4/4/2018 Energy Storage

Systems as
Ancillary Service
Providers
ECE 666 Term Project

Adeem Shaikh (20309053)

ECE 666 – Power Systems Operation
Professor Kankar Bhattacharya
Acknowledgements

I would like to express sincere gratitude to my employer Toronto Hydro Electric System Limited
(THESL) for the usage of their IEEE Xplore Digital Library subscription. Access to all IEEE articles and
journals used in the preparation of this report were paid for by THESL. I would also like to thank my wife
Tehreen for preparing all figures used in this report. Lastly, I would like to thank my colleagues, friends
and family for their continuous support and encouragement.

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Table of Contents

1 Introduction ......................................................................................................................................... 1

2 Ancillary Services................................................................................................................................ 3

2.1 Black-Start Facilities .................................................................................................................... 3

2.2 Frequency Regulation Service ...................................................................................................... 4

2.3 Reactive Support and Voltage Control ......................................................................................... 5

3 Energy Storage Systems as Ancillary Service Providers ................................................................. 7

3.1 Energy Storage Technologies ....................................................................................................... 9

3.1.1 Battery Energy Storage Systems (BESS)................................................................................ 10
3.1.1.1 BESS as Ancillary Service Provider ............................................................................... 11
3.1.1.2 Latest technology in BESS ............................................................................................. 12
3.1.2 Flywheel Energy Storage Systems (FESS) ............................................................................. 12
3.1.2.1 FESS as Ancillary Service Provider ............................................................................... 14
3.1.2.2 Latest technology in FESS .............................................................................................. 15
3.1.3 Compressed Air Energy Storage (CAES) ............................................................................... 15
3.1.3.1 CAES as Ancillary Service Provider .............................................................................. 16
3.1.3.2 Latest technology in CAES ............................................................................................. 17

4 Conclusion ......................................................................................................................................... 18

5 References .......................................................................................................................................... 19

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List of Figures and Tables

Figure 1: Three stages of Frequency Control [7] .......................................................................................... 5

Figure 2: Difference between fast response ramping of Limited Energy Storage Resource and slow
response ramping of conventional generator (actual data based on NYISO Data – February 17, 2011 Hour
8) [9] ............................................................................................................................................................. 8
Figure 3: Energy output difference of fast ramping vs. slow ramping resources [9] .................................... 8
Figure 4: Rated power, energy, and discharge duration of different energy storage systems [11] ............... 9
Figure 5: Basic layout of BESS (Janne H, 2015) [9] .................................................................................. 11
Figure 6: Various modern flywheel configurations and their components [11][13]................................... 13
Figure 7: Typical CAES Charging/Discharging process [16]..................................................................... 16

Table 1: Advantages and disadvantages of FESS [14] ............................................................................... 14

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1 Introduction

Energy storage is a component of all major electricity grids in the world today. It is regularly regarded as
a critical tool in increasing variable generation such as renewable energy, and a bridge between the need
to provide quality and reliable power and the demand from customers. Grid connected energy storage is
not a new concept, and many options are currently available today to supplement the efficient delivery of
electricity to customers. There are many benefits to using energy storage systems today for electricity
generators as well as consumers:

1. Environmental benefits: Energy storage options accelerate and allow for the adoption and use of
renewable energy sources into the grid. For example, during periods of high wind or sunny days,
excess energy can be stored and used up later when these natural resources become scarce.
2. Participation in Demand Response Programs: Demand response for commercial and industrial
facilities involves lowering down of electricity usage at peak demand times. With the help of
energy storage, facilities can participate in demand response programs without impacting
operations. Energy storage systems can increase financial return from participating in DR
programs by storing energy at off-peak times, and using it up during on-peak times, while also
benefiting the grid overall. [1]
3. Maximizing time-of-use rates: Energy storage systems can shift consumption of electricity from
periods of peak demand when prices are very high to periods of lower demand when prices are
low.

