Skip to main content Accessibility help
×
Home

Energy transformation and energy storage in the Midwest and beyond

  • Ellen Anderson (a1)

Abstract

The electricity sector is transforming quickly, and there is a need to understand the technical, economic, and policy implications. Energy storage will play an important role in the new grid.

In the MISO region, the Midwest, and in Minnesota, there are many opportunities and policy questions being explored around energy storage.

The electricity grid in the United States is transforming quickly and dramatically. Energy storage will play an important role in this newly designed grid, serving many functions that support a more flexible, highly renewable, and more resilient grid with declining fossil generating plants. The particular role of energy storage in the Midwest, and in Minnesota as a Midwest case study, is described, with a detailed analysis of selected energy storage use cases. The FERC Order 841 and the challenges and opportunities for energy storage in the Midcontinent Independent System Operator (MISO) region are summarized.

Copyright

Corresponding author

a)Address all correspondence to Ellen Anderson at ellena@umn.edu

References

Hide All
1.Vibrant Clean Energy: Minnesota’s Smarter Grid-Pathways toward a Clean, Reliable and Affordable Transportation and Energy System (2018). Prepared for McKnight Foundation & GridLab, July 31, 2018. Available at: https://www.mcknight.org/wp-content/uploads/MNSmarterGrid-VCE-FinalVersion-LR-1.pdf (accessed March 7, 2019).
2.Bakke, J., Duebner, D., Manjure, D., and Rauch, L.: Evolution of the Grid in MISO Region (2017). Presentation, Slide 6, MISO, November 7, 2017. Avalable at: https://ccaps.umn.edu/documents/CPE-Conferences/MIPSYCON-PowerPoints/2017/GenTheEvolutionoftheGridintheMidcontinentIndependentSystemOperator(MISO)Region.pdf (accessed March 7, 2019).
3.Gimon, E., Orvis, R., and Aggarwale, S., and Curtailment, Renewables: What we can learn from grid operations in California and the Midwest. Green Tech Media, March 23, 2015. Available at: https://www.greentechmedia.com/articles/read/renewables-curtailment-in-california-and-the-midwest-what-can-we-learn-from#gs.taUpPDo (accessed March 7, 2019).
4.EIA: Planned U.S. Electric Generating Unit Retirements. Electric Power Monthly (2018). Available at: https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_6_06 (accessed August 13, 2018).
5.Osmanbasic, E.: Batteries and Inverters in Solar Energy (2018). Available at: https://www.engineering.com/ElectronicsDesign/ElectronicsDesignArticles/ArticleID/16489/Batteries-and-Inverters-in-Solar-Energy.aspx (accessed March 7, 2019).
6.Rocky Mountain Institute, Center for Energy & Environment. Slide presentation at meeting attended by author, 2017.
7.In Minnesota for example, distributed energy resources are defined at 10 MW or less: Interconnection of On-Site Distributed Generation, Minn. Stat. §216B. 1611 (September 28, 2004).
8.Bradley, M.J. and Associates: Powering into the Future—Renewable Energy & Grid Reliability, 17(23), 2733 (2017).
9.IEEE Standards Association, IEEE P1547 Approved Draft: Standard for Interconnecting Distributed Resources with Electric Power Systems (2003). Available at: https://standards.ieee.org/findstds/standard/1547-2003.html (accessed March 7, 2019).
10.Levitt, A.: DER Update: ‘Ride Through’ and IEEE 1547–2018 (2018). Lecture, Slide 2, PJM, 2018. Available at: https://www.pjm.com/-/media/committees-groups/committees/oc/20180306/20180306-item-21-der-ride-through-for-oc.ashx (accessed March 7, 2019).
