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DNV GL © 2017 SAFER, SMARTER, GREENER DNV GL © 2017 Energy Storage, an opportunity to all Stakeholder of the Future electricity sector Andrea Mansoldo & Christos Iraklis DNVGL ME Branch 1

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Page 1: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017 SAFER, SMARTER, GREENERDNV GL © 2017

Energy Storage, an opportunity to all Stakeholder of the Future electricity sector

Andrea Mansoldo & Christos Iraklis

DNVGL ME Branch

1

Page 2: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Agenda

Technology Overview

Battery Storage

Storage & the Grid•Impact at planning and Operation•The EVs potential

Storage Competitors

Conclusions

2

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DNV GL © 2017

Technologies Overview

3

Page 4: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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Technology Overview

4

Battery Storage

Flywheel Storage

Redox Flow

Battery

Hydrogen

Pumped Hydro

StorageSuper

capacitors

Thermal Storage

Compressed Air Energy Storage

Concentrated Solar Power

Power-2-Gas

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Power requirement versus discharge duration

5

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DNV GL © 20176

RES

Energy Storage Applications

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DNV GL © 2017

Market Size and Storage Cost:the BESS

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Levelised cost of storage in 2015 study period and 2030

8

What are the key metrics for evaluating storage cost, LCOE, $/W, $/Wh etc.

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DNV GL © 2017

Battery Costs

9

Source:

RMI 2014

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DNV GL © 2017

Energy Storage, the Stakeholder and the Grid

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Capacity Adequacy and… reality

11

The Grid Challenge !!

Page 12: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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Planning: Core of the past … /

Steady State Analysis:

– Load Flows (Snapshots: Winter Peak, Summer Valley, Summer peak)

– Short Circuit

– Transient Stability

Electro Magnetic Transients:

– Protection Coordination

– Power qualities, Harmonics

– Insulation Coordination (EMT, switching, lightning)

Generation Adequacy

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Power System Analysis: Q&A

13

• acceptable• Within the limitsVoltage limits

• Acceptable• Within the limitsThermal limits

• Within Standards• MitigationsPower Quality

• Locations• Solution/Mitigations

Weaknesses / Threatens

• Tools available• Maturity • International experience

Technologies

Page 14: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Properly Allocating Storage can help..

14

Consumer or

Renewable Source

Meter

Consumer or

Renewable Source

Storage Meter

Meter

Consumer or

Renewable Source

Storage

Meter

Consumer or

Renewable Source

MeterStorage

1 2

3 4

Meter Storage5

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Business models for Energy Storage Stakeholder

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Stacking Potential Revenue Streams

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Renewable Source

Renewable Source

Storage

Offtaker

Revenue via energy payments (Variable Fee)

Ancillary Services (Frequency, Voltage and Reserve products from the TSO)

PPA

Contracts with Network Operators

Trade on the spot market

?

Revenue via availability payments (Capacity and Fixed Fee)

Revenue via energy payments (Variable Fee)

Mitigate Grid Export

Facilitate Grid Power Wheeling

Page 17: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Renewables and Storage

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Arbitrage

Grid Connection

Smoothing Renewable Output

Curtailment

Support the Variability of renewables

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Grid & Storage

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Source: ES-Grid, DNV GL

Defer Conventional Network

Reinforcement

Voltage Support

Phase Unbalance

Efficiency …

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Visions, RES Deployment Strategies & Grid Development

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Technical Constraints

Grid Stability

RES Volatility and Load Following

Voltage Stability

Fault Ride through

……………………………..

100% RES ?

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Ex.: Storage Batteries (BESS) and Conventional Generation

Frequency Regulation

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Storage Batteries (BESS) + PVs and stability

sec

Inverter Control/Synthetic

Inertia?

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Storage & Renewables

Storage may provide Renewables with

Dynamic-like performances

Page 23: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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How to improve the Business case

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Renewable Source

StorageAncillary Services (Frequency, Voltage and Reserve products from the TSO)

Contracts with Network Operators

Trade on the spot market

?

