operation Corporation Ltd. (POSOCO), a wholly owned subsidiary of Power Grid Corporation of India (PGCIL) published an approach paper in June 2010, which recommended the introduction of ancillary services on a limited basis. The policy makers in India have also initiated a discussion on the need for ancillary services, which has been strengthened by two blackout events3 that occurred in July 2012. It is evident from the recent events that there is a need for a more comprehensive approach towards defining ancillary service products and development new market mechanisms that cover full range of ancillary services including frequency regulation. One of the drivers for introduction of ancillary services is also the growing penetration of renewables. Currently India has over 20 GW of wind and ~2GW of solar. MNRE estimates that India could add another 30 GW of wind and 2 GW of solar by 2020. GROWTH OF RENEWABLES IN INDIA Wind energy growth Historically, wind energy has met and often exceeded the targets set for it under both the 10th Plan (2002-2007) and 11th Plan (2007-2012) periods. During the 10th Plan period the target set was of 1,500 MW whereas the actual installations were 5,427 MW. Similarly during the 11th Plan period the revised target was for 9,000 MW and the actual installations were much higher at 10,260 MW. The report of the sub-group for wind power development appointed by the Ministry of New and Renewable Energy (MNRE) to develop the approach paper for the 12th Plan period (April 2012 to March 2017) fixed a reference target of 15,000 MW in new capacity additions, and an aspirational target of 25,000 MW. Importantly the report recommends the continuation of the Generation based Incentive scheme during the 12th Plan period. Also the National Action Plan on Climate Change has set a target of 50 â&#x20AC;&#x201C; 65 GW of wind capacity by 2020, which will require addition of at least 30 GW of wind capacity during 2014-2020. Global Wind Energy Council in its year 2012 report has projected Indiaâ&#x20AC;&#x2122;s wind power installations to grow to 59 GW by 2020 under moderate scenario as shown below:

See Annexure for further details.

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Figure 12: India Cumulative Wind Power Capacity Projections (2011-2030) (Source: GWC)

Solar Energy Growth The Jawaharlal Nehru National Solar Mission was launched in January, 2010 The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022. While the per MW capital cost for Solar PV has reduced drastically in last three years helping the Indian Solar PV market shape as desired by the Government, Solar Thermal power has not taken off as anticipated. With some States like Gujarat, Tamil Nadu, Andhra Pradesh, Rajasthan having announced solar policies with some incentives for ground mounted as well Roof Top Solar PV, this segment may observe good amount of installations and may surpass the JNNSM targets. As on date, ground mounted solar installations are around 2200MW and off-grid installations are 160 MW. ESTIMATING INDIA ANCILLARY SERVICE REQUIREMENTS Although there is no existing requirement defined for frequency regulation service in India, we can draw insights from developed markets such as USA for estimating the frequency regulation requirements in India. In different parts of the US market, the system operators procure ~ 0.9 â&#x20AC;&#x201C; 1.2 % of the peak load for frequency regulation. Given that the magnitude of frequency deviations in India is much higher than typical condition in US, we anticipate that initially the regulation requirements in India will have to higher than the levels used in US. 30 | P a g e

Given the current peak load of ~140 GW, and a conservative initial estimate of 1-1.5% frequency regulation requirement in India, the total requirement for frequency regulation for 2014 could be between 1.4 – 2.1 GW. With the anticipated load growth to 250 – 300 GW by 2020, the Indian grid will require 2.5 – 4.6 GW of frequency regulation by 2020. Various resources could be eligible for providing frequency regulation services. These include fossil fuel based plants such as coal, natural gas and hydro units as well as alternative resources such as energy storage and demand response technologies. Indian grid in 2014 has been synchronized across all regions, so it is anticipated that the frequency regulation requirements could be set at the central / national levels and may not be divided further into regions. At the same time, for administrative and logistical regions as well as ensuring availability of adequate frequency regulation during transmission constraints, some capacity may be procured on regional basis under monitoring of Regional Load Dispatch Centers. For other ancillary services such as Synchronous reserve and non-synchronous reserves a detailed transmission network and resource constraint study needs to be conducted. The quantity of these ancillary services will depend on the largest contingency anticipated in different regions of Indian grid. These requirements could be specified for individual RLDCs or SLDCs. For effective procurement of these services, automated systems for dispatch and performance monitoring will also be critical. Amount of synchronous, non-synchronous and operating reserves could be set on annual basis by considering changes in the system dynamics and largest contingency under new supply – demand scenario. Similarly Voltage Support / Reactive Power is a local requirement and should be procured by transmission providers based on actual requirements.

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ENERGY STORAGE TECHNOLOGIES FOR ANCILLARY SERVICES

Although the present-day electric grid operates effectively without storage, costeffective ways of storing electrical energy can help make the grid more efficient and reliable. Electric energy storage (EES) can be used to accumulate excess electricity generated at off-peak hours and discharge it at peak hours. This application could yield significant benefits including better utilization of renewable generation and grid infrastructure, a reduced need for peak generation (particularly from expensive peaking plants) and reduced strain on transmission and distribution networks. EES can also provide critically important ancillary services such as grid frequency regulation, voltage support, and operating reserves, thereby enhancing grid stability and reliability. Electric energy can be stored in other forms, such as potential, chemical, or kinetic energy. Advanced EES technologies based on these principles are emerging as a potential resource in supporting an efficient electricity market. In general, large-scale applications of EES have been limited in the utility industry. Utility-scale EES projects based on storage technologies other than pumped hydroelectric storage have been built and have successfully passed the demonstration phase to enter commercial deployments around the globe. REVIEW OF ENERGY STORAGE TECHNOLOGIES Energy storage technologies can be grouped as electrochemical and nonelectrochemical technologies. The most common energy storage technologies are: 

Electrochemical EES o

Lead Acid battery

Lithium Ion (Li-ion) battery 

Lithium Iron Phosphate (LFP)



Lithium Cobalt (LCO)



Lithium Manganese Oxide (LMO)



Lithium Nickel Manganese Colbalt Oxide (NMC)



Lithium Titanate (LTO)

Sodium-Sulfur battery (NaS)

Sodium Ion batteries 32 | P a g e



Sodium Nickel Chloride (NaNiCl2) batteries

Flow Batteries 

Vanadium Redox battery (VRB)



Zinc Bromine battery (ZnBr)



Iron Chrome battery

Nickel Cadmium (NiCd) battery

Nickel Metal Hydride (NiMh) battery

Non-Electrochemical EES o

Pumped Hydroelectric

Compressed Air Energy Storage (CAES)

Flywheel

Ultra-Capacitor

Superconducting Magnetic Energy Storage (SMES)

Chart below provides grouping of various energy storage technologies for applications such as power quality, T&D Grid support, Load Shifting and bulk power management. X axis in the chart below represents the various power ratings of the energy storage systems (represented on logarithmic scale), while Y axis represents the discharge duration (from seconds to hours).

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Figure 13: Summary of available energy storage technologies (Power vs Discharge Duration) 4

Although most of these technologies are technically viable for utility-scale systems, some are believed to have more potential than others for providing ancillary services as demonstrated by examples of various operational projects. While deciding economics of energy storage for ancillary services, number of key factors need to be considered. These include 1- Size of storage (Power vs energy) 2- Cycle life 3- Depth of Discharge during each cycle (has impact on number of cycles for most electro chemical batteries) 4- Charge / Discharge rate (C rate) 5- Space and geographical requirements (specially required for pumped hydro and CAES projects)

Source: EPRI / DOE Energy Storage Handbook

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Following table summarizes the key technologies that could be utilized for grid support, their typical sizes and performance parameters.5 Table 7: Energy Storage technology comparison

Technology

Typical Size

1 Lead Acid

1 kW- 10 MW

2 Advanced Lead Acid 3 Li-Ion 6

100 kW – 10 MW 1MW–20MW 3KW-10 kW 100 KW – 10 MW 1 MW – 10 MW 100 kW – 1 MW 10 MW – 400 MW

4 Vanadium Redox 5 NaS 6 NaNiCl2 7 Compressed Air Energy Storage 8 Isothermal CAES 9 Pumped Hydro

500 kW – 10 MW 50 MW – 2000 MW

Energy Duration 10 mins -4 Hrs 1-4 Hrs

Cycle Life 300-500

Capital Cost $/kWh $150-$200

1,000-2,000

$200-$300

15-30 Mins 1-4 Hrs 3-10 Hrs

5,000– 30,000 2,000-6,000 5,000 +

$600 - $1,500 $300 - $750 $500- $1,000

4 – 8 Hrs

3,000 +

$500 - $1000

2-6 Hrs

3,000+

$500 -$1,200

3 Hrs – 30 Hrs

5,000 +

$150-$300

2 – 6 Hrs

5,000 +

$400 - $750

6 – 30 Hrs

7,000 +

$150 -$350

These are preliminary numbers and within each segment different manufacturers may have significant variations on performance and costs. IESA is currently trying to update these numbers and will send an update when available. 6

Includes Li-Ion Phosphate, Li-Cobalt Manganese, Li-Titanate.

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TECHNICAL BENEFITS OF ENERGY STORAGE

Emerging ESS (beyond traditional, but geographically limited, pumped hydroelectric storage) may provide several technical benefits for utilities, power system operations, and users. The traditional applications for energy storage are described below: Grid Stabilization: EES can be used to help the transmission or distribution grid return to its normal operation after a disturbance. Energy storage can be used to remedy three forms of instability: rotor angle instability; voltage instability; and frequency excursions. Grid Operational Support: In addition to stabilizing the grid after disturbances, energy storage can also be used to support normal operations of the grid. Four types of support operations can be performed through the use of energy storage:



Frequency Regulation Services: Energy storage can be used to inject and absorb power to maintain grid frequency in the face of fluctuations in generation and load.



Contingency Reserves: At the transmission level, contingency reserve includes spinning (or synchronous) and supplemental (non-synchronous) reserve units, that provide power for up to two hours in response to a sudden loss of generation or a transmission outage.



Voltage Support: Voltage support involves the injection or absorption of reactive power (VARs) into the grid to maintain system voltage within the optimal range. Energy storage systems use power-conditioning electronics to convert the power output of the storage technology to the appropriate voltage and frequency for the grid.



Black Start: Black start units provide the ability to start up from a shutdown condition without support from the grid, and then energize the grid to allow other units to start up. A properly sized energy storage system can provide black start capabilities, provided it is close enough to a generator.

Power Quality and Reliability: EES is often used to improve power quality and reliability. The vast majority of grid-related power quality events are voltage sags and interruptions with durations of less than 2 seconds, phenomena that lend themselves to energy storage-based solutions. Load Shifting: Load shifting is achieved by utilizing EES for storage of energy during periods of low demand and releasing the stored energy during periods of high demand. Load shifting comes in several different forms; the most common is peak shaving. Peak shaving describes the use of energy storage to reduce peak demand in an area. It is 36 | P a g e

usually proposed when the peak demand for a system is much higher than the average load, and when the peak demand occurs relatively rarely. Peak shaving allows a utility to defer the investment required to upgrade the capacity of the network. The economic viability of energy storage for peak shaving depends on a number of factors, particularly the rate of load growth. The $/kW cost of a distribution upgrade is usually much lower than the $/kW cost of energy storage. But the total cost of a distribution upgrade is usually much higher than the total cost of an EES optimized for deferral of a distribution upgrade for two to five years. Supporting the integration of intermittent renewable energy sources: Wind power generation is presently the largest and fastest growing renewable power source followed by solar power. The following applications are described in the context of wind power. Similar applications also exist for renewable energy sources other than wind power, such as solar photovoltaic (PV).