11.Forrest, D.: Implementation of the Revised IEEE Standard 1547 (2018). Presentation, Slide 11, New England ISO, February 14, 2018. Available at: https://www.iso-ne.com/static-assets/documents/2018/02/a2_implementation_of_revised_ieee_standard_1547_presentation.pdf (accessed March 7, 2019).
12.Rackey, S.: PVS: Taking on the Peakers (2017). LinkedIn, July 17, 2017. Available at: https://www.linkedin.com/pulse/pvs-taking-peakers-scott-rackey/ (accessed March 7, 2019); S. Rackey, in meeting with author, 2017.
13.Energy Transition Lab: Energy Storage 101, 2nd Edition—A Quick-Reference Handbook (2017). Available at: http://energytransition.umn.edu/wp-content/uploads/2017/07/Energy-Storage-101-2nd-Ed.-FINAL-2.0.pdf (accessed March 7, 2019).
14.Fitzgerald, G., Garrett, J.M., Morris, J., and Touati, H.: The Economics of Battery Energy Storage: How multi-use, customer-sited batteries deliver the most services and value to customers and the grid (2015). Rocky Mountain Institute, September 2015. Available at: https://rmi.org/insight/the-economics-of-battery-energy-storage-how-multi-use-customer-sited-batteries-deliver-the-most-services-and-value-to-customers-and-the-grid-executive-summary/ (accessed March 7, 2019).
15.California Independent System Operator (ISO): FAST FACTS, what the duck curve tells us about managing a green grid (2016). Available at: https://www.caiso.com/Documents/FlexibleResourcesHelpRenewables_FastFacts.pdf.
16.Palizban, O. and Kauhaniemi, K.: Microgrid control principles in island mode operation (2013). IEEE Xplore Digital Library, 2013 IEEE Grenoble Conference, Available at: https://ieeexplore.ieee.org/document/6652453.
17.Dyson, M. and Engel, A.: The Economics of Clean Energy Portfolios (2018). Webinar, Rocky Mountain Institute, July 3, 2018, used with permission. Available at: https://www.youtube.com/watch?v=2rWifsGqVh8 (accessed March 7, 2019).
18.Ong, T.: Elon Musk’s giant battery is now delivering power to South Australia (2017). The Verge, December 1, 2017. Available at: https://www.theverge.com/2017/12/1/16723186/elon-musk-battery-launched-south-australia (accessed March 7, 2019).
19.Lambert, F.: Tesla’s giant battery in Australia reduced grid service cost by 90% (2018). Electrek, May, 11, 2018. Available at: https://electrek.co/2018/05/11/tesla-giant-battery-australia-reduced-grid-service-cost/ (accessed March 7, 2019).
20.Stanfield, S., Petta, J.S., and Baldwin Auck, S.: Charging Ahead: An Energy Storage Guide for Policymakers (2017). Interstate Renewable Energy Council (IREC), April 2017. Available at: https://irecusa.org/wp-content/uploads/2017/04/IREC_Charging-Ahead_Energy-Storage-Guide_FINALApril2017.pdf (accessed March 7, 2019).
21.We identified energy storage activity ranging from policy or regulatory initiatives to significant project deployment in the following states: Arizona, California, Connecticut, Colorado, Hawaii, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, South Carolina, Texas, Utah, Vermont, Washington, District of Columbia. Sources: Energy Storage Association: State Policy Menu for Storage (2017). Available at: http://energystorage.org/statepolicymenu (accessed March 7, 2019); M. Jacobs: Energy Storage is the Policy Epicenter of Energy Innovation (2018). [Blog ]Union of Concerned Scientists, March 21, 2018. Available at: https://blog.ucsusa.org/mike-jacobs/energy-storage-policy-innovation (accessed March 7, 2019).
22.Wood Mackenzie Power & Renewables/Energy Storage Association, U.S. Energy Storage Monitor Q4 2018 Executive Summary, Slide 10, December, 2018.
23.Forrester, S.: Policy and market barriers to energy storage providing multiple services. Electr. J. 30, 52 (2017).
24.Available on Energy Transition Lab website, http://energytransition.umn.edu/wp-content/uploads/2016/04/MESC-comments-to-MISO.1.22.16.pdf (accessed March 7, 2019).
