TESA
The Texas Energy Storage Alliance is a diverse and technology neutral coalition of energy storage technology product or services companies and allies pursuing an open and fair legal and regulatory environment in the Texas and ERCOT markets.
News
TESA at work in February
March 12, 2012
On March, 7, 2012, the Texas Public Utility Commission adopted virtually all of the recommendations of TESA, the Texas Energy Storage Alliance, in an important rule affecting electric energy storage resources in Texas. The new rule removes several significant barriers to energy storage and is intended to encourage energy storage development in Texas. Under the new rule, storage will be treated as a wholesale transaction when charging and discharging, will be settled Nodally when charging and discharging, and importantly, storage will not be subject to any retail load fees, including ancillary service costs. After a significant amount of debate, the Commission also voted to exempt energy storage from the 4CP transmission cost allocation method (based on demand levels at 4 critical system peaks) that would have penalized storage for providing Regulation Down Service (charging) during peak periods.
TESA at work in January
February 1, 2012
The PUC published two requests for comments on important storage issues in December. First, in Project 39764, the PUC asked which PUC rules need to be changed in order to encourage storage development in Texas. Second, in Project 39917, the PUC proposed a rule that would govern settlement of storage resources. TESA filed comments in both proceedings in January 2011 and is expecting a third rulemaking to be initiated in February regarding the ability of ERCOT to implement pilot projects. While these issues are being decided by the PUC, TESA continues to work within the ERCOT stakeholder process to pass protocol revisions to facilitate the development of storage resources in ERCOT.
Thermal Energy Storage
January 24 & 25, 2012
Huw Pierce, Sales Manager Power Generation/Augmentation and Kelsey (Walker) Southerland, Director of Government Relations of TAS Energy came to Austin on behalf of the Thermal Energy Storage members of TESA. These members are Natgun Corporation (Thermal Energy Storage Division), PEPCO Energy Services and TAS Energy. Huw and Kelsey along with Bob King, Good Company President and Associate Sarah Goodfriend spoke with legislative staffers about the importance of thermal energy storage and generation storage. The following day, Huw, Kelsey, Sarah and Bob held meetings with PUC Staff to explore policy options for stimulating deployment of thermal energy storage and generation storage.
Welcome new members to TESA
December 1, 2011
TESA welcomes new members, Natgun Corporation (Thermal Storage Division), PEPCO Energy Services and TAS Energy. These companies have Texas offices in Grand Prairie, Irving and Houston, respectively. These member companies are experts in the deployment of thermal energy storage (TES) systems, whether on-site at customer premises or in conjunction with turbine inlet chilling at generation sites. The latter technology is known as Generation Storage (GS).
ERCOT TO HOLD STORAGE WORKSHOP on DECEMBER 2, 2011
November 28, 2011
ERCOT is holding a Storage Workshop on December 2, 2011 to explore and discuss issues related to the integration of storage in the ERCOT market. With proposed projects being developed, this workshop will help address issues raised by stakeholders and ERCOT staff. TESA is helping organize the workshop and is pleased that Scott Baker with PJM will make a presentation on efforts underway in the PJM market. The agenda is as follows:
http://www.ercot.com/calendar/2011/12/20111202-ETWG
Energy Storage Groups Join Forces
November 9, 2011
Washington, DC - The Electricity Storage Association (ESA) has signed agreements to work with industry groups in three states—California, New York and Texas. The California Energy Storage Alliance (CESA), New York Battery and Energy Storage Technology Consortium (NY-BES+) and Texas Energy Storage Alliance (TESA) were formed by companies operating in their respective states joining together to accomplish mutually beneficial policy goals at the state level.
“ESA is excited to link arms with those who can make real progress in the states,” said Brad Roberts, Executive Director of ESA. “ESA focuses primarily on the federal sector but needs to make inroads in states; these organizations are perfect leverage points.” Judith Judson, Chairperson of the ESA’s Advocacy Council, agrees. “Our advocacy efforts will be enhanced substantially by partnerships with state organizations. Some of the largest energy storage projects are being developed and operated in New York, California and Texas.”
