USAID GRID-SCALE ENERGY STORAGE TECHNOLOGIES PRIMER

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2010). Additional advantages include long cycle life, low fire risk due to low flammability of battery and electrolyte materials, and easy maintenance relative to other energy storage technologies (Alotto, Guarnieri, and Moro 2014; Fan et al. 2020). RFBs also exhibit a depth-of-discharge capability of nearly 100%, meaning the battery can discharge almost all of its stored energy without impacting system performance or damaging the battery. Relative to other electrochemical energy storage options, RFBs have lower energy and power densities, and typically involve more space-intensive system infrastructure, which may limit them to large-scale, stationary applications. RFBs also tend to have lower round-trip efficiencies compared to lithium-ion batteries (Alotto, Guarnieri, and Moro 2014). The largest impediment to widespread adoption of RFB, however, is currently its higher costs due in part to a lack of large-scale manufacturing capacity and the need for pumps, sensors and other power and flow management systems (Nguyen and Savinell 2010). 2.2.1 Current Applications Flow batteries are primarily deployed in utility-scale applications to provide a range of power quality and energy management services, including support for grid integration of solar and wind, although total deployment to date is minimal compared to pumped hydro and lithium-ion battery storage (Alotto, Guarnieri, and Moro 2014). Vanadium RFBs have been used in a range of applications, including provision of peak power and end-of-line voltage support, deferral of conventional transmission and distribution upgrades, and load leveling at substations (Lotspeich 2002; Fan et al. 2020). 2.2.2 Emerging Applications and R&D Efforts Ongoing R&D for RFBs aims to provide cost-effective longer duration storage for energy shifting, peak shaving, and backup power applications. Ongoing research is mainly focused on: • Lowering the costs of existing battery chemistries. For instance, Primus Power aims to reduce the complexity and balance-of-system costs of zinc-bromine flow batteries by eliminating the need for a membrane separator and separate electrolyte tanks (Primus Power and ARPA-E 2018). • Developing newer battery chemistries with fewer raw materials and storage costs. For example, United Technologies Research Center is currently researching how to develop high-performance flow batteries using inexpensive reactants such as manganese (United Technologies Research Center and ARPA-E 2018). Harvard University has also begun developing pilot RFB storage projects using inexpensive, abundant, precious-metal-free organic materials with the aims of lowering RFB costs while improving performance (Harvard University and ARPA-E 2016). 2.2.3 Example Deployment or Pilot Project In California, the utility San Diego Gas & Electric developed a 2-MW/8-MWh vanadium RFB, which will participate in California’s wholesale power markets as part of a 4-year pilot project. The focus of the pilot is to test and evaluate the most profitable value streams for flow batteries in the commercial wholesale market, and its role in grid integration (CAISO 2019). Researchers at NREL are analyzing this battery’s potential value streams using data from performance in distribution support services and have found significant potential savings in grid operational costs from peak shaving (due to transformer upgrade deferral) and energy arbitrage (due to time-shifting energy purchases in the spot market) (Nagarajan et al. 2018).8 8 The ability for energy storage to provide multiple services across different timescales, at different times and to different stakeholders is known as “value-stacking” and can allow energy storage to maximize its economic potential. In California, regulators helped enable value-stacking by providing rules to utilities seeking to procure services from energy storage (Bowen et al. 2019; CPUC 2018). 13 This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications.

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