25.162 FERC ¶ 61,127: Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators. February 15, 2018; summarized by R. Lueken, J. Chang, H. Pfeifenberger, P. Ruiz, and H. Bishop: Getting to 50 GW? The Role of FERC Order 841, RTOs, States, and Utilities in Unlocking Storage’s Potential. The Brattle Group, February 22, 2018. Available at: http://files.brattle.com/files/13366_getting_to_50_gw_study_2.22.18.pdf (accessed March 7, 2019).
26.Utility Dive Brief: MISO plans storage market roles in response to FERC Order 841 (2018). August 13, 2018. Available at: https://www.utilitydive.com/news/miso-plans-storage-market-roles-in-response-to-ferc-order-841/529996/ (accessed March 7, 2019).
27.Brown, M.: MISO press release. MISO moves Forward to Further Integrate Energy Storage Resources (2018). Deccember 4, 2018. Available at: https://www.misoenergy.org/about/media-center/miso-moves-forward-to-further-integrate-energy-storage-resources/ (accessed March 7, 2019).
28.Brooks, M.: ISOs/RTOs file FERC order 841 compliance plans. RTO insider, December 10, 2018. Available at: https://www.rtoinsider.com/ferc-order-841-energy-storage-compliance-107534/ (accessed March 7, 2019).
29.Conversation with Matt Prorok, Great Plains Institute, Aug. 3, 2018 ; Conversation with Angela Maiko, Great River Energy, Aug. 6, 2018.
30.Conversation with Matt Prorok; Conversation with Angela Maiko.
31.158 FERC ¶ 61,051: Utilization of Electric Storage Resources for Multiple Services When Receiving Cost-Based Rate Recovery (January 19, 2017).
32.Ahlstrom, M.: The power market fix we’ve been waiting for…. America’s Power Plan e-newsletter, April 2018. Available at: https://mailchi.mp/8b9fa493431c/the-power-market-fix-weve-been-waiting-for (accessed March 7, 2019).
33.Garcia, E.: Shedd installs largest lithium-ion battery of any US aquarium or zoo. WTTW News, Science and Technology. June 9, 2016. Available at: https://news.wttw.com/2016/06/09/shedd-installs-largest-lithium-ion-battery-any-us-aquarium-or-zoo (accessed February 14, 2019).
34.Palivos, A., Brumit, E., and Merza, R.: Illinois Commerce Commission Looks at Energy Storage: Policy Session on the Future. Public Utilities Fortnightly, August 2018. Available at: https://www.fortnightly.com/fortnightly/2018/08/illinois-commerce-commission-looks-energy-storage?authkey=9360e66f0cb151f3b31e6efcd275260fe933e43faed773ba5a3c0008945d0113 (accessed February 14, 2019).
35.ComEd Media Relations: ComEd approved to build one of the first microgrid clusters in the nation (February 28, 2018). Available at: https://www.comed.com/News/Pages/NewsReleases/2018_02_28.aspx (accessed February 14, 2019).
36.Ideal Energy Inc.: Iowa’s first solar and storage plant goes live at the Maharishi University of Management. CISION PR Newswire, January 8, 2019. Available at: https://www.prnewswire.com/news-releases/iowas-first-solar-and-storage-power-plant-goes-live-at-the-maharishi-university-of-management-300774013.html (accessed February 14, 2019).
37.Lillian, B.: Large Scale Battery Storage Project Launches at Western Michigan University. Solar Industry, September 18, 2018. Available at: https://solarindustrymag.com/large-scale-battery-storage-project-launches-at-western-michigan-university/ (accessed February 14, 2019).
38.Walton, R.: NEC energy storage systems completed for Michigan neighborhood. Power Eng. (February 1, 2019). Available at: https://www.power-eng.com/articles/2019/01/nec-energy-storage-systems-completed-for-michigan-neighborhood.html (accessed February 14, 2019).
39.Uhlenhuth, K.: Missouri utility looks to energy storage to extend life of substation. Energy News Network (April 27, 2018). Available at: https://energynews.us/2018/04/27/midwest/missouri-utility-looks-to-energy-storage-to-extend-life-of-substation/ (accessed February 14, 2019).
