NJ Battery Energy Storage Project 1

Introduction

20MW/20MWH Lithium-ion Battery Energy Storage System in Bloomsbury, NJ

NJ Battery Energy Storage Project 1, LLC (NJBES) is a New Jersey based firm, a fully owned subsidiary of Harrison Vickers Waterman, inc., with focus of developing battery energy storage projects in the PJM territory.  NJBES has the capability to deliver at every phase of a project, from the early stages of site selection and feasibility right through to the project management of the construction and operation in revenue markets.

Project Data Chart

A. Installation Type Battery Energy Storage System (Lithium-Ion Battery Technology)
B. System Size(AC) 20 MegaWatts(MW)/ 19.2 MegaWattHours MWH)
C. Max Output (AC) 20 MW
D. Address 1 County Rd 519, Bloomsbury, NJ 08804
E. Utility First Energy (JCP&L)
F. Independent Service Operator (ISO) PJM
G. Revenue Market PJM RegD
H. Site Lease Cost (Annual)
J. Taxes TBD
K. Interconnection Cost TBD
L. Planning and Zoning Approval In process
M. Conservation Commission Approval Approved

Executive Summary of Bloomsbury Energy Storage Project

Preliminary Site Layout

Above: Sketchup Model of Bloomsbury BESS
Above: Sketchup Model of NJ Battery Energy Storage Project 1, LLC BESS 

PJM Ancillary Service(RegD) Overview 

The revenue services for the Bloomsbury BESS will come from PJM’s Ancillary Service Market. Ancillary services help balance the transmission system as it moves electricity from generating sources to ultimate consumers. PJM operates two markets for ancillary services: the Synchronized Reserve Market and the Regulation Market1.

1. Synchronized Reserve supplies electricity if the grid has an unexpected need for more power on short notice – such as unplanned generator outages or unexpected spikes in energy demand. Think of synchronized reserve as a spare tire – a backup in case of an emergency. The power output of generating units supplying synchronized reserve can be increased quickly to supply the needed energy to balance supply and demand1.

2. The PJM Regulation Market is one of the Ancillary Services Markets that helps ensure sufficient resources are available in the short term, and helps ensure system stability. Specifically, Regulation ensures sufficient resources are available to respond to instantaneous fluctuations in the system frequency (unmatched demand will cause frequency to drop,, unmatched generation will cause frequency to increase), and voltage.

3. In 2011 FERC enacted Order No. 755 which requires each RTO/ISO to use market based mechanisms to select and compensate frequency regulation resources based on a two-part payment methodology. Specifically, Order No. 755 requires that a capacity payment be made to a resources to keep its capacity reserve in the event that it is needed to provide real-time frequency regulation service. Second, Order No 755 required that performance payments to be made, that reflect the amount of work each resource performs in real-time in response to the system operator’s dispatch signal.

a. Capacity ($/MW) → Payment for making Regulation Capacity Available

b. Mileage Payment ($/∆MW) → Payment per MW delivered in response to the ISO instruction signal sent every 2 seconds (‘mileage’)

c. Performance Score (0-100%) → A score based on an asset’s speed, accuracy and precision of the response to the ISO instruction signal.

d. Mileage Ratio → The hourly miles of regulation signal the resource is following divided by the hourly miles of a traditional signal.

4. Beginning in October 2012, PJM restructured its Regulation Market from one that clears only traditional frequency response (Reg A – resources that are slow to respond to a Regulation signal) to one that also simultaneously clear a faster frequency response (Reg D). Resources can chose to offer Reg A or Reg. D.

5. Market Settlement

The payment to the storage project consists of two payments, a capacity payment and a performance payment  which is calculated every 5 minutes

Clearing Prices

RMCCP –  Regulation Market Capability Clearing Price

RMPCP – Regulation Market Performance Clearing Price

Regulation Provider Credits:

RMCCP = PJM Assigned Reg * Performance Score * RMCCP

RMPCP = PJM Assigned Reg * Mileage Ratio * Performance Score * RMPCP

6. 2017 Market Clearing Prices with the following characteristics:

a. 20MW System

b. Performance Score: 95%

January: $217, 460 February: $189,181March: $342,643
April: $406,4145May: $360,320 June: $359,458
July $362,447 August: $409,512 Sept: $465,887
Oct: $414,054Nov: $333,599 Dec: $474,381

Total for 2017: $4,335,098      

1- PJM Learning Center  http://learn.pjm.com/three-priorities/buying-and-selling-energy/ancillary-services-market.aspx

Above: Is a sample PJM RegD Wave-test performed at the Somerdale BESS 

Click here to download pdf file of report.