friedrich schulte at basf science symposium 2015
TRANSCRIPT
RWE 4/21/2015 PAGE 1
Energy Storage – from a Utility Perspective
Mannheim, 09.03.2015Friedrich Schulte, RWE AG
150 yearsScience symposiumSmart energy for a sustainable future
RWE Research and Development PAGE 2
Agenda
Current situation and upcoming challenges in Germany
Energy storage options
Conclusion
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3
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The German Federal Government assumes a decrease of power generation of 45 % until 2050
Source: EWI/Prognos/GWS Studie
Energy concept of the German Federal Government
2010 2020 20502030 2040
Nuclear energy Conventional generation
RES (~ 80% of generation)
Imports
Decrease of power consumption- 45%
17%
25%
58%
45%
10%
20%
25%
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15,000
10,000
5,000
0
20,000
12.04. 13.04. 14.04. 15.04. 16.04. 17.04. 18.04. 19.04. 20.04. 21.04. 22.04.
Supply of very high load
Providing large amounts of power for longer time frame
Very high load gradients
German wind energy production at selected days in April 2011Wind generation in MW
Integration of fluctuating power generation requires flexibility
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Energy storage is just one of four ways to increase the flexibility of the system
Applications for energy storageTechnical measures to increase flexibility
> For 10…20 a the required flexibility can be provided by other, more cost-effective technologies such as- flexible power generation, - demand side management - and grid expansion.
New storage capacity only required with a very high share of renewables
> Nevertheless, is there a sweet spot for energy storage in the meantime?
Flexible power generation1
Grid expansion
Energy storage4
Demand side management3
2
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Agenda
Current situation and upcoming challenges in Germany
Energy storage options
Conclusion
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2
3
Decentral energy storageRegional energy storageCentral energy storage
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Energy storage can be implemented in different ways –decentral applications are key driver for market growth
Intraday-arbitrage
Day ahead-arbitrage
Ancillary services
Peak production managementT&D deferral
Increase RES consumption on consumer level
Potential application
Flexibility for electricity sector
Grid-release
Others
Decentral Regional Central
Short/mid Limited short/mid in specific
local situations
No short to midterm
Potential additional application for already financed storage
Conclusion> In short and midterm ramp-
up of storage capacities will be driven by decentral energy storage systems(stationary batteries, heat storage, immersion heaters)
> Decentral energy storage devices are driven by local use of RES. If aggregated -additional flexibility and grid release services at very low marginal costs possible.
> Decentral storage potentially reduces the demand for regional and central storage
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Profitability:
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> PV-power generation achieved grid parity
> Increase of local consumption by home batteries is feasible and will be economically attractive for inverstors in the near future
> Business Case depends on market distortion due to own consumption privilege and is subject to regulation
DescriptionEconomy of PV
Declining PV-costs and increasing end customer energy prices make battery storage interesting
Decentral energy storage
ConsumeFIT Wholesale market
time
Ener
gy c
ost/
-pric
es
End customerprice
Wholesaleprice
Cost of PV-power generation
Today
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Batteries allow for an increase of the local consumptionLocal PV power generation and consumption can be decoupled time-wise
For a typical1 B2C customer a battery will increase the self consumption by about 20 %
1 Family household, 4.500kWh annual consumption, 5 kWh Battery, 5 kWp PV
2423222120191817161514131211109876543210
Housholdpower consumption
PV powergeneration
Battery charging
Batterydischarging
hour of the day
kW
0%
20%
40%
60%
80%
100%
1 2 3 4 5 6 7 8 9 10
PV s
elfc
onsu
mpt
ion
PV System size [kWp]
15,00 kWh5,00 kWh0,00 kWh
+20%
> The economics of batteries rely on the avoided power purchases> Business case depends on regulation and avoided grid fees, taxes, …> With decreasing battery prices home-storage will be profitable for the investor
Decentral energy storage
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RWE participates in the decentral energy storage market with a broad product portfolio
> Since May 2013 RWE offers home storage solutions for private and small/ medium enterprise customers
> Lead-Acid and Li-Ion-Technologies are available
> Connected to the 230V AC grid
> Integrated into RWE SmartHome suite
DescriptionPortfolio RWE HomePowerStorage
Product
TypeCapacity(kWh)Lifetime(cycles)RetailPrice (EUR)
StorageBasic
Lead-Acid4,9 – 14,8
2500@50% DoD7.599to10.499
StorageEco
Li-Ion4,5 – 13,5
5000@80% DoD7.499to16.999
StorageCompact
Li-Ion4,6 – 60,0
5000@70% DoD12.999to76.699
StorageVario
Li-Ion4,6 – 10,1
8000@90% DoD14.399to25.499
Decentral energy storage
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Local grid storage not the best choice to cope with a high share of RES – grid extension is generally cheaperGrid Description
Medium voltage grid
> Medium voltage grid extension cost per kW is even cheaper than in low voltage
> Although distances are longer, the storage business cases in the regarded scenarios do not close
> However, in specific situations energy storage is competitive
Low voltage grid
> Example: PV generation requires grid extension competing with installation of a 100kW/4h battery storage
> Grid extension costs around € 60k @ 600m branch length> Battery storage using a 100 kW/4h Lithium-Ion Battery will
still cost about € 90k even @ a price of 225 EUR/kWh> With 40 years grids have at least twice the operational life
time compared to storage
Regional energy storage
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RWE is about to integrate a local energy storage in Wettringen for grid investment deferral reasons
Motivation
Parameters
Timeframe
Description
> Capacity 1000 kWh> Power 300 kW> Technology Li-Ion
> Clippling peak grid load caused by PV in a rural area
> Distribution grid investment deferral
> Specification: November 2014> Procurement: March 2015> Installation and test operation: Summer 2015> Start of commercial operation (planned): 2nd half of 2015
Regional energy storage
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Only with a share of RES exceeding 50 % significant storage increase on system level will be required
ActivitiesIncreasing share of renewable generation
Today
20 to 25%
2020
35 to 40%
2030
50 to 60%
2050
75% to 100%
Relevance of new storage
New Pumped Hydro
Compressed Air
Power-2-Gas
> Keep future options open
> Pursue R&D projects
> Pursue R&D projects
Central energy storage
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RWE engages in research activities for central energy storage
P2G Demo plant Ibbenbüren
ADELE-ING
Adiabatic compressed air storage
> ADELE has reached advanced development stage – Cost target of 1300 EUR/kW reached – on par with PHS– Charge 200 MW, discharge 260 MW,
capacity 1-2 GWh (4-8 h), round trip efficiency 70%> Plans for demo plant suspended due to lack of business case> Currently working on further improvement of system to facilitate
market entry. Explored options– Downscaling to 10-30 MW aiming at more applications– Hybrid-configuration (semi-adiabatic using natural gas)
> Use of Power-to-Gas-technology in intermittent operation mode in the context of renewable power generation
> Nominal electrolyze power 100 kW
Description
Central energy storage
Project
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Agenda
Current situation and upcoming challenges in Germany
Energy storage options
Conclusion
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3
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Conclusion on energy storage
> Storage is just one solution to keep the energy system balanced competing with other measures
> The regulatory frame is the main driver for short and midterm profitability of energy storage systems
> In short and midterm the market for decentral energy storage will grow dynamically due to the own consumption privilege
> Aggregation decentral energy storage can generate additional services for the energy system potentially reducing the need for central storage
> Further effort and success of R&D is necessary to reduce cost, increase life-time and optimize characteristics.