Battery-based energy storage roadmap

Transcription

1 Expert meeting report - Version: 11/04/2016 Battery-based energy storage roadmap Expert meeting implementation plan Ecofys 2016 by order of: European Commission Subject: From: Project number Implementation plan draft report BATSTORM expert meeting April 21, 10:00 to 13:00 Brussels, European Climate Foundation, Pericles building Ecofys, VITO, Technopolis, Fraunhofer IWES, and Strategen POWNL16059 Table of contents 1 BATSTORM A European R&D strategy for battery based energy storage 2 2 Objectives and agenda of the meeting 2 3 Introduction and remarks by the European Commission 3 4 Key points of discussion on the draft implantation plan 4 5 Conclusion and next steps 7 Annex 1: List of attendees 8 Annex 2: Workshop agenda 8 Annex 3: Presentation slides 9 POWNL16059 Benjamin Munzel 1/18

2 1 BATSTORM A European R&D strategy for battery based energy storage The BATSTORM project will support the European Commission and the ETIP team in their progress to identify and support RTD&D needs and market uptake of battery based energy storage as one lowcarbon technology of the future energy system. This objective shall be met in line with the aims to increase active consumer participation in the energy system and to improve industrial capacity in Europe. To meet this objective, the knowledge on battery based storages must be fostered and exchanged between stakeholders and research in the field as well as demonstration projects need to be collected and efficiently supported. This includes in particular: - Strategy development - Knowledge sharing - Support of the policy design process - Industrial capacity increase and cost reductions of batteries - Connect and involve (especially via 2 Objectives and agenda of the meeting A BATSTORM expert meeting was held on April 21 st 2016 in Brussels with the purpose to: - Introduce the first main project deliverable: the draft Implementation Plan and invite comments and suggestions. - Collect any other views and input on the battery-based energy storage in Europe that could contribute to decision-making on policies and RTD funding. - Start a process of periodic interaction with a committed panel of experts with the aim to collect constructive feedback on the project team s analysis, leading to validated project deliverables. The meeting was attended by 16 representatives of stakeholder groups, European Commission and project consortium. Following agenda was pursued: - Introduction by Henrik Dam (European commission) - Project overview by Frank Wiersma (Ecofys) - Presentation of the implementation plan by Bart Mantels (VITO) - Collecting expert input on the implementation plan - Recap by Frank Wiersma (Ecofys) Annex 1 to this report contains a list of attendees. A complete overview of the agenda and the presented slides can be found in annexes 2 and 3. First, chapter 3 summarizes the introduction and remarks by Henrik Dam (European Commission) and Chapter 4 tables key points of the discussion on the draft implementation plan. POWNL16059 Benjamin Munzel 2/18

3 3 Introduction and remarks by the European Commission At the beginning of the meeting Henrik Dam welcomed attendant partners and stakeholders of BATSTORM. He then stressed that energy is one of the Commission s main subject with the objective to move the EU towards a low-carbon economy while creating jobs and enhancing competitiveness. Figure 1: Henrik Dam (European Commission) and project director Frank Wiersma (Ecofys) He also announced that by the end of April 2016 an issue paper on stationary storage for the electricity system will be published. It includes following targets that will lead to highly competitive costs per cycle for battery systems in costs of less than 150/kWh capacity - efficiency above 90 % - battery cycle life of several 1,000s The issue paper should be used as framework for the BATSTORM project. Hence, future system costs may be assumed rather than today s prices on the market. Along with this, the Commission would like to ask the consortium and stakeholders to assume that an proper regulatory framework will be in place and to further focus technical challenges rather than political challenges as the political direction is quite clear. Technical and market barriers will be straightened out and a playground for technologies that provide flexibility will be created. Figure 2: Frank Wiersma (Ecofys) welcoming the consortium members and stakeholders POWNL16059 Benjamin Munzel 3/18

4 4 Key points of discussion on the draft implantation plan The implementation plan has been compiled under the leadership of Bart Mantels (VITO). He presented the project team s approach, the plan s structure and its content. The investigated pilot projects as well as the proposed R&I topics were discussed lively with the stakeholder group. Frank Wiersma collected main points made by the stakeholders on a flip chart and in the end recapped the session. Figure 3: Bart Mantels (VITO) presenting the implementation plan draft, Frank Wiersma (Ecofys) collecting remarks made by stakeholders The implementation plan s structure follows a matrix posing challenges (technical, market-related, regulatory, public acceptance-related) over applications (grid, generation, non-residential users, residential users). Figure 4 displays the results of previous stakeholder feedback and investigation of research efforts in these clusters. Figure 4: Disparity between research needs and research efforts (number of mentions vs. number of research projects) Table 1 summarizes key points made by the stakeholders during the discussion of the draft implementation plan. The categories refer to the different applications and challenges listed in Figure 4. POWNL16059 Benjamin Munzel 4/18