Frequency and synchronous spinning reserve support: In grids with a significant share of wind generation, intermittency and variability in wind generation output due to sudden shifts in wind patterns can lead to significant imbalances between generation and load that in turn result in shifts in grid frequency. Such imbalances are usually handled by spinning reserve at the transmission level, but energy storage can provide prompt response to such imbalances without the emissions related to most conventional solutions.



Transmission Curtailment Reduction: Wind power generation is often located in remote areas that are poorly served by transmission and distribution systems. As a result, sometimes wind operators are asked to curtail their production, that results in lost energy production opportunity, or system operators are required to invest in expanding the transmission capability. An EES unit located close to the wind generation can allow the excess energy to be stored and then delivered at times when the transmission system is not congested.



Time Shifting: Wind turbines are considered as non-dispatchable resources. EES can be used to store energy generated during periods of low demand and deliver it during periods of high demand. When applied to wind generation, this application is sometimes called “firming and shaping” because it changes the power profile of the wind to allow greater control over dispatch.

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MAJOR ENERGY STORAGE PROJECTS AROUND THE GLOBE

Currently United States leads the world in terms of deployment of energy storage technologies for the grid applications. US currently has over 24 GW of energy storage deployed for grid applications. Majority of the current installed capacity is based on Pumped Hydro storage, but other storage technologies such as batteries, compressed air and thermal storage are rapidly gaining acceptance in the market.

Figure 14: Current installed and under construction energy storage capacity in US (Source: US DOE)

Europe, China and Japan also has focused on developing energy storage in recent year. Table below provides summary of key international projects related to energy storage according to US DOE Energy Storage Database.

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Table 8: Summary of key international projects (Source: US DOE)

The US DOE Energy Storage Database currently has over 850 projects listed and this database is continuously updated at http://www.energystorageexchange.org/ .

Figure 15: International energy storage projects listed in the US DOE Energy Storage Database (Source: US DOE)

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Below are details of some of the major energy storage projects which demonstrated the ability and value of energy storage for providing ancillary services around the globe. AES - Altairnano-PJM Li-ion Battery Ancillary Services Demo In November 2008, AES installed 1-MW â&#x20AC;&#x201C; 250 kWh Altairnano Li-Titanate system to the parking lot the PJM Interconnection's headquarters building. That unit has been wired into a feeder line and has been selling frequency regulation into the PJM Ancillary Service Market since January 2009. It has been in almost continuous operation since May of 2009. After designing specialized control software, the batteries have thus far responded to the "reg up" and "reg down" automatic gain control (AGC) signals from the RTO, charging and discharging accordingly. The unit was tested for power and energy capacity in May 2010 after more than 8,000 operating hours. Energy degradation was approximately 1% while the power degradation was not significant. Altairnano estimates the battery will be able to deliver the required 1 MW contract capacity for over 20 years based on the PJM duty cycle.

Figure 16: AES - Barbados, PJM Frequency Regulation Project using Li-Titanate batteries from Altairnano

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AES- Los Andes Battery Energy Storage System AES Energy Storage and A123 Systems announced the commercial operation of a 12 MW â&#x20AC;&#x201C; 4 MWh frequency regulation and spinning reserve project at AES Gener's Los Andes substation in the Atacama Desert, Chile o 18th Nov 2009.7 The project helps improve the reliability of the electric grid in Northern Chile and uses A123 Systems' Hybrid Ancillary Power Units, a lithium-ion battery system. The project helps the system operator manage fluctuations in demand, delivering frequency regulation in a less expensive, more responsive and more accurate manner than traditional methods. In addition, because the project replaces unpaid reserve from the power plant, AES Gener receives payment for its full output capacity by selling directly to the electric grid.

Figure 17: AES- Los Andes Project - Chile (Source: AES)

http://investor.aes.com/phoenix.zhtml?c=202639&p=irol-newsArticle&ID=1357116&highlight=

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AES Laurel Mountain AES Laurel Mountain energy storage facility utilizes 32 MW Li-Ion batteries along with 98 MW wind farm to supply ancillary services to the grid. The project has been operational since October 2011. This was one of the 1st projects in US to integrate energy storage with large wind farm. Storage is used for providing frequency regulation service in PJM market and has been operating under Pay for Performance regulations.

Figure 18: AES Laurel Mountain Energy Storage Facility (Source: AES)

AES Gener Angamos Power Plant 8 Based on success of AES Los Andes project, in 2012 AESGener and AES Energy Storage announced the commercial operation ofthe second energy storage project in Northern Chile, integrating 20MW of advanced battery-based energy storage with a 544MW thermal power plant. Combining battery storage with a traditional power plant allows the plant to more effectively use its own generated power while continuing to provide essential spinning reserve services. The advanced reserve capacity provided by the storage technology enables the Angamos plant to generate an additional 20MW of energy at virtually all times throughout the year, which would otherwise be tied up to maintain the plantâ&#x20AC;&#x2122;s grid reliability responsibilities in the case of unexpected

http://www.aesenergystorage.com/press_release.php?title=aes-combines-advanced-battery-based-energy-storage-with-atraditional-power-plant

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transmission loss, the failure of a power generator, or another accident that might otherwise necessitate reduced power to customers. As a result, this newly available energy increased power generation from the Angamos plant by 4 percent.

Figure 19: AES Gener Angamos Power Plant with 20 MW Li-Ion energy storage for providing spinning reserves in Chile

Beacon 20 MW Frequency regulation plant, NY Beaconâ&#x20AC;&#x2122;s Stephen Town Frequency regulation plant utilizes 200 high speed flywheels to provide fast frequency regulation service to NYISO since 2011. The plant is rated at 20 MW â&#x20AC;&#x201C; 5 MWh and was the largest energy storage facility providing frequency regulation US at the time of installation. Performance data from the Beacon project was critical in the policy dialogue that led to creation of FERC order 755 establishing pay for performance market design for frequency regulation in US. Beacon flywheels perform between 3,000 and 5,000 full depth-of-discharge cycles a year. Although only 10% of the NYISO market regulation market capacity, the plant provides over 30% of the Area Control Error correction, doing so with over 95% accuracy.

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Figure 20: Beacon 20 MW Frequency Regulation Plant, NY (Source: Beacon Power)

Ecoult Grid Energy Storage demonstration, PJM9 Ecoult implemented a grid scale energy storage system which provides 3 MW of regulation services on the grid of PJM Interconnection using advanced lead acid battery – Ultra Battery. The system is also used for peak demand management. The objective of the PJM energy storage project was to demonstrate the outperformance of the UBer™ (UltraBattery® Energy Resource) for frequency regulation services. It is faster, more accurate, cheaper, and cleaner than the incumbent gas peakers often used for regulation services. The UBer™ is therefore able to displace fossil fuel generation methods in the provision of regulation services and to complement fossil fuel generation in the provision of other ancillary services. The Ecoult 3 MW UBer™ grid scale energy storage system has been successfully installed on the grid of PJM Interconnection. It is implemented both in a building and in a containerized format, to demonstrate flexibility in approach for prospective adopters. It uses four strings of UltraBattery® cells and connects to the grid from inside the East Penn Manufacturing site in Lyon Station, Pennsylvania. The project provides continuous frequency regulation services bidding into the open market on PJM. The system is responding to PJM’s fast response signal. The graph below shows the signal received from PJM and how accurately the frequency regulation services system responds to the PJM signal.

http://www.ecoult.com/case-studies/pjm-pa-usa-frequency-regulation-services/

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Figure 21: Ecoult PJM Frequency Regulation Signal response

In providing frequency regulation services, the batteries roam in approximately a 1015% Partial State of Charge (PSoC) band. Ecoult has implemented an application that follows the PJM signal and maintains the State of Charge.

For information of additional energy storage projects, visit Annexure D.

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SUMMARY OF LEADING ENERGY STORAGE TECHNOLOGIES This section provides a quick overview of the various energy storage technologies, their key advantages, disadvantages, major applications as well as potential improvements that can extend the potential for these technologies in near future.

(Adopted from EPRI 2003, EPRI 2004, EPRI 2006, EPRI 2012)10 EES Technology Lead Acid

Advantages

Disadvantages

Major Applications

 Mature technology - over a century old  Familiar - the most widely used EES system on earth  Inexpensive ($/kWh) - $125 $200  Ready availability (45-50% of battery sales)

   

Sodium Sulfur (NaS)

 High energy and power density  Relatively high efficiency  Long cycle life  Relatively wellestablished

 Low specific energy (kWh/kg) and specific power (kW/kg)  Short cycle life (100-300)  High maintenance requirements  Environmental hazards (lead and sulfuric acid)  Capacity falls with decreasing temperature below 77 degrees F  Relatively expensive ($3000$4500 / kW)  High temperature produces unique safety issues

 Peak shaving for T&D upgrade deferral  Small load leveling applications

 Lower cost  Safety improvemen ts

Vanadium Redox Battery (VRB)

 Energy and power sizing is independent  Scalable for large applications  High energy and power density  Easily upgradeable

 Relatively expensive  Lower round trip efficiency

 Peak shaving for &TD upgrade deferral  Small load leveling applications  Backup power applications

 Lower costs  Improved standardizati on  efficiency

Backup / UPS Automobile Telecom Substation reserve power

Potential Improvements  Cycle Life  Depth of Discharge (DOD)  Performance at low ambient temperatures

The authors acknowledge help and guidance from Mr. Haresh Kamath of EPRI in developing this summary comparison.

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Zinc Bromine Battery (ZBB)

 Energy and power sizing are partially independent  Scalable for large applications  High energy and power density

 Relatively earlystage technology  Potentially high maintenance costs  Safety hazard: corrosive and toxic materials require special handling  Requires sophisticated battery management  Safety issues require special handling

 Peak shaving for T&D upgrade deferral  Small load leveling applications  Backup power applications

Li-ion (Cobalt Oxidebased)

 High energy and power density  Higher efficiency  Rapid drop in cost due to manufacturing scale

Li-ion (Phosphate -based)

 High energy and power density (though not as high as LiCoO2based)  Higher efficiency  Rapid drop in cost due to manufacturing scale  Widely used for grid scale projects in US

 Requires sophisticated battery management  Safety issues (though safer than LiCoO2-based technologies)

 Consumer electronics  Automobile (hybrid electric vehicles and plug-in hybrid electric vehicles)  Utility applications  Telecom

Ni-Cd

 Mature technology  Relatively rugged  Higher energy density and  Better cycle life than lead-acid batteries

 More expensive than lead-acid  Limited long-term potential for cost reductions due to material costs  Toxic components (cadmium)

 Utility/Telecom backup  Consumer electronics

 Consumer electronics  Automobile (hybrid electric vehicles and plug-in hybrid electric vehicles)  Utility applications  Telecom

 Lower costs  Improved control methodology  Improved safety protocols  Improved life  Lower costs  Improved safety methodologi es  Improved thermal management systems  Improved battery management systems  Lower costs  Improved safety methodologi es  Better cycle life  Improved thermal management systems  Improved battery management systems  Lower costs  Improved recycling capability

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 Relatively mature technology  Relatively rugged  Higher energy density and  Better cycle life than lead-acid batteries  Less toxic components NiCd  High power density  High cycle life  Quick recharge

 More expensive than lead-acid  Limited long-term potential for cost reductions due to material costs

 Utility/Telecom backup  Consumer electronics

 Lower costs  Improved recycling capability

 Low energy density  Expensive  Sloped voltage curve requires power electronics

 Power quality  Emergency bridging power  Fluctuation smoothing

 Lower costs  Higher energy densities

SMES

 High power

 Low energy density  Large parasitic losses  Expensive

 Power quality  Emergency bridging power

 Lower costs  Higher energy densities  Faster recharge

Flywheels

 High power density  High cycle life  Quick recharge  Independent power and energy sizing

 Frequency regulation  Power quality  Emergency bridging power  Fluctuation smoothing

 Lower costs  Higher energy densities

CAES

 Huge energy and power capacity  Lower capital costs ($150-$400 / KWh)

 Low energy density  Large standby losses  Potentially dangerous failure modes`  High capital cost ($40006000/kWh)  Geographically limited  Requires fuel input  Long construction time  Large scale only

 Energy arbitrage  Frequency regulation  Ancillary services

 Isothermal CAES  Adiabatic CAES  Under water storage (to remove geological uncertainty)

NiMH

Ultracapacitors (Electric DoubleLayer Capacitors)

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Pumped Hydro

 Huge energy and power capacity

 Geographically limited  Expensive to site and build  Long construction time  Large scale only

 Energy arbitrage  Frequency regulation  Ancillary services

 Turbine efficiency  Undergroun d projects using old mines

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ANCILLARY SERVICES IN UNITED STATES As discussed in the introduction session, the United States Federal Energy Regulatory Commission (FERC) defined six ancillary services in Order No. 888: (FERC, 1996) 1) 2) 3) 4) 5) 6)

scheduling, system control and dispatch; reactive supply and voltage control from generation service; regulation and frequency response service; energy imbalance service; operating reserve â&#x20AC;&#x201C; synchronized reserve service; and operating reserve â&#x20AC;&#x201C; supplemental reserve service.