Energy storage has and continues to provide many such traditional benefits. However, increasingly,
energy storage systems are being used to regulate the electricity grid to ensure safe and reliable delivery
of power to customers. In other words, energy storage systems are becoming increasingly popular in
providing ancillary services to the electricity grid in addition to traditional methods (such as pump hydro-
electric or conventional turbine generators that can provide voltage regulation). There are several reasons
for this. For example, in Ontario, several changes are expected on the power system in the next five years.
This includes the incorporation of approximately 4,800 MW of additional variable generation (such as
solar and wind) and 1,200 MW of new natural gas-fired generation into the supply mix. Also expected are
changes in load behavior due to conservation and other demand-side initiatives, and the refurbishments of
Ontario nuclear generators that would significantly reduce generation. [2] All of these changes will bring
uncertainty and variability to the electricity grid, and energy storage will be necessary to offset the sudden
changes in demand due to their quick response rates. The purpose of this report is to introduce the latest

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state of the art energy storage systems that are used today to provide ancillary services to support the
electricity grid. The first part of the report will introduce the concept of ancillary services, and the
different types of ancillary services contracted out by the system and market operator of Ontario, the
Independent Electricity System Operator (IESO). The second part of the report will introduce different
energy storage options and how they are effective in providing key ancillary services to support the
reliability of the electricity grid. All information and findings will be summarized in the concluding
remarks.

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2 Ancillary Services

Modern power grids are extremely complex systems, balancing energy generation and consumption in
real time. Grid operators must manage a mix of power generation technologies to meet a constantly
shifting demand, and with the rise of small-scale renewable sources (i.e. solar and wind) and energy
storage the complexity of power grid operation will only increase. The Federal Energy Regulatory
Commission (FERC) defines ancillary services as those services that are necessary to support the
transmission of capacity and energy from resources to loads while maintaining reliable operation of the
Transmission Service Provider's transmission system in accordance with good utility practice (from
FERC order 888-A.). In order to be a reliable source of electric power, a grid must offer three main
services: voltage stability, frequency stability, and a continuous power supply. Power grid fluctuations
normally occur when there is an event that creates an instantaneous mismatch between power generation
and consumption. The IESO contracts for four ancillary services to help ensure the reliable operation of
the power system: black-start facilities, frequency regulation service, reactive support and voltage control
service, and reliability must-run. [3] [4] This section of the report will discuss the first three ancillary
services in brief, and section 3 discusses how energy storage can not only provide these ancillary services,
but are a critical component in today’s complex electricity grids.

2.1 Black-Start Facilities

Black start facilities help system reliability by being able to restart their generation facility with no
outside source of power. In the event of a system-wide blackout, black start facilities would be called on
during restoration efforts by helping to re-energize other portions of the power system.

Following a blackout, black start facilities must be capable of: being started by the generating facility in
the absence of communication with the system operator, powering up transmission lines in a defined area
of the grid, providing power to facilitate the start-up of other generators capable of assisting in restoration,
and supplying the power requirements of its restoration path (which depend on the configuration of
connected loads and the need to supply load for voltage or frequency control). [5] Traditionally, these
services are provided by small diesel generators within a generating station facility to start the bigger
generators, or by hydroelectric power plants that have water reservoir reserves. Recently, energy storage
has been shown to be a viable option in providing black-start ancillary services.

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2.2 Frequency Regulation Service

Maintaining the frequency throughout the system at close to 60 Hertz is critically important in North
America (50 Hz in other parts of the world). Every single generator in a power grid must be spinning at
the same speed to generate AC current, otherwise the whole system may become unstable. As an analogy,
a car going on the highway must have all of its wheels spinning at the same speed. If one of the wheels
starts to spin faster or slow down, the rest of the wheels will exert a force on that one wheel to bring it
within sync. Similarly, if the power grid frequency increases due to excess generation (or decreases due to
excess demand), all generators in the grid will begin to exert forces on each other to maintain equilibrium.
If the deviation is very large, the entire grid will become unstable causing damage to equipment in worst-
case scenarios. Frequency regulation, therefore, is a tool employed by power grid operators to maintain
the stability of system frequency. This is normally done in three stages: primary frequency control,
secondary frequency control, and tertiary frequency control. Primary frequency control is triggered
automatically, without any human intervention, right after an under-frequency event. Generators that are
equipped with frequency sensors and participating in frequency regulation will adjust their output
automatically. In some countries, primary frequency control is still done manually via communication
with system operator. Secondary frequency control is triggered within tens of seconds, also automatically,
in case primary frequency cannot correct the under-frequency event. Secondary frequency regulation is
sometimes also called Automatic Generation Control (AGC). Tertiary frequency control is triggered
within a few minutes if the under-frequency event does not correct itself through primary or secondary
frequency control mechanisms. Tertiary frequency control typically involves the system operator
manually adjusting the dispatch of some generators. [6] Figure 1 captures the output range in MW of the
three stages with respect to time.

