power system flexibility and electricity storage · 2019-11-06 · deployment and costs of...

11
IEA 2019. All rights reserved. Power System Flexibility and Electricity Storage Conférence sur le stockage stationnaire d’électricité, 5 November 2019 Keisuke SADAMORI, Director, Energy Markets and Security, IEA

Upload: others

Post on 07-Aug-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

Power System Flexibility and Electricity Storage

Conférence sur le stockage stationnaire d’électricité, 5 November 2019

Keisuke SADAMORI, Director, Energy Markets and Security, IEA

Page 2: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

Solar PV drives strong rebound in renewable capacity expansion

Renewable capacity growth between 2019 and 2024 by technology

Renewables expand by 50% through 2024, with distributed PV alone growing as much as onshore wind.

The IEA forecast is 14% higher than last year due to improved policies and increasing competitiveness.

0 100 200 300 400 500 600 700 800

Solar PV

Onshore wind

Hydropower

Offshore wind

Bioenergy

Others

GW

Distributed PV

Page 3: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

… leading to new challenges for energy security

Higher shares of variable renewables pose new challenges for power systems

0

500

1 000

1 500

2 000

2 500

3 000

3 500

00:00 12:00 00:00 12:00 00:00 12:00 00:00 12:00 00:00 12:00

Powe

r (M

W)

Demand Net load

New operational requirements –Local power demand and net load variability over a 5 days period

Net load = power demand

minus wind and solar output

Page 4: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

All sources of

flexibility

needed

6

5

2

1

Mobilise existing power system flexibility

4

3

Targeted

investment in

flexibility needed

Flexibility: the cornerstone of tomorrow’s power systems

Phases of integration with variable renewables share, 2017

Higher shares of variable renewables raise flexibility needs and call for reforms to deliver

investment in power plants, grids & energy storage, and unlock demand-side response

Integration

phase

Wind and solar PV share of generation

0% 10% 20% 30% 40% 50% 60%

India

China

United States

India

China

United States

European UnionEuropean Union

Germany

Germany

United Kingdom

United Kingdom

Phases of integration with variable renewables share, 2030

Page 5: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

Flexibility in the global power system, 2017

Power plants dominate flexibility options today while pumped hydro, interconnections and demand

response account for 10% of total flexibility

Hydro28%

Pumped hydro 4%Other 1%

Nuclear 3%

Oil 6%

Gas29%

Coal23%

Interconnections5%

Batteries 0.1%

Demand response1%

Power plant flexibility3 400 GW

Other flexibility220 GW

Page 6: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

Deployment and costs of utility-scale battery storage systems in

the New Policies Scenario

Declining costs for battery storage systems underpin utility-scale deployment to reach 220 GW by

2040, most of which is paired with renewables

50

100

150

200

250

2020 2030 2040

GW

Rest of world

Africa

European Union

United States

India

China

100

200

300

400

500

600

2017 2030 2040

Do

llars

per

kW

h (

20

17

)

Battery pack

Non-battery costs

Installed capacity Capital cost

4-hour

Page 7: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

How cost-effectiveness are different storage options?

Compressed hydrogen storage becomes the most economic storage option at discharge durations

longer than 20–45 hours.

Levelised costs of storage as a function of discharge duration

10

100

1 000

10 000

0.1 1 10 100 1000

USD/MWh

Discharge duration (h)

Source: The Future of Hydrogen, IEA (2019)

Li-Ion batteries

Pumped Hydro Energy Storage

Compressed Air Energy Storage

Compressed hydrogen

Ammonia

CCGT with CCUS

Page 8: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

Hydrogen is already part of the energy mix

Dedicated hydrogen production is concentrated in very few sectors today,

and virtually all of it is produced using fossil fuels, as a result of favourable economics

0

20

40

60

80

2018

Mt/

yr

Hydrogen production

Other

Refining

Chemicals

0

200

400

600

800

1 000

2018

Mt/

yr

CO2

Gas

Oil

Coal

0

2

4

6

8

Natural gas Natural gas

w/CCUS

Coal Renewables

USD

/kg

Hydrogen production costs, 2018

Page 9: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

Renewables hydrogen costs are set to decline

The declining costs of solar PV and wind could make them a low-cost source

for hydrogen production in regions with favourable resource conditions

USD/kgH2

Long-term hydrogen production costs from solar & wind systems

Page 10: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.

Expansion of electrification, distributed generation and variable renewables will broaden the need and

range of flexibility options

Growing needs and range of options for flexibility

Page 11: Power System Flexibility and Electricity Storage · 2019-11-06 · Deployment and costs of utility-scale battery storage systems in the New Policies Scenario Declining costs for battery

IEA 2019. All rights reserved.