In past decade, FERC has introduced various new regulation that has allowed participation of non-generation resources in the ancillary service markets. FERC initiatives have been followed by various system operators across US, that have worked to remove any existing barriers and create market mechanisms to allow energy storage and demand response technologies to effectively provide these services. Following figure shows a summary of the key regulatory changes that have taken place in US in past decade.

Figure 22: Summary of key regulatory changes in US over past decade

Following section provides more details on these regulatory changes that are enabling more efficient operations for grid and participation of non-generation resources in 50 | P a g e

these markets. Before we start considering differences in the ancillary services across market, it is also important to understand the key differences with in various ISOs, which are summarized in the table below. Table 9: Comparison of US system operators (Source: CES Research)

FREQUENCY REGULATION SERVICE FERC Order 755 On October 20, 2011, FERC issued Order No. 755 “Frequency Regulation Compensation in the Organized Wholesale Power Markets” which found that current regulation market tariffs failed to compensate faster-ramping resources for the inherently greater amount of frequency regulation service they provide to the grid. Thus, FERC mandated that each grid operator change its regulation tariffs to pay resources based on the actual amount of regulation service each resource provides to the grid, i.e. “pay-for-performance.” Prior to Order 755, Regulation pricing had been based solely on the amount of MWs a resource offers to be on “standby” to respond to a regulation signal and did not base payments on how much the resource is actually deployed to provide the service or how well it responded to the dispatch signal. 51 | P a g e

Figure 23: Comparison of response of conventional generator and storage to regulation signal from ISO-NE Regulation Pilot

As per order 755, FERC mandated that each ISO/RTO market implement a two-part bid/two-part payment compensation structure comprising of: 1) a capacity (capability) payment for the amount of MWs a resource sets aside to provide regulation, which must include the marginal resource’s opportunity cost (the cost associated with providing regulation instead of energy or another service); and, 2) a performance payment based on the actual amount of movement a resource provides in response to the ISO’s regulation signal (otherwise known as “mileage”) taking into account the resource’s accuracy in following the signal.

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Figure 24: Components of Pay for Performance mechanism proposed under FERC order 755

IMPLEMENTATION STATUS The following map shows the implementation of FERC Order 755 across the ISO/RTO regions.

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Figure 25: Status of ISO/RTO Order 755 Implementation

PJM, the New York ISO (NYISO), the Midcontinent ISO (MISO), and the California ISO (CAISO) have all implemented the market changes required to comply with FERC Order 755, as shown above. More details on the specifics of these markets are discussed below. ISO New England (ISO-NE) is working through the final stages of its Order 755 market design and expects to implement the market by the end of May 2014. SPP which just began operating its Ancillary Services market (including Regulation) on March 1, 2014, has been granted a one-year time period to implement the Order 755 and expects to do so on March 1, 2015. ERCOT, which is not subject to FERC jurisdiction since it is not electrically interconnected to regions outside of Texas (only interstate commerce is federally regulated), conducted a one-year Fast Responding Regulation Service (FRRS) pilot program and on March 1, 2014 began to offer FRRS as a subset of its Regulation market. However, at this time ERCOT does not have pay-for-performance pricing for Regulation.

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Table 10: Comparison of Pay for Performance market design across US Markets

PJM Frequency Regulation Market SIZE PJM has reduced the amount of regulation it procures on an hourly basis by over 20% since the implementation of FERC Order 755. Prior to the October 1, 2012 implementation of FERC Order 755, PJM procured an amount of regulation capacity equal to 1% of the peak load for on-peak hours and 1% of the valley load in off-peak hours. In 2011 this was equivalent to approximately 925 MW of procurement on average per hour. Upon implementation of Order 755, PJM reduced this requirement to 0.9% of peak load for on-peak hours and 0.9% of the valley load in off-peak hours. In addition, with the implementation of Order 755, PJM converted its units of procurement for regulation capacity into “effective MWs”. An effective MW takes into account the performance score of the regulating fleet. For example, if the system average expected performance score in PJM is 78%, then 1 MW of regulation capacity is, on average, equal to 0.78 effective MWs (1 MW * 78%) of regulating capacity. Given that PJM is procuring regulation capacity based on each resources effective MW offer by dividing each resource’s offer by its performance score, PJM is changing the total regulation capacity procured into units of effective MWs. In this case, PJM has determined that 0.9% of load in “traditional MWs” is equal to 0.7% of load on an “effective MWs”. (Load * 0.9% * 78% = 0.7% of Load). This equated to approximately 690 Effective MWs. 55 | P a g e

Starting in December 2013 PJM changed the procurement to fixed hourly amount resulting in a further decrease in procurement to 664 Effective MWs on average. The regulation requirement is now uniform for all on-peak hours (0500 - 2359) at 700 effective MW and all off-peak hours (0000 - 0459) at 525 effective MW. PJM Market Size Projections with Renewables On March 3, 2014 PJM presented their PJM Renewable Integration Study (PRIS) study results. It shows that more regulation will be needed under all future renewable scenarios from low levels of growth to high levels of growth in renewables. The following table provides a snap shot of the needed regulation under different scenarios. (Descriptions of the scenarios can be found in the linked presentation.) The highest amount of regulation is in the high solar (HS) cases. Table 11: Anticipated growth in frequency regulation requirements under various renewable penetration scenarios (Source: PJM)

CAISO Regulation Market Size The current size of the Regulation Up and Regulation Down market in CAISO is about 350 MWs for each market. However, it is likely that regulation market sizes will increase in the upcoming years. The CAISO is anticipating it will need to double the amount of regulation and balancing energy in order to integrate enough variable resources to meet RPS goals. In CAISOâ&#x20AC;&#x2122;s 33% RPS study, the CAISO found that it will need an average of 754 MW of Regulation Up and 767 MW of Regulation Down on average per hour in 2020 as compared to the 333 MW of Regulation Up and 350 MW of Regulation Down procured on average each hour in 2012. 11 1F

NYISO FREQUENCY REGULATION MARKET SIZE The NYISO procures on average 220 MW of Frequency Regulation each hour. However, the amount of Regulation Service required varies on an hourly and seasonal

http://www.caiso.com/planning/Pages/ReportsBulletins/Default.aspx

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basis. It ranges from a minimum requirement of 175 MW in the early morning hours to a maximum requirement of 300 MW during peak hours. 12 NYSIO has conducted renewable integration studies to determine potential changes in ancillary service requirements in coming years based on renewable penetration. F

Table 12: Anticipated changes in NYISO frequency regulation requirements based on wind penetration

ERCOT NEW ANCILLARY SERVICES MARKET DESIGN On September 27, 2013 ERCOT issued a Future of Ancillary Services Concept Paper proposing a new Ancillary Services (AS) market concept aimed to go into effect in 2016. The concept paper originally outlined five new services but has now expanded to six different ancillary services, as follows:  

Synchronous Inertial Response (SIR) Service Fast Frequency Response (FFR) Service

 

Primary Frequency Response (PFR) Service Regulating Reserve (RR) Service



Contingency Reserve (CR) Service

The NYCA regulation requirements are posted on the NYISO website at the following URL: http://www.nyiso.com/public/webdocs/market_data/reports_info/nyiso_regulation_req.pdf 12

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ď&#x201A;ˇ

Supplemental Reserve (SR) Service

ERCOT found that its current AS Framework has performed well but has issues for managing the needs of its grid in the future. The following figure shows the overall Goal of the new AS framework:

Figure 26: Proposed ancillary service framework in ERCOT (Source: ERCOT)

From the data collected in the FRRS pilot ERCOT has seen the benefit of fast storage resources to help with both frequency response and frequency regulation. Therefore ERCOT is proposing changes related to both of these services to better take advantage of fast storage. Fast Frequency Response (FFR) Service would provide sufficient time for primary frequency response (PFR) to deploy and arrest fast frequency excursion in the event of sudden power imbalance. (More information on FFR is discussed below.) ERCOT is also proposing changes to its regulation market to better integrate storage, including taking into account ramp-rate in the signal sent to resources and avoiding deploying resources for more than 10 continuous minutes in one direction. In addition, ERCOT is planning to propose pay-for-performance pricing to reward those resources that accurately follow the regulation signal. The following graphic display shows how ERCOTâ&#x20AC;&#x2122;s existing AS services will link to the proposed new services beginning 2016.

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Figure 27: Comparison between current and proposed ancillary services framework (Source: ERCOT)

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SYNCHRONOUS AND SUPPLEMENTAL RESERVES PJM In PJM market, both the Regulation and Synchronized Reserve Markets are cleared on a real-time basis. A unit can be selected for either regulation or synchronized reserve, but not for both. PJM jointly optimizes Regulation with Synchronized Reserve and energy to provide all three of these services at least cost, subject to reactive limits, resource constraints, unscheduled power flows, inter area transfer limits, resource distribution factors, self-scheduled resources, limited fuel resources, bilateral transactions, hydrological constraints, generation requirements and reserve requirements. (Monitoring Analytics: PJM SOM, 2014) PJM also operates Day Ahead Scheduling Reserves (DASR) market to satisfy secondary supplemental (30-minute) reserve requirements with a market-based mechanism that allows generation resources to offer their reserve energy at a price and compensates cleared supply at a single market clearing price. The DASR 30-minute reserve requirements are determined for each reliability region. (PJM Manual 13, 2014) To participate in PJMâ&#x20AC;&#x2122;s synchronized reserve market, a resource must be capable of responding to a PJM synchronized reserve event notification within 10 minutes. Resources can participate in the synchronized reserve market in an amount equal to their response capability within the 10 minute window. The PJM dispatch software commits sufficient synchronized reserve to ensure PJM meets a specific synchronized reserve requirement as dictated by the North American Electric Reliability Corporation (NERC), Reliability First (RFC) and/or the Southeastern Electric Reliability Council (SERC). The synchronized reserve requirements are set separately for different synchronized reserve zones. Resources participating in the synchronized reserve market are divided into two Tiers. Tier 1 is comprised of all those resources on-line following economic dispatch and able to ramp up from their current output in response to a synchronized reserve event, or demand resources capable of reducing load within 10 minutes. Tier 2 consists of additional capacity that is synchronized to the grid and operating at a point that deviates from economic dispatch (including condensing mode) to provide additional spinning synchronized reserve not available from Tier 1 resources and dispatchable load resources that have controls in place to automatically drop load in response to a signal from PJM. A non-synchronized reserves market began on October 1, 2012. Nonsynchronized reserve market is only available to resource providing energy and 60 | P a g e

not dispatched fully. Resources do not bid into the non-synchronized markets, they are dispatched by PJM as needed. Ability for Storage to Participate in the Market Storage and Demand Response is eligible to provide synchronized and nonsynchronized reserves. For the synchronized reserve market, resources must be able to provide energy for one continuous hour. To be dispatched for synchronized reserves, resources must be providing energy in the energy market and must not be dispatched fully. Market Size The Synchronized Reserve Requirement varies by synchronized reserve zone, but generally is defined as the greater of a formula that is set by the applicable NERC counsel (RFC or SERC) and the largest contingency in the reserve zone. Approximate requirement is 1500 MW across PJM.

