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CPUC Energy Storage Procurement Study Lithium Battery


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CPUC Energy Storage Procurement Study: Safety Best Practices Attachment F
ATTACHMENT F: SAFETY BEST PRACTICES1
Due to the market readiness and scalability, installations of stationary lithium-ion battery energy storage systems are ramping up quickly to play a major role in California’s clean energy portfolio. California’s dependence on this technology is expected to grow from just over 2,500 MW at the end of 2021 to potentially tens of gigawatts by 2045. As installations accelerate, so does the urgency to address safety.
Over the course of one year, from September 2021 through September 2022, safety events occurred at each of the three separate (and distinct) grid-scale battery systems installed on California’s Moss Landing site. These events, plus the industry’s broader experience with safety events over the last decade, underscore the need to manage the risks stemming from hazardous materials in batteries and the unique properties of thermal runaway. For the safety and reliability of California’s electricity system the CPUC and other stakeholders will need to continuously monitor and guide safe designs, development, maintenance, and operations of stationary batteries according to best practices.
Energy storage safety is a risk management issue—and a complex one. Large-scale battery systems in themselves are complex with many potential points of failure and potential situations that could lead to harm from fire, thermal runaway, or explosion. How these systems interface with the local environment is a challenge. Effective management and mitigation of these risks also require communication and coordination channels that are a challenge to develop given the number and scope of parties involved.
Historically, major safety-related events involved about 2% of large-scale battery storage installations in the U.S., occurred within 1–2 years of installation, and destroyed about 1–2% of its capacity. Based on this very limited information, for every 10 GW of new battery storage installed in California it would be reasonable to expect a handful of safety-related events at new sites, affecting operations of installations potentially several hundred MW in size. This outlook may change as we observe lithium-ion batteries age and as the industry evolves towards different technologies.
The observed range of outcomes of actual safety-related events provide opportunities to learn and improve battery technology. These events help us to better understand the risk profile of battery storage investments and the potential harm to people, communities, the environment, and electricity supply when risks are poorly understood, under-mitigated, or under-managed. Investigations and assessments of these events have driven and shaped the industry’s efforts towards improving safety best practices.
This attachment aims to provide the most current understanding of safety best practices for stationary energy storage systems with a focus on lithium-ion batteries. We draw from industry studies, lessons learned from specific safety-related events, and expert opinion to summarize safety risks and remedies associated these installations. Although this attachment (and most of the industry’s codes and standards we reference) focuses on lithium-ion batteries, many of the best practices we outline are translatable to other energy storage technologies as they reach commercial scalability.
We address three major questions:
• What are the key safety issues, considering actual events and types of safety impacts we observe?
• What are current best practices, including perspectives of regulators, utilities, technical experts,
and energy storage developers?
• What are the remaining concerns and next steps?
1 This is an attachment to the CPUC Energy Storage Procurement Study © 2023 Lumen Energy Strategy, LLC and California Public Utilities Commission. No part of this work may be reproduced in any manner without appropriate attribution. Access the main report and other attachments at www.lumenenergystrategy.com/energystorage.
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