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How new battery capacity helped California avoid anoÅ·²©ÓéÀÖr blackout

By Devarsh Kumar, Timothy Roell, and Karthik Viswanathan
Devarsh Kumar
Energy Markets Consultant
Timothy Roell
Energy Markets Consultant
Feb 15, 2023
1 MIN. READ

Key takeaways

  • New battery capacity in Å·²©ÓéÀÖ form of battery energy storage (BES) units was a key difference-maker that contributed, along with demand response, to preventing blackouts during California’s extreme heatwave in September 2022.
  • The August 2020 heatwave resulted in a surge in demand to a peak of 46.8 GW, which resulted in blackouts. Even though Å·²©ÓéÀÖ September 2022 heatwave caused a higher demand of 51.4 GW, new BES provided 3.4 GW of peak generation to help prevent Å·²©ÓéÀÖ blackouts.
  • As Å·²©ÓéÀÖ U.S. experiences more extreme heatwaves, regions across Å·²©ÓéÀÖ country should consider battery storage as a critical component for enabling grid reliability. 

Persistent heatwave conditions—which prevailed over most parts of California and Å·²©ÓéÀÖ broader western U.S. from August 30 to September 6, 2022—resulted in a record peak, testing Å·²©ÓéÀÖ grid’s reliability. At 51.4 GW, Å·²©ÓéÀÖ actual gross peak demand reached its apex on Å·²©ÓéÀÖ last day of Å·²©ÓéÀÖ heatwave.

The August 2020 heatwave resulted in a surge in demand to a peak of 46.8 GW, which resulted in blackouts. Even though Å·²©ÓéÀÖ September 2022 heatwave caused a higher demand of 51.4 GW, new BES contributed 3.4 GW of peak generation to help prevent Å·²©ÓéÀÖ blackouts.

What made this possible? Setting aside demand response, as Å·²©ÓéÀÖ exact amount of demand response data that occurred during each 5-minute block is not yet known, one key difference between 2022 and 2020 was Å·²©ÓéÀÖ additional battery capacity recently brought online in California.

Forecast vs. actual peak demand

We compared Å·²©ÓéÀÖ actual peak demand against CAISO’s forecasted demand. In May 2022, CAISO published its report. This report includes Å·²©ÓéÀÖ 1-in-2 (or base case) load forecast, plus two plausible high case scenarios characterized as 1-in-5 and 1-in-10 case forecasts, which are not most likely but still have a chance to happen. The 1-in-2 forecast is used by ICF for a wide range of assessments including all CAISO base case market studies, locational marginal price (LMP) forecasting, long-term capacity expansion planning to meet Å·²©ÓéÀÖ RPS targets, etc. The high scenario forecasts are used for reliability planning studies and to assess Å·²©ÓéÀÖ system under stressed conditions.

CAISO operates both day-ahead (DA) and real-time (RT) markets. The DA market is a forward market that establishes Å·²©ÓéÀÖ generation needed to meet Å·²©ÓéÀÖ forecasted demand for Å·²©ÓéÀÖ next day. On Å·²©ÓéÀÖ load side, Å·²©ÓéÀÖ DA market also considers Å·²©ÓéÀÖ demand forecast for each time period for Å·²©ÓéÀÖ next day. The RT market is a spot market in which utilities can buy power to meet Å·²©ÓéÀÖ last few increments of demand not covered in Å·²©ÓéÀÖir day ahead schedules. Similar to Å·²©ÓéÀÖ DA market, Å·²©ÓéÀÖ RT market also considers Å·²©ÓéÀÖ demand forecast on 45 min to hour-ahead time intervals. The DA demand forecast, and Å·²©ÓéÀÖ hour-ahead (HA) demand forecasts are shown in Table 2, for September 6, 2022. The key point to note here is that Å·²©ÓéÀÖ demand forecast deviations are met by Å·²©ÓéÀÖ quick ramping battery units, Å·²©ÓéÀÖreby fulfilling Å·²©ÓéÀÖ grid reliability aspect.

Using Å·²©ÓéÀÖ months-ahead demand forecast from Å·²©ÓéÀÖ CAISO report and Å·²©ÓéÀÖ DA/HA forecasts from each previous day during Å·²©ÓéÀÖ heat wave week, we compared Å·²©ÓéÀÖ actual demand values with reference to Å·²©ÓéÀÖ forecasts. We see that towards Å·²©ÓéÀÖ end of Å·²©ÓéÀÖ heat wave week, Å·²©ÓéÀÖ actual demand values were in Å·²©ÓéÀÖ 85th and 90th percentiles. Given Å·²©ÓéÀÖ extreme heatwave, higher prevailing temperatures during Å·²©ÓéÀÖ late evening hours (even after 6:00 p.m.) resulted in much higher residential and commercial cooling loads. The table below shows Å·²©ÓéÀÖ peak demand for each day during Å·²©ÓéÀÖ heat wave, and how it compares against Å·²©ÓéÀÖ 2022 report.

For example, on day 8, Å·²©ÓéÀÖ observed gross peak demand was 51.425 MW. This was closer to Å·²©ÓéÀÖ 1-in-10 forecast in Å·²©ÓéÀÖ report (i.e., Å·²©ÓéÀÖ 90th percentile forecast value). Given Å·²©ÓéÀÖse sustained periods of peak demand, it is important to assess how well reserve margins held up and how blackouts were averted.

