1. Herwig A. Ragossnig Head of Business Development LATAM har@nec.cl
NEC Energy Solutions
Energy Storage for Grid Stabilization in Electricity Grids with high Penetration of Renewable Energies
Herwig A. Ragossnig
Head of Business Development LATAM
17.1

2. About NEC Energy Solutions
NEC Energy Solutions is a full service, end-to-end turnkey energy storage solution and battery systems provider
Offering energy storage systems, technical and economic project analysis, installation and commissioning, operation, maintenance, equipment warrantees, performance guarantees, and financing

3. Full Spectrum Energy Storage
Batteries
Power Conversion
Controls
NEC Energy Solutions System Integration
Services
Balance-of-Plant
NEC Energy Solutions offering ranges from component batteries up to full integrated solutions with services, warranty, performance guarantees, and financing.
Warranty
Performance Guarantees
Financing

4. GSS® grid-scale energy storage platform
Three major functional components
GSS® grid-scale energy storage platform
Operator
AEROS® Controls
GBS®
(Grid Battery System )
Power Conversion System
DC power (MW)
AC power (MVA)
Grid
Cooling

5. GSS® Project Example: Auwahi 11MW/4.3MWh install
Energy
storage
What’s included in a turnkey energy storage solution?
Equipment
Everything required to interconnect to the grid and operate:
Energy storage
Thermal mgmt (as needed)
Power conversion
Controls
Transformers/switchgear (as needed)
Service and Maintenance Programs
Warrantees and Performance Guarantees
Equipment warrantees
Availability or uptime guarantee
Energy storage capacity guarantee
Power capacity guarantee
What to expect? Example: Availability
EAF – Availability > 96%
*EAF = Equiv. Availability Factor
(Available Power/Nameplate Power) x 100
Incorporates Design and Performance
Thermal
management
Power
conversion
Controls
Since our first commercial project in the 2009, we have used Availability as a measure of system quality and service performance. When we measure the portion of Available Power to the Nameplate Power over time, we measure the Equivalent Availability Factor, or EAF.
[Source, derived from - IEEE 726.pdf IEEE Standard Definitions for Use in Reporting Electric Generating Unit Reliability, Availability, and Productivity]
This measure takes into account all system factors: De-Rating from HVAC, PCS and Battery Systems faults, IT Network faults, even PM and Service outages. Today, we are reporting over 96% availability including our largest sites spanning many years of operation; over our 4 Largest Sites totaling over 75MW, 7+ years of data.
35kV
PoC

6. Flexible Product Architecture
Power
Energy Storage
Packaging
Choose Power Conversion
Size
Choose Energy Storage Size
Package in containers
Or in custom enclosures
Power (MW)
PCS (Inverters) Needed
From one MWh
to hundreds of MWh
Or in buildings
From
hundreds of kW to
hundreds of MW

7. Renewable Integration Ancillary Services for Grid Stabilization
Applications
Renewable Integration
Ancillary Services for Grid Stabilization

8. Why Energy Storage for the Grid?
Preparing Grids For A Renewable Future
Adding flexibility, efficiency, and reliability
Today’s grids require more flexibility to address:
Increased renewable generation
Changing load patterns
Aging transmission and distribution network
Energy storage in the grid is a powerful tool
Increase capacity utilization for generation, transmission, and distribution infrastructure

9. Providing benefits throughout the electricity supply chain
Electric Grid
Dynamic Energy Storage Solutions for a Smarter Grid
Generation
Transmission
Distribution
Frequency Regulation
Frequency Response
Renewable Integration
Power Plant Hybridization
Voltage Support
Dynamic Line Rating Support
Renewable Integration
Upgrade Deferral
Upgrade Deferral
Community Energy Storage
Microgrids
Improve plant efficiency and output, lower O&M costs, and decrease plant emissions, with no water consumption, no emissions of its own, and rapid deployment capability.
Increase grid reliability, increase asset efficiency and utilization, enable wind and solar, defer upgrades to transmission assets.
Improve power quality, increase asset efficiency and utilization, smart grid ready; aggregation and automation, defer upgrades and support distribution assets.
Providing benefits throughout the electricity supply chain

10. Renewable Integration
Applications
Renewable Integration

11. Renewable Capacity Firming
Constant power output is desired
Value Added by Energy Storage
How does energy storage work with non-firm renewable capacity? + =
Intermittent PV
Energy Storage
Firm Renewable Capacity
Power
Power
Power
PV solar farm
Time
Time
Time
PV is intermittent – passing clouds cause power output to drop quickly. When the cloud departs, electricity begins flowing again.
Energy storage can fill in the valley with previously stored electricity.
The net result? Firm renewable capacity – consistent power output from a PV array even when clouds pass by!

