BATTERY ENERGY STORAGE SYSTEM

(BESS)
 ENERGY STORAGE SYSTEMS
Energy Storage System is a general term for the ability of a system to store energy using thermal, electro-mechanical or
electro-chemical solutions.
 Battery Energy Storage System

• Battery Energy Storage System (BESS) is a technology developed for storing electric charge by using specially developed batteries.
• The underlying idea being that such stored energy can be utilized at a later time.
• A BESS typically utilizes an electro-chemical solution .
 Why BESS over other storage technologies
BESS has following advantage over other Storage technologies as
 It has small footprint and no restrictions on geographical locations that it could be located in.

 Other Storage technologies like Pumped hydro storage (PHS) and Compressed air energy storage (CAES) are only suitable for limited number
of locations, considering water and siting-related restrictions and transmission constraints.

Energy and power densities of some technologies are as follows:

 It is clear that BESS utilizing Lithium Ion technology offer high energy and power densities that are suitable for utilizing at distribution
transformer level. The available space at the distribution transformer setup can be used to locate the BESS.

 Further the rated apparent power of distribution transformers are in the range of 160 kVA, 400kVA up to 1 MVA (for rural, urban and
metropolitan respectively).
COMPONENTS OF BESS
DIFFERENTIATING CHARECTERISTICS OF
DIFFERENT BATTERY TECHNOLOGIES
 Value Levers for BESS in Power Systems
Ancillary Services  BESS can provide Ancillary Services support (frequency and voltage support)
 Black start

Transmission  Transmission congestion relief and upgrade deferral

 Technical loss reduction
Infrastructure  Right of Way (RoW) constraint management
Services

Distribution  Ramping for self-scheduled portfolios / avoiding RE curtailment

 Distribution upgrade deferral
Infrastructure  Reliability enhancement: outage mitigation
Services  Managing large scale EV charging stations across distribution network
 Peak shaving and energy support

Avoided Renewable  RE energy time-shift (arbitrage) [hourly BESS support]

 Capacity firming of RE generation [Sub-hourly BESS support]
Curtailment

Battery Energy Storage Systems are more flexible than other conventional options, as they do not have locational constraints, have very fast
response times and can be deployed in both large and small scales .
 GRID APPLICATIONS OF BESS
Grid Applications
Electric energy time-shift : Technical Considerations
• Electric energy time-shift involves purchasing inexpensive electric energy, available during periods when prices or system marginal
Electric energy time-shift : Storage system size range: 1 – 500 MW
• costs are low,
It involves to charge
purchasing the storage
inexpensive system
electric this stored
energy, energy
available duringcan be used
periods or sold at a later time when the price or costs are high.
when
• prices or systemstorage
Alternatively, marginalcan
costs are low,
provide to charge
similar the storage
time-shift dutysystem this stored
by storing Target
excess energy discharge duration
production, range: otherwise
which would < 1 hour be curtailed,
energy can be used or sold at a later time when
from renewable sources such as wind or photovoltaic.the price or costs are high. Minimum cycles/year: 250 +
• Similar time-shift duty can be provided by storing excess energy production,
which would otherwise be curtailed, from renewable sources such as wind or
photovoltaic.

Regulation: Storage system size range: 10–40 MW

• It involves managing interchange flows with other control areas to match closely
the scheduled interchange flows and momentary variations in demand within the Target discharge duration range: 15 min to 1 hour
control area. Minimum cycles/year: 250–10,000
• It helps in maintaining the grid frequency.
Black start : Storage system size range: 5–50 MW
• Storage systems provide an active reserve of power and energy within the grid
and can be used to energize transmission and distribution lines and provide Target discharge duration range: 15 minutes to 1 hour
station power to bring power plants on line after a catastrophic failure of the grid.
Minimum cycles/year: 10–20
• Storage can provide similar start-up power to larger power plants, if the storage
system is suitably sited and there is a clear transmission path to the power plant
from the storage system’s location
 USE CASES
RENEWABLE ENERGY INTEGRATION:

CHALLENGES FACED BY RENEWABLES WITHOUT CHALLENGES THAT CEN BE ENCOUNTERED WITH

BESS BESS

Network owners may be penalized for insufficient More grid connections can be made under existing network
reinforcement of network capacity to accommodate all capacity as surplus power can be stored
network connection requests.

Distribution system operators may have trouble with Smoothing of renewable in-feed reduces forecast errors,
system stability and may be forced to curtail renewable in- and the need to procure spinning reserve. Surplus power
feed to avoid over-voltage conditions. can be stored at consumers’ homes instead of being fed into
the grid.

