ESKOM’S FLAGSHIP BATTERY ENERGY STORAGE SYSTEMS (BESS)

PROJECT

Author: P. Moyo

Eskom Holdings SOC Ltd , P O Box 1091, Johannesburg, 2000, South Africa
Technology Division
Generation Group

Abstract: The paper will discuss the flagship 360MW/1440MWh battery energy
storage systems (BESS) project that has been launched by Eskom. It will look at
storage technologies and their evolution, with particular reference to BESS of Li-
Ion, NaS and redox flow battery technologies. Energy storage programmes that are
being rolled out in the world will be outlined. The various use cases of BESS will be
covered, such as energy arbitrage, peak clipping, frequency support, volt/var
support, deferred transmission and distribution investment and quality of supply
improvement, PV smoothing, renewable energy firming, spinning reserves and
black start. Duty cycles expected of the BESS systems and the economics thereof
for customers and utilities will be explained. Finally, the paper will propose some
guidelines for the specification, testing, operation, maintenance and disposal of
BESS systems and potential for wide-spread application on the South African
power system.

Key words: BESS, Li-ion, NaS, flow batteries, storage

1. INTRODUCTION battery energy storage systems (BESS) with some

The Eskom is South Africa’s electricity utility,
responsible for 95% (220TWh) of energy supplied
within the country. Eskom manages a power system
with peak capacity of 35GW.
The power system in South Africa has evolved with
the introduction of renewable energy independent
power producers (REIPPs), while at the same time
energy sent out declined at an annual rate of 0.6%
(Draft IRP 2018, p18). Eskom’s share of the market
has therefore not grown.
The latest draft integrated resource plan with an
outlook to 2030 has the following allocations –
7598MW PV and 11442MW wind. This represents a
more than five-fold increase each for PV
(2018:1484MW) and wind (2018: 1980). In total, it
moves PV and wind from 7.2% installed in 2018 to
25.6% installed in 2030, a 350% rise.
In its application for funding of the new large coal-
fired power project, the 4800MW Medupi, Eskom
committed to executing power projects utilising
clean technologies. The 100MW Sere Wind farm
project is one. Plans for a 100MW CSP plant were
discussed in 2015 but it was resolved in 2017 that
Eskom should roll out a project on distributed
PV.
The sizing of the BESS would be similar to the
energy that CSP would have generated, which is
1440MWh per day or 525GWh per year (100MW at
60% load factor).
Internationally, storage programs have been
launched in the USA, Europe and China. The USA
program in California is called Self-Generation
Incentive Program (SGIP) and in 2013 set a target
of 1.3GW of storage by 2020. 85% of this is utility-
based with the balance being customer facing.
The European Union has approved plans to inject
EURO200m into a program to develop battery
storage manufacturing capacity (Energy Storage
News, 14 Nov 2017), in addition to EURO150m
already allocated.
Demand is expected to rise more than eleven-fold
by 2025 (from 10GWh to 117GWh per annum).
China is expected to trail only the US by 2022 in
demand for battery energy storage
(4000MW/10000MWh vs 8000MW/21000MWh).
The US DoE compiles a list of storage projects and
publishes them on its website
(www.energystorageexchange.org). Anyone can BESS deployment is growing internationally, with
submit their projects online. estimates at about 1GW growth per annum (see
Figure 3)

2. STORAGE TECHNOLOGIES

Energy storage solutions have been in existence for

many centuries, but electrical energy storage
development started in the second half of the 20th
century. Figure 1 shows the spectrum of solutions
ranging from high capacity mechanical solutions,
mid-range chemical solutions and through to the
new and emerging electrical solutions.

Figure 3: Growth of BESS deployment per annum

Figure 4 below shows the reduction cost of energy

storage systems.

Figure 1: Electrical energy storage systems (Fraunhofer

ISE)

BESS solutions fall within the chemical/electro-

chemical part of the spectrum. They are mid-range
solutions.

Figure 2 shows another view of storage solutions taking

into account their capacity.

Figure 4: Trends in the cost of utility-scale battery

storage systems (Navigant Research)

The CPUC SGIP programme referred to

previously has accelerated the deployment of BTM
and FOM BESS in California, triggered by their
efforts to address the excess generation of PV
during the day and extremely high ramp rates
during the peak times, a phenomenon that has
resulted in the famous ‘CAISO Duck Curve’ (see
Figure 5). 1,3GW has been approved for
implementation, which is 6.5% of a morning peak
of 20GW.

