future energy and finance 2017 energy storage strategy paper · future energy and finance 2017 ......
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Energy StorageStrategy Paper
Presentation Date or name of Presentation team
Energy storage investment in APAC
Future energy and finance 2017
• Camborne Capital Group – privately owned parent company to
Camborne Energy Storage Ltd and Camborne Land Investments Ltd.
• UK Solar PV experience – 200MW financed through to commissioning.
• Energy Storage developing upwards of 400MW of assets in the UK,
looking for increased APAC exposure and development in 2017.
• Land Investments focussed on sustainable rental sector investment of
>£500m.
About Camborne Capital
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Growth of Renewable Energy Generation (UK)
3
Coal
Oil & other fuels
Gas
Nuclear
Hydro
Wind & Solar
Other renewables
Net imports
Electricity Provided by Fuel Type, 2000
Coal
Oil & other fuels
GasNuclear
Hydro
Wind & Solar
Other renewables
Net imports
Electricity Provided by Fuel Type, 2016 Q1 & Q2
The UK has ambitious targets to meet 15% of its energy needs through
renewable energy generation by 2020. By the end of 2016, there was over
30GW of installed renewable energy generation in operation.
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• Pumped storage – where we started• <125GW installed globally in 2012
• Compressed air energy storage
• Battery storage• Sodium–sulphur batteries
• Lead–acid batteries
• Nickel batteries
• Lithium ion batteries
• Lithium titanate
• Further technologies – where we are• Flywheel
• Cryogenic energy
• Metal-air batteries
• Hydrogen storage
• Superconducting metals
• Sand
• Chemical mixes
‘Electrical’ Energy Storage
Hohenwarte Pumped Storage Scheme &
Leighton Buzzard Battery Storage Scheme?
• Reduce curtailment.
• Stabilise system frequency.
• Electrification schemes.
• Support peaking power plant mothballing.
• Defer distribution network reinforcement.
• Maximise value through arbitrage.
• Demand profile smoothing.
• Significant environmental benefits.
Energy Storage Benefits
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Source: Bellona Europa (2015)
UK Ancillary Services Contracts – Commercially Valuable
7
Enhanced Frequency
Response (EFR)
• Grid balancing
service (50htz)
• Four-year contracts
• Sub-second
frequency response
Firm Frequency
Response (FFR)
• Grid balancing
service (50htz)
• Shorter contracts
(1-2 years)
• Response time 2-10
seconds
Capacity Market
• Capacity balancing
service
• Up to 15 year
contracts (for new
capacity)
• Up to 4 hours notice of
stress event
• Potential to participate
in addition to EFR and
FFR contracts
Energy Arbitrage
• Opportunities presented by
volatility in the markets
• Battery energy storage responds
effectively to increasing
instances of intraday price
movements
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Prices of £1,000 pMWh already
seen in the UK this winter
Storage Facilitating EV Charging
9
Increased numbers of EVs on the roads will have repercussions to the energy network:
• Expansion of charging infrastructure to meet demand resulting from increased EV numbers
• Network reinforcement will be required to support the increase in demand for EV charging
• As battery technologies improve, EV capacities increase and quicker charging is enabled, all
requiring higher network capacity
A significant challenge in expanding the EV charging network will be cost, with securing a grid
connection and sufficient capacity being a significant portion of up front capital expenditure.
Co-locating energy storage alongside EV charging infrastructure can alleviate these impacts:
• Improved load management, reducing necessity to reinforce grid infrastructure
• Support greater numbers of EVs charging simultaneously
• Improve the operational expenditure for energy by operating energy storage to avoid peak
power pricing
EV Charging Hubs
Significant increase in fleets of EVs is expected:
• London is set to own Europe’s largest fleet of
electric buses, with two routes, 507 and 521,
becoming all electric.
• APAC experiencing significant growth in vehicle
manufacture, delivery and use – anticipated growth
of EV ownership in the millions over next 5-10
years.
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• UPS spent over £600,000 upgrading energy infrastructure at one of their central London depots, specifically to
ensure their fleet of 16 EVs could be charged. The charging of EVs at peak times was, from an energy perspective,
in direct competition with their sorting machinery, with the local grid unable to deliver sufficient capacity to meet
demand.
Impact of EVs on Battery Prices
Global increase in number of EVs has had a pronounced effect on Li-ion battery prices
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Battery surveys include electric vehicles.
Source: Bloomberg New Energy Finance
• Finance
• High technological cost.
o Getting cheaper with time.
• Investor security – contracts, guaranteed repayment, risk appetite.
• Technology
• Emerging technology.
• Uncertainty surrounding lifespan and degradation issues.
o Manufacturers claim long life and durability.
• Small manufacturing quantities.
• Other
• For some energy storage solutions, such as pumped hydro and
compressed air, there are other barriers, such as geographic
constraints.
• Policy influence.
• Comparative investment.
Challenges
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The Case for Asian Investment
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• Similar intermittency challenges in terms of renewable and
embedded generation.
• Connecting grids – off grid and electrification.
• A lucrative investment.
• Global support.
• Increased interest.
• The need for diversity.
• Localised resources.
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L to R: Dan Taylor – Managing Director, Camborne Energy Storage;
Baroness Lucy Neville-Rolfe – Energy Minister; Edward Sargent – Manager,
Tesla UK; Chris Roberts – Managing Director, Poweri
CES’s Battery Energy Storage project, utilising Tesla’s
Powerpack solution, alongside existing Solar PV site.
““We welcome this exciting project from Tesla
and Camborne. Innovation in storage
technologies will help manage our electricity
grid more efficiently, support greater energy
security and, crucially, drive down consumer
bills.
UK Energy Minister, Baroness Neville-Rolfe, 07 December 2016
Dan Taylor
Managing Director