Janice Lin, Executive Director of CESA, believes that California can be a model for other states and federally. “California is off to a great start in energy storage legislation and policy. We look forward to sharing lessons learned as we work with ESA to develop federal policy that can move this important emerging market, “stated Lin.
“The planned partnership offers a tremendous opportunity for both organizations to cooperatively leverage its activities to enhance member benefits, advocacy efforts and energy storage material development” said NY-BEST Executive Director, William Acker. “While ESA will continue to lead the way in energy storage advancement at the national level, NY-BEST looks forward to utilizing this partnership to promote its member companies and fulfill its mission of developing a world class advanced battery and energy storage sector in New York State” added Acker.
Suzi McClellan of TESA sees the Texas electric market as providing an interesting opportunity for energy storage. “ERCOT is really an island system with a high penetration of wind generation. The energy storage projects being planned here will provide a great way to showcase the benefits of energy storage. As we work to integrate storage resources into our market, we hope other states are able to learn from our efforts.” McClellan goes on to add, “This partnership with ESA can help make that knowledge transfer possible.”
Katherine Hamilton, Policy Director of the ESA Advocacy Council, believes it will be important for these groups to leverage resources and information. “Advocacy is only as good as the story you are able to tell. These state efforts will go a long way toward developing effective and compelling examples of energy storage making our electric grid more reliable, resilient, efficient, and cost-effective.”
About ESA
Headquartered in Washington, D.C., ESA is the preeminent international trade association dedicated to fostering the development and commercialization of energy storage technologies as a means to solving the nation’s energy and power challenges. ESA’s membership is comprised of a diverse group of electric utilities; energy service companies (ESCOs); independent power producers (IPPs); energy storage technology developers and suppliers; and those in the energy storage research community. The ESA Advocacy Council currently has eleven members, including: A123 Systems, Inc., AES Energy Storage, Altairnano, Aquion Energy, Beacon Power, FIAMM, Prudent Energy Corporation, S&C Electric Company, Saft America, Inc., SustainX, and Xtreme Power. The ESA is a 501(c)(6) trade association that was formed in 1996.
PUC holds Two Workshops on Energy Storage in Texas: TESA Comments
September 30, 2011
TESA submitted comments to the PUC on Project No. 39764 - Issues Relating to Energy Storage and Emerging Technologies.
SAFT joins TESA
September 1, 2011
We are pleased to announce that Saft has joined the Texas Energy Storage Alliance. The other members are happy to have the support and collaboration of this company. Saft designs and manufactures lithium-ion batteries used to improve grid stability, reliability, energy efficiency and renewable energy integration.
Upcoming Energy Storage Forum
August 5, 2011
TESA will be moderating an Energy Storage Forum on August 31, 2011 from 5:30 to 8:30 at Austin City Hall. The Forum is free of charge and is being hosted by CleanTx Forum entitled “Energy Storage: Gateway to a Sustainable Future.” The panel will focus on business development and state and federal energy storage policies.
Texas takes major step toward energy storage
August 5, 2011
On Friday June 17th, Texas Governor Rick Perry recently signed into law the right for large energy storage projects – such as those using battery or flywheel technologies – to participate in the competitive wholesale electricity market, providing generation services, bringing significant grid reliability and environmental benefits to Texas.
“This bill is a good step forward and will help integrate storage into the Texas energy market,” said Suzi McClellan, director of the Texas Energy Storage Alliance and former Texas State Public Counsel.
Specifically, the law (Senate Bill 943 by Carona) clarifies the right of storage resources to interconnect to the grid, and to sell energy or ancillary services to the wholesale competitive market (ERCOT).
“This policy will encourage the development of storage projects to enhance the efficiency of the state power grid,” said Chris Shelton, president of AES Energy Storage, a TESA member. “Energy storage projects are able to provide a fast, flexible and emissions-free solution to grid operator requests for power – leveling the variability of generation and demand on the grid, reducing operating costs and providing for the integration of renewable sources.”
