MISO Energy Storage Study Phase 1 Report - Utility Wind ...

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Introduction MISO follows a cycle known as the MISO transmission expansion plan (MTEP) that results in annual recommendations to proceed with expansion projects, subject to approval by the independent MISO board of directors. The planning process is open to stakeholder participation and its deliberations are disseminated via the MISO website. State legislated renewable portfolio standards (RPS) within the MISO footprint in Montana, Minnesota, Wisconsin, Iowa, Missouri, Illinois, Michigan, Ohio, and Pennsylvania require varying percentages of electrical energy be met from renewable energy resources starting in 2010. These mandates resulted in initiatives to integrate renewable energy generation, primarily from wind, into the MISO market (see Figure 1-1). Wind resources now account for 6 percent of installed capacity (approximately 9.2 GW) 3 . Economic electricity generation from wind typically occurs some distance from load centers, requiring new transmission be constructed to reach consumers. Wind generation is also variable and has to be carefully balanced with conventional resources in order to maintain system reliability. In January 2009, MISO started an ancillary services market (ASM) to introduce competition to services that ensure system reliability. The ASM market allows generators to bid as operating and contingency reserves in the real time market. A transparent market for these resources opens up the possibility that unconventional resources such as demand side resources and various storage technologies can be encouraged by receiving additional compensation for ancillary services. The ASM in turn attracts resources that will be needed to balance increased variable generation from resources such as wind and solar power. The 2010 MTEP10 transmission planning cycle included a regional generation outlet study (RGOS) that focused on planning scenarios necessary to integrate increased electricity generated from wind resources. Also since 2009 MISO has allowed a portion of the intermittent wind resources to be counted toward resource adequacy requirements. In 2012 the effective capacity portion will allow about 14 percent of the installed wind capacity to be treated as resource capacity; however the actual realized capacity is less than this because the transmission system is the limiting factor. The balance between how much transmission should be expanded as the benefits might diminish is an on-going aspect of transmission planning. In 2011 MISO introduced an ASM product called Dispatchable Intermittent Resources (DIR), where rather than wind resources simply being curtailed, those resources can get paid to reduce output and contribute to mitigating congestion. While curtailment or price signaled DIR manages reliability, the corresponding reduced output represents a marginal decrease toward achieving renewable energy mandate targets. As significant variable generation resources are added to the transmission grid, long-term energy storage becomes a potentially attractive option because it can be used to shift electricity generated during off-peak periods for use during peak demand. Short-term energy storage is also valuable for contingency reserves and as a frequency regulating resource (operating reserves). MISO currently accommodates long-term storage resources in its markets in the form of pumped hydro storage (PHS). PHS technology involves pumping water up a gradient using low price offpeak electricity and discharging the water through turbines to produce electricity during peak consumption periods. These resources have participated in MISO markets since April 2005 and are treated in a comparable manner to generators and price sensitive loads. There is 3 2010 MISO State of the Markets Market Monitor Report June 2011, Potomac Economics 1-2
Introduction approximately 2500 MW of pumped storage resource registered in MISO. Short-term energy storage is currently only accommodated as a regulating resource in the ASM tariff, a provision that was added to facilitate the use of flywheel energy storage technology. This stored energy resource provision is the subject of ongoing debate between the FERC and MISO 4 . The FERC is requesting equitable market treatment for any stored energy resource technology including longer-term resources. The Energy Storage Study is a targeted study carried out during the 2011 MTEP cycle. The Energy Storage Study models several hypotheses around battery, compressed air, and pumped hydro energy storage technologies. The study explores reliability, market, and planning benefits that storage technologies provide. Study objectives are to determine the economic potential and feasibility of storage technologies for MISO and to suggest potential MISO energy and operating reserve market enhancement products, if appropriate. Figure 1-1: RPS Mandates and Goals Within the MISO Footprint (Source MISO) Three drivers underpin the MISO Energy Storage Study as follows: • The first is the open question on short and long-term storage treatment in the ASM. The FERC expresses concern that any short-term energy storage technology (not just flywheel) should be accommodated by the ASM tariff and able to participate in other 4 See FERC Docket Nos. ER07-1372-014 and ER09-1126-000 1-3
Page 1 and 2: MISO Energy Storage Study Phase 1 R
Page 3: ACKNOWLEDGMENTS The following organ
Page 6 and 7: Project Objectives The MISO Energy
Page 8 and 9: from energy storage. The lessons le
Page 11 and 12: CONTENTS 1 INTRODUCTION ...........
Page 13: 8 STUDY CONCLUSIONS ...............
Page 16 and 17: Figure 7-5: Initial PLEXOS Results
Page 20 and 21: Introduction 1-4 markets besides re
Page 22 and 23: THE MISO PLANNING ENVIRONMENT coinc
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Page 29 and 30: 3 ENERGY STORAGE TECHNOLOGIES The E
Page 31 and 32: ENERGY STORAGE TECHNOLOGIES Table 3
Page 33 and 34: ENERGY STORAGE TECHNOLOGIES Newer,
Page 35 and 36: Figure 3-5: Advanced CAES Plant Sch
Page 37 and 38: ENERGY STORAGE TECHNOLOGIES periods
Page 39 and 40: 4 STORED ENERGY RESOURCE TREATMENT
Page 41 and 42: Short Term Energy Storage Resources
Page 43 and 44: STORED ENERGY RESOURCE TREATMENT IN
Page 45 and 46: STORED ENERGY RESOURCE TREATMENT IN
Page 47 and 48: 5 ENERGY STORAGE MODELS AND ASSUMPT
Page 49 and 50: ENERGY STORAGE MODELS AND ASSUMPTIO
Page 51 and 52: o Spinning reserve designations and
Page 57 and 58: o Minimum and maximum generation (M
Page 59: ENERGY STORAGE MODELS AND ASSUMPTIO
Page 62 and 63: EGEAS ANALYSIS RESULTS 6-2 Figure 6
Page 64 and 65: EGEAS ANALYSIS RESULTS Energy Arbit
Page 67 and 68: 7 INITIAL PLEXOS ANALYSIS PLEXOS Ph
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Modeling Challenges Identified Usin
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INITIAL PLEXOS ANALYSIS Figure 7-3:
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INITIAL PLEXOS ANALYSIS Moving into
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8 STUDY CONCLUSIONS The Energy Stor
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A TECHNICAL REVIEW GROUP WORKSHOP A
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TECHNICAL REVIEW GROUP WORKSHOP AGE
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B ACRONYMS $/kW Dollars per kilowat
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C STAKEHOLDER FEEDBACK Response to
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Comments and clarifications from Ma
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MISO Energy Storage Study Phase 1 Report - Utility Wind ...

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