alkimos beach battery storage trial...

Strictly private and confidential

Presentation by Andy Wearmouth

Chief Engineer, Commercial

Synergy

24 February 2016

Alkimos Beach Battery Storage Trial

(ABEST)

API 2016 SUMMER SCHOOLSurfAir Beach Hotel and Conference Centre,

Marcoola BeachSunshine Coast, Queensland

DM# 9839576

1STRICTLY PRIVATE & CONFIDENTIAL |

Today’s Discussion:

Participants in Project

Why Alkimos ?

The Concept

The Technology

Where are we at ?

Questions


The Participants:

Synergy – project lead and implementer

Landcorp – northern suburbs development planning

Lend Lease – subdivision developer

Australian Renewable Energy Agency ( ARENA) – principal funder

3STRICTLY CONFIDENTIAL |

A time of uncertainty and rapid change

Falling grid demand (self generation) , increasing renewables penetration including rooftop solar and energy

efficiency is being forecast to a potential 50% reduction in electricity volume sold by traditional European utilities

within the next couple of decades….why will we be different ?

A result, utilities are changing their business models away from centralised distribution and focussing on

downstream opportunities


Why Invest in Battery Storage Technology ?Batteries are highly likely to become the storage device of choice as they move down their cost curve. ABEST

allows Synergy to be informed and provide learnings to industry through the ARENA arrangements.

• Conventional centralised, dispatchable, fossil-fuel based generation is

gradually ceding ground to renewable energy sources and distributed

generation

• Until recently, solar PV technology was largely unaffordable, and only

economically viable with the support of significant government

subsidies

• Rapid advances in innovation and technology has seen this scenario

change significantly:

– solar is exhibiting alarming learning rates of around 30% - that is

for every doubling of installed capacity, the price of an average

panel reduces by 30%

– the price of an average panel has fallen by 75% in just four years

– commercial PV in the SWIS now has a 3 – 5 year payback period,

without any government subsidies

• Combined solar PV and battery systems are already starting to

appear.

• Battery storage is the most significant technological change after solar

PV. While the price of batteries needs to fall to make this technology

commercially viable, this will only happen by deployment – the learn

by doing concept.

Decreasing costs of battery technology


The Concept of a Storage Device

A simple concept that has ben around for decades - storage technology allows the time shifting of energy –

historically pumped hydro but similar rules apply to a battery.

Import from Grid Export to Grid

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47

Consumption

PV Generation

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

(1.00)

(0.80)

(0.60)

(0.40)

(0.20)

-

0.20

0.40

0.60

Export to BatteryExport to

GridImport from BatteryImport from Grid Import from Grid

Without Battery With Battery

kWh

30-min

interval

• Solar PV does not

generate

• Source energy from Grid

• Solar PV generates energy

more than what is consumed

by the house

• Excess energy exported/sold

to the Grid


generate

• Source energy from

Grid

30-min

interval

Export

to G

rid

(kW

h)

Import

(kW

h)

Batt

ery

Charg

e

(kW

h)


generate

• Source energy

from Grid

• Excess energy from Solar

PV exported and stored in

Battery

• Once Battery is full, excess

energy is exported/sold to

the Grid

• Solar PV does

not generate

• Source energy

from Battery

Battery full


Rationale for Synergy

Threat of

customers

bypassing

network

• The rapid adoption of rooftop Solar PV has demonstrated that energy consumers will invest en masse in new technologies if they offer a positive

business case

• Adoption by residential customers, facilitated by on-site battery storage, could be economic within 3-7 years. Early adoption for non-economic reasons

is likely to occur much sooner

• The household business case for energy storage will improve as battery and PV capital costs fall and retail electricity tariffs continue to rise

Ensuring

efficient use of

existing assets

• The Project offers customers the benefits of on-site energy storage using the existing electricity network.

• Potentially delays the need for network reinforcements

Alternative

business model

for retail

services

• Batteries represent a new way of interacting with the customer: providing a defined energy service for a fixed fee. The service would not be tied to the

customer’s electricity consumption

• The project would also demonstrate the (favourable) impact of district energy storage on distribution infrastructure requirements, raising the possibility

that new communities might be more economically served by a “micro utility” than by traditional infrastructure providers.

• Synergy would, in partnership with others, be a plausible provider of micro-utility services.

