STORAGE AS A PART OF VIRTUAL POWER PLANTS - EFFECT ON BUSINESS STRATEGIES

2015-11-04 - Jan Schelling

Statkraft – Delivering Pure Energy

Peru

295 MW

Chile

140 MW

Turkey

122 MW

(+ project)

Nepal 23 MW

Philippines

146 MW

Brazil

172 MW

Panama

(project)

Zambia

6 MW

Norway

13 539 MW

Sweden

1 675 MW

(+ project)

UK

243 MW

(+ project)

Laos 50 MW

Germany

2 692 MW

India

91 MW

Installed capacity

19 194 MW *

Power production

56 TWh **

99% renewable

energy

4 200 employees

SN POWER

STATKRAFT

Albania

(project)

* Includes: Statkraft/SN Power’s share of installed capacity per Q2 2015

** Actual production 2014.

Virtual power plant (VPP)

Statkraft

Germany’s largest

power plant: ~9 GW

Integrates >1000 assets (wind, solar, run of river hydro)

Production can be

throttled within

milliseconds

3

Definition

Many smaller decentralized

power plants, linked together

and controlled by computers

Why Germany?

Germany

Thermal stack, growing variable renewables

Wind and solar increasingly important for

residual demand

Limited flexibility results in intra-day price

fluctuations

Higher marginal cost (fuel)

–> higher power price

Higher retail price (taxes, levies)

Norway

Hydro power dominated - flexible

Demand-driven variations

Relatively flat intraday price profile

4

-20

0

20

40

60

80

2-Feb 3-Feb 4-Feb 5-Feb 6-Feb 7-Feb 8-Feb 9-Feb

Spo

t p

rice

, EU

R/M

Wh

2015 - week 6Germany

Norway

The future energy system is distributed

5

Distributed technology options

6

Electricity generation • Rooftop solar PV (1.5 million)

• Micro-CHP (25 000)

• Community solar PV

Heat production • Solar water heater (2 million)

• Heat pump (0.6 million)

• Biomass heater

Energy efficiency • Appliances

• Insulation

• Heat recovery

Energy management • Demand flexibility

• Battery storage (15 000)

• Thermal storage

Numbers refer to approx. no. of systems installed in Germany (end 2014)

The disruptive cycle of distributed energy

7 Source: Edison Electric Institute

Increased

distributed

generation

Reduced

demand

The merit order effect Renewables displacing conventional generation from the spot market

8 Source: Agora Energiewende

Increasing demand for flexibility

9

2013

Germany: July median generation profile (GW)

Demand

0

10

20

30

40

50

60

70

80

0 3 6 9 12 15 18 21

Solar

Call on dispatchWind

0

10

20

30

40

50

60

70

80

0 3 6 9 12 15 18 21

2033

Ramping

requirements

(GW/h) -9 +11 +6 +4

Source: Bloomberg New Energy Finance

Current purpose of Statkraft VPP

10

Primary

reserve

Secondary

reserve

Tertiary

reserve

Balancing

power positive

negative

30 s 5 min 15 min 60 min Pow

er

3. Regulating power (negative only) 1. Monitoring and power

production forecasting

2. Curtailment in case of

negative power prices

Regulating power from wind assets

11

Po

wer

Generation potential

Actual generation

Negative regulating power

delivered

Positive regulating power is uneconomical as it requires

curtailment over extended periods

The Virtual Power Plant of the Future

Expansion strategy

Increase flexibility:

add loads, storage assets

Expand towards smaller assets

Market access

Provide positive reserve

From tertiary towards primary

reserve services

12

A step towards a self-regulating grid

- More flexibility

- Enable more variable renewables

- Reduce EEG levy

NB: Not a grid asset. Requires price

signals (or regulation) to provide

services.

Falling ICT costs allow smaller units to be connected economically

Smaller power plants

Industrial loads

Battery storage systems

Individual households

Vehicles/charging stations

13

Stationary applications for battery systems

14

Location in grid Increase utilization Arbitrage Power quality Power reliability

Behind-the-meter /

at consumer

In-the-Grid

Plant co-located,

renewable

generation

Plant co-located,

conventional

generation

Increase (PV)

self-

consumption

Load following

RES firming

End-user daily

arbitrage

RES arbitrage

Black start

RES smoothing

End-consumer quality and

reliability

Primary

reserves

Further

ancillary

services

T&D investment

deferral

Whole-sale

arbitrage

Application in grid->

Power-to-gas pilot

6 MW PEM electrolyser

Hydrogen fed into

- natural gas grid

- storage for industry and transportation

To be connected to Statkraft VPP in 2016

Associated project partner: Project of Stadtwerke Mainz,

Linde, Siemens and University RheinMain; start of

operation in 2015

15

Source: www.energiepark-mainz.de

www.statkraft.com

THANK YOU