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Figure 1: Three stages of Frequency Control [7]

2.3 Reactive Support and Voltage Control

Due to inductive and capacitive nature of equipment in a power system, reactive power is a real
phenomenon that must be dealt with similar to managing real power. In alternating current systems, the
generation and absorption of reactive power has an impact on the voltage of the system. This is because
the continuous charging and discharging of inductive and capacitive generators and loads in the grid
produce a lagging or leading of current with respect to the voltage. As it is important to keep voltage
levels within a desired operating range, managing reactive power is an integral component of a stable
power grid. There are three reasons why it is necessary to manage reactive power and control voltage.
First, a too-low or too-high voltage supply can cause customer equipment to perform poorly and in many
instances cause damage. Second, reactive power in the system reduces the amount of real power that can
be generated and transmitted to customers. And third, moving reactive power in the system through
transmission lines incurs real power losses which must be supplied by an increase in both capacity and
energy. Voltage control is complicated due to two factors. First, in low load and peak load conditions,
there is too much or too little reactive power generated by the system respectively which must be
compensated. Second, the power grid is comprised of many pieces of equipment that can fail at any time,
which can cause a drastic effect on the frequency of the system if the equipment is large. For example, the
loss of a generator or a major transmission line can have the compounding effect of reducing the reactive

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supply and, at the same time, reconfiguring flows such that the system is consuming additional reactive
power. At least a portion of the reactive supply must be capable of responding quickly to changing
reactive-power demands and to maintain acceptable voltages throughout the system. Thus, just as an
electrical system requires real-power reserves to respond to contingencies, so too it must maintain
reactive-power reserves. [8] Energy storage is a viable option in providing reactive-power reserves as
discussed in section 3.

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3 Energy Storage Systems as Ancillary Service Providers

Energy storage systems (ESS) can provide a number of benefits to not only the power grid, but to end-
users and to society as a whole. Generally, energy storage benefits can be classified into five categories:

1. Electric supply benefits (i.e. storage and the use of electric energy when prices are low/high
respectively)
2. Grid infrastructure benefits (e.g. if an overloaded transformer in the transmission grid can be
eased off by the addition of a battery, the upgrade of that transformer can be deferred for
economic reasons)
3. End-user benefits (e.g. reduced/avoided losses due to electric service quality and outages)
4. Renewable integration (i.e. storing wind and solar power as it is generated due to their variable
nature)
5. Grid Operations and ancillary services benefits

ESS can be seen as a direct replacement for rapid response fossil fuel fired generators. Rapid power ramp
rate of ESS can outmatch conventional power generator capabilities without direct emissions. The
difference of fast ramping capable resource (ESS) to slow ramping of conventional generation can be
seen in Figure 2 and Figure 3. In Figure 2, the power delivery of fast ramping storage resource greatly
exceeds the slow ramping generator resource. In Figure 3, the energy output of a fast ramping storage
resource is twice as much as that of slow ramping generator resource. Therefore, it is clear that fast
ramping resources contribute much more when providing ancillary services such as frequency regulation
than the slow ramping resources. [9]

The focus of this report is category #5 (ancillary services) and this section will outline different types of
energy storage solutions available in the market today, and present some of the latest research in energy
storage as it pertains to benefiting the electricity grid by providing necessary ancillary services discussed
in section 2.

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Figure 2: Difference between fast response ramping of Limited Energy Storage Resource and slow response ramping of
conventional generator (actual data based on NYISO Data – February 17, 2011 Hour 8) [9]

Figure 3: Energy output difference of fast ramping vs. slow ramping resources [9]

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3.1 Energy Storage Technologies
Since the discovery of electricity, effective methods have been sought to store that energy for use on
demand, or to provide key services when needed. Energy storage has evolved tremendously over time,
and many vast technologies have sprung forth from continuous innovation. Today, energy storage
technologies can be divided into six main categories:

1. Battery Energy Storage Systems (BESS):

a. Flow Batteries - batteries where the energy is stored directly in the electrolyte solution for
longer cycle life, and quick response times
b. Solid State Batteries - a range of electrochemical storage solutions, including advanced
chemistry batteries and electrochemical capacitors
2. Flywheel Energy Storage Systems (FESS) – mechanical devices that harness rotational energy to
store and deliver electricity on demand
3. Compressed Air Energy Storage (CAES) – facilities that compress air and store it in underground
caverns to create a potent energy reserve
4. Thermal – capturing heat and cold to create energy on demand
5. Pumped Hydro-Power – creating large-scale reservoirs of energy with water [10]

Figure 4: Rated power, energy, and discharge duration of different energy storage systems [11]

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All of these technologies are deployed throughout the world today, in applications ranging from local
energy storage for bill reduction, to maintaining the stability of the electricity grid by providing ancillary
services. These technologies can be classified for power and energy applications as shown in Figure 4. A
technology for power application is one capable of producing large amount of power for a shorter period
of time. A technology for energy application produces less power, but for a longer period of time. Battery
Energy Storage Systems (especially high power super capacitors) and flywheels are good examples of
power applications, as they excel in generating power but lack serious energy capacity. This makes them
an excellent option for providing frequency control. On the other hand, CAES and pumped hydroelectric
have generally very high energy capacity making them great as black-start facilities. The only limiting
factor for the pumped hydro is the size of water pool, and for CAES locating the underground geologic
cavern or tanks for compressed air storage. [9] There are advantages and disadvantages for all of these
technologies, and their use depends on the need and application requirements for the system in question.
This section will discuss the first three of these energy storage technologies (BESS, FESS, and CAES)
and how they can be used in providing ancillary services.

3.1.1 Battery Energy Storage Systems (BESS)

BESS is a type of energy storage system that stores energy in batteries and injects it back into the grid
when needed. Electricity cannot be stored in the power system without a medium, and in the case of
BESS the medium is an electrochemical battery. Figure 5 shows a basic layout of a BESS. The power
converter acts as an inverter when discharging, and as a rectifier when charging the battery. It is
connected to a step up transformer, which transforms low voltage to high voltage and vice versa. Very
large systems usually consist of multiple converter modules and transformers. The power converter can
also generate and consume reactive power, therefore supporting voltage level of the point of common
coupling (PCC) (i.e. the grid). The Battery Management System (BMS) is connected to the battery and
controller and is responsible for monitoring the voltage of each cell in the battery pack to avoid over and
under voltage situations during charging and discharging. The Controller has the logic of the BESS and
controls the converter by a defined algorithm through signals from the BMS and the AC bus bar (i.e.
system voltage and frequency). [9]

All energy storages generally have similar components except the storing medium. The advantages of a
battery energy storage system are immediate active power generation and accuracy of control. On the
other hand, its weaknesses are limited energy capacity, limited lifetime of batteries, and high initial
investment costs.

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Figure 5: Basic layout of BESS (Janne H, 2015) [9]

There are many energy storing mediums used today for batteries. Solid state technologies include
Electrochemical Capacitors, Lithium Ion (LI-ION) Batteries, Nickel-Cadmium (NI-CD) Batteries, and
Sodium Sulfur (NAS) Batteries. Flow battery technologies include Redox Flow Batteries, Iron-
Chromium (ICB) Flow Batteries, Vanadium Redox (VRB) Flow Batteries, and Zinc-Bromine (ZNBR)
Flow Batteries. The advantages and disadvantages of each type of battery are outside the scope of this
report. However, the most common type of battery used today is the Lithium Ion battery due to their high
energy and power density, long lifetime, and low self-discharge. Li-ion batteries have improved gradually
and are becoming cheaper and more viable in grid storage applications. Downside of some lithium-ion
battery chemistries is their susceptibility to thermal runaway and in extreme cases to combustion, if the
cell is short circuited, overcharged or ruptured. A major advantage of Li-ion is its versatility. It can be
adapted to variety of different voltages and capacities as needed. [9]

3.1.1.1 BESS as Ancillary Service Provider

The fast response time of Battery Energy Storage Systems, their scalability, and the availability of many
different types of storage mediums make them a candidate for providing all types of ancillary services
including frequency regulation, voltage control, and black start.