40.Trabish, H.K.: Inside the first municipal solar plus storage project in the US. UtilityDive (July 5, 2016). Available at: https://www.utilitydive.com/news/inside-the-first-municipal-solar-plus-storage-project-in-the-us/421470/ (accessed February 14, 2019).
41.Froese, M.: BP Installs Tesla Battery Storage at South Dakota Wind Farm. Windpower Engineering and Development (November 13, 2018). Available at: https://www.windpowerengineering.com/electrical/power-storage/bp-installs-telsa-battery-storage-at-south-dakota-wind-farm/ (accessed February 14, 2019).
42.For video of presentations and presenter slides, see: Energy Transition Lab, UMN, “Midwest Energy Storage Summit Program.” ETL Blog. Available at: http://energytransition.umn.edu/midwest-energy-storage-summit-program/ (accessed March 7, 2019).
43.Energy Transition Lab, UMN, “Midwest Energy Storage Summit Program”.
44.B Lab website: Available at: https://bcorporation.net/.
45.Walton, R.: Tesla batteries save $500k for Green Mountain Power through hot-weather peak shaving. Utility Dive (July 23, 2018). Available at: https://www.utilitydive.com/news/tesla-batteries-save-500k-for-green-mountain-power-through-hot-weather-pea/528419/ (accessed March 7, 2019).
46.As of October 2017, cost of electricity across all sectors was 14.44 cents per kWh (Vt.) and 10.51 cents per kWh (MN): EIA. Electric Power Monthly. (2018). Available at: https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a (accessed March 7, 2019).
47.Indianapolis Power & Light: The Challenges of Integrating Lithium Ion Energy Storage Res. with MISO Tariff, Business Practices, and Markets, 5 (July 26, 2017).
48.Indianapolis Power & Light, 6.
49.Indianapolis Power & Light, 4.
50.158 FERC ¶ 61051: Utilization of Electric Storage Resources for Multiple Services When Receiving Cost-Based Rate Recovery, 11, (January 19, 2017). Available at: https://www.ferc.gov/whats-new/comm-meet/2017/011917/E-2.pdf (accessed March 7, 2019).
51.Energy Transition Lab, UMN, Strategen Consulting, and Vibrant Clean Energy: Modernizing Minnesota’s Grid: An Economic Analysis of Energy Storage Opportunities, July 2017. Available at: http://energytransition.umn.edu/wp-content/uploads/2017/07/Workshop-Report-Final.pdf (accessed March 7, 2019).
52.Minnesota’s Next Generation Energy Act, Minn. Stat. §216H.02.
53.The Energy Transition Lab and Strategen Consulting collaborated in 2016–2017 to hold two high-level Energy Storage Workshops with utility, technology, and renewable energy company executives, state regulators, academic experts, and others to learn about storage and identify key opportunities and barriers in Minnesota.
54.Comment by Dan Foley, Glidepath, in Minnesota House Energy and Climate Finance Division Committee Testimony, 2.7.19.
55.Manghani, R.: Will energy storage replace peaker plants? Greentech Media. March 1, 2018. Available at: https://www.greentechmedia.com/webinars/webinar/will-energy-storage-replace-peaker-plants#gs.i4LCptM (accessed March 7, 2019); J. Rhodes: Energy Storage is Coming, But Big Price Declines Still Needed. Forbes, February 18, 2018. Available at: https://www.forbes.com/sites/joshuarhodes/2018/02/18/energy-storage-coming-but-big-price-declines-still-needed/ (accessed March 7, 2019).
56.Connexus Energy blog: Connexus Energy’s Innovative solar-plus-storage project under construction, August 7, 2018. Available at: https://www.connexusenergy.com/blog/2018/connexus-energys-innovative-solar-plus-storage-project-under-construction/ (accessed March 7, 2019).
