Motivations and options for deploying hybrid generator-plus-battery projects within the bulk power system

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Abstract

Growth in U.S. utility-scale hybrid battery projects suggests potential advantages currently outweigh disadvantages. Today’s 4.6 GW of hybrid capacity is accompanied by 14.7 GW in the immediate development pipeline, and 69 GW in select interconnection queues. Analysis using wholesale market prices finds that additional revenues from adding a 4-hour battery to solar can exceed additional costs. However, realizing hybrid projects’ full value depends on nascent strategies for integrating them in current/future wholesale market design paradigms.

Abbreviations

AC
alternating current
AS
ancillary services
CAISO
California Independent System Operator
DC
direct current
EIA
U.S. Energy Information Administration
ERCOT
Electric Reliability Council of Texas
ESR
electric storage resource
FERC
Federal Energy Regulatory Commission
IRP
integrated resource plan
ISO
independent system operator
ISO-NE
ISO New England
ITC
investment tax credit
MISO
Midcontinent Independent System Operator
NYISO
New York Independent System Operator
PPA
power-purchase agreement
PV
photovoltaic
RTO
regional transmission organization
SOC
state of charge
SPP
Southwest Power Pool
VRE
variable renewable energy

Keywords

Hybrid plant
Solar
Wind
Battery
Commercial development
Optimization

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Will Gorman is a PhD student at the University of California, Berkeley and a researcher in the Electricity Markets and Policy Department at Lawrence Berkeley National Laboratory. His research focuses on the economics of distributed energy resources, the integration of renewable generation into the electric power system, and the impact of autonomous and electric vehicles on energy systems. Will has his M.S. in Energy and Resources from the University of California, Berkeley and holds a B.S. in Chemical Engineering and a B.A in Plan II Honors from the University of Texas at Austin.

Andrew Mills is a Research Scientist in the Electricity Markets and Policy Department at Lawrence Berkeley National Laboratory. Andrew conducts research on the integration of variable generation into the electric power system, evaluating the costs, benefits, and institutional needs of renewable energy transmission and other supporting infrastructure. Andrew has a pH.D. and M.S. in Energy and Resources from UC Berkeley and a B.S. in Mechanical Engineering from the Illinois Institute of Technology.

Mark Bolinger is a Research Scientist in the Electricity Markets and Policy Department at Lawrence Berkeley National Laboratory. Mark conducts research and analysis on renewable energy, with a focus on cost, benefit, and market analysis as well as renewable energy policy analysis and assistance. Mark holds a masters degree in Energy and Resources from the University of California at Berkeley, and a bachelors degree from Dartmouth College.

Ryan Wiser is a Senior Scientist in and leader of the Electricity Markets and Policy Department at Lawrence Berkeley National Laboratory. Ryan oversees a 35-person department that seeks to inform public and private decision making within the U.S. electricity sector through research on electric system planning, reliability and regulation as well as on energy efficiency, renewable energy, and demand response. Ryan holds a B.S. in Civil Engineering from Stanford University and an M.S. and pH.D. in Energy and Resources from the University of California, Berkeley.

Nikita Singhal is a senior engineer scientist in the Grid Operations and Planning Department at the Electric Power Research Institute, focusing on emerging technology integration into operations, and wholesale electricity market design and operations. Nikita provides technical support for bulk power system operation and planning simulation, including production cost modeling, dynamic operating reserve determination, storage integration, and advanced software tool development for the power system industry. She received the B.E. degree in Electrical and Electronics Engineering from the PES Institute of Technology (India) and the M.S. and pH.D. degrees in Electrical Engineering from Arizona State University.

Erik Ela is a Principal Manager at the Electric Power Research Institute (EPRI). In his role, he provides technical leadership in several areas including electricity market design, electricity market operations, renewable energy integration, emerging technology integration, bulk power system operations, frequency control and essential reliability services, and generation planning. Prior to joining EPRI, Erik worked for several years with the National Renewable Energy Laboratory (NREL) as a senior research engineer and before that for the New York Independent System Operator (NYISO). Erik received his BS, MS, and PhD degrees in Electrical Engineering.

Eric O’Shaughnessy is an independent renewable energy research consultant. His research areas include distributed solar markets, distributed solar system optimization through storage and load control, community solar, and voluntary green power markets. Dr. O’Shaughnessy received his pH.D. in Environment and Resources from the Nelson Institute for Environmental Studies at the University of Wisconsin-Madison. He also has an M.P.A. from the LaFollette School of Public Affairs at the University of Wisconsin-Madison and a B.S. in Environmental Economics and Policy from Michigan State University.