Figure 2: Electrical storage solutions capacity

It is important to note that while the Eskom project is

targeting mid-range utility-scale applications of NaS,
Li-Ion and Flow shown above, technologies are
developing very fast leading to greater capacity and
lower cost.

3. BATTERY ENERGY STORAGE SYSTEMS


Figure 5: CAISO duck curve (i) and future projections (ii)
The BESS architecture involves a battery
management module which is a chemical storage
medium that is integrated into the grid using ac/dc
and dc/ac converter/inverter. Figure 6 shows that
the conversion/inversion is achieved through a PCS
and the overall system is managed by an energy
storage control system, sometimes called an EMS.
Figure 6: BESS system architecture
A balance of system installation is included that
maximises the efficiency of the BESS through
HVAC systems, and provides safety features such
as fire protection.
3.1 BESS APPLICATIONS
The applications of BESS are highlighted below in
summary format. The economic value proposition
for some applications is presented, with formulas.
3.1.1 Energy Arbitrage
Energy arbitrage is where energy is stored
during low generation cost/tariff periods for
despatch at high generation cost/tariff periods.
For as long as the system inefficiency does not
exceed the cost differential, the business case
may be positive.
The general formula for value realisation over
the life of the asset is
Value = [energy supplied * peak rate - energy
consumed * off-peak rate] Equation 1
where
energy supplied = energy consumed * efficiency
of BESS
3.1.2 Peak Clipping
The discharge of energy at a predictable
capacity factor during peak times can be used to
reduce peaking capacity thereby saving costs.
The general formula for value realisation over
the life of the asset is
Value = demand reduction* differential cost of
peaking generation Equation 2.1
to the generator, or
Value = demand reduction * demand charge
(R/kWh) Equation 2.2
to the end-consumer
Figure 7 below shows both energy arbitrage and
peak shaving.
Figure 7: Energy arbitrage (discharging at peak) and
peak shaving (new flatter profile at peak)
3.1.3 Spinning/Instantaneous Reserves
BESS systems have a very fast response, much
faster than synchronous systems. Fast
deployment can have additional benefits,
especially when coupled with traditional non-
instantaneous spinning reserves such as gas
turbines that may take minutes to reach rated
output.
3.1.4 Frequency Support
BESS capacity can be used in power mode
(short duration), as a generator or load, to
provide fast capacity support that can arrest
frequency excursions. Frequency must operate
within the ROCOF curve.
The general formula for value realisation is
 Value = investment in traditional spinning
reserves – Equivalent BESS lifecycle cost
Equation 4
3.1.5 Voltage Support
Similarly, BESS capacity can be used in power
mode (short duration), as a generator or load, to
provide fast voltage support that can arrest
frequency excursions. This can be battery
capacity power or non-battery reactive power in
static var compensator mode.
3.1.6 Quality Of Supply/Critical Power
BESS can be used to ride short-duration quality
of supply phenomena such as voltage dips and
flicker.
3.1.7 Capex Deferral
BESS can be used to augment capacity and
support the system at critical times of the day,
thereby avoiding what can be costly investment
in infrastructure upgrade.
The general formula for value realisation is
Value = investment in traditional infrastructure –
Equivalent BESS lifecycle cost Equation 7
3.1.8 PV Smoothing
PV smoothing involves the storage of solar
energy during the day for despatch at peak
times. This function enables utilities to maximise
the amount of solar that can be tolerated by the
system in that both supply and storage can be
done. All this is subject to non-violation of
system inertia requirements.
3.1.9 Wind Energy Firming
Battery storage can be sized to complement
variable wind generation. When wind is above
the set limit, the BESS is charged. It is
discharged when output reaches a lower
threshold. Similarly to PV, affordable storage
can made wind despatchable.
3.1.10 Backup Supply
In UPS mode, a BESS solution can be used as
a back-up power supply.
3.1.11 Micro Grids
The microgrid function enables the BESS to be
deployed with renewable energy in a
decentralised grid arrangement.
3.2 BESS Duty Cycles
Most BESS chemistries have a lifetime that is
dependent on duty cycle. Li-ion batteries can
last up to 10 years, NaS last 15 years, while
flow batteries have a theoretically unlimited
lifecycle.
BESS duty cycles range from a few hundred
operations per year for simple functions such as
energy arbitrage, where the unit may be called
upon only twice a day for weekdays, to several
thousand operations per year for frequent short
duration applications such as frequency and
voltage support.
For high duty functions such as frequency
support, it may become necessary to prepare a
baseline of the frequency excursions in order to
size the unit appropriately. Similarly, for wind
energy firming, annual wind profile and wind
farm sizing can be used to estimate the BESS
duty cycle.
3.3 BESS Specification
3.3.1 Procurement Specification
A BESS specification includes critical parameters
such container dimensions, weight, operating
temperature range, chemistry, round-trip
efficiency, fire safety systems, rated continuous
power charge and discharge and communication
protocols. The battery module, inverter and
balance of system specifications are implied in
these parameters.
Included in the specification are all requirements
for augmentation and disposal of parts.
Service life is commonly set at 20 years.
Evaluation of offers that meet technical
specifications and other contract requirements is
on the basis of lifecycle costs, being capital,
energy inefficiency, maintenance, augmentation
and disposal costs.
3.3.2 Testing
Testing is prescribed in various specifications,
such as IEC 62933-2-1, IEEE 2030, etc. Factory
acceptance tests include tests for power and
energy rating, round-trip efficiency, accelerated
 ageing, response time, ramp rate, auxiliary power
consumption and self-discharge. Site acceptance
tests include tests for grid connection, anti-
islanding and quality of supply capability.
3.3.3 Operation
The BESS unit has a local operation mode and a
remote operation mode. It relies on regular input of
set parameters to which it responds as
programmed, e g voltage droop.
3.3.4 Maintenance
BESS require maintenance of the battery storage
module, the inverter and balance of system. A two-
year warranty will usually be included with the
supply of the solution. This includes responses to
planned (preventive) maintenance events as well as
unplanned/faults or corrective maintenance.
There are three options for maintenance:
i. Continued maintenance by the EPC after
the warranty period (usually two years)
