Battery Storage for Business

Transcription

1 Battery Storage for Business Making the energy transition possible David Malicki Senior Team Leader Energy Efficient Business NSW Office of Environment and Heritage

2 Do you need help? OEH Tools and Assets Battery Storage guide or Essentials guide. Investment Decision Tool Battery storage for business training course Price Estimate template.

3 Global market state of play Predictions: + 2 years 40% price drop (Morgan Stanley) + 3 years 50 fold increase in worldwide installations Bundled solar + battery storage systems become economical for households (ATA) + 10 years 40% annual growth in global capacity (+80 GW) + 13 years Cost falls to $120 per kwh (Bloomberg New Energy Finance) Trends so far: Average decrease in costs of 14% annually between Largest virtual power plant in Adelaide household batteries (AGL) Generator-retailers selling household batteries (Origin & AGL) US market grew 284% in 2016 alone (ESA)

4 Battery prices are falling fast

5 A long history Apollo Silver-Zinc Batteries Tesla Model S 2012 Lithium-ion Batteries Satellites - Present Day NiCad, NiH2, NiMh, Li-ion Batteries Electric Car 1913 Lead Acid Batteries Data Centres since 1980 s Lead Acid Batteries Solar Impulse 2015 Lithium-ion Batteries

6 Battery Electric Vehicle Plug-in Hybrid Electric Vehicle (PHEV) Mercedes B-Class Mitsubishi i-miev / Citroen C-Zero Toyota RAV4 EV Chevrolet Volt Volvo V60 PHEV Honda Accord PHEV Nissan Leaf Ford Focus Electric BMW i3 Mitsubishi Outlander PHEV Toyota Prius PHEV Hyundai Sonata PHEV Kia Soul Smart EV Fiat 500e Audi A3 PHEV Suzuki Swift PHEV Porsche Panamera PHEV Renault Zoe Volkswagen egolf Tesla S / X / 3 Cadillac CT6 PHEV Chrysler Pacifica PHEV Dodge RAM PHEV

7 All of the top 20 automotive manufacturers in the world are making electric cars Rank Group Country 1 Toyota Japan 2 General Motors USA 3 Volkswagen Germany 4 Hyundai South Korea 5 Ford USA 6 Nissan Japan 7 Fiat / Chrysler USA 8 Honda Japan 9 Suzuki Japan 10 Groupe PSA (Peugeot / Citroen) France 11 Renault France 12 BMW Germany 13 SAIC China 14 Daimler (Mercedes) Germany 15 Mazda Japan 16 Dongfeng China 17 Mitsubishi Japan 18 Changan China 19 Tata India 20 Geely China

8 All of the top 20 automotive manufacturers in the world are making electric cars Rank Group Country Battery EV 1 Toyota Japan RAV 4 EV 2 General Motors USA Chevrolet Bolt 3 Volkswagen Germany egolf 4 Hyundai South Korea Ioniq Electric 5 Ford USA Focus 6 Nissan Japan Leaf 7 Fiat / Chrysler USA 500e 8 Honda Japan Clarity 9 Suzuki Japan 10 Groupe PSA (Peugeot / Citroen) France C-Zero 11 Renault France Zoe 12 BMW Germany i3 13 SAIC China Roewe E50 14 Daimler (Mercedes) Germany B Class 15 Mazda Japan Demio 16 Dongfeng China Fengxing S50 17 Mitsubishi Japan i-miev 18 Changan China Eado 19 Tata India Mega pixel 20 Geely China Volvo C30

9 All of the top 20 automotive manufacturers in the world are making electric cars Rank Group Country Battery EV Plug-in Hybrid 1 Toyota Japan RAV 4 EV Prius 2 General Motors USA Chevrolet Bolt Cadillac CT6 3 Volkswagen Germany egolf Audi A3 4 Hyundai South Korea Ioniq Electric Sonata 5 Ford USA Focus Fusion 6 Nissan Japan Leaf Qashqai 7 Fiat / Chrysler USA 500e Pacifica 8 Honda Japan Clarity Accord 9 Suzuki Japan Swift 10 Groupe PSA (Peugeot / Citroen) France C-Zero Peugeot Renault France Zoe Clio 12 BMW Germany i3 i8, X5, 2 & 3 series 13 SAIC China Roewe E50 Roewe Daimler (Mercedes) Germany B Class C series 15 Mazda Japan Demio Mazda 2 16 Dongfeng China Fengxing S50 17 Mitsubishi Japan i-miev Outlander 18 Changan China Eado E30 19 Tata India Mega pixel Jaguar XJ 20 Geely China Volvo C30 Volvo V60