CAISO The current requirement for Operating Reserves is the maximum of the most severe single contingency or 5% of the load responsibility served by hydro generation plus 7% of the load responsibility served by thermal generation. MORC requires that at least 50% of reserves consist of Spinning Reserves and 50% consist of Non-Spinning Reserves. The CAISO targets procurement of 100% of the required Operating Reserve in its Day Ahead market and will only procure Operating Reserve in the RT market when it cannot procure 100% in the DA market. To provide Spinning and Non Spinning Reserve, the rated capacity of the resource must be 500 KW or greater unless the resource is participating in an aggregation arrangement approved by the CAISO. Resources for Spinning Reserve and Non-Spinning Reserve must be capable, and of maintaining that output or scheduled Interchange for at least 30 minutes from the point at which the resource reaches its award capacity. The resource must be able to increase or decrease its real power (MW) by the maximum amount of Spinning Reserve to be offered within 10 minutes and be capable of maintaining its real power for 30 minutes. For Spinning Reserve, the resource must respond immediately and automatically in proportion to frequency deviations through the action of a governor or other control system in accordance with the following requirements: ď&#x201A;ˇ

Minimum Governor Performance: o 5 percent drop; o +/- 0.036 Hz deadband; and 61 | P a g e

o 

Power output changes in one second for any frequency deviation outside of the deadband

Minimum Frequency Responsive Device Performance: o If frequency is less than or equal to 59.92 Hz, the resource must reach 10 % of its awarded spinning capacity within 8 seconds; and o

The resources must change the power it delivers or consumes in one second if system frequency is less than or equal to 59.92 Hz

The resource must be available for dispatch throughout the settlement period for which it has been scheduled. The resource must be able to deliver energy, in MWh, in accordance with the start-up time and ramp rate in the resource’s bid for energy. Market Size The current size of the Spinning and Non-Spinning Reserve market is approximately 800 MWs for each product. During July, a high load month, the amount can go up to 900-1000 MWs. These volumes in these markets are not anticipated to increase dramatically because the value is directly related to total system load. Generally, the combined Spinning and Non Spinning Reserve is between 4% and 5% of the total load. The size of the operating reserve markets could increase slightly over time in proportion to the total load.

NYISO The NYISO operates four operating reserve market: 

10-Minute Spinning Reserve – Operating Reserves provided by qualified Generators and qualified Demand Side Resources located within the NYCA that are already synchronized to the NYS Power System and can respond to instructions from the NYISO to change output level within 10 minutes. The resource must provide a full response in 10 minutes and be able to perform at the committed response for 30 minutes.



10-Minute Non-Synchronized Reserve (10-Minute NSR) – Operating Reserves provided by Generators that can be started, synchronized, and loaded within 10 minutes. These reserves are carried on quick-start units, such as jet engine type gas turbines. Operating Reserves may also be provided by Demand Side Resources where the demand response is provided by a Local Generator. Resources must be able to synchronize with the network and provide a full response in 10 minutes. Must be able to perform at the committed response for 30 minutes



30-Minute Spinning Reserve – Operating Reserves provided by qualified Generators and qualified Demand Side Resources located within the NYCA that are already synchronized to the NYS Power System and can respond to instructions from the NYISO to change output level within 30 62 | P a g e

minutes. The resource must provide a full response in 30 minutes and be able to perform at the committed response for at least 1 hour. ď&#x201A;ˇ

30-Minute Non-Synchronized Reserve (30-Minute NSR) â&#x20AC;&#x201C; Operating reserves that can be provided by Generators that can be started, synchronized, and loaded within 30 minutes. Operating Reserves may also be provided by Demand Side Resources where the demand response is provided by a Local Generator. The resource must provide a full response in 30 minutes and be able to perform at the committed response for at least 1 hour.

There is a 2 MW minimum requirement for Generators and 1 MW minimum requirement for Demand Side Resources (may be aggregated) to participate Market Size In each hour, the NYISO purchases approximately 1,800 MW of operating reserves. Of this 1,800 MW, at least 1,200 MW must be 10-minute reserves and at least 600 MW must be spinning reserves. NYCA Operating Reserve Requirements (Source: NYISO)

Reserves procurement is subject to locational requirements that ensure the reserves are located where they can respond to system contingencies. The NYISO procures at least 300 MW of 10-minute spinning reserves from eastern portion of New York. It also procures at least 60 MW of 10-minute spinning, 120 MW of total 10-minute, and 540 MW of total reserves from within Long Island.

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ERCOT Today ERCOT has markets for responsive and non-spinning reserves to protect the system against unforeseen contingencies (e.g., unplanned generator outages, load forecast error, wind forecast error), rather than for meeting normal load fluctuations. ERCOT procures responsive reserves to ensure that the system frequency can quickly be restored to appropriate levels after a sudden, unplanned outage of generation capacity. Non-spinning reserves are provided from slower responding generation capacity, and can be deployed alone, or to restore responsive reserve capacity. Resources providing responsive and non-spinning reserves must be able to provide energy for one continuous hour. Market Size The Responsive Reserves market size is approximately 2800 MW and the Nonspinning reserves market is averages approximately 1800 MW.

OTHER NEW ANCILLARY SERVICES PRODUCTS FOR STORAGE CAISO RAMPING Markets that are developing or considering developing ramping products tend to be those areas with the highest penetration of wind and solar resources. Currently the California ISO is the furthest along in developing a product for ramping. The CAISO expects to have a ramping product in 2015. CAISO â&#x20AC;&#x201C; Flexible Ramping Product The current market design and resource mix at the CAISO has resulted in periods where there exists a shortage of ramping energy. The CAISO, therefore, implemented a Flexible Ramping-Up Constraint into the Real Time energy market on December 13, 2011. The constraint ensures that enough ramping up capability is made available to the five-minute Real Time Dispatch (RTD) in order to reduce price spikes associated with ramp limitations. Generators with latent ramping capacity are paid the ramping shadow price and the costs are allocated to load. The CAISO anticipates that ramping needs will continue to increase as more renewable generation comes onto the grid. Therefore, starting in 2015, the CAISO expects to have a new Day Ahead biddable flexible ramping product in place for both up and down ramping capability. The ISO began a stakeholder process to design the market rules for the new flexible ramping product. Due to other priorities at the CAISO, however, the stakeholder initiative was put on

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hold in 2012. The ISO plans to restart the stakeholder initiative in the spring of 2014 and implement the product in 2015. The purpose of the new flexible ramping product is to address the changes between the Real Time pre-dispatch process and the five-minute real-time dispatch typically due to variability and uncertainties, especially from intermittent generation. Such flexible ramping capability is not covered by current ancillary services offerings in the CAISOâ&#x20AC;&#x2122;s markets. The latest CAISO proposal from late 2012 assumed that the flexible ramping product would be the amount of reserved ramping capacity procured in the Day Ahead and Real Time markets. Procurement would include both the five minute up and down quantities and there would be separate products for up and down ramping. There would be potentially different procurement targets based on anticipated RT pre-dispatch and RT dispatch deviations. There would be capacity bids and clearing prices in both the Day Ahead and Real Time. The proposal aligns the procurement with the RT dispatch market clearing interval so that the resource can be fully deployed in one RT dispatch interval if needed. The product would be co-optimized with energy and ancillary services, and any portion of the capability deployed will be converted to energy schedules and receive RT dispatch energy payments. The last version of the CAISOâ&#x20AC;&#x2122;s proposal stated that resources must be able to offer energy to provide this new product, thus eliminating the opportunity for REM resources to provide flexible ramping when providing regulation. The proposal was not finalized, and with more emphasis on energy storage now, this aspect of the design could change in the new stakeholder process. MISO Ramping With the increases in the proportion of generation from intermittent renewable resources and potential increases in the flexibility of interchange scheduling (e.g., 15 minute scheduling intervals) MISO anticipates that the variability of the net load will tax the ramp response of controllable resources and there could therefore be an increased frequency of short-term scarcity events due to shortages of ramp able capacity. MISO is therefore planning to launch a new ancillary service product to care of such ramping needs. These ramp capability products are expected to provide an attractive approach to obtaining needed operational flexibility at a lower cost than other alternatives, providing both market and reliability benefits. The Ramp Capability products will be integrated in the Day-Ahead and Real-Time Markets which currently clear energy, regulation, spinning reserve and supplemental reserve. The new products are named as Up Ramp Capability (URC) and Down 65 | P a g e

Ramp Capability (DRC) are included as part of Ancillary Services (AS) products. These products will be purchased in Day Ahead market to fulfill anticipated ramp capability needed in Real Time. These products will be cleared and priced using only opportunity costs associated with providing ramp, such as reduction in energy dispatch, to provide room to ramp â&#x20AC;&#x153;upâ&#x20AC;? if needed. In Real-Time the goal is the reliable operations by keeping sufficient ramp capability available for use in RT dispatch to address variations in ramp requirements arising from forecast errors in NSI, load, intermittent resources. There will be different values for URC and DRC requirements depending on the net load variations. During ramp up periods, DRC requirements could be zero and during the ramp down periods URC requirements could be zero. URC / DRC requirements in Real-Time will be updated every 5 minutes based on short-term load forecast, wind generation short-term forecast, net interchange schedule and the uncertainty associated with these elements and unit not responding to their dispatch signals. In a study to propose the need of ramping products the MISO estimated tangible annual cost savings to be in the range of $3.8 - 5.4M after consideration of the impact of additional costs of $2.0 - 4.0M in operational costs to provide the ramp capability products. MISO hopes to implement the URC/DRC in the second half of 2015. FREQUENCY RESPONSE Frequency Response is emerging as a future potential market opportunity for storage in the U.S. On January 16, 2014 the Commission issued Order No. 794, Frequency Response and Frequency Bias Setting Reliability Standard. The now-approved NERC Reliability Standard BAL-003-1 establishes a minimum Frequency Response Obligation for each balancing authority areas or frequency response sharing group; provides a uniform calculation of frequency response measure; establishes Frequency Bias Settings that set values closer to actual balancing authority frequency response; and encourages coordinated AGC operation. By imposing a requirement on balancing authority areas and frequency response sharing groups to provide frequency response, Order No. 794 will have the effect of transitioning frequency response from what was historically considered an interconnection-wide system characteristic to a distinct balancing service that specific entities must deliver. Recognizing this, the Commission issued a separate docket in July 2013 to explore the market implications of the new frequency response and frequency bias setting requirements, including the potential need for compensating frequency response resources. There are few market mechanisms in place regarding compensation for frequency response as a stand-alone service. Unlike frequency regulation, frequency response has not been defined as a product in the RTO/ISO markets. 66 | P a g e

ERCOT ERCOT, on the other hand, is not governed by FERC and has moved forward with creating a new market for Frequency Response. ERCOT is concerned about the dwindling number of induction generators that provide inertial response to retard sudden frequency decay as well as over 9000 MW of wind adding unprecedented intermittency. ERCOT is proposing the creation of two new frequency response products, Primary Frequency Response (PFR) and Fast Frequency Response (FFR). Since the beginning of this year ERCOT has undertaken earnest efforts to assess the new types of ancillary services that may be required to mitigate the loss of conventional, rotating generators and the presence of non-liner loads at customer locations. The following are the proposed product definitions: 

Primary Frequency Response (PFR): The immediate proportional increase or decrease in real power output provided by a Resource and the natural real power dampening response provided by Load in response to system frequency deviations. This response is in the direction that stabilizes frequency.