ii. Warranty terms extended by a fixed period
(e.g. 3 years) or
iii. Maintenance taken over by the utility for the
life of the asset immediately after
warranty.
3.3.5 Monitoring
Monitoring of the BESS solution is expected. This
includes the DERMS function as well as monitoring
the end-of-life of critical components such as the
battery module. End of life estimation is critical in
order to correctly time the implementation of
necessary interventions to maintain the intended
functionality.
3.4 BESS Disposal
The environmental impact of BESS is analysed
throughout its lifecycle, covering manufacture, use
and disposal. Disposal requires careful attention,
especially where the chemicals have a potential to
pollute the environment. All national and
international legislation, such as the ?? Recycling is
a favoured option wherever possible, and dominant
technologies such as Li-ion still have a long way t go
reach levels achieved by lead-acid batteries (EPRI
Journal, January 2016).
4 ESKOM BESS PROJECT SCOPE
The Eskom BESS project involves deployment of
solutions at multiple sites in various OUs.
Solutions range in size from 1MW to 60MW. The
average size of an installation will be
4MW/16MWh, which implies about 90 installations
in all. All solutions will have a primary function and
supplemental functions in the form of ‘stacked
benefits’, in order to maximise the value of the
BESS. As an example, a unit primarily meant for
capex deferral during peak times in winter months
will be available for functions such as frequency
support at any time and peak clipping during
summer months. Peak hour discharge shall be for
4 hours.
Process flow:
The process followed to arrive at a technical
enquiry is shown in Figure 8 below:
1. Identification
of use cases
2. Identification
of potential
sites
3. Conducting
business case
analysis
4. Concept designs,
specifications and
permitting
5. Contracting
and rollout
Figure 8: Process Flow for the BESS project
Step 1
Use cases have been extensively written about
and are found in key SANDIA, EPRI and IEEE
documentation (see reference list). These are
covered in section 3.1 above. The most attractive
applications are for distribution deferred
investment and congestion management, and this
was prioritised wherever possible.
Step 2
Each participating OU identified potential sites.
Where local benefits were not immediately
available, substations sites in electrically remote
Operating Units were chosen. An attempt was
made to prioritise sites that result in upstream
congestion and a reduction in losses. These sites
 will provide losses benefits in addition to displacing
peak energy (kWh) and demand (kW).
Step 3
This step involves assessing the business benefit of
deploying BESS versus other viable options (such
as new distribution/ transmission substations and
feeders, installation of voltage regulators, additional
peaking power generators, etc), and where the
investment is recouped within a reasonable timeline.
Project justification is based on direct benefits such
as reduced distribution bulk purchase costs, and
indirect benefits such as reduced overall generation
costs.
Step 4
The first step in this stage is conducting technical
due diligence of sites. This involves performing a
series of network planning studies such as worst
case (maximum charging and discharging) load
flows, dynamic time-series studies and quality of
supply studies. Concept layout designs for
successful sites have been conducted. These are
based on standard BESS yard and substation yard
layouts but are to be finalised at detail design by the
successful EPC contractor. This phase also
incorporated the development and approval of the
following technical specifications:
i. BESS equipment
ii. AC equipment
iii. General BESS and substation yard
iv. Protection and control
v. DERMS
vi. APM tool
The DERMS will be integrated into the SCADA to
provide a seamless transition between network
conditions and BESS deployment. It will effectively
manage a ‘BESS fleet’.
The life management of BESS units is critical as
some chemistries tend to degrade over time, leading
to the technical benefits not being fully realisable. It
is therefore important to monitor the unit, in
particular the chemical storage unit, for end-of-life.
This is achieved through the APM tool.
Permitting involves sourcing land and conducting
environmental impact assessments in line with
relevant legislation.
Step 5
The contracting phase involves completion of bid
documents (in particular the bills of quantities and
evaluation criteria) in line with the templates
provided. The scope per site is confirmed and
related technical documentation provided by
Eskom. The list of documentation to be provided
includes, amongst others:
i. Planning report indicating use case,
business case and network parameters
ii. Arrangement diagrams for the proposed
BESS and substation yards
iii. Various utility technical specifications
The evaluation criteria involves preliminary
assessment, technical assessment and finally
economic lifecycle assessment. The lifecycle
phase considers capital cost, energy cost
(inefficiency), maintenance cost,
replacement/augmentation cost and disposal cost.
5 FUTURE AREAS OF FOCUS
Future areas of focus in the understanding of
BESS, after deployment, are analytics, generation
use cases and detailed technical planning studies.
Analytics will involve history of deployment,
operating costs, revenue earned, ageing
mechanisms and ageing rates. Generation use
cases to be studied include provision of
generation-scale instantaneous reserves coupled
to traditional non-instantaneous reserves,
emergency backup and black start capability.
On a system-wide level, a key variable to
understand is the limit of the South African power
system to host inverter-based generation. This is
important because system inertia is always
required in order to enable the system to recover
from faults. It is interesting that the IRP 2018 draft
document recognises this (p38).
One opportunity that has been missed in the draft
IRP 2018 is to guide the determination of
additional energy storage. With costs declining as
they are, the document needs to prepare the
industry for these solutions. Where viable, the
utility and end-customers will deploy BESS even
with no framework in place, in particular to defray
peaking power costs. There is an opportunity for
South Africa to develop an ancillary market that
would make the business case for BESS more
viable.
6 CONCLUSION
BESS has clear business value at a local and
network level. Various use cases have been
presented to indicate this. South Africa is
 increasing the share of variable RE to 25% in the
draft IRP. This will result in steep ramp rates for
traditional plants and to mitigate this impact, BESS
solutions could be utilised. South Africa must
develop an ancillary market in order to stimulate
investment in solutions that will support grid
flexibility.

