The Value of Energy Storage in the Grid of the Future

Transcription

1 The Value of Energy Storage in the Grid of the Future 5 October 2017 European Utility Week Amsterdam, Netherlands Patrick Clerens EASE Secretary General

2 Introduction to EASE European Association for Storage of Energy is the European voice of the Energy Storage community advocates the role of Energy Storage as an indispensable instrument for the energy system supports a sustainable, flexible and stable energy system shares and disseminates information Strategic objectives: 1 Promotion of the role and benefits of Energy Storage 2 Fair market design for Energy Storage 3 Promotion of funding for Energy Storage (mainly RD&D) 2

3 Members 3

4 Energy Storage in the Energy System Energy storage can provide valuable services at all levels of the grid, but significant regulatory barriers remain. 4

5 Energy Storage: Many unique tehcnologies, each suited to a particular set of applications Chemical Electrical Hydrogen Synthetic Natural Gas Capacitors SMES Electrochemical Mechanical Classic Batteries Flow Batteries Flywheels Adiabatic Compressed Air Lead Acid Li-Ion Vanadium Red-Ox Zn-Br Pumped Hydro Diabatic Compressed Air Li- Polymer Li-S Pumped Heat Electrical Storage Cryogenic Energy Storage Metal Air Na-NiCl 2 Ni-Cd Na-Ion Na-S Ni-MH Heat (Hot Water/PCM) Packed-bed Heat Storage Thermal Molten salt (Heat/CSP thermal) Smart Electric Thermal Storage 5

6 Renewable Conventional Energy Storage is a System Necessity Energy Storage can provide many valuable services that can enhance the efficiency of existing grid assets and support RES integration. Generation Transmission Distribution Customer services Black start Participation to the primary frequency control Capacity support End-user peak shaving Arbitrage Participation to the secondary frequency control Dynamic, local voltage control Time-of-use energy cost management Support to conventional generation Participation to the tertiary frequency control Contingency grid support Particular requirements in power quality Distributed Generation Flexibility Improvement of the frequency stability of weak grids Intentional islanding Continuity of energy supply Capacity firming Investment deferral Reactive power compensation Limitation of upstream disturbances Limitation of upstream disturbances Participation to angular stability Distribution power quality Compensation of the reactive power Curtailment minimisation Limitation of upstream disturbances 6

7 Example: Conventional Generation Support Energy storage can optimise the operation of existing conventional generation assets. 7

8 Example: Network Reinforcement Deferral Peak demand growth triggers power network reinforcements. Peak demand occurs mainly during winter cold evenings. Option 1: Traditional network reinforcement (overhead or underground power lines) Option 2: Energy storage can be used to provide security of supply when required while providing additional services to the TSO at other times Energy capacity allocated to serve peak load at the Leighton Buzzard ESS Option 1 Transport capacity constraint Peak Demand Growth Complementary services can be provided along with peak shaving Storage can be devoted entirely to the provision of other services Possible Technologies: Option 2 Mechanical: Compressed Air Energy Storage (CAES), Liquid Air Energy Storage (LAES) Source : UKPN, Successful Demonstrations of Storage Value Streams Electrochemical: Lead Acid, Li-Ion, NaS, Flow batteries (e.g. Vanadium, Zinc-Bromine) 8 8

9 Example: Balancing Possible Technologies: Mechanical: Compressed Air Energy Storage (CAES), Liquid Air Energy Storage (LAES), Pumped Hydro Storage Electrochemical: e.g. Lead Acid, Li-ion, NaS, Flow batteries (e.g. Vanadium, Zinc-Bromine) Source : 9 9

10 Example: Fast Balancing (Enchanced Frequency Response) National Grid launched new ancillary service in Summer All capacity awarded to energy storage (batteries) Demonstrated value of batteries in providing extra-fast frequency response; showed cost savings due to long-term contracts Source: Enel, National Grid 10

11 Sector Interfaces: Thermal storage, Power-to-Gas Energy storage also has valuable applications beyond the electricity sector: sector interfaces can support the decarbonisation of the heating & cooling and transport sectors In particular, Power-to- Gas/Power-to-Liquids and thermal storage technologies can provide long-term (seasonal or monthly) storage Transmission Bottlenecks Source: Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden-Württemberg 11

12 How to Incentivise Storage & Value Fexibility a) Clarify system position of energy storage Establish clear definition of energy storage at EU level Recognise storage as a separate asset class Clarify ownership of storage by regulated entities Ensure appropriate treatment in network codes b) Ensure that remuneration matches value creation Recognise value of faster reaction and flexibility Allow for stacking of applications c) Pave the way for retail prices to reflect market conditions Reduce high share of fixed charges/ taxes/levies in final electricity bills Allow for congestion/scarcity pricing d) Fair implementation Eliminate unwarranted fees and taxes on energy storage devices Ensure market-based procurement of ancillary services in all Member States Low-carbon fuels (e.g. Green Hydrogen) should be recognised as such 12

13 Questions Still to be Adressed In order for the full value of storage to be captured, key regulatory hurdles must be overcome The regulatory framework must create a level playing field for energy storage so that the market can develop The immense value of energy storage for the energy system should not be underestimated Storage providers should be remunerated for all services they provide More work needs to be done to clarify stacking applications both in terms of which applications can be combined from a technical perspective and how the different value streams can be monetised 13

14 Thank you for your attention! EASE European Association for Storage of Energy Avenue Adolphe Lacomblé 59/8 BE Brussels Tel: info@ease-storage.eu

15 Members 3