Fast Frequency Response (FFR): A response from a resource that is automatically self-deployed and provides a full response within 30 cycles (0.5 seconds) after frequency meets or drops below a preset threshold. There are two subcategories of FFR. o

FFR1 is activated at a higher frequency threshold than FFR2. With FFR2 the frequency dips to a lower hertz before requiring response.

A resource providing FFR1 must be able to sustain a full response for at least 10 minutes and should fully restore within 10 minutes of receiving ERCOT’s recall instruction.

A resource providing FFR2 must be able to sustain a full response until ERCOT issues a recall instruction or the resource no longer has a responsibility to provide the service, whichever comes first. The resource must be able to fully restore its FFR2 responsibility within 90 minutes after receiving ERCOT’s recall instruction.

At present it is mandatory that all the generators connected to the ERCOT grid provide a PFR without any compensation. In the revised A/S regime, it is expected that PFR will be compensated through a competitive market. Presently there is no separate FFR Service in ERCOT, however up to 1400 MW of Responsive Reserve Service (RRS) procured from Load Resources (LaaRs) satisfy FFR characteristics. Additionally FRRS resources provide both frequency regulation and response characteristics. It is expected that a new market for PFR and FFR will go into effect in 2016. FFR will create a new revenue stream for storage resources in ERCOT.

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RECENT REGULATORY INITIATIVES AT FEDERAL LEVEL

Apart from the FERC order 755, other FERC mandates over the past several years have helped to level the playing field for participation by fast response energy storage systems. These resources are often referred to as non-generator resources, or limited energy storage resources. RTO/ISO markets and federal and state regulations have also advanced significantly over the last several years in terms of demand side participation. In essence, demand side participation involves voluntary reductions in electric usage by customers, in response to price or dispatch signals, to avoid the dispatch of higher priced generation. These voluntary reductions are sold to the RTO/ISO as services in much the same way as supply side resources, and are compensated by the RTO/ISO in much the same way as supply side resources as well. Demand side participation is now available in most RTOs for all, or nearly all, energy and ancillary service products. Storage 2012 Act H.R. 4096/S. 1845 â&#x20AC;?Storage Technology for Renewable and Green Energy Act of 2012â&#x20AC;? or the STORAGE 2012 Act amends the Internal Revenue Code to: (1) allow, through 2020, a 20% energy tax credit for investment in energy storage property that is directly connected to the electrical grid (i.e., a system of generators, transmission lines, and distribution facilities) and that is designed to receive, store, and convert energy to electricity, deliver it for sale, or use such energy to provide improved reliability or economic benefits to the grid; (2) make such property eligible for new clean renewable energy bond financing; (3) allow a 30% energy tax credit for investment in energy storage property used at the site of energy storage; and (4) allow a 30% nonbusiness energy property tax credit for the installation of energy storage equipment in a principal residence. This legislation was introduced in the House and Senate this session. The storage industry, through the Electricity Storage Association Advocacy Council, has spent considerable time gaining support for the bill and educating House and Senate members on the benefits of storage. Given the current election cycle, passage of the bill seems unlikely this session. However, given the amount of support for storage, it is highly likely that it will be reintroduced again next session.

FERC Order 719: DR FERC Order 719 was issued on October 17, 2008. One of the goals of the order was to improve DR in the wholesale power markets. Order No. 719 required grid 68 | P a g e

operators to accept bids from demand resources and to waive charges to energy buyers for voluntarily reducing demand during an emergency. It also required RTOs and ISOs to amend their market rules as necessary to permit an aggregator of retail customers to bid DR on behalf of retail customers directly into the RTOâ&#x20AC;&#x2122;s or ISOâ&#x20AC;&#x2122;s organized markets, unless the laws or regulations of the relevant electric retail regulatory authority do not permit a retail customer to participate. FERC Order 719, Wholesale Competition in Regions with Organized Electric Markets, directs RTOs and ISOs to allow DR resources to participate in ancillary services markets. Specifically, the Commission required each RTO or ISO to accept bids from DR resources, on a basis comparable to any other resources, for ancillary services that are acquired in a competitive bidding process if the DR resources (1) are technically capable of providing the ancillary service and meet the necessary technical requirements; and (2) submit a bid under the generally applicable bidding rules at or below the market clearing price. According to the Commission, DR resources that are technically capable of providing the ancillary service within the response time requirements, and that meet reasonable requirements adopted by the RTO or ISO as to size, telemetry, metering and bidding, must be eligible to bid to supply energy imbalance, spinning reserves, supplemental reserves, reactive and voltage control, and regulation and frequency response. The FERC declined to adopt a standardized set of technical requirements for DR resources (for other non-generator resources such as storage) participating in ancillary services markets. Rather, FERC allowed each RTO and ISO, in conjunction with its stakeholders, to develop its own minimum requirements. The Commission directed the RTOs and ISOs, in their compliance filings, to set forth a proposal to adopt reasonable standards necessary for system operators to call on non-generator resources for ancillary services, and mechanisms to measure, verify, and ensure compliance with any standards for the provision of ancillary services.

FERC Order 890 FERC Order 719 and FERC Order 890, have paved the way for participation by non-generator resources such as energy storage in the RTO/ISO Ancillary Services markets, including Regulation. FERC Order 890, Preventing Undue Discrimination and Preference in Transmission Service, was designed to (1) strengthen the pro forma OATT to ensure that it achieves its original purpose of remedying undue discrimination; 69 | P a g e

(2) provide greater specificity to reduce opportunities for undue discrimination and facilitate the Commission's enforcement efforts; and (3) increase transparency in the rules applicable to planning and use of the transmission system. In addition to non-transmission planning requirements adopted in Order 890, the Commission required transmission providers to implement a coordinated, open, and transparent transmission planning process. In Order 890, the Commission adopted a number of changes to the pro forma OATT requirements of Order 888, including a change to indicate that, in addition to generating units, non-generation resources such as demand resources may, where appropriate, provide certain ancillary services – namely, reactive supply and voltage control, regulation and frequency response, energy imbalance, spinning reserves, supplemental reserves and generator imbalance services. FERC Order 1000 FERC issued Order 100013 on July 21, 2011, and subsequently issued Order 1000-A14 on May 17, 2012. These orders set out requirements for regional and inter-regional transmission planning activities for all ISOs and RTOs. Order 1000 builds on the reforms of FERC Order 89015, which was issued in February of 2007, and prevented undue discrimination and preference in transmission planning as discussed above. Order 1000 addresses regional transmission planning and associated cost allocation, as well as inter-regional transmission planning and associated cost allocation.

FERC Order 784 On July 18, 2013 FERC issued a final rulemaking for "Third-Party Provision of Ancillary Services; Accounting and Financial Reporting for New Electric Storage Technologies" (Order 784, RM11-24) aimed primarily at the non-ISO/RTO regions of the country to 1) remove barriers to third-party sales of ancillary services by making reforms to the “Avista Policy”, 2) apply the concepts of FERC Order 755 for frequency regulation to the non-ISO/RTO regions, and 3) create accounting rules for storage assets.

13 Link to FERC Order 1000 - http://www.ferc.gov/whats-new/comm-meet/2011/072111/E-6.pdf 14

Link to FERC Order 1000-A - http://www.ferc.gov/whats-new/comm-meet/2012/051712/E-1.pdf

Link to Order 890 - http://www.ferc.gov/whats-new/comm-meet/2007/021507/E-1.pdf

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The Avista policy, which resulted from FERC’s concerns about market power manipulation, restricts third party sales of ancillary services to utilities seeking to purchase those services in the areas of the country without open ISO/RTO markets. In Order 784 the Commission proposed multiple reforms to ease restrictions on ancillary services sales including: 

Sellers passing existing market power analyses for energy and capacity are permitted to sell some ancillary services: Energy Imbalance, Generator Imbalance, Spinning Operating Reserves and Supplemental Operating Reserves.



For sellers wishing to sell Frequency Regulation or Reactive Supply/Voltage Support to utilities FERC is instituting two alternative mitigations to the Avista Policy: 

Price cap measures where third parties are permitted to sell to a public utility at rates not exceeding the buying public utility’s existing OATT rate for the same ancillary service. Third party developers of storage that can demonstrate that their technology would result in lower rates for the utility’s customers would be allowed to contract to provide service to the utility.



Allowing sales where the sale is made pursuant to a competitive solicitation.



The Commission also required each public utility transmission provider to add to its OATT Schedule 3 a statement that it will take into account the speed and accuracy of regulation resources in its determination of reserve requirements for Regulation and Frequency Response service, including as it reviews whether a self-supplying customer has made “alternative comparable arrangements” as required by the Schedule. This will enable customers (such as wind generators) that self-supply regulation to buy a lower quantity of regulation if they procure capacity from resources that are faster and more accurate than the utilities regulation resources. The final rule also requires each public utility transmission provider to post certain Area Control Error (ACE) data to aid self-supply customers in the determination of the amount of regulation to be self-supplied. Additionally it incents utilities to more closely review the speed and accuracy of their own regulation fleets.



The Commission created new accounting and reporting rules for Energy Storage. This will enable utilities to file the appropriate reports with 71 | P a g e

FERC and their State PUCs for rate-basing storage resources should they purchase storage assets for their own use.

STATE LEGISLATION CA AB 2514 implementation

AB 2514 amends California’s Public Utilities Code by requiring the CPUC to convene a proceeding to consider a mandate for cost-effective and commercially available energy storage procurement targets. The statute requires the CPUC to consider information from the CAISO and integrate energy storage with other programs, including demand side management and resource adequacy. The CPUC opened a rulemaking proceeding devoted entirely to energy storage, as required by AB 2514.16

The April 3, 2012, an “Energy Storage Framework Final Staff Proposal” was formally adopted, effectively closing out Phase 1 of the Storage Rulemaking.17 Recent workshops will lay out the CPUC Staff’s proposal for priority applications and the specific schedule for Phase 2. In addition, the CPUC’s Long

The following chart is from the California Energy Storage Alliance (CESA) website.

Adopts Proposed Framework for Analyzing Energy Storage needs, D.12-08-016, issued August 12, 2012.

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Term Procurement Plan (LTPP) proceeding is now considering issues regarding storage procurement and how existing long term and renewable procurement needs to be amended to accommodate new energy storage systems. It is likely that this topic will also be evaluated in next yearâ&#x20AC;&#x2122;s CPUC Resource Adequacy (RA) proceeding as well. Texas SB 943 & Project No. 39917

SB943 defines energy storage as generation assets. While this opened the door for interconnection, ERCOT is addressing implementation details with regard to settlement and modeling. SB943 was passed in May 2011 and signed by the Governor in June 2011 to take effect on September 1, 2011. Project 39917 is the PUCT project created to address the settlement issues associated with SB943. The rulemaking is posted at: Project 39917. Specifically, ERCOT is in the process of drafting protocol changes to comply with the PUCT storage settlement rule, NPRR 461, and these changes are expected to be reviewed by stakeholders over the next few months.

