This report addresses several key questions in the broader discussion on the integration of renewable energy resources in the Pacific Northwest power grid. Specifically, it addresses the following questions: a) what will be the future balancing requirement to accommodate a simulated expansion of wind energy resources from 3.3 GW in 2008 to 14.4 GW in 2019 in the Northwest Power Pool (NWPP), and b) what are the most cost effective technological solutions for meeting the balancing requirements in the Northwest Power Pool (NWPP). A life-cycle analysis was performed to assess the least-cost technology option for meeting the new balancing requirement. The technologies considered in this study include conventional turbines (CT), sodium sulfur (NaS) batteries, Lithium Ion (Li-ion) batteries, pumped-hydro energy storage (PH), and demand response (DR). Hybrid concepts that combine 2 or more of the technologies above are also evaluated. The report also discusses the value of pumped hydro storage systems in the Bonneville Power Administration's footprint as an energy arbitrage instrument. This analysis was performed with collaboration by the Bonneville Power Administration and funded by the Energy Storage Systems Program of the U.S. Department of Energy. v
SummaryStationary energy storage for power system application has recently attracted significant interest and attention as an enabling technology for integrating the growing capacity of variable renewable energy resources into the electric grid. Energy storage systems are likely to become an essential contributor to grid modernization investments that will transition the North American power system to a modern grid that meets the future needs under low carbon emissions constraints. In the Pacific Northwest as well as in other U.S. regions, the electricity production from wind technology has increased significantly to meet the renewable portfolio standards targets imposed by 24 U.S. States and the District of Columbia.For the Bonneville Power Administration (BPA) as the major grid operator in the Pacific Northwest, the growing wind generation poses some challenges to generation scheduling and the provision of ancillary services. To study the impacts of the variability in the wind generation on the regional grid operation and the role that energy storage may play to mitigate these grid impacts, Pacific Northwest National Laboratory (PNNL) collaborated with BPA to addresses the following key questions: c. Can energy storage be cost-effectively employed for arbitrage opportunities?Pacific Northwest National Laboratory applied a stochastic approach to assess the total balancing requirements for the NWPP for the high wind penetration in 2019. A simplifying assumption was applied that reduced the entire NWPP footprint into one single balancing area. With this assumption, the total balancing-up capacity requirements (generation increment) is approximately 3900 MW. The balancingdown capacity (generation decrement) is estimated to be about -3700 MW. These figures are based...