12. Renewable Curtailment Avoidance
Transmission lines have a limited transport capacity
Value Added by Energy Storage
Using energy storage to capture wind or solar energy under curtailment conditions gives the system operator more flexibility to manage oversupply or constrained transmission capacity and avoid negative power prices.
Avoiding curtailment can also increase the amount of energy generated by renewables, and increase the amount it can sell
Additionally, if renewable generation occurs at a time of negative pricing, storage could actually get paid to charge up!

13. Renewable Time-Shifting
Sell renewable electricity at peak time for a higher price
Value Added by Energy Storage
Renewable energy time-shift can allow optimized revenue with energy storage charging during off-peak times, and discharging and selling the stored electricity during on-peak times.
Did you know?
A commonly used term for time-shifting is “arbitrage”. However, the strict definition of “arbitrage” is the simultaneous purchase and sale of identical commodities across two or more markets to benefit from a difference in pricing. Time-shifting is not the same since the “buy low sell high” mechanism occurs at two different times separated by several hours, and are not simultaneous.
An example is shown here for a wind with energy storage on a summer day. Wind generation is stronger at night, when energy’s value is low, and is used to charge storage. About half of the energy used on-peak is from wind generation that actually gets generated off- peak. The result is firm, constant power for five hours, being sold at a higher price (on- peak time) as compared to a lower price (off-peak time).
Source: SANDIA Report SAND , Energy Storage for the Electricity Grid: Benefits and Market Potential Assessment Guide, Jim Eyer & Garth Corey (February 2010)

14. Renewable Ramp Management
Limit uncontrolled, rapid changes in generator output
Problem
Renewable generation output is variable and can change rapidly. This rapid power ramp can cause instability on the grid.
Value Added by Energy Storage
Renewable generation can limit up-ramps on its own, but typically cannot limit down-ramps. Energy storage can slow down the down-ramps to meet the limitations imposed by the system operator.
Energy storage can charge when up-ramps are too steep, and discharge when down-ramps are too steep. Depending on the nature of the wind resource and the wind turbine equipment, relatively short durations of energy storage can mitigate large amounts of renewable generation. However, energy storage sizing is tricky – consult NECES for more details!

15. Ancillary Services for Grid Stabilization
Applications
Ancillary Services for Grid Stabilization

16. Ancillary Services from Energy Storage
Grid electricity frequency must be maintained
How does energy storage work in a frequency correction situation? + =
Grid Disturbance
Energy Storage
Reliable Power
Power
Power
Power
Why energy storage?
Energy storage can be a powerful tool in helping to keep the frequency at its target set-point, in this case 50Hz. This is probably review for most, but it’s helpful to again visualize what is happening during ancillary services; a grid disturbance occurs – perhaps loss of generation; a generator throws a blade or shuts down inadvertently, or perhaps it’s a loss of transmission – a high voltage power line is disconnected and a large amount of load is ‘dropped’ or disconnected from the grid. Either way, the frequency balance we need is disturbed – it starts to lean in one direction or the other – and something must stop it to prevent the aforementioned blackout which is the system trying to protect itself and its users.
Energy storage has the ability, if deployed on the grid, to provide a fast, almost instant response to this disturbance, which can be done autonomously via frequency measurements of the grid and an automatic response to the frequency change. It can do so much faster and more consistently than thermal generators and result in greater reliability due to a better frequency response. In fact, with enough energy storage on the grid compensating for grid disturbances, you might not see any frequency fluctuations at all!
Time
Time
Time
Loss of generation or transmission can cause frequency to drop quickly – this disturbance must be contained and corrected.
Energy storage can provide a vertical ramp response to frequency deviation and also respond more consistently than traditional generators for better frequency containment.
The result is more reliable power from better frequency response.