57.Preliminary MISO January 30–31 maximum generation event Overview, February 7, 2019. Available at: https://cdn.misoenergy.org/20190207%20MSC%20Item%2004%20Jan%2030%20Max%20Gen%20Event317407.pdf (accessed March 7, 2019).
58.Burandt, B.: Is Energy Storage the Game Changer We’ve Been Looking for? Presentation, Slide 8, Frontiers on the Environment, February 23, 2017. Lecture video available at: https://www.youtube.com/watch?v=fb-GjxBxmHA (accessed March 7, 2019).
59.Strategen Consulting, et al.: White Paper Analysis of Utility-Managed On-Site Energy Storage in Minnesota. Prepared for MN Dept of Commerce (December, 2013). Available at: http://mn.gov/commerce-stat/pdfs/utility-managed-storge-study.pdf (accessed March 7, 2019).
60.The filing was part of Xcel Energy’s 2015 Distribution-Grid-Modernization Report, as required by Minn. Stat. §216B.2425, subd. 2(e). See 2015 Biennial Report—Distribution Grid Modernization, Docket No. E-999/M-15-439 (Oct. 30, 2015). Under Minn. Stat § 216B.2425, Xcel’s Distribution-Grid-Modernization Report must identify projects that: [Xcel] considers necessary to modernize its transmission and distribution systems by enhancing reliability, improving security against cyber and physical threats, and by increasing energy conservation opportunities by facilitating communication between the utility and its customers through the use of two-way meters, control technologies, energy storage and microgrids, technologies to enable demand response, and other innovative technologies. Minn. Stat. § 216B.2425, subd. 2(e). The Minnesota Public Utilities Commission (PUC) then has ultimate authority to approve or deny Xcel’s identified projects. Id. at subd. 3.
61.Docket No. E-999/M-15-439; Order Certifying Advanced Distribution-management System (ADMS) Project Under Minn. Stat. § 216b.2425 and Requiring Distribution Study, Docket No. E-002/M-15-962, 5 (June 28, 2016). Docket No. E-999/M-15-439.
62.Docket No. E-999/M-15-439.
63.Docket No. E-999/M-15-439.
64.Docket No. E-999/M-15-439, 11.
65.Docket No. E-999/M-15-439.
66.Minnesota Senate. Senate File 100/House File 165, 2019, Senate File 3266. Senate Authors: Osmek, D.J., Marty, J., Dibble, D.S., and Senjem, D.H. (2018). Available at: https://www.revisor.mn.gov/bills/status_result.php?body=Senate&search=basic&session=0902017&location=Senate&bill=3266&bill_type=bill&rev_number=&submit_bill=GO&keyword_type=all&keyword=&keyword_field_text=1&author1%5B%5D=&author%5B%5D=&topic%5B%5D=&committee%5B%5D=&action%5B%5D=&titleword= (accessed March 7, 2019).
67.Galbraith, Sarah: Resilient Solar + Storage at Nature Center Improves Community and Economic Security.
68.Clean Energy Group: September 22, 2016, Available at: https://www.cleanegroup.org/hartley-nature-center/ (accessed March 7, 2019); Clean Energy Group: Hartley Nature Center. Available at: https://www.cleanegroup.org/ceg-projects/resilient-power-project/featured-installations/hartley-nature-center/ (accessed March 7, 2019).
69.Bade, G.: 13 projects from the leading edge of the utility transformation (2018). Utility Dive, May 23, 2018. Available at: https://www.utilitydive.com/news/13-projects-from-the-leading-edge-of-the-utility-transformation/524099/ (accessed March 7, 2019).
70.Li, M., Smith, T.M., Yang, Y., and Wilson, E.J.: Marginal emission factors considering renewables: A case study of the U.S. Midcontinent independent system operator (MISO) system. Environ. Sci. Technol. 51, 19 (2017): 11215–11223.10.1021/acs.est.7b00034
71.Energy Transition Lab, Strategen Consulting, and Vibrant Clean Energy. Modernizing Minnesota’s Grid, 44.
72.Energy Transition Lab, Strategen Consulting, and Vibrant Clean Energy. Modernizing Minnesota’s Grid, 46.

Keywords

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed