energy and smart building technology market trends · advanced battery and electromechanical...

Energy Storage

Jeremy Towler

Senior Manager

Energy and Smart

Technologies

April 2016

2 Excellence in Market Intelligence

Wide range of storage technologies

and capabilities

2

Source: UK Power Networks

Dis

ch

arg

e d

ura

tion

1kW 100MW 10MW

Seconds

1GW 10kW 100kW

Min

ute

s

Ho

urs

1MW

Power rating

Flow Batteries Metal-Air Batteries

Pumped Hydro

Compressed Air Energy

Storage

Sodium-

Sulphur Battery

ZEBRA Battery High Energy

Super Caps

Lithium-Ion Battery

Lead Acid Battery

Nickel-Cadmium Battery

Nickel-Metal Hydride Battery

High Power Fly Wheels

High Power Super Caps

Superconducting

Magnetic Energy

Storage

Advanced Lead Acid Battery


The market for different types

of energy storage

Pumped hydro well established - accounts for majority

– Relatively inefficient - converts electricity to kinetic

energy, to potential energy, then back to electricity

– Generally only works in hilly terrain

– Denmark pioneered “green power island” - sea water

pumped out of areas, then let back through turbines

Others involve conversion to compressed air, or to heat

Depends on ability to generate cheap, large-scale battery

storage

Potential to use vehicle batteries (e.g. smart cars) to feed

power back to the grid at peak demand times

Can store energy from ‘home’ PV systems, and to avoid

drawing on the main grid.

Thermal store

Pumped hydro

Flywheel

Medium scale

battery

Compressed air Power to Gas

Liquefied air Large scale

battery


Range of applications

4

Dis

ch

arg

e d

ura

tion

1kW 100MW 100kW 10MW

Seconds

1GW 10kW

Min

ute

s

Ho

urs

1MW

Power rating

Uninterruptable

Power Supply Grid Support

Energy

Management

Voltage support

Power quality

Uninterruptible power supplies

Frequency control

Voltage support

Transmission stability

Peak shaving

Load levelling/following

Load factor increase

Capacity deferral

Bulk energy

trading

Arbitrage

Primary reserve

Secondary reserve

Blackstart



Mapping storage technologies to

range of services

5

Dis

charg

e d

ura

tion

1kW 100MW 10MW

Seconds

1GW 10kW 100kW

Min

ute

s

Hours

1MW

Power rating

Flow Batteries Metal-Air Batteries

Pumped Hydro

ZEBRA Battery High Energy

Super Caps

High Power Fly Wheels

High Power Super Caps

Uninterruptable

Power Supply Grid Support

Energy

Management

Compressed Air Energy

Storage

Sodium-

Sulphur Battery

Lithium-Ion Battery

Lead Acid Battery

Nickel-Cadmium Battery

Nickel-Metal Hydride Battery

Superconducting

Magnetic Energy

Storage

Advanced Lead Acid Battery



Sources of revenue for

electrical storage

6

100MW 10MW

Seconds

1GW

Dis

ch

arg

e d

ura

tion

Min

ute

s

Hours

Income from regulated sources

Income from non-regulated sources

Uninterruptable

Power Supply Grid Support Energy

Management

Reduced reliance

on income from

regulated

businesses

Reliance on income from

services to regulated businesses

Reduced reliance

on income from

regulated

businesses



Storage technology power costs

and maturity

7


Pum

ped H

ydro

Sto

rage

Com

pre

ssed A

ir

Energ

y S

tora

ge


Smart Appliances

Smart Devices Building Automation

Building Energy Mgt.

Smart Homes

Demand Response

Smart Grid Management

Smart Metering

Smart Cities / Smart Government

Smart Transport

Smart Distr. Energy

Smart Education

Smart Government

Smart Health

Smart Publ. Security

Smart Telecoms

Smart HVAC

DR

Energy Storage + Renewables

Smart Buildings

The smart interconnected world

requires energy storage Smart Devices

Smart Grid

Smart Fire & Security

Energy Storage + Renewables


Energy storage will be integral

to smart grids Demand Response

• Curtail/shift demand to remove peaks/troughs, flexible

generation, storage and usage of energy.

• Manual demand response (DR) / automated demand

response (ADR)

Building Energy Management Systems (BEMS)

• Computer software-based system to help manage building

technical services (HVAC, lighting etc.) and their energy

consumption

Smart Meter

• Collect/ communicate consumption data at regular intervals

• Monitoring, billing, analysis, display

• Adjust prices according to the time of usage

Energy Storage

• Store electricity for short/medium term using range of

technologies: Pumped water, batteries, flywheel, hydrogen etc.


Battery storage one of the most

discussed technologies

10

• Commercialized batteries: lead-acid and sodium-sulphur.

• Many new technologies under demonstration, prototype,

laboratory and at concept stage

• Cost is main issue - industry working hard to drive it down.

• Development of new battery technologies in terms of

‘cyclability’, lifecycle cost, energy density (size), safety,

operating temperature, degradation, etc.

• Demonstration stage: zinc bromine, advanced lead-acid,

vanadium redox, nickel-metal hydride, lithium-ion.

• Prototype stage: lithium ion, iron chromium, ZEBRA.

• Laboratory stage : zinc-air, advanced lithium ion, and

other lithium based types.

