Duke Energy Carolinas and Duke Energy Progress (collectively, Duke) recently issued two requests for proposals (RFPs) as part of the implementation of Duke’s Distributed Energy Resource Program (DERP). The DERP, which was developed pursuant to South Carolina’s Distributed Energy Resource Act of 2014 (Act 236), was approved by the South Carolina Public Service Commission earlier this year. (See more information about Duke’s program.)
The Oregon Department of Energy (ODOE) recently announced that it is considering issuing a solicitation for demonstration electrical energy storage projects in late 2014. To prepare for possible funding opportunities, ODOE seeks public comments about the “scope, number and priority” of proposals that use “electrical storage technology, specifically batteries” to provide resiliency and regulation. ODOE noted that potential proposals may include, among others, projects that support transmission system devices such as static var compensators, projects that would be co-located with renewable energy generation where there are transmission constraints, projects that would provide stabilization to industrial facilities during outages, and projects that would co-locate renewable energy generation with distributed energy storage.
ODOE also seeks comment on the selection criteria that it has preliminarily identified, which include the sponsor’s ability to secure adequate funding for project implementation, the project’s commercial viability, the sponsor’s willingness to allow multiple public entities to collect data from the project for a year after commissioning, “integrity benefits” to the distribution or transmission system, and “resiliency benefits” to emergency service providers or critical services.
ODOE also seeks comments on whether it should prioritize geographic areas in Oregon that would benefit from grid improvements, whether it should prefer certain parties (such as small utilities) as grant recipients, whether it should give preference to certain technologies, what kind of transparency and data requirements should be used, and how a pilot energy storage project could be used to support standards development.
ODOE’s “Comment Opportunity” can be found here. Comments are due on August 29.
The agency’s request for comments is an outgrowth of an energy storage workshop co-hosted by ODOE and the Oregon Public Utility Commission (OPUC) in Portland in March 2014. I attended the workshop, and found it very informative. The morning session of the workshop featured panels that discussed a range of energy storage technologies and their potential applications. During the afternoon session, participants broke into groups for roundtable discussions on various topics. ODOE and OPUC did a good job of reducing the proceedings to writing—you can find summaries of the Roundtable sessions and the presentations here. These materials provide useful background on how ODOE and OPUC are thinking about the development of energy storage in Oregon.
ODOE’s ability to proceed with the solicitation appears to be conditioned on what the agency describes as a “potential partnership” with U.S. Department of Energy, Sandia National Laboratories and the Clean Energy States Alliance. Whether this particular solicitation materializes or not, Oregon is now among a number of states such as California, Hawaii and New York that are recognizing the important role that energy storage will play in electric power supply, delivery, and security in the years ahead.
As energy storage matures both technologically and commercially, several investor owned and municipal utilities have begun formal processes to procure storage. Recent examples include Southern California Edison’s request for energy storage to satisfy local capacity requirements in the Los Angeles basin, the Imperial Irrigation District’s request for qualifications with respect to 40 MW of energy storage (summary available here), Southern California Public Power Authority’s request for energy storage proposals pursuant to its rolling RFP process (summary available here and here), Long Island Power Authority’s request for proposals for up to 150 MW of energy storage, and the Kauai Island Utility Cooperative’s recent storage RFP.
Hawaiian Electric Company’s solicitation for large-scale energy storage systems is the latest large energy storage RFP and represents another significant step in the ongoing commercialization of the energy storage sector. Hawaiian Electric’s procurement deserves to be watched carefully.
The RFP seeks proposals for one or more large-scale, grid-connected energy storage systems capable of storing 60 to 200 MW for 30 minutes. Although several of the procurements noted above contemplate the use of power purchase agreements (typically structured like gas tolling agreements) to secure access to storage, Hawaiian Electric has asked for a firm lump-sum price proposal to engineer, procure and construct one or more systems to be located on the island of O’ahu. The RFP package includes the utility’s proposed form of engineering, procurement and construction services (EPC) contract.
Hawaiian Electric intends to use energy storage to continue integrating variable renewable energy generation. Renewable energy on O’ahu consists primarily of wind and solar photovoltaic (PV). The utility anticipates that energy storage will provide certain services, such as sub-second frequency response and minute-to-minute load following, that will allow more of O’ahu’s electricity to come from variable resources. The system(s) are expected to be located within Hawaiian Electric substation facilities and properties, and the utility’s goal is to place the system(s) into service in the first quarter of 2017, if not sooner.
Hawaiian Electric recently extended the deadline to submit an “Intent to Bid Form” to 10:00 am Hawaii Standard Time on May 29, 2014. The deadline for the response to the RFP itself is 10:00 am Hawaii Standard Time on July 21, 2014.
The RFP can be found here.
The Southern California Public Power Authority (“SCPPA”) recently amended its “rolling RFP” for renewable energy and energy storage projects–the original RFP was described on this Blog in an earlier post).
California’s AB 2514 requires publicly-owned utilities to submit to the California Energy Commission by October 1, 2014 appropriate targets for the procurement of cost-effective energy storage. As a result, SCPPA’s members are now actively seeking proposals for energy storage system development. Because SCPPA expects to conduct its first in-depth analysis and review of energy storage-related proposals during April 2014, it “strongly encourages” energy storage respondents to submit proposals on or before April 1, 2014. The RFP amendment adds that energy storage-related proposals will be accepted after April 1, 2014 and throughout the term of the RFP (through December 31, 2014), but states that SCPPA’s current request is intended to encourage proposals that may be immediately evaluated for their near term cost-effectiveness and viability for SCPPA’s members.
SCPPA’s RFP, as amended, can be found here.
The Southern California Public Power Authority (SCPPA) recently announced a Request for Proposals for Renewable Energy and Energy Storage Projects. In the RFP, SCPPA seeks proposals for — in addition to customary renewable energy products — “Permanent Load Shifting (PLS), including energy storage and permanent load-shifting technologies” and “energy storage solutions (ESS) for both distribution and grid levels.” According to the announcement, respondents may propose (i) project ownership by SCPPA, (ii) a power purchase agreement (or, for storage, an “equivalent commercial agreement”) with an ownership option, or (iii) a power purchase agreement (or, for storage, an “equivalent commercial agreement”) without an ownership option.
The Imperial Irrigation District (IID), the third-largest public power utility in California, recently issued QR 123, the first step in a solicitation for 20 megawatts to 40 megawatts of “battery” storage. The solicitation seeks storage that can accommodate a very broad range of specified operational characteristics, and it may prove challenging for any given storage technology to meet all of those characteristics. The solicitation’s reference to “battery” storage implies that IID is not seeking flywheels or other energy storage technologies.
At this stage, QR 123 is in the nature of a request for vendors to supply their qualifications to “design, engineer, procure and construct a utility-scale energy storage project” that will have the desired operational characteristics. Responses are due February 11, 2014.
Information about QR 123 can be found here.