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Energy Storage Summit February 28th – 1st March

• Victoria Plaza – London

storage.solarenergyevents.com/

#storagesummit 28th February – 1st March Victoria Plaza | London, UK

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WEST BURTON

49MW BATTERY STORAGE PROJECT

Christophe Banos

New Technologies Development Manager

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EDF Energy Renewables is a joint

venture between EDF Energies

Nouvelles and EDF Energy

We lead EDF Group’s renewable

development activities in the

United Kingdom and the Republic

of Ireland

We have 31 wind farms with a

total of 323 turbines in operation

with a total of 598 MW installed

capacity

We have five projects under

construction, with others in

development

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BATTERY STORAGE: EDF GROUP STRATEGIC RATIONALE

Low Carbon Ambition: Battery Storage complements EDF’s Low Carbon Generation fleet, providing Flexible Generation and Grid Services.

Customer Focus: EDF Group able to further mature its industrial expertise in order to be a leader in innovative products to serve both business and residential markets.

International Development: Battery Storage represents a new market for EDF in the UK which can be achieved by leveraging Group expertise.

EDF RE –McHenry, Illinois

Feb 16 1MW / 600kWh Dynamic Frequency Regulation

project in R&D France

EDF WORLD-WIDE BATTERY STORAGE PROJECTS (ca. 80MW)

PEGASE PROJECT 1MW/7MWh

Renewable Integration (Wind-PV)

Operational since 2011

REUNION ISLAND

West Burton CCGT

49MW/24.5MWh

Enhance Frequency Response

Under Construction UK

PROVIDENCE 1MW/1.25MWh

Island energy management

Operational since 2015

KAW

1MW/1.25MWh

Operational since 2009

REMIERE-MONTJOLY

5MW/4MWh

Operational since 2015

FRENCH GUIANA

TALUHEN

1MW/1.25MWh

Island energy management

Operational since 2015

CAES LES RESNARDIERES (Paris)

1MW/0.6MWh

Test facility

Operational since 2014

NICE GRID (Nice)

1MW/0.6MWh

Smart Grid demo

Operational since 2014

VENTEEA (Troyes)

2MW/1.3MWh

Wind Integration & DNO services

Operational since 2015

FRANCE McHENRY (Illinois)

20MW/8.5MWh

Frequency Response

Operational since 2015

Potential Future Portfolio

USA

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EFR TENDER - THE REVENUE STREAM DILEMMA

FACTORS TO CONSIDER

New Technology – innovative

technology and new EFR market,

provides no previous projects to

model business case on

Competitive Bid – assuming just EFR

revenue would not secure a contract

in the competitive EFR tender

Regulatory Uncertainty – unclear

government classification and

regulatory rules for battery storage

Business Appetite – how much

revenue uncertainty is the business

willing to tolerate in order to enter the

market

In order to build a strong business case we needed to understand what revenue streams could be

assumed in order to achieve an appropriate rate of return and a competitive EFR bid.

EFR YR 1-4

EFR YR 5 +

BLACK

START

ARBITRAGE

BALANCING MARKET

IMBALANCE MANAGEMENT DEMAND

TURN UP

REACTIVE POWER

CAPACITY MARKET

TRIAD AVOIDANCE

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7 7 SOLVING THE PROBLEM – FRAMEWORK OF ANALYSIS

We used analysis and expertise from across EDF Group to decide which revenue streams were

most appropriate for the business case.

•Is the battery

system suitable?

•How does usage

affect

degradation?

TECHNOLOGY

•How valuable is

each revenue

stream?

•How risky is the

revenue?

VALUE

•Can the battery

target revenue

streams

simultaneously?

STACKABILITY

• Does the

National grid

EFR contract

allow revenue

stacking?

CONTRACTUAL

• Is the overall

risk of future

revenue

streams

investible?

RISK

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8 EDF GROUP EXPERTISE

Project Development, Planning and Construction

Supply Chain Management

Financial Modelling

Battery Storage System Expertise

Supply Chain

Lessons Learnt from other projects

Optimise Land/Grid Connection at West Burton CCGT

Market Analysis – Ancillary Services

UK Regulation Expertise

In-house O&M

Asset Sizing and Modelling Expertise

In-house Command-Control

20MW McHenry Lessons Learnt

Project Development synergies

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CONTRIBUTING SUCCESS FACTORS

Co-location on existing asset

Co-locating at West Burton CCGT allowed to optimise on land and spare grid

connection capacity to reduce upfront costs.

EDF Group Expertise

Mobilisation of experts from the Group show-casing the depth of the organisation

from project development, supply chain and market analysis.

Revenue Stacking

Early understanding that stacking revenues is key and ability to navigate through

complex commercial and contractual framework allowed to unlock opportunities to

improve the business case.

Strategic & Business Appetite

Storage seen as key area of business model and growth within EDF.

“Green light” to seek securing an EFR contract with a competitive bid but under the

established commercial return framework for this asset class.

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10 HIGH-LEVEL PROGRAMME

Aug 16 EFR Contract

Sept 16 Planning Consent

Dec 16 T-4 Capacity Market & FID

Jan 17 Supply Agreement with NIDEC

March 17 Civil Works Start

H2 17 Battery System components delivery

Q4 17 Commissioning

Q1 18 Commercial Operation

March 18 EFR Long Stop Date

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ARTIST IMPRESSION AS OF FEBRUARY 17

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