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RECOMMENDATIONS

Indian power sector is poised for accelerated growth in coming decade and need for power quality and reliability is going to critical for the development of Indian Industry. In this context, introduction of various ancillary services in India is necessary. There are precedents of such services being utilized as essential part of the grid operations in all of the developed countries. In case of US, the regional differences in ways the ancillary services have been adopted by various system operators provide a perfect case study for matching the unique requirements of Indian grid. India could leapfrog by utilizing the latest grid regulations and ancillary service models such as pay for performance that can incentivize latest technologies to meet growing challenges of grid operators. However, the models available in other countries may not be replicated as they are since substantial portion of power market in India is regulated and the short term competitive markets operating through exchanges are still in infancy stage and handle hardly 2%-3% of total power sales. Also, issues related to congestion, open access etc. create obstacles in dispatch of all successful bids. Indian grid regulations have tried to address some of the technical characteristics of ancillary services through existing mechanisms such as Unscheduled Interchange (UI) mechanism and power factor incentives. These mechanisms have served their purpose by improving the grid conditions as compared to prevalent issues but need to get augmented / replaced by proper ancillary service introduction in next 2-3 years. The essential elements for such introduction include: ď&#x201A;ˇ

ď&#x201A;ˇ

Clear & technology neutral specification for identification of various ancillary services o Regulations should clearly specify the types of ancillary services based on the technical parameters desired such as response rate. There is also need for unbundling the requirements such as faster response essential for frequency regulation and longer duration energy requirements for ramping and / load following. This will help in optimizing deployment of appropriate technology. o Existing generation and demand response technologies could be utilized for provision of ancillary services such as synchronous reserves and operating reserves o Emerging technologies such as energy storage and advanced demand response technologies could be more cost effective in providing frequency regulation services as well as reactive power support. Identification and quantification of magnitude of various ancillary services on regional / national level

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For ancillary services such as Synchronous reserve and nonsynchronous reserves a detailed network and resource constraint study needs to be conducted. The quantum of these ancillary services will depend on the largest contingency anticipated in different regions of India. o Some of the ancillary services will need to be procured on state / regional basis considering the transmission infrastructure availability as well as nature of ancillary services such as reactive power and black start. o Ancillary services such as frequency regulation could benefit from the synchronization of the national grid and could be procured on national level. Providing mechanism for changing the quantity of the ancillary services based on changing grid conditions such as renewable penetration and transmission upgrades o Various international studies have already recommended ancillary service levels such as frequency regulation and operating reserves based on % penetration of renewables in the grid. o Similar studies could be conducted in India to determine appropriate levels of ancillary services under the renewable deployment plan of MNRE & MOP. o Regulations should have a clear roadmap for deployment of ancillary services under various scenarios, which can provide clear investment signals for potential project developers and technology developers. Transparent pricing mechanisms through introduction of ancillary services as well as provisions for long term procurement of ancillary services through bilateral contracts / RFPs. o Recent years have demonstrated success of unbundling of ancillary services from energy and capacity around the world, where transparent pricing of ancillary services have encouraged investments in new technologies and business models for cost effective procurement of ancillary services. o India has a huge opportunity for accelerated deployment of such state of the art technologies provided we introduce transparent and technology neutral pricing mechanisms. Enforcement of ancillary service procurement o There is a need for proper enforcement for procurement of ancillary services. Failure of enforcing ancillary service procurement and payment mechanism could create significant hurdles in meeting the goals. Past experiences in UI mechanism and Renewable Energy Certificates reinforce this need. Utilization of existing and emerging technologies for ancillary services o As discussed earlier, some of the existing installed conventional plants may be resourceful in addressing the ancillary services requirements at o



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

Need o

competitive rates. But, they may not be in a position to address the requirement of faster response. The gas based generation can address to part of the requirement of faster response. But, price and availability are bigger issues. The Hydro based generation also can respond for frequency support as well as black start support. But, these plants operate in “must run” mode when the dams are full in rainy season and some plants are run as per the preference set for irrigation purpose. The emerging technologies such as storage can address specific requirements of faster response without such complications. Last 3-4 years have witnessed rapid reduction in prices in energy storage technologies thanks to the increasing commercialization and manufacturing scale up. India could accelerate this trend by providing a huge market for such technologies. Currently most of the international technology developers are exploring local manufacturing or localization of these technologies. Introduction of ancillary service requirements in a technology neutral manner will accelerate such localization efforts and will help in bringing down the costs further. for appropriate demonstration projects Indian grid operators should learn from the existing demonstration and operational projects from around the world, and introduce pilot projects with in next 6 months to year for addressing any India specific issues that will be required to be addressed for successful adoption. These will include understanding the environmental parameters such as operating temperature and humidity as well as issues related to creation of fast regulation signal and tradeoffs between the response time and continuous energy delivery requirements for various ancillary services. Initially, some demonstration projects may be set up under the ownership of Transmission Companies and operated by State/Regional Load Dispatch Centers as these agencies may operate such assets in an unbiased way and may keep grid security as only priority. Simultaneously, market rules may be created for introduction of such services through exchanges. Powergrid Corporation of India ltd. (PGCIL) has already announced a tender for 3 demonstration projects at Puducherry for demonstration of LI-Ion, Advanced Lead Acid as well as other advanced batteries for frequency regulation. Indian regulators and policy makers could utilize learning from such demonstration projects for framing the ancillary service requirements.

The other issues those need to be addressed are as under: 1. Creation of legal and/or regulatory framework  The Ministry of Power, Government of India may create Competitive Bidding Guidelines & Standard Bidding Documents for ancillary services 76 | P a g e

requirement. The Central Commission may create market rules in collaboration with exchanges. The State Commissions may create complementing regulatory framework at state level. Cost based tariffs may be addressed by the State /Central Commission.  Emerging technologies like storage technologies at present are not addressed in the Act/Regulations. The storage units can act as generating units or loads. This will require to be appropriately addressed to.  The RE based generation can be utilized to serve ancillary services when used/combined with storage technologies. At present, the wind based IPPs sign PPAs with the State Discoms on Feed-In-Tariff basis whereas all the PPAs for Solar PV are being signed through competitive basis. Storage with solar and with wind should be addressed with a uniform and consistent approach. 2. Controlling Agency(ies)  Grid at present is operated and maintained by Load Dispatch Centers. Similarly, ancillary services can be controlled by LDCs or RLDCs.  The most critical aspect for successful implementation will also require enforcement of ancillary service obligations where the discoms need to procure appropriate levels of ancillary services to meet their share of load through self supply, self procurement or purchasing necessary ancillary services through the system operator 3. Energy Accounting Bodies – NLDC/RLDC/SLDC/RPC etc.  Procurement should include both the bilateral as well as market based mechanisms.  Power exchange based transactions can be accounted for by respective exchanges and energy accounting could be settled with appropriate LDCs.  For ensuring accurate accounting appropriate communication and data monitoring standards need to be enforced on suppliers of ancillary services. 4. Financial settlement  Power exchange based transactions financial settlement can be handled by respective exchanges  There may be some concern about double paying for ancillary services under UI mechanism and ancillary service procurement. This needs to be addressed upfront, as proper introduction of ancillary services will reduce the UI payments for discoms through effective management of grid frequency through ancillary services.  Free ridership needs to be monitored and such services needs to be implemented across the country in uniform manner (particularly for ancillary services such as frequency regulation and operating reserves).

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5. Assessment of requirement of financial support like Viability Gap Funding etc. ď&#x201A;ˇ Proper accounting of the costs of ancillary services may ultimately require co-optimization of energy and ancillary service dispatch. ď&#x201A;ˇ Working of Levelized Cost of ancillary services may indicate that some of the technologies may require additional financial support during initial deployment phase for 2-3 years. ď&#x201A;ˇ There will be various ways for selection of such projects and technologies. Similar to the approach adopted in case of RE, the Government may think of introducing such services either through fixed Feed-In-Tariff to be discovered and notified by the Central Commission or it may opt for competitive bidding. If the price discovered through both the mechanisms is higher than the market price, then some incentive mechanism may be introduced like Viability Gap Funding (VGF) or Generation Based Incentive (GBI) etc. We believe that it is a perfect time for introduction of ancillary services in Indian grid. Rapid advances in both conventional and emerging technologies will make it possible for India to significantly improve the power quality and reliability by utilizing conventional and emerging technologies. Such transformation could be achieved by 2020 as most of the technologies required are already commercially available and sufficient insights are available for introduction of ancillary services based on experiences of developed countries from around the world.

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APPENDIX

A: ANCILARY SERVICE PROVISIONS IN INDIAN REGULATIONS

Ancillary Services in India- Statutory Provisions under IEGC Ancillary Services are defined, under Regulation (2)(1)(b) of the CERC (Indian Electricity Grid Code), Regulations, 2010 (IEGC) as follows: “in relation to power system (or grid) operation, the services necessary to support the power system (or grid) operation in maintaining power quality, reliability and security of the grid, e.g. active power support for load following, reactive power support, black start, etc;” One of the objectives of the IEGC, as given in Regulation 1.2 is the “Facilitation for functioning of power markets and ancillary services by defining a common basis of operation of the ISTS, applicable to all the Users of the ISTS”. The IEGC, under Regulation 2.3.2 (g) also made operation of Ancillary Services as an exclusive function of Regional Load Dispatch Centres (RLDCs). Regulation 8 of the Central Electricity Regulatory Commission (Power Market Regulations) Regulations, 2010, provides for the introduction of new products in Indian Electricity Market in the future, including Ancillary Services Contract. The Regulation 8 is reproduced below: “Notwithstanding anything contrary contained in these Regulations, no person shall enter into or transact in any of the following types of contracts unless the same has been permitted to be so launched or introduced by the Commission in terms of notification issued in this behalf (i) Derivatives Contracts (ii) Ancillary Services Contracts (iii) Capacity Contracts” Regulation 11 (1) (b) of the Central Electricity Regulatory Commission (Unscheduled Interchange Charges and Related Matters) Regulations, 2009 provides for utilization of the amount left in the UI pool account fund towards providing ancillary services. The Regulation is reproduced below: “(1) The amount left in the UI pool account fund after final settlement of claims of Unscheduled Interchange charges of the generating station and the beneficiaries shall be transferred to a separate fund as may be specified by the Commission 79 | P a g e

and shall be utilised, with the prior approval of the Commission for either or both of the following activities: (a) ……. (b)Providing ancillary services including but not limited to ‘load generation balancing’ during low grid frequency as identified by the Regional Load Dispatch Centre, in accordance with the procedure prepared by it, to ensure grid security and safety:”

IEGC Para 5.2 (f) related to System Security Aspects has following provision: All thermal generating units of 200 MW and above and all hydro units of 10 MW and above, which are synchronized with the grid, irrespective of their ownership, shall have their governors in operation at all times in accordance with the following provisions: Governor Action i) Following Thermal and hydro (except those with up to three hours pondage) generating units shall be operated under restricted governor mode of operation with effect from the date given below: a) Thermal generating units of 200 MW and above, 1) Software based Electro Hydraulic Governor (EHG) system: 01.08.2010 2) Hardware based EHG system 01.08.2010 b) Hydro units of 10 MW and above 01.08.2010 ii) The restricted governor mode of operation shall essentially have the following features: a) There should not be any reduction in generation in case of improvement in grid frequency below 50.2 Hz. ( for example if grid frequency changes from 49.3 to 49.4 Hz. then there shall not be any reduction in generation). Whereas for any fall in grid frequency, generation from the unit should increase by 5% limited to 105 % of the MCR of the unit subject to machine capability. b) Ripple filter of +/- 0.03 Hz. shall be provided so that small changes in frequency are ignored for load correction, in order to prevent governor hunting.

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c) If any of these generating units is required to be operated without its governor in operation as specified above, the RLDC shall be immediately advised about the reason and duration of such operation. All governors shall have a droop setting of between 3% and 6%. d) After stabilization of frequency around 50 Hz, the CERC may review the above provision regarding the restricted governor mode of operation and free governor mode of operation may be introduced. iii)All other generating units including the pondage upto 3 hours, Gas turbine/Combined Cycle Power Plants, wind and solar generators and Nuclear Power Stations shall be exempted from Sections 5.2 (f) ,5.2 (g), 5.2 (h) and ,5.2(i) till the Commission reviews the situation.