As mentioned in section 3, due to high energy ramp up of BESS as compared to conventional generators,
BESS is excellent for providing frequency regulation to the grid.

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As for reactive support and voltage control, it is traditionally produced by static VAr compensators and
synchronous generators capable of generating reactive power. In the case of BESS, the BESS is capable
of producing and controlling reactive power generation by switching solid-state power electronics
(thyristors) similar to static synchronous compensator devices. This is done in the AC/DC Converter
section as shown in Figure 5, where high speed integrated gate commuted thyristors allow fast switching
of connected inductors and capacitors to absorb/generate reactive power respectively. It is highly
beneficial to place the BESS near load centers where reactive power is required, as it is highly
disadvantageous to transmit reactive power over long distances due to losses in transmission lines.

Power electronics of the BESS are also capable of producing large black start power required by
synchronous generators. In most cases, black start service is provided by specially-equipped generators.
However, BESS are well-suited to serve as black start facilities because, unlike generators, they have
extremely fast ramp up rates, do not need special equipment, and they do not have to operate while
awaiting dispatch. [10] In May 2017, the utility Imperial Irrigation District (IID) in Southern California
successfully demonstrated the use of a 33MW / 20MWh lithium-ion battery energy storage system to
provide a ‘black start’, firing up a 44MW combined cycle natural gas turbine from an idle state. [12]

3.1.1.2 Latest technology in BESS

The latest research that is practical still revolves around harnessing lithium-ion battery technology to its
full potential, although we are slowly reaching that point. The next stage in battery enhancements is
electrochemical capacitors (or supercapacitors). Supercapacitors physically store electrical charge at a
surface-electrolyte interface of high-surface-area carbon electrode. Because the charge in a supercapacitor
is stored physically (with no chemical changes taking place like in regular batteries), the process is fast
and highly reversible and the discharge-charge cycle can be repeated virtually without limit. [10] This
makes supercapacitors have response times on the order of 1 second, making them well-suited for short
duration high-power applications related to both voltage and frequency regulation of the grid.

3.1.2 Flywheel Energy Storage Systems (FESS)

FESS use electric energy input which is stored in the form of kinetic energy. Kinetic energy can be
described as “energy of motion,” in this case the motion of a spinning mass, called a rotor. The rotor
spins in a nearly frictionless enclosure (vacuum achieved through mixture of helium and air). When
power is required, the inertia from the spinning rotor can be converted into electrical energy via a motor-
generator that interacts with the utility grid through advanced power electronics. Typical FESS mainly
consists of a flywheel, motor/generator (M/G), an advanced power electronics system, bearings system,
controllers and containment structure. In today’s applications, there are three main configurations for a

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flywheel energy storage system, as shown in Figure 6 including the various structure components of a
flywheel system. In each configuration, when the machine works as a motor, it converts electricity
through power conversion system and exerts a torque to the flywheel rotor, allowing it to reach maximum
velocity and storing the desired kinetic energy. Then, the kinetic energy is maintained in standby mode
(i.e. the rotor continues to spin freely). When the stored energy is required, the machine works as a
generator, converting the stored kinetic energy into electricity through the power electronics interface.
[11]

Figure 6: Various modern flywheel configurations and their components [11] [13]

The amount of energy that can be stored is proportional to the object’s moment of inertia times the square
of its angular velocity. Therefore, to optimize the energy-to-mass ratio, the flywheel must spin at the
maximum possible speed. Applications of high-speed flywheels depend on the choice of two types of
rotors (rim): solid steel or carbon fiber composite. The choice of rim material determines the system cost,
weight, size, and performance. Carbon fiber composite rims are both lighter and stronger than steel,
which means that they can achieve much higher rotational speeds. The bearings also play a key role in
flywheels. The speed of the flywheel is limited to a large extent by the friction on the bearings. Flywheel
bearings can be classified into three main topologies: mechanical bearings which are reliable and cheap

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but also incur the most wear and tear, and frictional losses; magnetic bearings which allow the rotor to be
suspended in air allowing for low losses, long lifetime, and no need for lubrication (best suited for high-
speed flywheel systems); and hybrid bearings which use a combination of the two topologies. In practice
today, most flywheel bearings are hybrid bearings (i.e. mechanical bearing resists a small part of the total
load and magnetic bearing supports the gravitational load of the flywheel). Modern flywheel systems
have negligible standby power losses due to efficiencies in design (such as vacuum containment) and
losses are typically in the range of 1 – 2% of the rated output power. [11] Table 1 highlights some of the
advantages and disadvantages of FESS.