17. Advantages of Energy Storage
Ramping Capability
Because of its fast, almost instant response it is more effective in providing ancillary services
Can ramp up and down much faster and easier than traditional generators
Nearly “vertical” ramp rate, well under 1 second to full output
Generators can take several minutes to get to full output
No ramping wear-and-tear, unlike fossil fuel generators
No shutdown/startup costs, unlike fossil fuel generators
Can operate at zero with no penalty
The primary advantage for energy storage, especially the electrochemical type such as that found in batteries like lithium ion, is its very rapid, almost instant response time and very high ramp capability. Storage can ramp up and down much faster and more easily than thermal generation like coal or natural gas fired plants, and even hydro power. Unlike generation, storage can also act as a controllable LOAD, which means that it can go from 100% output to -100% output, effectively a 200% ramping range, and do so well under one second.
This graph merely visualizes the difference in power output versus time for energy storage like NEC’s GSS compared to a traditional generator. [PLUG FOR NECES] NEC has been deploying grid-scale energy storage systems on the grid since 2008 in commercial revenue service, not pilot or demonstration or proof of concept projects, but in real service performing ancillary services like frequency regulation, frequency response, primary and secondary reserve. We have installed systems to be operated in conjunction with thermal power plants and renewable generators alike where fast ramping response is valuable. Installed systems range in size and capability from hundreds of kilowatts to 32megawatts.
Note: The GSS® is NEC Energy’s Grid Storage Solution, which contains energy storage, power conversion to change AC electricity to DC and back, and a controls system to operate the entire GSS on the grid.

18. Advantages of Energy Storage
Fast precise resources more effective than slow imprecise resources
With fast responding, precise, accurate frequency regulation (like that provided by energy storage, grid operators can procure LESS frequency regulation service than before!
Did you know?
PJM has reported that the total money spent on frequency regulation today is less than what it used to spend, based on its “pay-for-performance” reform (FERC Order 755) of the frequency regulation market in October 2012.
It is well recognized that fast responding, accurate resources like energy storage are the most effective tool for frequency regulation.
Up to 3MW
Frequency Regulation Effectiveness
So what is the impact of running fast precise resources in ancillary services? Well, in the United States, particularly the PJM market, the ‘benefits factor’ for fast responding resources for frequency regulation, like that provided by energy storage, is about *three times* that of slow, traditional resources. That means that 1MW of energy storage frequency regulation is worth 3MW of traditional frequency regulation! Because the resource is faster and more precise than others, the system operator can control the system with less absolute megawatts of resources. In fact, PJM has reported that the total spend on frequency regulation is less than what it used to spend, despite paying out higher unit pricing on frequency regulation resources. This is known as “Pay for Performance” in the US and it is well recognized that fast accurate resources like energy storage are more effective for frequency control than slow inaccurate resources.
1MW
1MW GENERATOR (nameplate rating)
1MW ENERGY STORAGE (nameplate rating)

19. Primary Frequency Control Operation
Autonomous Response to Loss of Generation
CDEC-SING Fault Report No. 2777, June 3, 2011

20. Project Examples

21. GSS® Grid Storage Solution Installations
OVER 250MW
Installed, under construction, or in late stages of development
10 MW/5MWh
2017
40 MW/22 MWh
2017
400 kW/100 kWh
2010
8 MW/2 MWh
2011
20 MW/5 MWh
2013
2 MW/500 kWh
2008
2 MW/3.9 MWh
2016
2.5 MW/ 5 MWh
2013
350 kW/700 kWh
2013
1 MW/1.2 MWh
2017
1 MW/2.8 MWh
2014
2.5 MW/3.9 MWh
2015
2 MW/500` kWh
2013
48 MW/51 MWh
2017
2 MW/ 2 MWh
2014
2 MW / 500 kWh
2013
4 MW/1 MWh
2011
32 MW/8 MWh
2011
1 MW/3 MWh
2013
280 kW/135 kWh
2014
500 kW/1.2 MWh
2016
500 kW/125 kWh
2013
11 MW/4.4 MWh
2012
1 MW/1 MWh
2013
400 kW/400 kWh
2017
12 MW/4 MWh
2009
Frequency Regulation
2 MW/2 MWh
2017
Renewable Integration
20 MW/5 MWh
2011
Primary Reserve
T&D Support

22. Sterling Energy Storage Project
Town of Sterling, Massachusetts
Sterling Municipal Light Dept
3MW of PV in Sterling
Desired additional resiliency and better integration of existing PV
Installed energy storage
2MW, 3.9MWh GSS® grid storage solution
Applications stacking
Frequency regulation
Energy arbitrage
Reduction in monthly network load
Reduction in capacity payments
Multiple benefits
Provide power for Sterling Police and Dispatch Center during outages
Provides electricity cost savings to ratepayers
Firms the value of PV
Enables future microgrid capability

