Energy Storage: A Utilities Perspective

Energy Storage: A Utilities Perspective

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Description: As we move to a more complex electrical world, the need for energy storage has increased. Current global markets and future costs which are predicted to the catalyst and unlock future opportunities. The energy storage market is very dynamic and characterized by high-profile investments.

Which allowed E.ON to build experience & capabilities in Energy Storage. E.ON wins National Gridís first Enhanced Frequency Response tender.

 
Author: Mike Garland  | Visits: 379 | Page Views: 616
Domain:  Green Tech Category: Battery & Fuel Cell 
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Contents:
Energy storage: A utilities perspective
Mike Garland
Technical Manager – E.ON Energy Storage Solutions

Agenda
 What is energy storage?
 Energy storage markets and applications.

 E.ON’s current activities with energy storage.
 What next for energy storage and your business?

2

What is energy
storage?
Why is it needed?

Traditionally, electricity could not be stored
The grid was developed without storage, for a just-in-time delivery system.

Generation

Transmission

Distribution

Residential
homes

Businesses

As we move to a more complex electrical world, the need
for energy storage has increased

5

How can energy be stored?
Pumped Storage

Battery

(A)-CAES*

LAES≠

Flywheel

Capacitor

Power
to
Power
(P2P)

Power-to-Gas

Gas storage

Power
to
Gas
(P2G)

Benefits of battery
 Modular & thus scalable to application:
Any size
system

 Not physically constrained to one location.
Heat storage
Power
to
Heat
(P2H)

Power-to-Heat

 Can be integrated to existing infrastructure.
 Technologies with different properties.

 High efficiencies.

* (A)-CAES = (Adiabatic) Compressed Air Energy Storage. ≠ LAES = Liquid Air Energy Storage

What do different battery solutions look like?

Left: Lithium ion battery system with
4.5 kW/7.8 kWh – suitable for
Residential or smaller SME customers.

Above left: Lithium ion battery system, 6 MW/10 MWh – space in the
building to increase the battery capacity further in the future.
Above right: Shows the individual battery racks contained inside the
building.

Above: Flow battery (furthest-left containers with
E.ON logo) 200 kW (power) & 1600 kWh energy
storage capacity (i.e. it provides 8 hours’ output
operating at 200 kW); plus lithium ion battery (single
container, furthest right) 560 kW / 560 kWh (i.e. 1
hour of storage at full output).

Above: High temperature sodium battery, 50 kW/100
kWh (i.e. 2 hours of storage if discharged at full
output).

Energy Storage
markets and
applications

Current global markets and future costs which are
predicted to catalyst and unlock future opportunities
Over 200 energy storage projects world-wide

Key driver: Decreasing battery costs

# of projects >100 kW

$/kWh

Battery module ($/kWh)
Balance of system and installation
($/kW)*

600

EU

NA

500

79

77

400
AP

MEA

18
SA

300
56

9

200
100

Li-ion

Electro-mechanical

Other batteries

Thermal

Source: IHS Base Case 2015

Pumped Hydro

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

0

 Battery module cost reduction potential of >30%
in next 5 years
 Economies of scale, especially in the electric
mobility sector – key driver for overall costs
decrease

UK storage market is expected to boom
Expected GW of new storage capacity depending on different energy scenarios1
28.9
Renewables, High efficiency, High electrification
Nuclear, Low efficiency, High electrification
CCS, Medium efficiency, Low electrification
Core Markal

22.1

15.8

14.4

13.9

12.5

10.0

11.2

8.2
3.1

2.7

2.7

2020

2.7

4.5

4.5

4.5

2030

2040

2050

Year
1 Analysis extracted from reports by Imperial College: “Understanding the Balancing Challenge” submitted to
the CCC and Value of Flexibility in a Decarbonised Grid and System Externalities of Low-Carbon Generation
Technologies submitted to DECC

The energy storage market is very dynamic and
characterised by high profile investments
Recent M&A activities (% Stake volume in M$)
100%
1,100

80%
56

100%
90

100%
Undiscl.

25 – 30 %
30

10%
Undiscl.

Car manufacturers moving into the storage market
Rumoured to invest Bn$15.5 in
own battery factory in Germany.
Investing Bn$ 5 in battery factory in
Nevada. Acquiring SolarCity (Bn$ 2.5 – 3)
to create integrated PV+Storage
manufacturer.
Acquired battery manufacturers
Accumotive and Li-Tec.
Offering residential and grid
scale storage today.

Plans to sell used car-batteries as
residential batteries for rooftop PV.

Energy storage applications
Due to modular nature batteries can be used at all levels within the system.

Bulk & large scale generation

 Provision of capacity
 Integration of intermittent
generation
 Supply firming
 System/asset optimisation

Transmission & distribution

 Congestion relief
 Peak shaving
 Upgrade deferral

Central Markets/ Ancillary services
 Frequency Regulation
 Capacity Mechanism
 Ramp-rate control

 Spinning / Nonspinning Reserve
 Voltage Support

 Black Start
 Imbalance
management

Customer

 Power reliability / back-up
power
 Increased self-consumption
 Time-shifting / ToU tariffs
 Micro- / island-grids

Today energy storage is a game changer in the power industry
Without storage

With storage

Utilities, IPPs

 Constant intervention to match
power grid with demand.
 Need to switch on/off poorly reactive
power plants to meet demand peaks.
 Subject to wholesale electricity prices
volatility.