10 All of the top 20 automotive manufacturers in the world are making electric cars Rank Group Country Battery EV Plug-in Hybrid Notes 1 Toyota Japan RAV 4 EV Prius Partnered with Tesla for powertrain 2 General Motors USA Chevrolet Bolt Cadillac CT6 LG Chem batteries 3 Volkswagen Germany egolf Audi A3 Considering $15B battery factory! 4 Hyundai South Korea Ioniq Electric Sonata LG Chem batteries 5 Ford USA Focus Fusion LG Chem batteries 6 Nissan Japan Leaf Qashqai NEC batteries 7 Fiat / Chrysler USA 500e Pacifica Bosch/Samsung batteries 8 Honda Japan Clarity Accord 9 Suzuki Japan Swift 10 Groupe PSA (Peugeot / Citroen) France C-Zero Peugeot Renault France Zoe Clio LG Chem batteries 12 BMW Germany i3 i8, X5, 2 & 3 series Samsung batteries 13 SAIC China Roewe E50 Roewe 550 A123 supplies batteries to GM and F1 14 Daimler (Mercedes) Germany B Class C series Li-Tec Battery GmbH 15 Mazda Japan Demio Mazda 2 16 Dongfeng China Fengxing S50 Manufacturer of electric busses 17 Mitsubishi Japan i-miev Outlander 18 Changan China Eado E30 LG Chem batteries 19 Tata India Mega pixel Jaguar XJ 20 Geely China Volvo C30 Volvo V60 LG Chem batteries

11 Current pricing 2,000kWh Tesla Powerpack (before Powerwall 2 announcement)

12 Current pricing Tesla Powerwall 2????? Tesla Powerpack V2????? 12

13 All three technologies will disrupt the electricity market Cost of generating renewable energy Disruption Cost of storage batteries Cost of electric vehicles

14 Energy hierarchy Optimise existing energy use Energy efficiency upgrades Energy quality upgrades & Onsite energy generation

15 2016 NSW business survey ~60% "will install batteries within 2 years Financial expectations are high, and energy usage tariffs are low. about 40% of businesses said they had no defined investment criteria for batteries at all, and they had other motivations...

16 Results of battery studies What have we found? 20 yr simple payback on average - for a combined PV + battery system (vs 5.6yr payback expectation on average) Proposed system sizes 80kWh average Economies of scale are not very pronounced. $/kwh of a 10kWh vs. a 100kWh system appears much the same Off the shelf control systems generally not capable of "smart" battery management Utility requirements quite stringent The requirement for a dedicated battery room made physical viability difficult in many instances

17 Lead Acid Advantages: High peak power per module Existing Australian standards Recyclability Disadvantages: Battery life vs. usable capacity trade-off Cycling requirements* Maintenance requirements*

18 Lithium Advantages: High public interest and mass production Large usable range Lighter and smaller Disadvantages: Australian standards incomplete for Lithium Limited peak power output per module Heat stability issues Poor Recyclability

19 Flow (Zinc-Bromide) Advantages: 100% useable range Chemical stability Recyclability Disadvantages: Limited peak power per module Maintenance cycling requirements Efficiency

20 Sodium-ion Advantages: 100% useable range Chemical stability Zero Fire Risk Recyclability Disadvantages: Limited peak power per module Efficiency

21 Energy Different Battery Technologies Lead Acid Lithium-ion Flow-Battery Sodium-ion Power Depth of Discharge 40% 85% 100% 100% Cycle Life ,000-10, ,000 Approximate Life 10 years 8 30 years 10 years 8 years

22 Using and storing energy How you are able to use a battery system, and how much you can save, depends entirely on how your energy is billed. The main advantage of battery energy storage is that it enables a business to source energy in a more cost effective way. When energy is expensive Peak Tariffs Additional capacity charges Infrastructure Upgrades Fuel & maintenance cost Battery Storage When energy is inexpensive Off Peak Tariffs Solar PV Reduced capacity charges Deferred upgrades Increased fuel efficiency

23 How batteries can be applied to business Businesses can use batteries in different ways Time-of-use tariff optimisation (arbitrage) Reducing capacity charges (peak lopping) Additional power source (fringe-of-grid) Stand alone systems (off-grid)

24 Tariff Optimisation Example Peak Period

25 Tariff Optimisation Example: Also high usage in peak Peak Period

26 Tariff Optimisation Example: Much higher marginal cost in peak Peak Period

27 Tariff Optimisation Usage shifted to off peak with 25% cost reduction Peak Period

28 Tariff Optimisation Off peak + solar PV Peak Period

29 Promoting Renewable Energy Solar Only

30 Promoting Renewable Energy Solar + Battery

31 How big is a battery? Depends on how much capacity you require Depends on the technology you choose 20 kwh 1000 kwh 3m 6.1m 20 kwh

32 Monitoring Monitoring enables decision makers to better manage loads to improve and assess the system s performance.

33 Battery Storage Guides i am your battery storage guide Handbook Content Detailed battery storage concepts Application information Flowchart of steps to consider Toolkit Content Templates to assess feasibility Templates to assist go-tomarket

34 Investment decision tool Content Basic Questionnaire Feasibility assessment Detailed output to assist go-to-market

35 Request for Proposal Template 35

36 Find out today how battery storage can fit into your business environment.nsw.gov.au/business/battery-storage 36