23. Sterling, MA GSS® grid storage solution
T&D Support Application
2 MW Power Capability
3.9 MWh Energy Capacity
Battery container w/integrated cooling
Power conversion system
Operational December 2016
2MW, 3.9MWh lithium ion energy storage system
Groundbreaking on Oct 12, equipment installation on Nov 14
First commercial operation on Dec 15

24. Energy Storage in Primary Reserve
Located at the Los Andes substation in the Atacama Desert in Northern Chile
12 MW lithium ion energy storage
Operational since 2009
The installation in Los Andes was the first multi-container deployment of energy storage and was capable of 12MW ouptut with 4MWh of energy storage capacity and has been operational since In addition to being located in the Atacama desert in the Andes mountains in Chile, also known as the driest place on Earth, it was hailed as one of the best performing primary reserve units in Northern Chile by the system operator, CDEC-SING in We delivered and installed the equipment, and provide service and maintenance for the Los Andes site to our customer, a key power producer in Chile. With this system, our customer is able to free existing capacity of one of its coal-fired generators, increasing its revenue, while the GSS grid storage solution provides the generator’s primary reserve obligation to CDEC-SING.
“the Los Andes battery energy storage system is one of the best performing reserve units in Northern Chile”
-CDEC-SING, system operator in Northern Chile

25. Energy Storage in PJM Frequency Regulation
Located at the Laurel Mountain wind farm in Elkins, West Virginia
32 MW lithium ion energy storage
Operational since 2011
This site in West Virginia, USA, was installed for our customer next to its wind farm in One of the largest installations of the GSS grid storage solution at 32MW / 8MWh using our HR (high-rate) high power energy storage technology, we supplied the energy storage equipment, power conversion, and chiller systems and performed the installation and commissioning services. This site was operational in approximately eight weeks from arrival of the equipment on-site. Our customer was awarded the 2012 Excellence in Renewable Energy Award for Wind Project of the Year by Renewable Energy World for the Laurel Mountain site, and today operates in the PJM Regulation market.

26. Energy Storage in Primary Reserve
Our customer in Chile, building upon success with its first installation of our equipment in Los Andes, procured another 20MW of our GSS grid storage solution using our HR (high-rate) high power energy storage technology. We manufactured and delivered the energy storage equipment, performed all of the site work, and achieved operation in approximately eight weeks equipment arrival, which was sited next to our customer’s coal-fired generation plant in Angamos, Chile. In addition, for this project our customer won the prestigious “EEI Edison Award” in Like its sister installation Los Andes, the Angamos installation also operates in primary reserve and frees generation capacity of the coal-fired plant, increasing revenue for our customer.
Located in Chile, South America 1,400km north of Santiago
20MW lithium ion energy storage facility
Operational since 2011

27. Energy Storage in Ramp Rate Management
The Auwahi project in Maui, Hawaii was installed for our customer, Sempra Energy. As one of our largest GSS installations with renewable generation, it provides wind ramp management, essentially smoothing the output of the 21MW wind farm there using our HR (high-rate) energy storage technology. For this project we provided full turnkey engineering, procurement, and construction service within the scope of supply, including switchgear. Operational in approximately 8 weeks from equipment delivery to the site, the Auwahi project enables the 21MW wind farm to provide more consistent and less variable renewable electricity to the island of Maui.
Located on Maui, Hawaii
11MW lithium ion energy storage working with a 21MW wind farm
Operational since December 2012

28. Energy Storage in Load Limiting/Peak Shaving
Located in California distribution grid for improved power reliability
2.5MW lithium ion energy storage in custom enclosure
Operational since July 2015

29. 4MW / 2MWh GSS® grid storage solution
Peterborough, UK
Renewable Integration
Hybrid Fast Frequency Response
Co-Located with Diesel Generation
1 Battery Container
2 Inverters
Operational 2017

30. 10MW/5MWh GSS® grid storage solution
Cleator, UK
Enhanced Frequency Response (EFR)
2 Battery Containers
6 Inverters
Operational 2017

31. 40MW/20MWh GSS® grid storage solution
Glassenbury, UK
Enhanced Frequency Response (EFR)
7 Battery Containers
19 Inverters
Operational December 2017

32. 48MW/51MWh GSS® grid storage solution
Jardelund, Germany
Primary Control Reserves (PCR)
Building-based installation, battery room shown

33. Thank you! HERWIG A. RAGOSSNIG
Head of Business Development for Smart Energy in Latin America
Fijo 
Av. Apoquindo 4800, piso 17
Las Condes
Santiago de Chile