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CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting The role of energy storage in the energy transition 22 October 2018 by Corentin Baschet, Clean Horizon Consulting

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Page 1: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

The role of energy storage in the energy transition22 October 2018

by Corentin Baschet, Clean Horizon Consulting

Page 2: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting 2

An overview of Clean Horizon

Since its creation in 2009, Clean Horizon has been a consultancy 100%

dedicated to energy storage

Technical consulting

Our activities

Market analysis

▪ Off the shelf reports

▪ Customized analyses

▪ Update from the Field

subscription

▪ Storage projects database

▪ Owner’s engineer

▪ Energy storage project sizing

▪ Due diligence

▪ Grid impact studies

Page 3: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting 3

Storage deployment and technologies

Storage applications across the electricity supply chain

Applications diversify as the market grows

Agenda

Page 4: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

Storage deployment is increasing globally at an

expontential rate: x3 from 2015 to 2018

4

Large-scale energy battery storage announced or contracted (2011 – 2018)

0

5

10

15

20

25

30

0

500

1 000

1 500

2 000

2 500

3 000

2011 2012 2013 2014 2015 2016 2017 2018(ongoing)

Ave

rage

Siz

e (M

W)

Pow

er (

MW

)

Large-Scale Battery Systems (Announced or Contracted)

Total (MW)

Average Size (MW)

Page 5: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

Legend:

In utility-scale energy storage, Li-ion is by far the most

widely used technology

5

2,8%

1,9%

86,1%

7,9%

0,1%1,2%

Lead-acid

Vanadium Flow

Li-ion

Sodium-Sulfur

Zinc Bromine

Other

Share of battery technologies installed for utility-

scale (>500 kW) energy storage projects, as of May

2018, (based on MW installed)

Legend:

TOTAL DEPLOYMENTS1 OVER 2003-2018:

2485 MW

Share of battery technologies installed in 2017 for

utility scale energy storage projects,

(based on MW installed)

TOTAL DEPLOYMENTS1 IN 2017:

378 MW

1,3%

98,5%

Lead-acid

Vanadium Flow

Li-ion

Sodium-Sulfur

Zinc Bromine

Other

Source: Clean Horizon’s Energy Storage Source

Note: 1. relates to projects actually installed and commissioned

Page 6: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting 6

Here are some market leaders’ products

Companies providing integrated systems

LG chem provides

integrated racks

which include

modules and BMS /

BMU

SDI provides

integrated racks

which include

modules and BMS /

BMU

SDI offers racks in

several

configurations (e.g

horizontal or

vertical)

Tesla3LG Chem1

Samsung SDI2 BYD4

Tesla provides

integrated DC

“pods” which

contain the battery,

as well as the

inverter connecting

up to 10 “pods” to

the LV bus.

BYD provides

integrated

containers with

batteries, power

conversion, and

SCADA

Source: 1. http://greenpowerco.com.au/products/batteries/lg-chem/lg-chem-rack-system-r1000-m4860p2b/ 2. https://www.canadianmanufacturing.com/technology/canadian-

energy-firm-powers-up-north-americas-largest-battery-182821/ 3. https://insideevs.com/tesla-powerpack-craft-beer-come-together-sierra-nevada-brewing-company/

4. https://www.businesswire.com/news/home/20121105006882/en/UPA-Installs-500KWh-Environmentally-Friendly-Containerized-Battery-BYD

Companies providing racks

Page 7: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting 7

Storage deployment and technologies

Storage applications across the electricity supply chain

Applications diversify as the market grows

Agenda

Page 8: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

Storage has many applications across the electricity

supply chain resulting in different storage sizing

8

Capacity mechanism

Grid investment deferal

(DSO procurement)

Hybrid diesel + renewables + storage for an off-grid site

Application

Value chain

GenerationTransmission

& DistributionBehind the meter

Storage duration <1h Storage duration >1h

Frequency control

Load shifting

Renewable energy

integration

Grid congestion

management

Microgrid / Offgrid

California AB2514 &

Aliso Canyon

"Global ajustement

charge" en Ontario

PPA for PV plus

storage in Arizona

Legend:

Electricity bill

reduction

Enhanced Freq Resp

Freq Control & AS

Freq Containmt Reserve

No specific requirement

Residential storage

agregation

Solar self consumption

Capacity mechanism Capacity mechanism

Page 9: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

Most of the 2.5 GW deployed today provide frequency

regulation as a main application

99

▪ Frequency

control is the

main

application for

67 % of the

projects

deployed

▪ Other

applications are

more localized

(Electricity bill

reduction in the

US and Korea,

Load shifting in

California…)

Repartition of the operational large scale battery storage per main application and per continent

(in MW)

0

200

400

600

800

1000

1200

1400

1600

1800

FrequencyControl

RenewableEnergy

Integration

Load ShiftingElectricity BillReduction

GridCongestion

Management

Microgrid CapacityMechanism

Legend:

Africa

Asia

Oceania

Europe

North America

South America

Frequency control is by far the main application of most of the operational projects

40

151

1664

86

249

58

221

Main application

Page 10: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting 10

Storage deployment and technologies

Storage applications across the electricity supply chain

Applications diversify as the market grows

Agenda

Page 11: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

An additional 3.8 GW has been announced and shows

that the markets for storage are evolving fast as

applications diversify

11

Repartition of the announced large scale battery storage per main application and per

continent

(in MW)

0

100

200

300

400

500

600

700

800

900

1000

Legend:

Africa

Asia

Oceania

Europe

North America

South America

544

430

633

23

408

20

926

796

Storage main application

Page 12: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

In Great Britain, the Leighton Buzzard project provides both

frequency regulation (FFR) and grid investment deferal

12

The Leighton Buzzard project (Smarter Network Storage) was funded by the UK government as a trial

to defer substation upgrade in South West of the country in 2014

Size 6 MW / 10MWh

Technology Li-ion

Substation demand

In MVA

The project is now operated by an aggregator and provides ancillary services to the grid such as Frim

Frequency Response (FFR)

Limejump now operates the storage system to

respond dynamically to grid frequency deviations.

The system is paid for availability in €/MW/h

Page 13: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

The Neoen and Tesla 100 MW / 129 MWh project in South

Australia does arbitrage on top of ancillary services

13

The battery also does some arbitrage on the energy markets with the remaining capacity: in January, the battery

system earned over 1 million AUD in two days

In South Australia, Tesla and Neoen installed a 100 MW / 129 MWh storage system mainly to provide frequency

regulation to the grid

The contract between Neoen and the state is not public but it

seems from the battery behaviour that

▪ 70 MW / approximately 39 MWh is dedicated to provide

frequency regulation (market called FACS, contract with SA

government – not public)

▪ 30 MW / approximately 90 MWh is used to do arbitrage on the

wholesale market

Sources: https://reneweconomy.com.au/tesla-big-battery-moves-from-show-boating-to-money-making-93955/

https://hornsdalepowerreserve.com.au

Page 14: The role of energy storage in the energy transition 22 October … · 2018-10-24 · Corentin Baschet, MSc Clean Horizon corentin.baschet@cleanhorizon.com +33 7 81 34 15 30 14. Title:

CONFIDENTIAL - Copyright © 2018 Clean Horizon Consulting

Feel free to contact us for more

information!

Join 4000 other storage professionals

and subscribe to our TOP 5 newsletter

at: www.cleanhorizon.com

Corentin Baschet, MSc

Clean Horizon

[email protected]

+33 7 81 34 15 30

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