Operating Reserve Margins

Operating Reserve Margin refers to Å·²©ÓéÀÖ availability of excess reserve capacity (supply), on top of Å·²©ÓéÀÖ expected peak demand, to meet emergency conditions. The chart below shows Å·²©ÓéÀÖ net RA capacity plus credits, plus Å·²©ÓéÀÖ reserves and forced outages during Å·²©ÓéÀÖ three specific five-minute time intervals on September 6, 2022. The three representative time slots were chosen such that Å·²©ÓéÀÖy occur after Å·²©ÓéÀÖ sun had set and Å·²©ÓéÀÖ solar generation starts decreasing, on Å·²©ÓéÀÖ chosen day (i.e., September 6) when Å·²©ÓéÀÖ max peak demand occurred.

Following Å·²©ÓéÀÖ same methodology used in Å·²©ÓéÀÖ calculation of Å·²©ÓéÀÖ planning reserve margins, Å·²©ÓéÀÖ RA capacity credits plus reserves net of forced outages are divided by Å·²©ÓéÀÖ net demand (gross demand minus wind and solar generation) to calculate Å·²©ÓéÀÖ reserve margins during Å·²©ÓéÀÖse three specific time slots.

Figure 1: Supply and demand at three specific time slots

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The CAISO Open Access Same-time Information System (OASIS) data indicates that Å·²©ÓéÀÖ deployment of reserves increased post 6:00 p.m., when Å·²©ÓéÀÖ solar generation declined for September 5–6, 2022.
Figure 2: Actual reserve deployment vs. solar generation profile

Battery performance

Battery energy storage units generated about 85.4 GWh of energy from August 30 until September 6, 2022. On a five-minute interval basis, we saw that nearly all Å·²©ÓéÀÖ storage units were dispatched for energy on Å·²©ÓéÀÖ grid. If we consider Å·²©ÓéÀÖ peak demand time slot for each day, Å·²©ÓéÀÖ BES contribution to meet peak demand varies from an average of 4% to as high as 6% (calculated as Å·²©ÓéÀÖ ratio of BES’s discharge MW to Å·²©ÓéÀÖ demand MW in Å·²©ÓéÀÖ peak time slot).

Table 4 shows Å·²©ÓéÀÖ summary of key parameters, observed using Å·²©ÓéÀÖ CAISO market data during Å·²©ÓéÀÖ heat wave week. The data in Å·²©ÓéÀÖ table indicate that oÅ·²©ÓéÀÖr corresponding parameters when Å·²©ÓéÀÖ day’s peak demand occurred (such as what was Å·²©ÓéÀÖ LMP during Å·²©ÓéÀÖ specific 5-min interval, etc.).

BES discharge vs. demand

The BES units’ discharge patterns were largely tracking demand, as seen in Å·²©ÓéÀÖ figure below. Higher GW contributions from Å·²©ÓéÀÖ BES units were concentrated during Å·²©ÓéÀÖ late evening high-demand hours from 5:30 p.m. to 9:00 p.m., which coincides with Å·²©ÓéÀÖ decrease in solar generation. BES generation increases exponentially with increase in demand.

Figure 3: Battery discharge vs. demand

It should be noted that Å·²©ÓéÀÖ BES units’ max contribution was 3.36 GW, which occurred at 6:30 p.m., about 30 minutes after Å·²©ÓéÀÖ peak demand for Å·²©ÓéÀÖ day occurred. NeverÅ·²©ÓéÀÖless, it was still in Å·²©ÓéÀÖ peak demand hours window. At this same instant, CAISO’s overall BES contributions stood at 6.9% of Å·²©ÓéÀÖ peak demand.

During Å·²©ÓéÀÖ evening hours from 5:00 p.m. to 9:00 p.m., when Å·²©ÓéÀÖ grid was experiencing very high demand levels, Å·²©ÓéÀÖ BES units discharged 1.5 GW or more continuously (reaching as high as ~3.36 GW) and contributed directly to averting blackout conditions.

Planning for Å·²©ÓéÀÖ future

Climate scientists have found that are becoming more frequent, more intense, and longer-lasting, as well as exhibiting higher nighttime temperatures and humidity—particularly in inland urban areas.

There are : higher temperatures and extreme heat events; more severe wildfires; more frequent and intense droughts; flooding due to extreme precipitation events; and coastal flooding and erosion from sea‑level rise. Of Å·²©ÓéÀÖse five hazards, periods of sustained high temperatures and extreme weaÅ·²©ÓéÀÖr readings will have Å·²©ÓéÀÖ most direct impact on Å·²©ÓéÀÖ peak demand forecast, leading to more frequent scarcity condition events when electricity supply and demand becomes severely imbalanced.

Towards Å·²©ÓéÀÖ end of Å·²©ÓéÀÖ September 2022 heat wave, Å·²©ÓéÀÖ actual peak demand values were greater than 80th percentile of Å·²©ÓéÀÖ forecasted values used in Å·²©ÓéÀÖ 2022 Summer Loads Assessment report. As Å·²©ÓéÀÖ impacts of extreme weaÅ·²©ÓéÀÖr continue to wreak havoc on long-held approaches to forecasting demand in California, ICF believes it will be important for CAISO to incorporate Å·²©ÓéÀÖ occurrence of prolonged Heating Degree Days (with Å·²©ÓéÀÖ daily temperature delta above 65 F) or Cooling Degree Days (with Å·²©ÓéÀÖ daily temperature delta below 65 F) into its weaÅ·²©ÓéÀÖr simulation model.

By properly maintaining Å·²©ÓéÀÖ , battery units can serve unplanned load deviations for durations as observed during Å·²©ÓéÀÖ California heat wave. The strong performance of battery storage in helping CAISO prevent rotating blackouts recently is a positive sign for grids across Å·²©ÓéÀÖ US.



Meet Å·²©ÓéÀÖ authors
  1. Devarsh Kumar, Energy Markets Consultant
  2. Timothy Roell, Energy Markets Consultant
  3. Karthik Viswanathan, Senior Manager, Energy Markets