Table 1: Advantages and disadvantages of FESS [14]

Advantages Disadvantages
Power and energy are nearly independent Complexity of durable and low loss bearings
Potentially high specific energy Mechanical stress and fatigue limits
Fast power response Potentially hazardous failure modes
High cycle and calendar life Short discharge times
Relatively high round-trip efficiency (energy stored Cost, if more expensive materials are used for
vs. energy extracted) rotors (i.e. carbon fibre)
Short recharge time

Flywheel energy storage systems (FESS) are increasingly important in high power, low energy
applications. They are especially attractive for applications requiring frequent cycling, as they can
undergo many partial and full charge-discharge cycles [~100,000] with trivial wear per cycle. [10] They
also have very fast response and ramp rates, and can go from full discharge to full charge within a few
seconds or less. All of these characteristics make flywheels excellent for providing ancillary services to
the electricity grid.

3.1.2.1 FESS as Ancillary Service Provider

Figure 4 shows that today’s flywheels are short energy duration systems and they are not generally
attractive for large-scale grid support services that require huge energy storages (in the order of hundreds
of kWh, up to tens of MWh). Nevertheless, flywheels have illustrated potential as effective energy storage
devices for providing ancillary services including frequency regulation and voltage control.

Conventional generators are required to hold capacity in reserve in order to maintain the stability of
generation and consumption. This ramping up and down of the generators not only increases the fuel cost
and emissions, but also takes a minute or longer for some generating power plants to respond. [13] The

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high energy output and fast power response (Table 1) make flywheels great at drawing or injecting power
into the grid as needed quickly (in the timeframe of seconds), providing short interval frequency control
to the grid for maximum stability.

Similar to BESS, the advanced power electronics in FESS allow for reactive power control and voltage
regulation as well.

As can be seen in Figure 4, flywheels today can either provide low power at longer discharge rate, or high
power with short discharge rate. This makes FESS not feasible for providing black-start ancillary services
in the market today, as large generation facilities (i.e. hydroelectric plant) require a large power output for
at least 30 minutes. For gas/steam turbines, the time to complete black-start is even greater. This problem
can be mitigated by aggregating several flywheel technologies together, but to the detriment of the total
cost of the system.

3.1.2.2 Latest technology in FESS

The main components of a flywheel are rotors and bearing systems. Compact, reliable, and low
maintenance flywheels have only relatively recently become available in the market. For more exotic
technologies and their processing, such as carbon fiber composites, the cost can be at about five times
higher than the original steel flywheels. [13] Therefore, the continuous and latest research in FESS is to
make steel rotors be able to operate at higher speeds through the use of innovative designs. Amber
Kinetics in 2015 successfully showed a flywheel system based on steel rotor and magnetic bearings in a
vacuum. This system was able to generate 25KWh of energy for a multi-hour period, unlike other
flywheel technologies that cannot support for more than 15 minutes full discharge cycle. [15] The best
thing about this system is its scalability, as you can aggregate as many flywheel systems in series to get
your desired energy output and power ratings. The advantage of using steel over carbon composite
materials is low cost due to easily available steel material and manufacturing processes.

3.1.3 Compressed Air Energy Storage (CAES)

Compressed Air Energy Storage (CAES) plants can be compared to pumped-hydro power plants in terms
of their power output and storage capacity. But, instead of pumping water against gravity into higher
elevation reservoirs in off-peak hours, in a CAES plant, natural (ambient) air is compressed and stored
under pressure in an underground cavern or onsite storage tanks. When electricity is required, the
pressurized air is heated and expanded in an expansion turbine which then drives a generator for power
production.