Allocation of inverter-based variable RE and BESS

must be limited to the minimum inertia that the
system should have. This must still be studied in
detail.

7 REFERENCES

[1] EPRI Energy Storage Technical Specification

Template, 3002006673, October 2015

[2] EPRI ESIC Energy Storage Implementation

Guide, 3002010896, December 2017

[3] EPRI Examines Environmental Aspects of Grid-

Scale Battery Deployment, Chris Warren, EPRI
Journal, January 2016

[4] IEC White Paper: Electrical Energy Storage

[5] IEEE P2030.2.1 Draft Guide for Design,

Operation, and Maintenance of Battery Energy
Storage Systems, both Stationary and Mobile, and
Applications Integrated with Electric Power
Systems, September 2017

[6] The Impact Of Battery Energy Storage Systems

On Distribution Networks, Cigre WGC6.30, 2014

[7] Department of Energy: Draft Integrated Resource

Plan 2018

[8] The Battery Will Kill Fossil Fuels—It's Only a

Matter of Time, Mark Chediak, Bloomberg, March
2018

[9] Bloomberg New Energy Outlook 2018

[10] PNNL−22010 Rev. 2 / SAND2016-3078 R:

Protocol for Uniformly Measuring and Expressing
the Performance of Energy Storage Systems, April
2016