3. Energy Storage
• Temporal transfer methods
▫ Demand side participation
▫ Energy storage
• Low penetrations of storage
▫ Development of technologies
▫ Economic barriers… but prices are coming down
Superconducting Magnetic
Batteries Flow Batteries Super Capacitors
Storage (SMES)
Compressed Air Energy
Fuel Cells Fly Wheels Storage Pumped Hydro
(CAES)
4. Cost Projections
Figure 3: Energy storage cost projections (Clean Energy Council 2012)
5. Storage Applications
• Storage Application Frameworks
▫ Specific assessments (firm and market level)
▫ Energy Storage for the Electricity Grid – Sandia Laboratories
Demand Charge
Consumer Applications Reliability ToU Cost Management Power Quality
Management
Energy Market Energy Time Shift Supply Capacity
Network Support Upgrade Deferral Sub-station power Congestion Relief Transmission Support
Ancillary Services Frequency Regulation Load Following Reserve Capacity Voltage Support
Wind generation
Renewable Integration Energy time shift Capacity firming
integration
Eyer, J. and Corey, G., 2010. Energy Storage for the Electricity Grid: Benefits and Market Potential Assessment Guide
6. Indicative Benefits
1800
• High-value Applications
1600
▫ Network augmentation deferral
1400
▫ End-user reliability
▫ Spatial variability
Indicative Benefit Range ($k/ MWh)
1200
1000
800
• Benefits Span Supply Chain
600
▫ Network benefits
400
▫ Wholesale energy benefits
200
▫ Reliability benefits
0
Deferral Reliability On-site Power Capacity Freq RegulationTime-shift
Figure 5: Indicative annual benefits range of DES in the NEM (Sue et al. 2012)
7. Benefits Aggregation
900
• Aggregation of Applications
800
▫ Maximise revenue
700
▫ Rewarding flexibility
Annualised Value ($k/ MWh)
600
500
400
300 • Aggregation Frames
200 ▫ Benefit aggregation
100 ▫ Spatial aggregation
▫ Temporal Aggregation
0
Reliability Deferral Capacity Time-Shift Freq Regulation
Figure 6: Indicative annual benefits of DES in the NEM (Sue et al. 2012)
8. Institutional Constraints
• Access to Applications
▫ Beyond technical and operational
constraints
▫ Do institutional mechanisms
support applications
• Support for Aggregation
▫ Access to multiple applications
Figure 7: Fields of constraint for technologies in the NEM (Sue et al. 2012)
9. Regimes Generation Transmission Distribution Retail
Social/ political pressure on Social/ political pressure to increase Social/ political pressure to increase Social/ political pressure to reduce
Social generation mix reliability reliability costs
Governance
SCER instigates AEMC reviews SCER instigates AEMC reviews SCER instigates AEMC reviews SCER instigates AEMC reviews
Political and Stakeholders submit to AEMC Stakeholders submit to AEMC Stakeholders submit to AEMC Stakeholders submit to AEMC
reviews reviews determinations reviews
Administrative
CCA periodically reviews Clean Reliability and environmental policy Jurisdictions direct distribution Jurisdictions direct retail policies
Energy Act defined by jurisdictions. policies
NEL and NER with development NEL and NER with development by NEL and NER dictate connection NERL and NERR dictate supply
by AEMC AEMC and regulation requirements arrangements and operation
NEL applied by jurisdictional acts Separate jurisdictional codes NERL and NERR dictate requirements
Renewable Energy Act for RET governing standards and responsibilities to retailers and NEL and NER dictate
Clean Energy Act for large GHG responsibilities consumers responsibilities as market customer
Legislative ACT rules on revenue decision Separate jurisdictional codes Renewable Energy Act outlines
emitters
Jurisdictional acts for FiT schemes appeals governing reliability standards and RET responsibilities
responsibilities Jurisdictional acts for FiT schemes
ACT rules on revenue decision Jurisdictional energy efficiency
appeals schemes
AER monitors competition AER regulates revenue AER regulates revenue AER monitors competition
RET instruments regulated by CER Augmentation regulated by AER Augmentation regulated by AER AER oversees authorisation of
Carbon price mechanism regulated through RIT-T with regard to through jurisdictional retailers
Regulatory by CER jurisdictional reliability values methodologies and reliability values. Jurisdictional regulators conduct
Jurisdictional regulators determine Jurisdictional regulators oversee retail price determinations
FiT prices and arrangements licensing arrangements CER for RET
Energy and ancillary market rules Regulated revenue for prescribed Regulated DUoS revenue for direct Regulated return from energy sold
defined in NER. Market operation transmission services control services Energy market rules defined in
and operating standards controlled Negotiated revenue for negotiated Negotiated distribution services set NER. Market operation controlled
by AEMO transmission services out in contractual arrangements by AEMO
Derivative trading on ASX and Negotiated NSCAS contracts for Negotiated DSM contracts for Derivatives trading on ASX and
Commercial OTC markets services from external parties augmentation deferral OTC markets
RERT contracts for reserve Negotiated DSM contracts for DMIS payments regulated by AER FiT payments to consumers
capacity services from external parties Network payments to TNSPs LGC and STC liability under RET
LGC and STC transactions under Network payments to TNSPs and
RET DNSPs
FiT revenue
Technical standards set out in NER NER dictates requirements Connection to network managed by
and by AEMO Direct connection requires DNSP
Technical Obligations for connections negotiation with TNSP Jurisdictional distribution codes
defined in NER Jurisdictional codes for fault levels
at connection points
Short-term security managed by Long term planning by AEMO Planning delegated to DNSP
AEMO (NTNDP) Jurisdictions set SAIFI, SAIDI, and