Network reinforcement and curtailment costs are ultimately Higher network capacity utilization reduces the burden on
recovered from end consumers in the form of higher tariffs. consumers as curtailments are reduced and network
reinforcement is minimized.
 USE CASE - DEMAND SIDE MANAGEMENT
PEAK SHAVING
• The reduction of electric power demand when network capacity is stressed is known as peak shaving
• Helps defer investments in network expansion or network reinforcement.
• Helps the utility meet demand without having to ramp up expensive peaking generators.
• Customers that install on-site power generation share in those savings by receiving reduced power tariffs or in some cases capacity
payments (such as in the United Kingdom [UK]).
• Peak-shaving generators use special equipment to monitor the electric grid and start up quickly. This equipment provides the added
benefit of backup power in case of rolling backups and grid outages
 USE CASE - DEMAND SIDE MANAGEMENT
LOAD LEVELLING
• It is the process of shifting demand away from peak hours to off-peak hours.
• Behind-the-meter energy storage allows for load leveling without any changes to the consumer load profile.
• Reducing peak-time usage of grid-supplied electricity – saves energy costs , reduces overuse charges, prevents blackouts by means of
the UPS feature of generators, complies with carbon dioxide (CO2 ) reduction regulations.
BENEFITS OCCURRED FROM BESS
1.Benefits from Ramping Support
Inability of thermal generators in the portfolio in
supporting rapid decline in RE/uptake in demand.
BESS can discharge quickly to “even out” the
generation.
2.Benefits from Energy Arbitrage
BESS will run at slots with peak demand and help
in peak reduction. The BESS will charge when the
energy cost is low and dispatch during peak (high
cost)

3.Excess Generation
As the country shifts to more RE generation, there
will be excess of generation which can be used to
charge the BESS at lower cost
4.Capacity Deferral
The battery system is optimally located to defer
distribution capacity enhancements.
 Global storage market trends
Drivers: Challenges:
•Global movement towards renewables •Outdated regulatory and market design
•Cost & performance improvements •Perception of high prices
•Financial backing for storage companies •Lack of standardization
BESS System Cost Projections

 LTO: Lithium
Titanate

 NCM: Lithium Nickel

Manganese Cobalt
Oxide

 LFP: Lithium Iron

Phosphate

 ZnBr: Zinc Bromide

 VRB: Vanadium
Redox Battery
 Costs will keep reducing over the next decade

Total energy storage system project cost is expected to decrease by 30-40% by

2029 across all battery technologies.

The primary drivers of the cost reductions include:

•Increased production capacity

•Supplier diversity
•Incremental performance improvement
•Reduction in project development and engineering costs

The trajectory of storage cost has similarities with historical

solar cost trends
Parameters for determining the BESS economics
 Cost Analysis: Cost Breakdown
1. Capital cost or plant financial carrying charges

a. Storage System footprint and space requirements

(Energy andPower density).
b. BESS (batteries, power converters, etc.)
c. Facility infrastructure (communications and control,
environmental control, grid interconnection, etc.)

2. Total operating cost:

a. Cost for charging the system

b. Labor associated with plant operation
c. Plant maintenance
d. Replacement and repair cost
e. Decommissioning and disposal cost
 Cost Analysis: Utilizing Used Li-Ion Batteries
 A new 15 kWh battery pack currently costs $990/kWh to $1,220/kWh
(projected cost: 360/kWh to $440/kWh by 2020).

 The expectation is that the Li-Ion (EV) batteries will be replaced with a fresh
battery pack once their efficiency (energy or peak power) decreases to 80%.
Based on various forecasts for market penetration of PHEVs and EVs over
the next 10 years, a large number of PHEVs and EVs will be approaching
this 80% efficiency level by 2020. These batteries can be recycled or used in
other less demanding applications for the rest of their useful life provided a
business case can be made for their secondary use.

 The minimum goal for a selling price for a Used Li-Ion Batteries is less than
$150/kWh for 25,000 units at 40 kWh.
 Benefit Analysis: Revenue Generating Applications

1. Electric Energy Time-Shift

2. Load Following

3. Renewables Energy Time-Shift

4. Renewables Capacity Firming

 Benefit Analysis: Electric Energy Time-Shift
 Basic concept: Buy low / Sell high
 Key elements:
 Round trip efficiency
 Hourly prices
 Discharge duration
 For about 900hrs/year the price is $100/MWhr* (peak time)
 For about (8760-900)=7860hrs/year the price is $50~$60/MWhr*
(off-peak time)

Decision making process: If the cost for wear on the storage system,
plus the cost for charging energy, plus the cost to make up for storage
losses exceeds the expected benefit, then the transaction is not made.

 The generic benefit estimate for Electric Energy Time-Shift ranges

from $400/kW to $700/kW (over 10 years).
 Benefit Analysis: Renewables Energy Time-Shift
 Similar concept Electric Energy Time-Shift but with emphasis on
the renewable energy source.

