MARCH 2018 Battery Energy The power to control the energy Marcus Sousa, Territory Market Manager, Europe
Challenges of the future power grid Long-term drivers for energy storage Electricity consumption on the rise Electrification of everything moving towards electricity as the primary source of power Economic and population growth will lead to increasing demand for power Coal plant retirements Reducing baseload power capacity Limited resources for ancillary services on the utility grid Growth in renewables Governments and industry moving towards solar and wind Intermittent generation sources can reduce reliability on the electrical grid Electrification of transportation More users of EVs can increase peak loads placing more strain on the electrical grid Increase in high speed rail Proliferation of smart grid technology Bi-directional flow of power requires additional coordination between power supply and demand Tax and regulatory incentives Renewable mandates and incentives increasing demand for clean grid technologies Potential tax benefits for storage systems (residential, commercial and utility) March 6, 2018 Slide 2
Battery energy storage systems Used today across various industry segments, behind and in front of the meter applications Generation Grid Transport Higher reliability rail and e-bus network Postponement of grid upgrades Integration of distributed renewables & EV Dispatchable renewables = more $ per kwh Industry and large commercial Reduced fees from harmonic pollution & demand peaks Microgrids Stabilization Residential and small commercial New revenue from ancillary grid services Optimize self-consumption March 6, 2018 Slide 3
Market segments and their main characteristics Majority of use cases expected to be behind the meter deferral of investments but business case not always present Grid services regulations do not allow in many markets Combined with renewable plants to reduce fluctuations and further improve dispatchability Mitigates trading risks when integrated in fleets of generators Good complement with renewables powered microgrids Key element for securing system stability and resiliency Battery energy storage Addresses capacity and peak consumption issues Improves power quality and can reduce energy bill Used in combination with solar roof top to gain energy independency or reduce energy bill Enabler to enable fast charging at home Enables fast charging in cities and weak points of the grid Together with bidirectional smart charging, enables the vehicle to grid (v2g) concept March 6, 2018 Slide 4
Energy storage market outlook In $ terms the utility storage market is expected to grow with a CAGR ~19% Frequency regulation Renewable integration Distribution load levelling Behind-the-meter: Peak shaving Utility storage applications Peaking capacity Transmission load levelling Behind-the-meter: PV + storage Non-utility storage applications Utility applications CAGR (2016-2020) ~ 32% Utility applications CAGR (2016-2020) ~ 24% Utility applications CAGR (2016-2020) ~ 19% GW 50,0 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 1.9 2.9 0,0 2015 2016 4.6 2017 6.8 2018 9.6 2019 14.3 2020 19.7 2021 27.3 2022 35.3 2023 45.0 2024 GWh 16,0 14,0 12,0 10,0 8,0 6,0 4,0 1.8 2,0 0,0 2016 2017 Utility applications average storage time ~30 minutes (2015 through 2020) 3.5 3.3 2018 5.9 2019 8.5 2020 9.8 2021 12.5 2022 13.8 2023 16.2 2024 $Bn (real 2016) 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 8.3 7.0 7.4 5.3 5.8 3.9 2.6 2.3 1.4 2016 2017 2018 2019 2020 2021 2022 2023 2024 In 2016, the utility storage market was ~$1Bn rising to ~$2.2Bn by 2020 March 6, 2018 Slide 5
Energy storage applications description A range of utility and non-utility applications sustain the growth of energy storage market Utility Applications Non-Utility Applications Frequency regulation Peaking capacity The provision or absorption of short bursts of power to maintain the balance of supply and demand & [hence] the frequency Often procured by the system operator The provision of capacity to meet demand peaks Main application is to increase % of selfconsumption Behind-themeter: PV + storage Energy storage integrated with residential & commercial roof top solar PV Renewable integration connected to renewable generators (solar, wind) in order to smooth the output before connection to the grid Transmission load levelling Distribution load levelling Investment deferral: installed in the transmission grids, as alternative to increasing the capacity of one or more lines Can also be used to improve power quality (reactive power compensation) Investment deferral: installed in the distribution grids, as alternative to increasing the capacity of one or more lines Can also be used to improve power quality (reactive power compensation) Behind-themeter: Peak shaving Energy storage for commercial and investment customers Main application is to reduce peak demand charges March 6, 2018 Slide 6