Revenue via availability payments (Capacity and Fixed Fee)

Revenue via energy payments (Variable Fee)

Mitigate Export to Grid

Facilitate Grid Power Wheeling

Increase Reliability

Page 24: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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Case of Study: Residential Area/Customer/Active Customer (Prosumer)

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Page 25: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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Customer

GRID LOAD

CARNA311

PV_MANSO

STO_BATT

ENEL

S torage Batteries PV P lant[kWh] [kW]

Bas ecas e 0 6.9One battery 6.4 6.9Two batteries 12.8 6.9

Active Customer (Prosumer)

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Data Input

PV Plant 6.9 kW: Typical production curve of the area

Storage Battery: TESLA POWERWALL 6.4 kWh, 2 kW, 0.95 efficiency

Dispatchable generator from the Grid

26

Bill 2015: 1 customer

Solar PV already compensates for F1 during summer, the most expensive energy

22-7

19-22 + WE

Peak

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DNV GL © 2017

Economic evaluation (single customer): Net Present Value

27

R=4%, n=25 years

Import costs: 0.210 Euro/kWh

Export Remuneration:0.053 Euro/kWh

Three Battery costs:

– 7000 Euro (present estimation DNV_GL)

– 4000 Euro near term projection

– 3000 Euro long term projection

a) Break even with battery at 4400 Euro

b) 90 Euro/y savings with battery at 3000 Euro

Page 28: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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Storage & ‘Prosumers’

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Storage may offer Prosumers opportunities to optimize their bill

Page 29: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017 SAFER, SMARTER, GREENERDNV GL © 2017

Battery usage, opportunities for EV owners

29

System wide Cost benefit analysis of EV impact

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Peculiar BESS technology: the Electric Vehicle

Non Static

– Can be concentrated in places (Malls, Stadium, Socialising and Business Areas)

– Can be distributed (Residential Areas)

– Dynamic location, daytime/nightime

By product of mobility needs, which everybody is interesting in

Need appropriate

– charging infrastructure

– regulation to incentive sharing EV batteries with grid operators

30

Page 31: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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…larger and larger offers on the market

Page 32: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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System approach: the V2G option

32

2016: UK chargers G2V and V2G.

Other pilots in :

• Denmark

• Italy (ENEL)

• Spain

• Germany

Market Opportunities to EV Owners

Reduce Own Bill

Encouraged to connect and share Storage capability with Grid Operator

Page 33: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

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The Dubai Mall Blackout (26 April 2017 at 19.00)

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Page 34: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Economics of The Dubai Mall event & EV/BESS Reliability

34

EENS cost=840 kEuro

EV owner would improve system reliability if connected.

Parking sites:14000

Assumptions : EV 50%

Average storage : 50 kWh (Tesla 90 kWh, Nissan, Ioniq, 30 kWh, other 40 kWh)

Total availability: 7000 x 50 =350 MWh storage

Installed power in Dubai Mall ?, assumption 70 MVA.

Capability of supplying Dubai Mall for 5 hours at the peak.

Black out duration:1.5 hours (evening)

EENS blackout= 70x1.5x0.8=84 MWh

Load Shedding =10000 Euro/MWh

Page 35: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 201735

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DNV GL © 2017

Large Scale/Long Term impact: NPV 2020-2050

36

11.3 GEu 10.2 GEu 8.2 GEu 6.3 GEu 4.9 GEu

EVs/BESS Flexibility may

lower the overall future Electric system costs

Scenarios

DSM=Demand Side Management

EV= Electric Vehicles

Page 37: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Savings are a combination of…

Deferral of T&D Investments

Generation Costs

Losses Reduction

Facilitation of delivering RES

Other market Opportunities•Power Wheeling•Import/Export Capability

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DNV GL © 2017

Flexibility Services and Competitors: DSM vs. EVs/BESS

38

0

2000

4000

6000

8000

10000

12000

14000

S0_2050_EV40 S0_2050_EV80 S0_2050_DSM80_EV80

[GWh]

EVs/BESS Flexibility service may be more

expensive due to Battery efficiency

EV 40% EV 80%EV 80% + DSM 80%

Scenarios

Page 39: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Conclusion

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Page 40: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Conclusion

Storage has great potential to impact on the full chain of Power System stakeholders

The flexibility may be of interest to Producers and Consumers to offer system services to the operator

and to improve their economic business case

Storage driven by electrification of transportation may provide additional value to EV owner with an

appropriate regulation scheme

Transmission System operator may benefit from large scale deployment of Storage in planning and

operating the future Power Grid

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Page 41: Energy Storage, an opportunity to all Stakeholder of the ......DNV GL © 2017 Economic evaluation (single customer): Net Present Value 27 R=4%, n=25 years Import costs: 0.210 Euro/kWh

DNV GL © 2017

Thanks

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