Industrial &
Commercial

 Subject to wholesale electricity prices
volatility and high demand charges.
 When producing on-site, no other
choice than selling unused power at
current market price.

 Consumption is maximized.
 Grid charge extra fees are avoided.
 Wholesale energy prices are less
volatile.
 Sales can be aligned with demand.

Residential

 Subject to electricity prices volatility.
 If off-grid: need to consume power
when it is produced.

 Consumption is maximized,
optimized between off/on-peak.

Grid frequency can be regulated.
T&D system is more reliable.
Operating reserves are available.
Wholesale energy prices are less
volatile.
 Sales can be aligned with demand.

Increasingly, electricity storage stands out as a necessary tool to
ensure
 Grid flexibility
 Grid reliability
 Power prices reliability

E.ON’s current
activities with energy
storage

Previous research and demonstration projects
Which allowed E.ON to build experience & capabilities in Energy Storage
E.ON Part of
research
consortium of
Li-Ion and
Redox-Flow
Batteries.
Five different batteries tested
to provide various balancing
services.

JB Wheaton: 5kW/40kWh vanadium redox flow
battery; I&C-scale.

Willenhall: Cooperation with University
of Sheffield, first test to provide ancillary
services, 2MW/1MWh.

E.ON wins National Grid’s first Enhanced Frequency
Response tender






16

First commercial battery projects in the UK.
Highly competitive tender, 5,640MW of volume tendered, 201MW contracted.
E.ON one of eight projects to be awarded a 4 year contract.
10MW battery system will be built at our Blackburn Meadows site in Sheffield.
Operational by start of 2018.

Large scale PV plus battery
E.ON’s Iron Horse project: 10MW/2.5MWh battery + 2.5 MW PV in
Arizona
Key applications and advantages:
 Maximises self-consumption of renewable
energy.

 Increases the value and quality of the
renewable energy generated (e.g. ramp rate
smoothing, curtailment avoidance).
 Provides services to the distribution and
transmission network (e.g. frequency response,
voltage control).
 No need for additional grid connection (cost
advantage compared to standalone battery).

Storage to reduce grid fees and provide back-up power
Grid fees reduction

Back-up power

 Potential saving on grid fees of up to
80%.

 Why Li-Ion batteries? Modular,
higher energy density and lower cost
of ownership compared to traditional
 Peak shaving to achieve 7000 full load
lead acid UPS.
hours per year.
 Up to 20% saving on total electricity
bill.

 Opportunity to retrofit battery
systems and avoid standby operations
of backup generators.

 Integrated battery storage and Genset
Solutions controlled by smart EMS to  Potential additional revenues from
central market applications.
maximise savings.

Battery
G

Generator
Load

EMS

Residential and SME Customers: “E.ON Aura” product
launched in Germany – four blocks for self sufficiency
E.ON Aura Solar

E.ON Aura Storage

Generates
electricity from PV

Stores electricity
produced from PV

AC-Sensor 50
Storage metering

E.ON Aura Manager

Informs and visualises

E.ON Aura Controller
measures and controls energy
flows

Usable storage capacity : 4.4 kWh,
expandable to 11 kWh

E.ON Aura Strom

Provides green
electricity when the
sun is shining too
little

Investment in Greensmith to extend our storage capabilities
Strategic Rational of the Investment
 Greensmith is one of the largest providers of
energy storage software and integration
services.
 Their GEMS software platform enables
effective and efficient delivery of stable power
with unsurpassed performance and
profitability.
 The GEMS platform is powering over onethird of all the energy storage capacity in the
US.
 We selected Greensmith for its innovative
software and extensive experience in both
battery and PCS integration and control.
 The partnership enable us to extend our
energy storage activities and provide better
solutions to our customers.

Greensmith has deployed more than
70MW of energy storage globally,
powering more than 40 sites.

What next for energy
storage and your
business?

Could your business benefit from energy storage?
1. Are you driven to make your site or operations
 more energy efficient?
 more self-sufficient ?
 prioritise monetising your resources?
2. Do you have a desire to be innovative with energy use, energy solutions and
sustainability?

3. Do you have large industrial sites with any of the following characteristics?





Half Hourly (HH) metered
High energy use at peak times
Un-interruptible processes
Located in areas with high demand
charges
 Energy tariff with a Time-of-Use (ToU)
component

 Peak demand
 Oversized on-site generation
 Requirement for UPS/back-up
power
 Grid constraints that prevent further
site expansion

Next steps – How can you get involved in storage with us?
Next steps – how can you get involved in DSR?
Understand the ability of energy storage to add
flexibility to your operations
Explore with our Solutions Key Account
Managers potential storage options
Agree technical & commercial concept

Enter into contract

Implementation
Realise savings and/or revenues from your
storage system

Any questions?

Thank you for your time and interest
To learn more come see us at Stand B42