Applications of energy storage Advanced control algorithms enable applicability of BESS in every market segment System adequacy Load Energy stored in ESS Supply Power Absorb Power Ancilliary services f [hz] 50.02 50.00 49.98 Energy stored in ESS Absorb power Supply power t [sec] Integration of renewable resources Renewable Generated Power Absorb Power Supply Power Power Charge Discharge t [hrs] Charge Discharge t [sec] Charge Discharge t [sec>min] Energy resiliency Load Scheduled power consumption Supply Power Voltage Power quality Short disruption Supply power Energy storage systems Power Electricity supply failure Energy stored in ESS Actual power consumption Charge Absorb power t [sec] Discharge Energy stored in ESS Discharge t [sec>min] Energy stored in ESS Discharge Supply power t [ms] March 6, 2018 Slide 7
Battery energy storage systems System overview System architecture Network/renewable plant control and optimization Power conversation system (PCS) Energy storage batteries Local level controller (EMS) based on PLC Control and protection EMS** BESS control BMS* BMS* BMS* High level controller based on cloud services and computing Optional items: ~ Grid connection = MV transformer, switchgear MV control and protections AC Filter Battery system Scada control system March 6, 2018 Slide 8 *BMS - Battery management system **EMS Energy management system/ Master BESS control
The right energy storage solution for every need ABB provides productized and customized solutions for all applications Media Power Conversion Systems Energy System Control Turnkey energy storage systems System design and applications Optimized battery technologies Low voltage (LV) and medium voltage (MW) converters Local control system for power and energy management Turnkey grid-connected or off-grid battery energy storage system (BESS) Optimized energy storage system design for each application Flywheels Hydro-power Containerized and productized solutions Remote monitoring for battery energy storage systems Residential photo-voltaic (PV) together with BESS Customized solutions Microgrids Virtual Power Plants (VPPs) Integration in Energy Management Systems Integration in Grid Management Systems ABB advises ABB provides March 6, 2018 Slide 9
Battery energy storage systems Indoor Installation Nordhavn - Denmark Complete battery system for storage of renewable energy from a residential harbour district Connected to Nordhavn s electricity grid to supply 200 households with electricity Urban laboratory for energy solutions Solution: ABB s BESS Installed power: 630 kw Installed energy: 460 kwh Battery technology: Li-ion Commissioning: January 2017 March 6, 2018 Slide 10
Battery energy storage systems Indoor installation Nordhavn - Denmark Nominal Power 600kW Total Installed energy BOL 465kWh Total usable energy BOL 400kWh Total usable energy EOL 320kWh Design life time 20 years Round trip efficiency > 90% Max ambient temperature (40 C/25 C) Communication protocol IEC 60870-5 - 104 Power application 2 C Inverters ESI 315kW Batteries LG Chem 92kWh March 6, 2018 Slide 11
Battery energy storage systems Indoor installation Nordhavn - Denmark RTU 560 Peak shaving Frequency control EV chargers integration Renewables integration Remote control and monitoring Web service application Redundant March 6, 2018 Slide 12
Battery Energy Systems Outdoor Installation Dong Energy - UK End Customer: Dong Energy Wind Power (DEWP) Location: Burbo Bank Wind farm, Walassey, UK (on shore installation) Power: 2000 kw Energy: 2000 kwh Application: FFR/EFR - National Grid Solution: Complete containerized BESS ESI-I inverters Li-Ion Batteries from LG Control & Protection Complete System Supply March 6, 2018 Slide 13
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