5 Table 1: Key points of discussion on the draft implantation plan Topic Description of remark / discussion Technical challenges Energy density to be increased Discharge and energy retention times to be extended 2nd generation to be considered separately Capable communication infrastructure needed Integration problems Safety risks to be explained - Energy density will be of great interest in order to integrate battery based energy storage into an urban environment. - Battery systems that are tested today in rather rural areas are unimaginable in urban secondary substations. - Longer periods, i.e. longer discharge and retention times, will be needed in the future. - Future battery technologies may close a gap between today s battery systems (short periods) and pump hydro storage (large periods). - A second generation of battery based energy storage technologies with much improved performance available should be included and set apart from current technologies in the BATSTORM project. - Current generation: onward development and optimization to be focused - Future generation: fundamental work and investments to be done, also aside from Li-Ion - In order to technically enable sufficiently fast communication to control flexibility and batteries, a proper infrastructure is needed. - Smart metering infrastructure is not adequate for this purpose. - The participants are aware of technical problems that can arise in the phase of BES integration (with grid or generation). - Participants recommended to discuss with project planners, utilities. - A further explanation of safety risks posed by batteries, also regarding existing elements in the energy systems such as transformers, is needed. Market challenges Cost per cycle to be reduced Business case for batteries missing - In regard to system prices that need to decrease in the future, not only material prices play an important role but also the potential number of cycles a battery is able to perform as the essential indicator comes down to cost per cycle. - The economic issues and cost inefficiencies experienced by many of the presented battery storage pilot projects are not surprising. - Batteries are not made for these kinds of markets. - Today, the grid does not yet need batteries (except few cases). - There is clearly a surplus of sellers and a lack of buyers. POWNL16059 Benjamin Munzel 5/18

6 Topic Description of remark / discussion - There are various examples of DSOs already applying battery storage systems. System operators already realize (pilot) projects Need for batteries will arise - However, projects are mostly limited to pilot status and viable only in very rare cases. - Yet, there are grid tasks to which batteries already today offer a costeffective and technically feasible solution. - Fast-charging stations for electric vehicles or for a Norwegian electric ferry that integrate battery storage in order to reduce peaks in the grid and avoid grid expansion are good examples. - The need for batteries will arise in upcoming years and decades when the demand for balancing storage will exceed seconds or minutes towards hours and days. - With less fossil fuel based generation in the grid it will need another source of flexibility and balancing. - The grid and system operators will sooner or later show value for storage % of all batteries are produced in Asia. - The development of a supply chain for battery (system) production in the EU is desirable. EU supply chain to be strengthened - Yet, the EU supply chain does host raw materials producers and battery system integrators. - The supply chain needs to be broken down and analysed part-wise considering various elements of the supply chain. - Considering economic value and opportunities as well as job potential for the EU may pose many opportunities. - There is no (standardized) definition of terms for the procurement process Procurement standards - More experience and standardization could reduce costs of whole process - Most attendees could not comment on this issue however recommended to discuss this issue with project planners Regulatory challenges Shorten auctioning times - Shortening auctioning times in energy markets can enable flexibility options. - Batteries may participate in multiple applications and markets. - A regulatory framework should enable players and make sure the market does not show value for batteries too late. - The ground to commercialise batteries and bring them into the market needs to be prepared by regulators. Proper regulatory framework necessary - Roles in the electricity market need to be defined clearly, i.e. ownership, ability to manage functionality, market participation etc. - Buyers and sellers need to be enabled, same applies for multi-role applications and business cases. - An important step to enable demand for flexibility at distribution grid level, hence creating a market for flexibility, would be made by enabling contracting in flexibility services by DSOs, as is common among TSOs. - The European Commission recommends focussing rather technical challenges than political challenges and assures that a proper regulatory framework will be in place. POWNL16059 Benjamin Munzel 6/18

7 5 Conclusion and next steps Most importantly, this meeting provided input regarding the preferred direction of the BATSTORM project. It became clear that regulatory challenges should be considered less while a proper framework can be assumed. Overall the project s scope and view shall be focused on future facts and externalities rather than current market situations and technologies. Therefore, desirable states of battery technologies and a potential EU value chain will be worked towards to particularly. This report and the draft version of the implementation plan will be uploaded to leaving stakeholders the opportunity und deliver further feedback. A next expert meeting with a group of stakeholders will be scheduled for after the summer. The consortium aims to extend the stakeholder group to further players along the whole value chain, i.e. representatives of manufacturers, academia etc. POWNL16059 Benjamin Munzel 7/18

8 Annex 1: List of attendees Name Henrik Dam Frank Wiersma Michelle Koper Santi Martinez Jan Pedersen Marcel Meeus Kris Kessels Dominik Schledde Francesco Gattiglio Thomas Döring Florian Chapalain Karina Medved Heleen Groeneberg Benjamin Munzel Charlotte Hussy Bart Mantels Organisation European Commission Ecofys Ecofys GEODE GEODE EMIRI VITO Fraunhofer IWES Eurobat Solar power europe EDSO Eurelectric Ecofys Ecofys Ecofys VITO Annex 2: Workshop agenda 10:00-10:15 Introduction Henrik Dam, European commission 10:15-10:30 Project overview Frank Wiersma, Ecofys 10:30-11:15 Presentation of the implementation plan Bart Mantels, VITO 11:15-12:45 Collecting your expert input on the implementation plan 12:45-13:00 Recap Frank Wiersma, Ecofys POWNL16059 Benjamin Munzel 8/18

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