Long-term forecasting by AEMO APRs released by TNSPs as N-x
(ESOO) Jurisdictional Planning Body
Security
AEMC-RP reviews MPC, MFP, Jurisdictions set SAIFI, SAIDI, and
CPT and reliability standard N-x
AEMC-RP has LRPP
My background is in sustainable energyIntroduce my supervisors
The first is an increasing peak in demand. This graph shows the electricity demand in the national electricity market as a percentage of the year for NSW in 2011. As you can see, high electricity demands occur for a relatively small percentage of the year. In essence this means that a large percentage of the network infrastructure and generation assets are required for only a small percentage of the time. Additionally, since the spot price of electricity is reliant on demand, the prices for this small percentage of time make up a large part of the annual wholesale costs. By taking a closer look at the upper section of the graph we can see that the top 2.5% of the year requires 22% of the generation and T&D infrastructure, and accounts for 36% of annual wholesale energy costs.
Change demand profile through increased energy efficiency and greater demand side price signals or….Energy storage using technologies such as these to allow the temporal transfer of supplyThe argument against using storage technologies within the network has traditionally been based, almost exclusively, on the cost of these technologies versus the available economic benefits. An interesting question, however, is whether this still stands if a broad range of applications are taken into account, and storage is free to access all of those applications.The aim of my research is to develop a framework to quantify the benefits of energy storage in the NEM across a broad range of applications, and investigate the access to those applications in the Australian National Electricity Market.
Change demand profile through increased energy efficiency and greater demand side price signals or….Energy storage using technologies such as these to allow the temporal transfer of supplyThe argument against using storage technologies within the network has traditionally been based, almost exclusively, on the cost of these technologies versus the available economic benefits. An interesting question, however, is whether this still stands if a broad range of applications are taken into account, and storage is free to access all of those applications.The aim of my research is to develop a framework to quantify the benefits of energy storage in the NEM across a broad range of applications, and investigate the access to those applications in the Australian National Electricity Market.
Change demand profile through increased energy efficiency and greater demand side price signals or….Energy storage using technologies such as these to allow the temporal transfer of supplyThe argument against using storage technologies within the network has traditionally been based, almost exclusively, on the cost of these technologies versus the available economic benefits. An interesting question, however, is whether this still stands if a broad range of applications are taken into account, and storage is free to access all of those applications.The aim of my research is to develop a framework to quantify the benefits of energy storage in the NEM across a broad range of applications, and investigate the access to those applications in the Australian National Electricity Market.
Change demand profile through increased energy efficiency and greater demand side price signals or….Energy storage using technologies such as these to allow the temporal transfer of supplyThe argument against using storage technologies within the network has traditionally been based, almost exclusively, on the cost of these technologies versus the available economic benefits. An interesting question, however, is whether this still stands if a broad range of applications are taken into account, and storage is free to access all of those applications.The aim of my research is to develop a framework to quantify the benefits of energy storage in the NEM across a broad range of applications, and investigate the access to those applications in the Australian National Electricity Market.
Change demand profile through increased energy efficiency and greater demand side price signals or….Energy storage using technologies such as these to allow the temporal transfer of supplyThe argument against using storage technologies within the network has traditionally been based, almost exclusively, on the cost of these technologies versus the available economic benefits. An interesting question, however, is whether this still stands if a broad range of applications are taken into account, and storage is free to access all of those applications.The aim of my research is to develop a framework to quantify the benefits of energy storage in the NEM across a broad range of applications, and investigate the access to those applications in the Australian National Electricity Market.
Change demand profile through increased energy efficiency and greater demand side price signals or….Energy storage using technologies such as these to allow the temporal transfer of supplyThe argument against using storage technologies within the network has traditionally been based, almost exclusively, on the cost of these technologies versus the available economic benefits. An interesting question, however, is whether this still stands if a broad range of applications are taken into account, and storage is free to access all of those applications.The aim of my research is to develop a framework to quantify the benefits of energy storage in the NEM across a broad range of applications, and investigate the access to those applications in the Australian National Electricity Market.