Storage: The DNO Perspective Evidence from SNS

Storage: The DNO Perspective Evidence from SNS

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Description: We are the first to deliver multiple services to the DNO and TSO through different contracting mechanisms. Our system schedules the battery’s activities and dispatches the storage system when required. We have published analysis on different business models and value of available services.

We have provided BEIS, Ofgem and the industry insight to the regulatory and commercial barriers of storage. We have built, developed and now operate a 6 MW / 10 MWh energy storage facility. .

 
Author: Adriana Laguna  | Visits: 220 | Page Views: 352
Domain:  Green Tech Category: Environmental 
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Contents:
Storage:
The DNO Perspective
Evidence from SNS
Adriana Laguna

 2016. UK Power Networks. All rights reserved

1

Smarter Network Storage: Innovation






£17.2m (£13.2 LCNF award)
4 years (2013 - 2106)
Location: Leighton Buzzard
Energy capacity: 10 MWh
Real power: 6 MW
Partners

Suppliers

 2016. UK Power Networks. All rights reserved

Smarter Network Storage
We are the first to deliver multiple services to the DNO and
TSO through different contracting mechanisms
Our system schedules the battery’s activities and
dispatches the storage system when required
We have published analysis on different business models
and value of available services
We have provided BEIS, Ofgem and the industry insight to
the regulatory and commercial barriers of storage
We have built, developed and now operate a
6 MW / 10 MWh energy storage facility
 2016. UK Power Networks. All rights reserved

3

What were we trying to understand?


Technical functionality: is it really multi-purpose?
– Support distribution network
– System stability



How fast can it respond?



Can it do several things at the same time?



Is there value to customers from investing in this technology?

 2016. UK Power Networks. All rights reserved

Operation and value
• How does SNS support the network?
33/11kV substation
Leighton Buzzard
town

TSO

Wind farms

Grid scale PV

 2016. UK Power Networks. All rights reserved

5

Peak shaving: SNS trial results




Best value for the DNO: deferred reinforcement: £6.2m – increase the capacity of the
Leighton Buzzard substation
Provision of the service with Active Power, Reactive Power or both
There are synergies in providing local network relief and reducing congestion at GSP



Total requirement: 97 hours, 48 days, 19.9 MVAh/day max

 2016. UK Power Networks. All rights reserved

6

Voltage support






The reactive capability of the
plant can add value in the power
factor correction and the voltage
support of the network
Provision of the service with
Active Power, Reactive Power
or both
Can reduce losses, improve the
power quality and extend the life
of the local voltage control
system
SNS exports or imports
reactive power to retain the
voltage within the set limits

 2016. UK Power Networks. All rights reserved

7

Multipurpose capabilities


SNS demonstrated the provision of different services utilising its Active and
Reactive power capabilities

SNS provides Voltage
control utilising Reactive
power
SNS provides Dynamic
FFR utilising Active power

 2016. UK Power Networks. All rights reserved

8

What did we learn?
• Energy storage operators need to encompass load
forecasting, price forecasting and risk management skills
in order to optimise operating schedules and maximise
the value of the asset

 2016. UK Power Networks. All rights reserved

9

Key findings
 The energy storage plant should not stay idle due to the auxiliary
consumption and the running connection costs
 Not all services are economically favourable for an energy storage system
 Firm Frequency Response is currently the highest valued commercial
service for storage
 Multiple provision of services provide higher value (i.e. FFR with capacity
market)
 Profitability of tolling is currently low but depends on the market conditions
and the continuous monitoring in operations

 2016. UK Power Networks. All rights reserved

10

Does SNS stack up?


Four key factors determine the business case for storage:

Capex

 2016. UK Power Networks. All rights reserved

Opex

Revenues

Financing

11

Size of storage is critical to the cost


To provide a response of under one second and sustain for 15 minutes…
you only need 0.5 MWh for each MW
EFR
Firm Frequency Response
Short Term Operating Reserve
Distribution peak shaving
15 min

 2016. UK Power Networks. All rights reserved

30 min

2 hrs
12

Key variables for storage CBA
• Cost of storage
–Not just batteries!
–Depending on the size and location specific
• Revenue streams – certainty on income
• End value assumption – what will the asset be worth in
10 years?

 2016. UK Power Networks. All rights reserved

13

Insights from SNS


Targeting and capturing value from the current balancing services is
essential for project economics, but specialisation around today’s products
carries risk



Developing storage projects to provide a single service for a short term is
not efficient for the electricity system in the medium and long term



There is a balance to be struck between pursuing short-term value and
catering for longer-term uncertainties

 2016. UK Power Networks. All rights reserved

14

Recommendations


Whole system approach to service and product design to integrate battery
storage effectively



Improve visibility of opportunities for batteries to provide services to DNOs
and the framework within which this operates



Explore the possibility to provide access to longer-term contracts to improve
revenue certainty and mitigate risk



Define storage as a distinct activity to enable the market

 2016. UK Power Networks. All rights reserved

15

SNS: a fundamental contribution
 Smarter Network Storage has been fundamental in informing the industry
on the how the uptake of storage can materialise. The regulatory barriers
unveiled by the project are now the basis of the government’s policy
agenda
 National Grid have the best leverage to trigger the market. However, there
are no drivers for developers to connect storage at specific distribution
network locations
 DNOs must work collaboratively with NG to ensure we bridge the gap
between TSO services provision and DNO potential requirements

 2016. UK Power Networks. All rights reserved

16

Future of storage looks bright
Increasing need
for flexibility
For system
stability

Improving
enablers
Falling storage
costs
Increasing storage
experience

For electricity
network

 2016. UK Power Networks. All rights reserved

New services
development

Increased focus
on storage

Stronger
business case for
storage
deployment

We are leading the charge on storage
Making transition to
BAU simpler

Making storage
information accessible

Starting trials for further
DSO capabilities

Developed the
ENA storage
application form

Published two
guidance for
storage

Domestic Energy
Storage and
Control project

Conducting
storage surgeries
for customer

Leader on storage
heat maps

Transmission &
Distribution
Interface 2.0

 2016. UK Power Networks. All rights reserved

Going forward
• We will seek flexibility services next year
• We must continue to collaborate with government and regulator on
addressing the regulatory challenges
• We will work with the System Operator to improve our interface
• We will always seek the lowest cost solution for our customers out in
the market
• Where the market cannot provide our requirements we should not
be excluded from building and operating storage solutions

 2016. UK Power Networks. All rights reserved

19

More Information available at:
http://innovation.ukpowernetworks.co.uk

 2016. UK Power Networks. All rights reserved