Wednesday, October 23, 2013

A Case for Energy Storage

        The world finds itself at the confluence of many forces that, if unattended, will compromise our ability to generate affordable and continuous electric energy. Any serious degradation in our electricity supply would cut the lifeblood out of our technology dependent modern way of life. One force is supply; conventional means of power generation are heavily supply constrained. Peak oil is predicted within the next few decades, natural gas and coal have reserves predicted to run out in the next century and uranium is predicted to only be able to meet current demand for another 70 years (Gallagher, 2010) & (Zittel & Schindler, 2006). The second force is environmental degradation; fossil fuels and nuclear power impact our environment in ways that could severely compromise the earth’s ability to support life. Lastly, a third force is the strong desire to maintain the current levels of reliability in the supply of electricity. The current US electric grid, the very backbone of our modern electrified life, is considered antiquated and likely to experience more frequent, massive and costly failures. It is also considered ill-equipped to meet current demand and unable to accommodate new sources of energy (Timmer, 2009). For our modern life to be sustainable and environmentally friendly, renewable energy must be integrated into a modern, capable electricity delivery system.
It is easy to assert that solar driven renewable sources of energy, such as solar photovoltaic (PV) and wind energy, can solve many of the problems that plague modern electricity production. From providing environmental benefits to removing the impetus behind marred, sometimes violent, US foreign relations, the many benefits of wide spread renewable adoption are well known. In spite of the great promise of solar driven renewables, in 2011, only .2% and 1.5% of US primary energy production came from solar PV and wind energy, respectively. In total less than 12% of US primary energy came from any form of energy that is considered renewable; including hydropower and biomass combustion (U.S. EIA, 2012).
There are clearly significant and powerful factors, beyond simple inertia, that explain the difference between an idealized vision of renewable adoption and the slow, albeit accelerating, current realized rate of adoption. Two of these factors are that solar PV and wind energy are not currently considered reliable or viable alternatives to conventional energy production. One way in which these renewables are not viable is that they have not yet fully reached grid parity, i.e. the point where the cost of electricity generated using solar PV or wind is on par with conventional sources of energy (Lorenz, Pinner, & Seitz, 2008). In most areas, as a burgeoning technology, solar PV has a higher average cost/kWh than conventional sources of energy. Considering grid parity, wind energy is further developed with many existing, well sited, wind energy projects achieving parity and a consensus that even “average” wind farms will achieve parity by 2016 (Bloomberg LP, 2011). This lack of across-the-board parity can be attributed to the current low adoption rate of solar PV and wind energy. This low adoption has not yet pushed industry to fully seek the economies of scale that can be realized through mass production and deployment. It is also important to note that, in the US, conventional energy sources enjoy substantial direct and indirect subsidies and relief from the true cost accounting of their many externalities.
               The current electric grid is the largest industrial investment in world history (Schewe, 2006). It is even thought by some to represent the greatest engineering achievement of the 20th century (Wulf, 2000). With its high volume of delivery, the electric grid can be compared to a large retail operation with the exception that historically the electric grid has had no warehousing capability (Huskinson, 2013). For the most part, electricity added to the grid by utility generators must be consumed the instant it is delivered. An excess of supply or demand on the grid can cause serious instability. The responsibilities of utilities that manage the electric grid are predominantly defined by this instantaneous delivery and consumption characteristic of electricity on the grid.
Even with occasional outages, the modern electrical grid is designed to provide a reliable, continuous and seemingly inexhaustible supply of electricity at a moment’s notice. This demand for near 100% reliability brings to light perhaps the most dominant challenge to solar PV and wind energy adoption: the lack of reliability because of intermittency. Solar PV’s intermittency results from its dependency on highly variable solar access (i.e. the sun does not always shine) while wind energy’s intermittency results from its dependency on highly variable wind resources (i.e. the wind doesn’t always blow). This intermittency has put an upper bound of 20% to the amount of a grid's energy that can be currently supplied by solar PV, wind energy and other intermittent sources (APS Panel on Public Affairs, 2010). This 20% upper bound directly corresponds to the upper limits of the variable, rapid response generation capacity of most conventional electric grids.
               The current electric grid, sourced by conventional means of electricity generation, has been designed to provide grid services such as peak demand, base load demand and power quality management. Significant and costly (therefore undesirable) changes to the current grid architecture must be made to directly accommodate intermittent solar PV and wind energy. This need for change to accommodate intermittent renewables also compromises their perceived reliability and viability.
In spite of this, early adopters of renewable generation present a model for leading the market. Some early adopters have implemented large scale, grid-integrated, solar PV arrays and wind farms. Another group of early adopters can be characterized by the implementation of small scale, distributed, grid tied solar PV and wind installations. Some of these distributed installations are off-grid, but most small, distributed installations remain grid tied, when possible, to improve overall reliability. Current electric grids can tolerate only a predefined and relatively small, number of these installations before the intermittency of solar PV and wind generated electricity compromises grid integrity. To compensate for intermittency, conventional generators are often left idling or spinning. For this reason, small scale, distributed, grid tied solar PV and wind energy systems currently, do little to viably reduce the overall amount of required capacity and fuel consumption for conventional electricity generation (Denholm P. , Ela, Kirby, & Milligan, 2010).
In recent years, energy storage has garnered a significant amount of interest as a means of improving conventional grid reliability and for mitigating renewable intermittency. Traditionally, improving the reliability of off-grid solar PV or wind installations involved the storage of electricity through costly lead-acid battery arrays. However the market for both large scale centralized and small distributed energy storage is rapidly expanding and developing. Energy storage encompasses a wide array of technologies promising to benefit all areas of the energy market. Energy storage is seen as the answer to the question of how to bring more and more renewable sources of energy on line while maintaining or improving current standards of electricity reliability. In both the large scale centralized generation model and the small scale distributed (grid-tied or island) generation model energy storage will play a central role in future developments.  

Works Cited

APS Panel on Public Affairs. (2010). Integrating Renewable Electricity on the Grid. Retrieved May 22, 2012, from American Physical Society: http://www.aps.org/policy/reports/popa-reports/upload/integratingelec.pdf

Bloomberg LP. (2011, November 10). Onshore wind energy to reach parity with fossil-fuel electricity by 2016. Retrieved March 9, 2013, from Bloomberg New Energy Finance: http://bnef.com/PressReleases/view/172

Denholm, P., Ela, E., Kirby, B., & Milligan, M. (2010). The Role of energy storage with renewable electricity generation. Las Vegas: NREL.

Gallagher, B. (2010). Peak Oil analyzed with a logistic function and idealized Hubbert curve. Energy Policy, 790-803.

Huskinson, B. (2013, January 11). PhD candidate, Applied Physics; Harvard School of Engineering and Applied Sciences. (M. Banta, Interviewer)

Lorenz, P., Pinner, D., & Seitz, T. (2008). The economics of solar power. The McKinsey Quarterly, 4, 67-79.

Schewe, P. F. (2006). The Grid: A Journey Through the Heart of Our Electrified World. Washington D.C.: Joseph Henry Press.

Timmer, J. (2009, January 19). DOE report paints bleak picture of our electric future. Retrieved from ARS Technica: http://arstechnica.com/tech-policy/2009/01/doe-report-paints-bleak-picture-of-our-electric-future/

U.S. EIA. (2012). Monthly Energy Review. Washington DC: U.S. Department of Energy.

Wulf, W. A. (2000). Great Achievements and Grand Challenges. The Bridge; National Academy of Engineering, 5-11.

Zittel, W., & Schindler, J. (2006). Uranium Resources and Nuclear Energy. Ottobrunn/Aachen: Energy Watch Group.



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