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The special thing about compressed air storage is that the air heats up strongly when being compressed
from atmospheric pressure to a storage pressure of approx. 1,015 psi (70 bar). This heat is extracted
during the compression process or removed by an intermediate cooler. The loss of this heat energy then
has be compensated for during the expansion turbine power generation phase by heating the high pressure
air using alternative fuel sources (such as natural gas), or alternatively using the heat of a combustion gas
turbine exhaust in a recuperator to heat the incoming air before the expansion cycle. [10] This is called
the Diabatic CAES method and Figure 7 outlines the charging and discharging process of this method
very well. Another method is the Advanced Adiabatic CAES method, whereby the heat generated by air
compression is thermally stored in a storage medium (thermal oil or molten salt) before entering the
cavern, and is later used during the expansion turbine power generation cycle. This method allows for a
round-trip efficiency of up to 70%, as there is no longer any need to burn extra natural gas to warm up the
decompressed air.

Figure 7: Typical CAES Charging/Discharging process [16]

3.1.3.1 CAES as Ancillary Service Provider

As seen in Figure 4, CAES technologies are capable of providing large energy storage options to the
utility grid, making them an excellent choice for providing black-start ancillary services. Furthermore,
CAES systems have a great ability to control load as the amount of air compression can be varied at any

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time to follow the load curve. This fact, along with their fast ramp rate (50% to 100% in less than 15
seconds), allows them to provide excellent frequency regulation to the grid. Air can be compressed which
draws load from the grid, and it can be expanded to inject power back into the grid within seconds,
allowing for frequency regulation.

Similar to BESS and FESS, CAES systems use advanced power electronics to support the injection or
absorption of reactive power into the grid to maintain system voltage within the optimal range.

3.1.3.2 Latest technology in CAES

The latest developments in CAES is isothermal CAES. Rather than employing numerous stages to
compress, cool, heat and expand the air as done in diabatic and adiabatic CAES, isothermal CAES
technologies attempt to achieve true isothermal compression and expansion in situ, yielding improved
round-trip efficiency and lower capital costs. [10] This means that during compression, work is done on
the system and the system is allowed to release heat. Similarly, during expansion, the system does work
to expand by using energy, so heat must be added to the system. This continuous compression and
expansion process is done such that the pressure-volume curve of the gas being used is kept as close to
isotherm (p-V curve for an isothermal process) as possible, allowing the temperature of compressed gas to
stay near-constant.

In practice, however, isothermal CAES is very difficult to accomplish, as it requires heat to be removed
continuously from the air during the compression cycle and added continuously during expansion to
maintain an isothermal process. One method proposed to accomplish isotherm is to spray fine droplets of
water inside the piston during compression. The high surface area of the water droplets coupled with the
high heat capacity of water relative to air would allow the temperature to stay approximately constant
within the piston. The heated water would then be removed and either discarded or stored, and the cycle
would repeat. A similar process would occur during expansion. [10] Research in this area is slow,
however, due to the difficulty of the task as mentioned earlier.

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4 Conclusion
The importance and attractiveness of energy storage as an integral part of the electrical supply is
becoming increasingly clear with advancements in storage technologies. The first part of this report
introduced the concept of ancillary services, and the different types of ancillary services contracted out by
the Independent Electricity System Operator of Ontario. These services were black-start, frequency
control, and voltage regulation. The second part of this report introduced different energy storage options
and how they are effective in providing key ancillary services to support the reliability of the electricity
grid. The focus was made on battery energy storage systems, flywheel energy storage systems, and
compressed air energy storage systems. Flywheel and battery energy storage systems are operating today
in the competitive ancillary services power market, providing a 10x faster and more accurate response to
a power dispatcher’s signals compared to power turbine generators. There fast ramp up and response rates
make them excellent for providing frequency regulation and voltage control to the electricity grid. The
downside to BESS is the degradation of batteries overtime, and their limited capacities. However,
continued innovation has created new technologies like electrochemical capacitors that can be charged
and discharged simultaneously and instantly, and provide an almost unlimited operational lifespan. The
downside to flywheel technologies is the complexity of creating friction free bearings, and their short
discharge times. BESS can provide black-start services to the grid, however this is not economical.
Similarly, the short discharge of flywheel technology makes them unviable for providing black-start
services. CAES, however, offers both high energy and high power (in the range of MWh - GWh). They
have the ability to draw power from the grid, and release power to the grid via the compression of air. All
of these characteristics make them excellent for providing all ancillary services, including black-start.