Energy storage can enhance the reliability of the electric grid by regulating frequency or by storing excess energy during periods of low demand and releasing it when demand is high. These functions will also allow more sources of energy, such as wind, solar, and nuclear to be reliably integrated onto the grid.
“Energy storage is an emerging technology that has the potential to bring significant benefits to Texas” said McClellan. “It is a key part of the future electricity system.”
“The passage of this bill will contribute to the State’s continued leadership in clean energy,” commented Carlos Coe, CEO of Xtreme Power, a recipient of state Emerging Technology Funds, and an Austin-based storage system manufacturer with over 100 employees in central Texas. Xtreme Power will provide a 36 MW Dynamic Power Resource, the largest battery energy storage system integrated with a wind farm in the world, at the 153 MW Duke Energy Notrees project in our home State of Texas.
Duke Energy joins TESA
June 7, 2011
We are pleased to announce that Duke Energy has joined the Texas Energy Storage Alliance. The other members (AES, Altairnano, Beacon, Xtreme Power Solutions, Prudent, Exergy, Ideal Power, and Samsung) are happy to have the support and collaboration of this company.
Storage Legislation Passes
June 1, 2011
In ERCOT, storage resources are required to register as generation when discharging and as load when charging. This dual registration requirement has resulted in ambiguity with regard to who pays interconnection and related costs. Senate Bill 943, recently passed, establishes that energy storage resources that bid into the competitive wholesale market are characterized as generation resources. This consensus bill clarifies the rights of these storage resources to interconnect and the issues surrounding who bears the costs of interconnection. The bill is awaiting the Governor’s signature.
Samsung joins TESA
April 6, 2011
We are pleased to announce that Samsung has joined the Texas Energy Storage Alliance. The other members (AES, Altairnano, Beacon, Xtreme Power Solutions, Prudent, Exergy, and Ideal Power) are happy to have the support and collaboration of this company.
ERCOT Nodal Protocol Request 340 is Filed
March 21, 2011
Storage resources that register as generation are required to comply with all the ERCOT protocols that apply to generation resources. AES filed NPRR 340 which exempts storage resources from the requirement to undergo a High Sustainability Limit test. The NPRR establishes a new “ Duration Limited Resource” and a new testing requirement for QSEs that offer Regulation service from a portfolio of resources. This NPRR is under discussion in various committees by interested stakeholders.
TESA Releases White Paper on Energy Storage in ERCOT
February 15, 2011
TESA has published a White Paper which summarizes some of the initial issues the Alliance is addressing at ERCOT. This is part of a broader effort to facilitate the integration of storage technologies into the ERCOT market.
We are actively engaged in the stakeholder process at ERCOT, where one of our members is Vice Chairman of the Emerging Technologies Working Group. One of the focuses of that group is to identify barriers to entry for storage and propose solutions to those barriers. We have worked with ERCOT staff to implement operational changes as a solution and are currently in the process of developing our first protocol revision request which will ease entry for storage resources.
In addition, the Public Utility Commission staff has suggested that a petition for rulemaking be filed at the Commission to encourage the Commission to make some important policy decisions regarding storage. TESA is considering various dimensions of this suggestion internally.
Finally, TESA is working with the Legislature to educate the members on the benefits of the various storage technologies. Based on our conversations, there will likely be some supportive legislation filed this session and TESA members will actively participate in this process and serve as resources to the Legislature during this process.
Prudent Energy Joins TESA
We are pleased to announce that Prudent Energy has joined the Texas Energy Storage Alliance. Prudent Energy is the designer, manufacturer, and integrator of the patented Vanadium Redox Battery (VRB™) – a large-capacity flow-battery type energy storage system. Jeff Pierson, Senior Vice President and head of Prudent’s Bethesda, Maryland office, and Brian Beck, of Houston, will be active participants, as the company expands its interests in the Texas market.