 Instead of selling off-peak energy in real-time (when generated),

that energy is stored and used at a later time when energy prices
are high.

 Peak time 12:00 pm – 5:00 pm

 Storing low-priced energy from the grid and directly from renewable
energy generation means that there is more energy output from the
renewable energy plus storage system than could be delivered if only
energy from renewable energy generation is stored.

 The generic benefit estimate for Renewables Energy Time-Shift ranges from
$233/kW to $389/kW (over 10 years).
 Benefit Analysis: Load Following

The benefit consists of two possible scenarios:

 Marginal cost: Cost for fuel and variable maintenance

 Low end cost $20/MW per hour (hydroelectric

plant)

 High end cost $50/MW per hour (combined cycle

generation)

 Capacity cost: Cost for additional generation capacity

 A simple cycle combustion turbine costs $60/kW-

year

 A combined cycle plant costs $120/kW-year

 The generic benefit estimate for Load Following ranges

from $359/kW to $710/kW (over 10 years).
 Benefit Analysis: Renewables Capacity Firming
 A well-optimized, solar generation facility can have a 0.80
capacity credit.

 Whereas another solar generation facility might be firmed with a

capacity credit of 0.40 (i.e., distributed, flat panel PV modules
with a suboptimal and fixed orientation, regular dust
accumulation, shading by surroundings, high ambient
temperatures, high level of cloudiness, etc.).

 Adding storage to distributed fixed-orientation PV is assumed to

increase the capacity credit from 0.40 to 1.0.

 The renewables capacity firming benefit estimated for adding

storage to renewable energy generation is incremental.
Consequently, the financial merits of adding storage to
renewables generation, the incremental benefit is compared to
incremental cost (to add storage).

 The generic benefit estimate for Renewables Capacity Firming

ranges from $709/kW to $915/kW (over 10 years).
Storage project costs accrue to goods and services provided by three parties
 CAPEX WALKTHROUGH
Technology Cost Range

DC Side Modules and BMS ($/kWh) $200 -$500

Power Conversion System ($/kW) $70 -$110
Grid management control system ($/kW) $20 -$50
Electrical BoP, installation, commissioning ($/kW) $80 -$200

Services, tariffs and contingency ($/kWh) $50 -$100

Preventative maintenance cost ($/kW-year) $3 -$7

Capacity Maintenance Cost Based on amortized dc-side replacement cost at $100-

$250/kWh based on overbuild/augmentation schedule
OR
Annual contract

Equipment insurance fee 0.5% -1.0% Capex per year

CAPEX WALKTHROUGH

• DC-side cost is 60-65%

• PCS and control costs ~10%.

• BoP and Project development costs

are 20 –30%
 CASE STUDY
Unique experiment: South Australia’s Battery Farm

Hornsdale Power Reserve (HPR), the 129MWh battery energy storage system (BESS) deployed by Tesla and developer Neoen in South Australia in

100 days duration was found to have had a positive impact on the local network.

The system went into operation in November 2017. Aurecon, an independent engineering and infrastructure advisory company, issued a case study

report based on HPR’s performance on its first 365 days of service.

 

Description

• It is the world’s largest lithium ion battery system in existence to date

• HPR has a 100MW discharge capacity and shares a 275kV network connection point with Hornsdale Wind Farm (300MW).

• Of the 100MW capacity, 70MW is reserved for system security services contracted to the South Australia government, while Neoen can use the
remaining 30MW and 119MWh of storage capacity to participate in market opportunities.

• Aurecon’s experts found HPR to have supplied numerous benefits to the system throughout the year, including removing the need for network
upgrades and additional capacity. It also responded effectively to stress events on the local network.
System Operation
 The first year of operation included a “large system security event” , when an inter-connector between the grids of Queensland and New
South Wales was tripped, islanding the Queensland region. Using fast frequency response (FFR) services, HPR was able to stabilize grid
frequency to within the accepted range of 0.15Hz either side of 50Hz. Aurecon said HPR “performed as required”, providing significant
frequency support to all connected National Electricity Market regions.

 HPR also participates in six further Frequency Control Ancillary Services markets for AEMO, including managing total deviation of
frequency and Rate of Change of Frequency. From operational data provided, Aurecon said the system is providing “very rapid and precise
response to FCAS regulation signals”. This is in particularly stark contrast to the much slower and less precise responses provided by
steam turbines, which have been the traditional means of balancing this part of the network.

 Aurecon said HPR has greatly increased the competitive dynamic of the FCAS markets, highlighting that in 2016 and 2017 FCAS
constraints meant 35MW of capacity had to be kept aside, adding close to AU$40 million in regulation costs in that time.