The Para 5.2(h)(i) recommends the rate of governor setting change as under: 

The recommended rate for changing the governor setting, i.e., supplementary control for increasing or decreasing the output (generation level) for all generating units, irrespective of their type and size, would be one (1.0) per cent per minute or as per manufacturer’s limits. However, if frequency falls below 49.7Hz, all partly loaded generating units shall pick up additional load at a faster rate, according to their capability.

The Para 5.2(i) suggests not varying loads drastically both by generating unit as well as by user/SEB as under: 

Except under an emergency, or to prevent an imminent damage to a costly equipment, no User shall suddenly reduce his generating unit output by more than one hundred (100) MW ( 20 MW in case of NER) without prior intimation to and consent of the RLDC, particularly when frequency is falling or is below 49.5 Hz.. Similarly, no User / SEB shall cause a sudden variation in its load by more than one hundred (100 MW) without prior intimation to and consent of the RLDC.

The Para 5.2(n) recommends that all SEBS, distribution licensees / STUs shall provide automatic under-frequency and df/dt relays for load shedding in their respective systems as under: 

All SEBS, distribution licensees / STUs shall provide automatic under-frequency and df/dt relays for load shedding in their respective systems, to arrest frequency decline that could result in a collapse/disintegration of the grid, as per the plan separately finalized by the concerned RPC and shall ensure its effective application to prevent cascade tripping of generating units in case of any 81 | P a g e



contingency. All, SEBs, distribution licensees, CTU STUs and SLDCs shall ensure that the above under-frequency and df/dt load shedding/islanding schemes are always functional. RLDC shall inform RPC Secretariat about instances when the desired load relief is not obtained through these relays in real time operation. The provisions regarding under frequency and df/dt Relays of relevant CEA Regulations shall be complied with. SLDC shall furnish monthly report of UFR and df/dt relay operation in their respective system to the respective RPC. RPC Secretariat shall carry out periodic inspection of the under frequency relays and maintain proper records of the inspection. RPC shall decide and intimate the action required by SEB, distribution licensee and STUs to get required load relief from Under Frequency and Df/Dt relays. All SEB, distribution licensee and STUs shall abide by these decisions. RLDC shall keep a comparative record of expected load relief and actual load relief obtained in Real time system operation.

The Para 5.4.2(e) related to Demand Disconnection suggests grouping of interruptible loads as under: 



In order to maintain the frequency within the stipulated band and maintaining the network security, the interruptible loads shall be arranged in four groups of loads, for scheduled power cuts/load shedding, loads for unscheduled load shedding, loads to be shed through under frequency relays/ df/dt relays and loads to be shed under any System Protection Scheme identified at the RPC level. These loads shall be grouped in such a manner, that there is no overlapping between different Groups of loads. In case of certain contingencies and/or threat to system security, the RLDC may direct any SLDC/ SEB/distribution licensee or bulk consumer connected to the ISTS to decrease drawl of its control area by a certain quantum. Such directions shall immediately be acted upon. SLDC shall send compliance report immediately after compliance of these directions to RLDC.

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Brief on 2012 Grid Blackout There was a major grid disturbance in Northern Region at 02.33 hrs on 30-07-2012. Northern Regional Grid load was about 36,000 MW at the time of disturbance. Subsequently, there was another grid disturbance at 13.00 hrs on 31-07-2012 resulting in collapse of Northern, Eastern and North-Eastern regional grids. The total load of about 48,000 MW was affected in this black out. Ministry of Power constituted an Enquiry Committee, to analyze the causes of these disturbances and to suggest measures to avoid recurrence of such disturbance in future. The Committee opined that no single factor was responsible for grid disturbances on 30th and 31st July 2012. After careful analysis of these grid disturbances, the Committee identified several factors, which led to the collapse of the power systems on both the days. In an emergency system operating condition, such as on 30 th and 31st July 2012, even some of the corrective measures out of the list given below might have saved the system from the collapse. a) Better coordinated planning of outages of state and regional networks, specifically under depleted condition of the inter-regional power transfer corridors. b) Mandatory activation of primary frequency response of Governors i.e. the generatorâ&#x20AC;&#x2122;s automatic response to adjust its output with variation in the frequency. c) Under-frequency and df/dt based load shedding relief in the utilitiesâ&#x20AC;&#x2122; networks. d) Dynamic security assessment and faster state estimation of the system at load dispatch centers for better visualization and planning of the corrective actions. e) Adequate reactive power compensation, specifically Dynamic Compensation. f)

Better regulation to limit overdrawal/underdrawl under UI mechanism, specifically under insecure operation of the system.

g) Measures to avoid mal-operation of protective relays, such as the operation of distance protection under the load encroachment on both the days. h) Deployment of adequate synchrophasor based Wide Area Monitoring System and System Protection Scheme.

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CERC Whitepaper on ancillary services: 2013 In view of the above, as per the directives of the Central Commission, the staff of the Commission came out with a white paper in April, 2013, on Ancillary Services seeking comments from various stakeholders. The paper talks mainly on three types of Ancillary Services, viz. real power support services or Frequency Support Ancillary Services (FSAS)/ Load following, Voltage or reactive power support services and Black start support services. ď&#x201A;ˇ

Frequency Support Ancillary Services (FSAS) The paper aims to stabilize the grid frequency by maximizing unutilized generation and minimizing load shedding, under certain conditions, for ensuring grid safety and security utilizing FSAS. Gradually as this market grows and imbalances are better handled with improved system security and reliability, this market could phase out the UI Mechanism. Integration of renewable energy in the grid is also one of the biggest thrust areas. The installed generation capacity of renewable generators is expected to grow manifold in the coming years. Considering the high variability and unpredictability of generation from renewable, the FSAS would serve to stabilize the frequency for increased integration of renewable sources into the grid. FSAS can be used to complement the diurnal changes in renewable generation. The implementation of FSAS is suggested to be facilitated through bidding in the Power Exchanges by creation of a separate product. Competitive bidding process would be followed for procurement of FSAS. If the frequency remains 0.05 Hz below the lower operating frequency range as specified in the IEGC for two consecutive time-blocks, the nodal agency to give instructions to the FSAS provider to dispatch in the third time block for dispatching generation from the fifth time block. If the frequency remains at 50.0 Hz for two consecutive time blocks, after kicking-in of the FSAS, the nodal agency to give instructions for withdrawal of FSAS. The generation dispatched under FSAS would be given a dispatch certainty for 8 time blocks (i.e. 2 hours). In case withdrawal instructions are given by the nodal agency before the completion of 2 hours, 50% of the bid price to be paid to the seller for the period falling short of 2 hours. Further, in case a seller, whose power has been scheduled, fails to provide the committed generation in real-time then the seller would be liable to pay 1.5 times the bid price or the applicable UI rate whichever is higher.

ď&#x201A;ˇ

Voltage Control Ancillary Services (VCAS) There is already a commercial mechanism in the IEGC under Regulation 6.6 of the IEGC Regulations, w.r.t. voltage reference at the interchange point, which incentivizes maintaining a proper voltage profile at all interchange points 84 | P a g e

between control areas in the grid. However, in case it is observed by the system operator that there is a critically low voltage in the grid at one or more such interconnection points persisting during a season, the system operator may requisition voltage support ancillary services from any service provider, who may bid the same through the power exchange. The paper suggests that the price bids for providing VCAS on nodal basis for the generating units other than those providing active power and scheduled by Load Dispatch Centre, to be submitted in the power exchanges. ď&#x201A;ˇ

Black Start Ancillary Services (BSAS) The generators capable of providing start up power to mandatorily provide the Black Start Services as per the instructions of the load despatchers. BSAS to be paid as and when the same is required by the nodal agency. The paper suggests that one day capacity charges be paid to such generators on the day of providing the BSAS, as determined by the Commission. The energy charges to be paid at twice the energy charges determined by the Commission for the volume of energy supplied during the restoration process.

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B: REGIONAL PRACTICES FOR ANCILLARY SERVICES IN US Following summary table is provided by North American Reliability Corporation based on a survey conducted during 2011 to determine ancillary service requirements to integrate variable generation.18

NERC Special Report: Ancillary Service and Balancing Authority Area Solutions to integrate variable generation; march 2011

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D: KEY ENERGY STORAGE INSTALLATIONS AROUND THE WORLD This section provides summary of energy storage installations around the world based on data available from US DOE Energy Storage database. Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Beacon Power 20 MW Flywheel Frequency Regulation Plant (Stephentown, NY)

This 20 MW plant comprises 200 Gen4 flywheels that provide frequency regulation services to grid operator NYISO. The flywheel systems can respond nearly instantaneously to the ISO control signal at a rate that is 100 times faster than traditional generation resources. The plant can operate at 100% depth of discharge with no performance degradation over a 20year lifetime, and can do so for more than 100,000 full charge/discharge cycles. The flywheels are rated at 0.1 MW and 0.025 MWh, for a plant total of 20.0 MW and 5.0 MWh of frequency response.

Flywhe el

0:15

Stephentown, New York, United States

Duke Energy Business Services Notrees Wind Storage Demonstratio n Project

Duke Energy has deployed a wind energy storage demonstration system at the 153MW Notrees Wind power project in western Texas. The project demonstrates how energy storage and power storage technologies can help wind power systems address intermittency issues by building a 36 megawatt (MW) turnkey energy storage and power management system capable of optimizing the delivery of energy, in addition to providing regulation service in the ERCOT market. The project is supported by a U.S. DOE Office of Electricity ARRA grant.

Advan ced Lead Acid Batter y

36,000

0:40

Goldsmith , Texas 79759, United States

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Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Kaua'i Island Utility Cooperative

The KIUC DPR is designed to mitigate the variability of a 3 MW solar PV project for the Kauaâ&#x20AC;&#x2122;i Island Utility Cooperative, as well as provide critical grid support services for the island grid. The DPR will provide responsive reserves to the island utility and correct any frequency and voltage deviations.

Advan ced Lead Acid Batter y

1,500

0:15

Koloa, Hawaii, United States

East Penn Manufacturing Co. Grid-Scale Energy Storage Demonstratio n Using UltraBattery Technology

The PJM (Pennsylvania-JerseyMaryland Interconnection) Regulation Services project in Lyon Station, PA, was one of the projects selected and partly funded by the DOE under its American Recovery and Reinvestment Act of 2009. It provides 3MW of continuous frequency regulation services to the grid of PJM Interconnection. The new system is also used for peak demand management services to the local utility, Met-Ed (a First Energy Company).

UltraB attery

3,000

0:43

102 Deka Road, Lyon Station, Pennsylva nia 19536, United States

Metlakatla BESS

Metlakatla Power and Light (MP&L) has a BESS installation consisting of Exide (GNB Industrial Power) VRLA cells, providing rapid spinning reserve, frequency control, and better power quality. The MP&L BESS is housed in a purpose-built 40-foot by 70-foot steel butler building that sits on a cement pad. Installation cost of the 1 MW/1.4 MWh Excide Metlakatla BESS was $1.6 million in 1996 dollars (estimated cost in 2009 dollars: $2.2 million). Today, MP&L is in the process of replacing the batteries after 12 years of service. The estimated cost for a replacement of BESSâ&#x20AC;&#x2122;s EXIDE cells will be about $750,000. Spent battery cells will be sent to a lead-acid battery recycling plant in Quebec.

Lead Acid Batter y

1:24

3.5 Mile Airport Rd., Metlakatla , Alaska 99926, United States

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Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Kaheawa Wind Power Project II

On the island of Maui, a 10-MW/45 minute Xtreme Power DPR is being integrated with the 21-MW Kaheawa Wind Power II project, built by First Wind, to provide utility-scale power storage and management. The DPR is intended to address the issue of curtailment as renewable energy penetration rates increase on Maui; in addition, it will provide ramp control, responsive reserves, frequency regulation, and automatic generation control (AGC) for the Maui Electric Co. (MECO).