Opportunities

for wholesale

services

• The Project would provide the opportunity to investigate the optimal use of storage for services to customers, network operators and the wholesale

market

• An appropriate treatment of storage in the wholesale electricity market would need to be negotiated through the Rules Change process

Insight into

customer

preferences and

behaviour

• The project will need to analyse customer consumption data, both for customers using Synergy’s services and for a control group, at half-hourly

resolution to understand fully the impact of ABEST


Why Alkimos Beach?

• Lend Lease, together with LandCorp are developing a new land

sub-division, 40km north of Perth at Alkimos Beach

• The vision for Alkimos Beach is to create a new benchmark for

community development in WA, via innovative planning, in areas

including:

– water and energy efficiency

– waste management

– reduction of carbon emissions

– use of green space

– other sustainable development opportunities

• At completion in 2032, Alkimos Beach will be home to 15,000

residents across 710 hectares (it will be the same size as the area

from Kings Park to the Coast)

The Alkimos Beach Energy Storage Project will demonstrate the feasibility of a new energy servicing model using

both demand side and supply side products and services within the new residential land development of Alkimos

Beach


Why Alkimos Beach?

• The marketing of the subdivision by Lend Lease is likely to attract

residents predisposed to take part in a trial using new technologies.

• Public engagement with residents has indicated great support for

the initiative.

• Land is available to locate the required infrastructure without undue

disturbance of amenity.

• Western Power’s electricity distribution network is relatively

unconstrained at this location assisting in simpler network access.

• As part of the energy efficiency initiative, Lend Lease and LandCorp

approached Synergy to lead a trial of an energy storage project,

harnessing energy created from solar PV of 100-150 households.


Alkimos Beach Battery Overview

• The Project will see a 1.1 MWh, fully

contained Lithium Ion energy storage

system connected to the distribution

network

• The storage facility will be housed in a

shipping container and situated on site,

in an inconspicuous location

• The aim of the Project is to:

– unlock maximum value from solar

PV,

– reduce dependence and supply

from grid electricity

– increase value to residents

• The Project is initially set down for four

years, with an option to extend to 10

years (Battery has a life of 15+ years)

• Synergy will own the battery storage

facility

Alkimos Beach is currently the largest residential battery storage project in Australia, and will enable Synergy to be

on the leading edge of this technology


How will it work?

Trial Participants

Excess PVEnergy“Credits”

Peak LoadTime(s)

Discharge

Excess PV REBS

Payment

Non Participating Resident

LowDemandCharging

Alkimos BeachBattery (1.1MWh)

Alkimos Beach Energy Storage TrialConcept Diagram

SWIS Grid

Metering Devices

Typical Profile

• Trial participants who “spill” surplus energy to the network during

the day (rooftop PV) will receive energy credits representing stored

energy.

• When participants draw from the grid on the day (most likely the

evening peak) they will use their credits first.

• Overall, less energy imported from the Grid (pay less tariff to

Synergy) and reduction in export REBS payment from Synergy.

• Discharge controlled by Synergy.

• Operations and Maintenance of the facility will be provided by the

contractor with training to Synergy personnel.


How does it work?

• Round trip battery efficiency ~ 90%

• Connection voltage will be 22 kV

• Summer peak load reduction aimed at 2.5 kW per household for 4 hours

1.1 MWh / 300 kW battery storage system located next to distribution transformer within subdivision

Customers in the Project Area:

• Solar PV

• Advanced metering

• Time-of-use

• Remote meter reading

• Direct Load Control

(DLC)

Energy Storage Facility:

• Network connected, integrated system

of storage, inverter and protection /

control systems

• O&M by vendor via Service

Agreement

• Change / discharge timing controlled

by Synergy

Sub-transmission

system

Distribution

systemExcess solar

energy

Energy draw

from battery

Technical Configuration

SynergyHousehold M

Battery

Storage Grid


Alkimos Beach TechnologyThe Procurement Process

• The battery in particular comprised long lead time items which impacted the critical path. In

order to procure the storage device in a timely manner, Synergy has run a two stage process:

– an Expression of Interest (EOI) process conducted in November 2014 resulted in 22

interested companies submitting details of their potential offerings

– A Request for Tender (RFT) was issued to three parties that were short-listed in February

2015

• Synergy has executed a contract with Energy Made Clean (EMC) to supply, deliver and erect

an energy storage system at Alkimos Beach to support the Alkimos Beach Energy Storage

Trial (ABEST).