Update on TESA activity at ERCOT
October 14, 2010
The Texas Energy Storage Alliance has been actively participating in the ERCOT Power Storage Working Group (PSWG) to identify and remove barriers to the full integration of storage resources in ERCOT. Although the Working Group has only had two monthly meetings so far, TESA has helped focus the discussion on the first protocols which need to be clarified or changed.
Current ERCOT Nodal Protocols require a testing procedure for regulation service providers that would essentially limit fast acting storage resources to about half of their full capacity to provide service. TESA is working with ERCOT and stakeholders to revise the testing protocols to allow storage resources to be tested for the service that they will perform. Some stakeholders have interpreted the protocols to require regulation service providers to provide continuous regulation up or regulation down for a 60 minute period. TESA is working with ERCOT to clarify the actual requirements for performance of these services. We will pursue any necessary clarifications or modifications as needed.
PUC rules require generation resources to be settled nodally while loads are required to be settled zonally. (There is no mention of storage in the PUC rules.) To the extent that storage resources are treated as loads when charging and/or providing regulation down service, this settlement difference will make it difficult for storage resources to fully participate in the market and may create perverse incentives to inefficiently locate and provide storage resources to ERCOT. TESA is researching this issue and working with stakeholders, ERCOT, and the PUC to resolve this issue.
TESA is also identifying and evaluating additional issues which may require software changes that cannot be implemented until next year when the first round of changes to the Nodal market are likely to occur.
The next ERCOT Power Storage Working Group meeting is scheduled for November 8.
Gulf Coast Power Association 25th Annual Fall Conference Workshop Presentations Posted
October 14, 2010
Link to conference presentations
Battery Power Conference scheduled for October 19 & 20 in Dallas
August 30, 2010
Battery Power 2010, an international conference highlighting the latest developments and technologies in the battery industry, will be held October 19-20 in Dallas, Texas.
This eighth annual event will feature more than 35 presentations on portable, stationary and automotive battery technology, as well as battery manufacturing, materials and research & development. Topics will include new battery designs, emerging technologies, battery materials, power management, charging and testing systems, battery health, as well as the latest market trends affecting the industry.
Xtreme Power Solutions Joins TESA
August 11, 2010
We are pleased to announce that Xtreme Power Solutions has joined the Texas Energy Storage Alliance. The other members (AES, Altairnano, Beacon, Exergy, Haddington Ventures, and Ideal Power) are happy to have the support and collaboration of this Texas-based storage solutions provider.
ERCOT in the News:
June 25th, 2010
ERCOT appointed a committee Chair and Vice Chair for a new ERCOT Energy Storage Working Group. The Chair will come from NextEra, and Praveen Kathpal of AES, one of our TESA members, was designated Vice Chair. A date was not yet set for the group’s first meeting, although that is expected soon.
California State Assembly Passes Energy Storage Bill AB 2514
June 11th, 2010
Landmark Energy Storage Legislation Now Heads to Senate. See more information at the website of our sister organization California Energy Storage Alliance
“Energy Storage in Texas” Webinar held June 10th
June 10, 2010
Presenters:
Robert King, President, Good Company Associates;
Steve Isser, Ph.D., General Counsel and Senior Vice President;
Suzi McClellan, Director, Government Affairs (former ERCOT board member and TX Public Counsel)
The presentation is available here.
ERCOT Creates Power Storage Working Group
May 27, 2010
On April 13, ERCOT held a storage workshop to examine the nodal protocols and identify any changes that need to be made to allow the integration of ERCOT into the market. At the May ERCOT Board meeting, John Dumas presented his findings. The Board expressed support for necessary protocol changes and established the Power Storage Working Group which will be created under the Wholesale Market Subcommittee.
ERCOT’s Long Term Study will Address Storage Potential
May 27, 2010
ERCOT received $3.5 million in DOE funding to conduct a long term study to analyze the ERCOT system requirements . Unlike the usual studies conducted, this comprehensive study will examine the role that all resources, including storage, will play in meeting the system needs over the next 20 years. Good Company Associates is participating on the Long Term Study Task Force and representing the interests of the Texas Energy Storage Alliance.