• Idea-concept stage: nano supercapacitors, new

electrochemical couples (metal-air, Na-ion, Mg-based,

etc.).


Vehicle & building battery storage

market about to take off

Battery storage has been prohibitively expensive

Lead and lithium batteries now commercially available for c. €1,000

($1,200) per KwH.

PV with battery storage can have lower unit price than mains

electricity.

Many German manufacturers now offering solutions.

April 2015 US Tesla launched Powerwall - battery storage aimed at

the residential market.

7kWh unit for $3,000

10kWh unit will retail for $3,500

Further costs will be incurred for the battery management

system and the installation itself

June 2015, Mercedes launched 2.5KwH home battery - up to 8 can

be used in combination, providing 20KwH

Batteries from Tesla and Mercedes target residential market - technology moving into the built environment from elsewhere.

“The potential for significant cost reduction of some battery technologies provides real opportunity for significant deployment in multiple applications. In particular, Li-ion batteries prices are expected to reduce by over 60 percent and flow battery prices by over 40 percent by 2020.” (Study for the Australian Renewable Energy Agency, July 2015)


Hydrogen fuel cells available

for smart phones

In August 2015, Intelligent Energy announced a

prototype hydrogen powered fuel cell which can power

an iPhone for up to one week

Embedded within the phone, it emits small quantities of

water vapour

The company already supplies fuel cells for a range of

consumer electronics


Commercial and industrial

energy storage markets

Annual C&I energy storage expected to grow from $970 million in

2016 (~500MW power capacity ) to $10.8 billion by 2025 (9 GW)

Industrial building segment expected to be largest, deploying

~9.3 GW cumulative new capacity over coming decade, followed

by office and education buildings

Despite substantial market growth and momentum in past two

years, C&I energy storage market remains in its infancy.

Challenges: poor understanding and undervaluation by

stakeholders; but regulatory reforms and tech. advances will

bring C&I energy storage into mainstream.

Growing number of technologies now being deployed, including

advanced battery and electromechanical storage technologies

Lithium ion (Li-ion) batteries remain leading form of energy

storage for new projects and most popular tech. for the growing

distributed energy storage system (DESS) and behind-the-meter

(BTM) market segments.

17


Energy storage strategies for

utilities and automotive

Cost-effective advanced energy storage

tech. providing utilities and grid operators

with new tools to improve system reliability

and lower costs.

Utilities - one of the most important drivers

for energy storage to scale globally.

Utility-owned energy storage systems

(ESSs) account for 27% of the global

pipeline - nearly 9,000 MW of new utility-

owned energy storage capacity expected to

be deployed by 2020.

Automotive is fastest growing segment in

the global ESS market.

Attributed to increasing use (in developing

and developed economies) of electric

vehicles (Evs).

18


Energy storage strategies for

utilities and automotive

Rapid investment growth to develop battery

systems has enabled advanced low cost,

energy-efficient batteries for grid storage and

EVs.

Has caused surge in use of Li-ion batteries for

energy storage.

Li-ion batteries preferred for microgrids with

renewable energy sources owing to their deep

discharge life cycle, high energy, and power

density.

High energy-to-weight ratios allow these

batteries to store large amount of energy in a

small space.

Remote off-grid storage, industrial peak

shaving, and frequency regulation should also

increase their deployment for energy storage.

19


Global market players

The major companies in energy storage systems market comprise battery

technology providing companies and include:

– GS Yuasa Corporation (Japan)

– Samsung SDI Co. Ltd. (South Korea)

– Hitachi Limited (Japan)

– Exide Technologies (U.S.)

– L.G. Chem. Limited (South Korea)

– Various others.

Another major technology i.e. pumped hydro energy storage dominated by

companies such as:

– Toshiba Corporation (Japan)

– ABB Limited (Switzerland)

– Siemens A.G. (Germany)

– Voith (Germany)

– Alstom (France)

– Dominion Energy (U.S.)

– Various others.

20


Energy storage market timeline - thermal storage

fastest in achieving a large scale replication

21

2010 5 10 15 20 25 30 35 40

years

Therm

al sto

rage Flywheel

CAES

Liquid air storage

Battery

Advanced

Pumped hydro

Hydrogen & Other (power to gas)

Short term Long term

Super capacitors

Medium to

long term

Short term – can be widely

deployed today

Long term – will take 10 to 40

years development

Medium to long term – will take 3

to 20 years development


Identifying the higher potential

storage markets

Criteria for spotting the higher potential energy

storage markets in the world – in countries:

Where renewable integration is very high which

wish to avoid curtailment and intermittency

In which there is an open energy market which

can provide attractive return on investment

In which there is a shortage of peak demand and

shortage of energy. (However, this problem is

more commonly found in developing countries,

but these countries may not have the funding for

investment)

Locations lacking demand side management


Thank you!

23

Jeremy Towler BBA (GSBA Zurich).

Betriebsoekonom dipl. oek.

Senior Manager

Energy and Smart Technologies

Old Bracknell Lane West, Bracknell, Berkshire RG12 7AH

D : +44 (0)1344 465573 F : +44 (0)1344 465626

M : +44 (0)77 2527 8637 E : [email protected]

W : www.bsria.co.uk

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