• The agreement with EMC for the storage system meets:

– ARENA’s Funding Agreement requirements

– Lend Lease and LandCorp requirements as partners in the ABEST

– The Western Power Technical Rules

– The Landowner (Water Corporation) requirements

• Synergy engaged with Western Power to commence the Electricity Network Access process.


Alkimos Beach TechnologySynergy has engaged Energy Made Clean Pty Ltd (EMC) to supply Alkimos 1.1 MWh energy storage device. EMC

will deploy Samsung technology for the lithium-ion technology, with EMC to provide EPC services

Who is Energy Made Clean?

• EMC is a Western Australian based business, that specialises in

commercial solar and off-grid power solutions

• EMC was established in 2004 and employs ~20 personal based in

Perth

• EMC’s head in Perth also houses its 2,500m2 manufacturing facility

where we manufacture our lithium ion battery storage containers

• EMC has significant experience across a range of commercial-

scale solar projects, including EMC’s Build, Own, Operate and

Maintain (BOOM) solar PV power station in Carnarvon


Alkimos Beach TechnologyThe Samsung Battery - the heart…….

• The individual cell cathode is a blend of Lithium Manganese Oxide LiMn2O4 and Nickle Cobalt

Manganese Oxide LiNiMnCoO2.

• The anode is natural graphite.

• 3V - 4.1V per cell

• 16 Cells per Tray (in series)

• 12 Trays in series per rack with a switchgear unit - 576 - 787.2V output (rated 42.6

kWh)

• 29 racks in parallel each with same length cable back to the DC marshalling board


Alkimos Beach TechnologyThe Samsung Battery - the heart…….

• The 29 rack battery has been built into a modified, 30 foot long sea container

which will weigh around 26 tonnes when complete.


Alkimos Beach TechnologySafety and Protection

• All li-ion technologies are vulnerable to over charging and discharging too fast – can result

in catastrophic cell failures and the risk of fire – ask Mr Boeing and others !

• Managing multiple cells in series is difficult and needs careful engineering design.

• Each cell is engineered around safety relief – safety in design.

• Each rack is individually fused to limit runaway type faults.

• Each tier is protected where it marshals to other tiers.


Alkimos Beach TechnologyLife

• Typical of Li-ion, maximum life is achieved by limiting cell temperatures when charging and

discharging. This will be one of the big issues for residential batteries in Australian

conditions !

• Battery container is air conditioned and carefully designed to achieve uniform cooling of

the battery racks.


Alkimos Beach TechnologyMaking it useful…….

• The output DC of the battery is fed to a SMA 500kVA inverter (de-rated for this application) to produce a 270 V AC , 3 phase output.

• The inverter is controlled to manage the discharge rate of the battery.

• This output feeds a 270V / 415 V 3 phase DYn11 transformer to provide further harmonic suppression.

• The inverter, transformer and control and monitoring equipment are housed in a modified and segregated second 30 foot sea

container.

• A 415V / 22kV distribution transformer connects to the facility to the Western Power 22kV network within the subdivision.

• Facility is able to be remotely monitored by both EMC and Synergy.


Project StatusThe time line

• To date, the Alkimos Beach Energy Storage Trial (ABEST) has:

– secured the funding arrangement with ARENA and the project partners

– completed the process for the procurement and maintenance of the Battery and issued a contract to EMC

– secured the site for the battery on Water Corporation land

– secured an off of network access to the South West Interconnected System (SWIS) from Western Power

– commenced development of new retail products

• The project is now in the ‘construction phase’ with the core deliverables being:

– fabrication and commissioning of the battery

– complete site works

– setup of the data analysis control groups

Q2 2014 – Q1 2015

Project DevelopmentBattery Construction &

CommissioningGo Live Operational reporting

Project conclusion and decommissioning

• Commercial agreements with

project partners and service

providers

• ARENA Approval

• Complete business case and

Project Plan

• Commence Data Baseline

study

• Report to ARENA the

operational performance of the

Battery

• Report client behavioural

changes

• Report other key findings

Current Status

• Issue EPC Contract

• Develop Retail products

• Commence marketing

campaign

• Connection Application into

SWIS

• Development Application to

LGA & PAWA

• Implement & Commission

Battery

• Test operation of Battery &

Retail products

• Go Live

• Initial ARENA operational

report

• Conclude study

• Decommission battery or extend

site lease with Water Corp

• Present Final report to ARENA

Q2 – Q3 2015 Q4 2015 - Q1 2016 2016 - 2020 Q4 2020


So what does it look like now we are done ?


Questions ?

alkimos beach battery storage trial...

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