ACTION PROPOSAL FOR FLYWHEEL ENERGY TECHNOLOGY Enhance future grid reliability, interoperability, & extreme event protection In 20 years, the flywheel energy storage technology will be designed, integrated into the current energy grid, operated, and maintained in a manner consistent with maintaining system reliability, increasing energy storage capacity, and maximizing asset use in an environmentally sound manner. TARGETS AGENCIES INVOLVED CHALLENGES Increase energy storage capacity, energy output capabilities & control of power flow Use efficient, cost- effective, environmentally sound energy supply & demand Maximize asset use - U.S. Department of Energy - Office of Federal Energy Management - Office of Electrical Delivery & Energy Reliability - National Energy Reliability Commission (NERC) - Midwest Reliability Organization (MRO) - Local Power Companies - Companies Currently Providing Alternate Energy Sources - Intelligent grid that communicates across planning, design, operation, protection & control of the energy system - Provide reactive/voltage support & maintain power quality - Application of technologies that reduce expenses & offset construction costs -Increase current grid capacity within existing corridors - Interoperability issues with current energy grid & equipment - Cyber security issues involving online maintenance of system - Power system modeling & simulation of multiple contingencies to assess power flows, risk, emergency management & economics - Capability to perform online, real time analysis for dispatch/operations -Public resistance to building new facilities & grid work due to possible inconvenience during construction - Resistance from current energy companies (Pew Center on Global Climate Change, 2010.)

- Acquire real time situational awareness & real time contingency analysis capability by monitoring & control of system wide operations - Develop the capability for scenario & probabilistic planning & load forecasting for multiple constraints, distributed resources, demand response - Use of a common communication architecture that facilitates interoperability system wide - Deploy real time automated system wide data measuring, collection, monitoring, visual display, processing & analysis to support planning, operations, dispatch & maintenance - Use cost-effective materials - Development of power electronic & energy storage standards & guidelines for system application - Utilize modular designs for substations & equipment to manage failures & rapid restoration - Design, build & demonstrate a “smart” prototype substation - Develop robust state estimation through integrated planning & operation capability - Develop operational on line performance & assessment tools - Develop visualization tools & systems for dispatch - Develop tools for modeling, diagnosis, containment, mitigation & restoration of extreme events - Reinforce critical substation components to withstand earthquake ground motions - Acquire high current operation analysis capabilities - Reinforce voltage to support increased voltage grid operations - Field tests and demos of power electronics, energy storage and HVDC to demonstrate reliability & lower costs - Real time monitoring & diagnostic of cables & substations - Integrate new equipment with existing equipment to maximize interoperability & life cycles - Implement maintenance policy & procedures system wide SPECIFIC PLANNING - Develop accurate forecasts of energy grid models -Improve & expand power flow capabilities -Employ necessary digital infrastructure of communication technologies to support flywheel insertion - Install relay controls with programming & logic that are interoperable with other equipment - Understand energy storage applications best for overall energy plan - Meet industry standards for high temperature operation of equipment - Use advanced inspection & prevention tools for maintenance - Understand industry best practices & possible legal impacts of technology (Law Firm of Edwards, Angell, Palmer, and Dodge, 2010). Short Term (0-5 years)Mid Term (5-10 years)Long Term (10-20 years) (United States Department of Energy, Efficiency, and Renewable Energy, 2003).

MAJOR BENEFITS OF FLYWHEEL TECHOLOGY INTEGRATION Increased energy capacity: Today’s environment is stretching the aging energy system to operate at power flow levels closer to voltage, thermal and stability limits (United States Department of Energy, 2009). For example, from June through August 2005, the Northwest energy grid exceeded capacity 147 times (NERC, 2010). Lower energy cost to consumers: This is a challenge that is best met by making initial investments in sustainable material sources that have a cheaper initial cost and a cheaper maintenance cost. Flywheel technology offers both (Luoma, 2009). Increased security: Flywheels offer less chance for damage, both human and natural (Devitt, 2010). More effective regulation: Flywheels have proven more effective than most other energy options, according to the U.S. Dept. of Energy (DOE), and shown in the chart at right (2009). Flywheel technology is green: The primary method used today for frequency regulation is to ramp fossil fuel power plants up and down, producing significant emissions (MRO, 2010). Flywheels will provide more reliable regulation, while generating zero direct emissions. This would dramatically reduce CO2 emissions, as shown in the chart at left based on a study funded by the DOE (2009).

OTHER CONSIDERATIONS Funding for project: Money exists in the form of grants from American Recovery and Reinvestment Act of 2009 and the Energy Independence and Security Act of 2007 (United States Department of Energy, 2003). Accepting money from these entities then subjects the project to the statutory authority of the government accountability office, the inspectors general, and the office of management and budget (OMB), in addition to the agencies listed above. Both Acts also come with specific sets of guidelines and rules for using the money and for projects developed using the money, including but not limited to ensuring that all materials used in the project are made in the U.S. A (2003).