 In addition to frequency regulation, the system also participates in AEMO and ElectraNet’s System Integrity Protection Scheme (SIPS),
which offers protection against the loss of the locally-sited Heywood Interconnector if multiple generators fail. It’s a direct response to the
2016 blackout which eventually inspired the deployment of HPR, and Aurecon acknowledged that HPR plays a significant role in injecting
energy into the network. It is required to discharge up to 100MW in under 150ms. If this step fails, the system is then used to help provide
load shedding to the network.
 Pilot on Grid Connected BESS at Transmission Voltage
Implemented in collaboration with Power Grid Corporation of India Ltd. (CTU)
Augmenting the system with capabilities to demonstrate array of use cases (on Advanced Lead and Lithium-ion) including:

a. Dynamic Frequency Regulation

b. Voltage/Reactive Power Support
c. Load Following
d. Peak Shaving
e. RE Capacity Firming
f. RE Time Shift
g. Integrated Applications

 This pilot shall test the techno-economic effectiveness of grid-connected BESS in providing dynamic frequency
regulation and other ancillary services.

 The pilot shall also be crucial in providing inputs to finalize standards for BESS grid interconnection.

 The pilot is helping establish detailed site acceptance standards for grid-connected BESS
 Pilot on Grid Connected BESS at Transmission Voltage
Value of BESS in Primary and Secondary Frequency Response –Southern Region
GTG-RISE, with the support of PRDC Ltd, carried out simulation studies for frequency regulation with BESS. It involved assessing the
performance/impact of grid connected BESS response in arresting grid frequency events in the inertial/primary time frame and determining
optimal sizing of BESS for grid stability.

• Simulation indicated that a 1200 MW (1 hr) BESS was equivalent to ~3000 MW of spinning reserves required in the Southern Region for primary
response.
• Deployment of 1200 MW BESS yields significant benefits in releasing the 3000 MW of spinning reserves for participation in the day-ahead
market.
• Benefits outweigh cost of 1200 MW BESS by a factor of 3 as restrictions on scheduling beyond MCR can be relaxed for all conventional plants
with BESS deployment.
 Pilot on Grid Connected BESS in Distribution Network
Establishing business case for a distribution utility in Delhi for its 20 MW BESS

Conceptualization & Pilot Implementation Market & Regulatory Framework

• Stacked economic benefit assessment of 20 MW • Preparing a business case for deployment of BESS
BESS deployment in Distribution system in distribution
• Develop Market Framework for BESS in • Business model formulation and SLA conditions
Distribution • Business case approval from DERC

Key Activities

 Technical (load flow) modeling of the interconnected network in standard load flow modeling tools to evaluate capacity
deferral of the associated network infrastructure (Transformer, feeder, Capacitor bank etc.)

 Simulation modeling (Python based optimization model integrated with Open DSS) to estimate stacked economic
benefits from ramping support, energy time-shift, CAPEX deferral and other potential applications for optimal utilization of
BESS
 Compliance and Safety

For most projects, individual components of the BESS are required to

meet electrical and/or safety code and standard requirements.
Battery, Cells, Modules Battery Container BESS
and Racks

• UL 1642 • NEC/NFPA 70 (U.S) • UL 9540

• UL1973 • SPE 1000(Canadian) • NFPA 855
• UL 38.3 • NFPA 1

AC/DC Convertor
UL 1741
IEEE 1547(Invertor
only )
 Defining the hazard: What is “thermal runaway”?
Application of
Abuse factor
Abuse factor examples:
propagation -Temperature of +250°F (+120 C)

Preventive Region
Containment Region
-Failure of grid, transformer,
Battery inverter, breakers, and fuses
Second order fire

Cell damage
abuse
thermal runaway
impacts: Ignition
-High heat, causing
cascading failure smoke Off-gas
-Fire
Heat Release Cell vents –
Opportunity for
Opportunity for
preventative actions
containment actions
Oneset of thermal
Runaway
 Managing the hazard: Standards to prevent thermal runaway

•NFPA 855
•IFC 2018 (and 2021)
•UL Standards
•UL 1642 (cell)
•UL 1973 (module)
•UL 1741 (inverter)
•UL 9540 (system)
•UL 9540A (test method)
•2019 New York Code Supplement
 Managing the hazard: Concentric Layers of Protection

Normal Electrical
Safety by
Operation Protection/Fail
Design
Safety safe

Fire
Safety Systems Procedures
Suppression
 Income vs Degradation

2 cycles/day,70% in 13.1 Yr. , cycles/day,70% in 17.8 Yr.

1.5 cycles/day,70% in 15.6 Yr.
 Future Work
 Apply different methods to evaluate an investment in BESS:
 Rate of Return
 Payback time
 Net Present Value
 SWOT analysis
 Evaluate a system with and without an BESS (comparative study)
 Hardware testing of a BESS (eGRID)
Thank You!