The latest research in BESS is electrochemical capacitors (or supercapacitors) and further advancements
in lithium-ion technologies. The latest technology in FESS that is cost effective and practically available
today is the usage of steel rotors on magnetic bearings in a vacuum. This combination gives them
significant cost savings advantage over carbon fiber rotor designs. Lastly, the latest research in CAES is
isothermal CAES. Although this process is hard to achieve, advancements are being made to realize the
full potential of CAES by reducing the heat output from compression of air.

According to market research firm IHS, the global energy storage market is growing exponentially to an
annual installation size of 6 gigawatts (GW) in 2017, and is expected to reach over 40 GW by 2022 —
from an initial base of only 0.34 GW installed in 2012 and 2013. [10] There is conclusive evidence that
energy storage can effectively provide ancillary services for the stability of the grid over conventional
turbine generators.

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5 References

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2016. [Online]. Available: https://www.facilitiesnet.com/energyefficiency/article/Five-Benefits-of-Energy-
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[2] IESO, "Energy Storage," IESO, March 2016. [Online]. Available: http://www.ieso.ca/-
/media/files/ieso/document-library/energy-storage/ieso-energy-storage-report_march-2016.pdf?la=en.
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[3] IESO, "Ancillary Services Market," IESO, February 2018. [Online]. Available: www.ieso.ca/sector-
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[4] LogicEnergy, "What Are Ancillary Services and Why Do Power Grids Need Them?," logicenergy, 12 July
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[5] IESO, "Ontario Power System Restoration Plan," 15 Dec 2017. [Online]. Available: www.ieso.ca/sector-
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[6] S. Blumsack, "9.1.2 Frequency Regulation," PennState College of Earth and Mineral Sciences, [Online].
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[7] J. Eto and e. al, "Frequency Control Requirements for Reliable Interconnection Frequency Response," Feb
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[8] B. KIRBY and E. HIRST, "ANCILLARY SERVICE DETAILS: VOLTAGE CONTROL," Dec 1997.
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[9] J. Huvilinna, "Value of Battery Energy Storage at Ancillary Service Markets," Aalto University, 20 Apr
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[10] Energy Storage Association, "Unleashing the Power of Energy Storage," 2018. [Online]. Available:
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[11] P. Yulong, A. Cavagnino, S. Vaschetto, C. Feng and A. Tenconi, "Flywheel energy storage systems for
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492-501, 2017.

[12] A. Colthorpe, "California battery’s black start capability hailed as ‘major accomplishment in the energy
industry’," Energy Storage News, 17 May 2017. [Online]. Available: https://www.energy-
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[13] M. Amiryar and K. Pullen, "A Review of Flywheel Energy Storage System Technologies and Their
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[14] Climatetechwiki.org, "Energy Storage: Flywheels," [Online]. Available:

http://www.climatetechwiki.org/technology/jiqweb-es-fw. [Accessed 23 Mar 2018].

[15] S. Sanders, M. Senesky, M. He and E. Chiao, "LOW-COST FLYWHEEL ENERGY STORAGE

DEMONSTRATION," Jun 2015. [Online]. Available: www.energy.ca.gov/2015publications/CEC-500-
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[16] I. Project, "CAES - Compressed Air Energy Storage - IMAGES Project - animation," IMAGES Project, 18
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[17] D.M.Greenwood, K.Y.Lim, C.Patsios, P.F.Lyons, Y.S.Lim and P.C.Taylor, "Frequency response services
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[18] G. Graditi, R. Ciavarella and M. Valenti, "An innovative BESS management for dynamic frequency
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[19] Y. D. Lee, J. L. Jiang, H. J. Su, Y. H. Ho and Y. R. Chang, "Ancillary voltage control for a distribution
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[20] Ridge Energy Storage, "Market Applications: Ancillary Services," [Online]. Available:
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[21] ClimateTechWiki, "Energy Storage: Compressed Air (CAES)," [Online]. Available:

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