ERCOT CEO to Sunset Advisory Commission: Changes for Storage are Coming
May 27, 2010
The Sunset Advisory Commission met on May 25, 2010 to discuss the future of the PUC and ERCOT. Trip Doggett (acting ERCOT CEO) addressed the issue of storage in ERCOT in response to questions he received. Mr. Doggett explained the benefits of storage in meeting the future ancillary service needs of ERCOT. He stated that the necessary ancillary services in the nodal market will be very different than those used in the zonal market. They will be faster acting and of a shorter duration. He indicated that we will see some changes in this area over the next year.
ERCOT Storage Report
May 18, 2010
Storage Technologies in the ERCOT Market
by John Dumas, Manager of Supply Integration and Grid Applications
This report by ERCOT is in response to a request by Commissioner Smitherman to examine the potential for, and barriers to, the deployment of storage technologies in the ERCOT Market.
The presentation summarizes the discussion that took place during the Storage Workshop of April 13, and presents these finding to the ERCOT Board.
Grid-based Energy Storage Report
March 16, 2010
SANDIA Report 2010-0815 Energy Storage for the Electricity Grid: Benefits and Market Potential Assessment Guide
by Jim Eyer and Garth Corey
This study was produced for the DOE Energy Storage Systems Program and released in February of 2010. It describes a high-level, technology-neutral framework for assessing potential benefits from and economic market potential for energy storage used for electric-utility-related applications.
New Technology Implementation Grants for Storage
Feburary 25, 2010
Last session, the Texas Legislature established a new technology implementation grant program to help fund the implementation of new technologies designed to reduce emissions. Electricity storage projects related to renewable energy are specifically listed as one of three types of eligible projects.
The state named Suzi McClellan, from Good Company Associates, as one of the ten participants in the Stakeholder Group designed to establishing the guidelines for the program. The Stakeholder Group will meet again in March to finalize the guidelines for the program.
Storage Incentives Covered in Texas Efficiency Rule
Feburary 24, 2010
The Texas Utility Energy Efficiency program law, and the implementing rules adopted by the PUC of Texas, explicitly make energy storage an eligible energy efficiency measure. The PUCT has proposed rule amendments that would increase the state’s efficiency goals substantially over the next five years, as much as quadrupling the current spending. Demand-side renewables and CHP are also eligible under the rule. For a summary of significant rule changes made in the proposed rule, and links to the full text of the rule please see Good Company’s summary of the rule. No changes to the existing language on storage were proposed, but comments are due on March 15.
Chairman Smitherman Calls on ERCOT to Identify Barriers to Storage
January 2010
At the January ERCOT Board of Directors Meeting, PUC Chairman Barry Smitherman asked ERCOT to review all the ERCOT Protocols and Nodal Protocols to identify any potential barriers to storage providing ancillary services. Although the ERCOT staff was unable to say which protocols may prevent integration of these storage services, they did indicate that the protocols are likely to contain some barriers. ERCOT Staff offered to meet with interested parties about any necessary Protocol changes. Chairman Smitherman asked ERCOT to report back to the Board of Directors with their results.
Storage Companies Form Texas Energy Storage Alliance
January 2010
This month leading players in the Texas energy storage market came together to create the Texas Energy Storage Alliance to advance the policy environment for energy storage in the Texas and ERCOT markets. Current members include AES (generation and distribution), Beacon Power (flywheel storage), Exergy Power (thermal storage), and Ideal Power Converters (power converters for distributed renewables and storage systems). Good Company Associates, a consulting firm specializing in energy policy and business development in the Texas energy market, will be providing staff support to the Alliance.http://www.goodcompanyassociates.com/files/manager/ERCOT_Storage_Issues_Whitepaper-2-15-11.pdfProj_No_39764.pdf