Advan ced Lead Acid Batter y

10,000

0:45

Maalaea, Hawaii, United States

AES-Laurel Mountain

AES installed a wind generation plant comprised of 98 MW of wind generation and 32 MW of integrated battery-based energy storage. The project is supplying emissions-free renewable energy and clean, flexible, operating reserve capacity to the PJM Interconnection, the largest power market in the world.

Lithiu m Ion Batter y

32,000

0:15

Elkins, West Virginia, United States

AES-Johnson City

AES installed a bank of 800,000 A123 Lithium-ion batteries to perform frequency regulation for the New York ISO. The system was the largest Lithium-ion battery in commercial service on the US power grid when completed.

Lithiu m Ion Batter y

8,000

0:15

Johnson City, New York, United States

200KW, 500KWH Containerized Energy Storage System

BYD Ltd and Utility Partners of America (UPA) has put into service the renewable-balancing battery systems for Duke Energy. The 40-foot, selfcontained Energy Storage Station (ESS) is located in south Charlotte and has several BYD-vertically integrated components including a 200KW Bidirectional, UL-compliant BYD inverter with BYDâ&#x20AC;&#x2122;s 500KWh Iron Phosphate battery. BYD energy storage stations is rated at a 91% AC-DC-AC round-tripefficiency but have shown actual performance at this site as high as 95.3%.

Lithiu m Iron Phosp hate Batter y

200

2:30

Charlotte, North Carolina, United States

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Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

PG&E Vaca Battery Energy Storage Pilot Project

This project will be located at a substation near the Vaca Dixon Solar Plant of Vacaville, CA It's a 2-MW / 14 MWh installation that will address load shaping, renewables integration, and ancillary services.

Sodiu m Sulfur Batter y

2,000

7:00

Vacaville, California, United States

San Ramon Beacon Flywheel Energy Storage System

Beacon's flywheel project is located at Pacific Gas and Electricâ&#x20AC;&#x2122;s San Ramon research center. It employs seven 6kilowatt-hour flywheels, each the size of a small refrigerator, ganged together to form a system that can absorb or discharge 100 kilowatts of power for 15 minutes.

Flywhe el

100

0:15

San Ramon, California, United States

Beacon Power 20 MW Flywheel Frequency Regulation Plant (Hazle Township, PA)

This 20 MW plant will comprise 200 Gen4 flywheels that will provide frequency regulation services to grid operator PJM Interconnection. The plant can operate at 100% depth of discharge with no performance degradation over a 20-year lifetime, and can do so for more than 100,000 full charge/discharge cycles. The flywheels are rated at 0.1 MW and 0.025 MWh, for a plant total of 20.0 MW and 5.0 MWh of frequency response.

Flywhe el

6,000

0:15

Hazle Township, Pennsylva nia, United States

As of October 2013, the plant had 6 MW of operational installed capacity with additional capacity added each month.

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Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Rankin Substation Energy Storage Project

In 2010, Duke Energy, FIAMM, an S&C Electric Company came together to solve a problem on distribution circuits that have a high penetration of distributed solar generation. Due to passing clouds, solar energy output was observed to rapidly fluctuate; cases were observed where over 80% of a solar unit's output would drop in less than five seconds. To solve this, a battery system was envisioned that charged and discharged to absorb the solar-induced "power swings", allowing the circuit's voltage profile to remain smooth despite significant and rapid changes to the power flows along it.

Sodiu m Nickel Chlorid e Batter y

402

0:42

Rankin Avenue Retail Substation , Mount Holly, North Carolina 28120, United States

Lithiu m Ion Titanat e Batter y

1,000

0:15

102 Deka Road, Lyons, Pennsylva nia, United States

Energy storage is used to smooth out large minute-by-minute spikes and troughs in production from the 1.2megawatt rooftop solar project Duke operates about a mile away.

AltairnanoPJM Li-ion Battery Ancillary Services Demo

Following the successful completion of the IPL demonstration, in November 2008, AES relocated one of the 1-MW Altairnano systems from the Indianapolis Power and Light substation facility to the parking lot the PJM Interconnection's headquarters building. That unit has been wired into a feeder line and has been selling frequency regulation into the PJM Ancillary Service Market since January 2009. It has been in almost continuous operation since May of 2009. The unit was tested for power and energy capacity in May 2010 after more than 8,000 operating hours. Energy degradation was approximately 1% while the power degradation was not significant. Altairnano estimates the battery will be able to deliver the required 1 MW contract capacity for over 20 years based on the current PJM duty cycle.

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Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Flatiron Powerplant

The Flatiron Powerplant discharges into Flatiron Reservoir, which regulates the water for release to the foothills storage and distribution system. The afterbay storage in Flatiron Reservoir and the forebay storage in Pinewood Lake enable Flatiron Powerplant to meet daily power loads. The Flatiron reversible pump (Unit 3) lifts water from Flatiron Reservoir, a maximum of 297 feet, and delivers it through Carter Lake pressure conduit and tunnel to Carter Lake. When the flow is reversed, the unit acts as a turbine-generator and produces electric energy.

Open Loop Pumpe d Hydro Storag e

8,500

n/a

Loveland, Colorado 80537, United States

Flatiron units one and two are on AGC and provide VAR support and are occasionally used for spinning reserve. Axion PowerCube

Axion Power International, Inc., the developer of advanced lead-carbon PbC® batteries and energy storage systems, on November 22, 2011, integrated its PowerCube™ battery energy storage and battery system as a power resource for the PJM Regulation Market, which serves 58 million people in all or parts of 13 states and the District of Columbia.

Lead Carbon Batter y

500

0:30

3601 Clover Lane, New Castle, Pennsylva nia 16105, United States

GE Wind Durathon Battery Project

Invenergy installed GE’s Brilliant Wind Turbine with Durathon Batteries. GE and Invenergy recently announced plans to install several GE Brilliant turbines at a Mills County, Texas wind farm. The turbines will leverage shortterm energy storage provided by the GE Durathon Battery to help ensure reliable, predictable power.

Sodiu m Nickel Chlorid e Batter y

300

4:00

Tehachapi , Texas, United States

100 | P a g e

Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

PG&E Yerba Buena Battery Energy Storage Pilot Project

This 4 MW Sodium Sulfur battery system located at the research facility for HGST, Inc. in San Jose, CA. The system will support power quality and reliability for customers on the distribution feeder, have the ability to island the HGST facility, and be used for studying various battery functionalities such as load shaping and smoothing of intermittent resources. PG&E, working in coordination with Electric Power Research Institute via a grant from the California Energy Commission, will study the systemâ&#x20AC;&#x2122;s performance for multiple functionalities and make these reports available to the public.

Sodiu m Sulfur Batter y

4,000

7:00

3403 Yerba Buena Road, San Jose, California, United States

Green Charge Networks Lithium Ion Distributed Energy Storage System at 7Eleven

Green Charge Networks' GreenStation demonstration consists of a Lithium Ion storage unit, a system controller, one DC Fast electric vehicle charger (NYC's first DC charger). Primary benefits include peak shaving and demand charge avoidance. The system is tied to a network operations center where loads are monitored and controlled in real-time. The project is supported by a DOE Smart Grid Demonstration Grant.

Lithiu m Ion Batter y

100

1:00

58-20 Francis Lewis Blvd., Queens, New York 11364, United States

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Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Grid on Wheels

Grid on Wheels is the first ever use of electric vehicle batteries, chargers, and charging infrastructure to participate in and generate revenue from open ancillary services markets. Grid on Wheels is deployed at University of Delaware by eV2g, a joint venture between the University and NRG. The project uses 30 BMW MINI Es modified for V2G and provided by EV Grid. The project achieved the first successful fulfillment of and earned payment for grid regulation in PJM's ancillary services market in March, 2013. Since then Grid on Wheels has been increasing the hours and power it bids into the market. Ultimately, the 30 EVs in the project will be able to provide up to 300 kW or more of grid-up and grid-down regulation.

Lithiu m Ion Batter y

360

2:30

210 S College Ave., Newark, Delaware, United States

Palmdale Micro Grid Energy Storage Demonstratio n

Project Objectives Maintain high power quality on protected loads at all times Provide power to protected load in event of a utility sag or outage, Meet the ITI (CBEMA) curve during power quality events, Resynchronize with backup power or grid as necessary Target Applications, Seamless Reliability (UPS), VAR Support (Power Quality), Mobile Trailer Configuration for Utilities Wind Farm Stabilization, Village Power Systems, MicroGrid Networks

Double -layer Ultra Capaci tor Batter y

450

0:01

Palmdale, California, United States

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Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Pennsylvania ATLAS (Aggregated Transactive Load Asset)

VCharge, recognizing the energy storage potential of ETS, developed electronic controls for these heating systems that allow individual heaters or electric boilers to be switched on or off rapidly (within seconds) of the receipt of a control signal by VCharge’s Network Operations Center from the area’s grid operator, PJM Interconnect.

Heat Therm al Storag e

2,010

5:00

East Stroudsbu rg, Pennsylva nia, United States

Heat Therm al Storag e Heat Therm al Storag e Lithiu m Iron Phosp hate Batter y

175

5:00

300

5:00

Conord, Massachu setts, United States Portland, Maine, United States

4,000

0:30

134 homes in VCharge’s Aggregated Transactive Load Asset (ATLAS) create a huge resource for grid balancing– specifically providing ancillary services like fast frequency response through the markets run by PJM. This reservoir of capacity, both to cut load on the system (effectively generating negawatts) and to absorb rapid influxes of energy (for example from a sudden surge from a solar or wind farm) means that grid operators have a powerful new tool in their belts to deal with the coming demands of a shifting energy mix. VCharge Concord Pilot

Pilot distributed thermal storage project providing frequency regulation and load-shifting in ISO New England.

VCharge Maine ATLAS (Aggregated Transactive Load Asset) Ohio 4MW/2MWh ESS

Distributed/Aggregated transactive load asset comprised on electric thermal storage heating in Maine residences Relying on the advanced Fe battery technology, BYD ESS technology uses a modular, flexible design and can be easily tailored to meet a diverse set of customer needs. Up to now, BYD has a lot of successful cases of battery storage solutions from KW sized to MW sized system at home and abroad.

Ohio, Ohio, United States

103 | P a g e

Name

Description

Technology

Rated Power (MW)

Durati on (HH:M M)

Location

Brooklyn Army Terminal

Brookly Army Terminal is using for local and grid-services and being managed by a commercial building management system. Princeton Power Systems created the advanced controls and provided power electronics

Advan ced Lead Acid Batter y

100

6:00

140 58th S, Brooklyn, New York, United States

Solar Grid Storage Philadelphia Navy Yard

Solar Grid Storage targets projects ranging from 150kW to 10MW. The PowerFactor™ inverter acts as a standard solar inverter delivering AC power to the building, but is also shared with the PowerFactor™ battery making it available to the grid operator who can call upon it to temporarily charge or discharge the battery to help balance power on the grid balancing to net zero on an hourly basis. The PowerFactor™ system has the additional benefit of allowing the PV system to operate in power outages, something standard PV projects cannot offer.

Lithiu m Ion Batter y

250

0:30

Philadelph ia, Pennsylva nia, United States

SEPTA Letterly Regen Battery

800kw Lithium Ion storage technology with integration to DC traction system

Lithiu m Ion Batter y

800

0:30

Axion VRLA Battery

100kw (going to 500kw) Lead-Carbon battery serving site manufacturing / assembly load

Valve Regula ted Lead Acid Batter y (VRLA)

100

0:30

1824 East Letterly Street, Philadelph ia, Pennsylva nia 19125, United States 3601 Clover Lane, New Castle, Pennsylva nia 16105, United States

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