Cost Comparison for a 20 MW Flywheel-based Frequency Regulation Power Plant.pdf

Cost Comparison for a 20 MW Flywheel-based Frequency Regulation Power Plant Beacon Power Corporation KEMA Project: BPCC.0003.002 September, 2007 Final Report Beacon Power September 2007 KEMA Project: BPCC.0003.002 Cost Comparison for a 20 MW Flywheel-based Frequency Regulation Power Plant Principal Contributors: Gerard Thijssen Johan Enslin KEMA-Inc. Project: BPCC.0003.001 Beacon Flywheel Project Under Beacon Power Contract Number: 12952 of October 13, 2006 Beacon Power Contract Funded by the US DOE Through Sandia National Laboratories September 12, 2007 Project Manager: Johan Enslin, Ph.D, Pr.Eng. KEMA Inc. - Consulting 3801 Lake Boone Trail, Suite 200 Raleigh, NC 27607 USA Ph: (919) 256-0839 ext. 105; E-Mail: Johan.Enslin@ Web: Beacon Power September 2007 KEMA Project: BPCC.0003.002 i Table of Contents EXECUTIVE SUMMARY 1 1. Introduction 4 2. Benefits of Fast Response Regulation 5 2.1 Reduction of System-wide Regulation Resources 5 2.1.1 CAISO’s ACE Smoothing Algorithm 5 2.2 Reduced CO2 Greenhouse Gas Emissions 7 2.3 Reduced Dependence on Fossil Fuel 8 2.4 Increased Peak and Base Load Generation Capacity 8 2.5 Increased Transmission Capacity and Reduced Congestion 8 2.6 Additional Reduction of Grid Losses 8 2.7 Other Potential Grid benefits of Flywheel Systems 9 2.7.1 Provision of Grid Backup and ‘Black Start’ Ancillary Services 9 2.7.2 Support of Reactive Current / Voltage Control 9 3. Cost Performance Analysis 10 3.1 Life Cycle Cost Comparison Model 10 3.2 Definition of the Hourly Regulation Cycle 10 3.3 Technologies 11 3.4 Approach 11 4. Assumptions and Approach 12 4.1 Introduction Cost Components 12 4.2 Capital Cost 13 4.3 Operational Costs 14 4.3.1 Fuel for Fossils and Electricity Losses for Flywheels and Lead Acid Batteries 14 4.3.2 Carbon Credit: Cost Associated with