Energy Storage Jeremy Towler Senior Manager Energy and Smart Technologies April 2016
Seconds Discharge duration Minutes Hours Wide range of storage technologies and capabilities High Energy Super Caps Metal-Air Batteries Lithium-Ion Battery Sodium- Sulphur Battery ZEBRA Battery Flow Batteries Advanced Lead Acid Battery Pumped Hydro Compressed Air Energy Storage Nickel-Cadmium Battery Lead Acid Battery 2 Nickel-Metal Hydride Battery High Power Fly Wheels High Power Super Caps Superconducting Magnetic Energy Storage 1kW 10kW 100kW 1MW 10MW 100MW 1GW Source: UK Power Networks Power rating 2
The market for different types of energy storage Pumped hydro well established - accounts for majority Relatively inefficient - converts electricity to kinetic energy, to potential energy, then back to electricity Generally only works in hilly terrain Denmark pioneered green power island - sea water pumped out of areas, then let back through turbines Others involve conversion to compressed air, or to heat Depends on ability to generate cheap, large-scale battery storage Potential to use vehicle batteries (e.g. smart cars) to feed power back to the grid at peak demand times Can store energy from home PV systems, and to avoid drawing on the main grid. Thermal store Flywheel Compressed air Pumped hydro Medium scale battery Power to Gas Liquefied air Large scale battery 3
Seconds Discharge duration Minutes Hours Range of applications Uninterruptable Power Supply Grid Support Energy Management Bulk energy trading Arbitrage Primary reserve Frequency control Secondary reserve 4 Blackstart Load levelling/following Voltage support Load factor increase Transmission stability Capacity deferral Voltage support Peak shaving Power quality Uninterruptible power supplies 1kW 10kW 100kW 1MW 10MW 100MW 1GW Power rating Source: UK Power Networks 4
Seconds Discharge duration Minutes Hours Mapping storage technologies to range of services Uninterruptable Power Supply Grid Support Energy Management High Energy Super Caps Metal-Air Batteries Lithium-Ion Battery Sodium- Sulphur Battery ZEBRA Battery Lead Acid Battery Flow Batteries Advanced Lead Acid Battery Pumped Hydro Compressed Air Energy Storage Nickel-Cadmium Battery Nickel-Metal Hydride Battery High Power Fly Wheels High Power Super Caps Superconducting Magnetic Energy Storage 1kW 10kW 100kW 1MW 10MW 100MW 1GW Source: UK Power Networks Power rating 5 5
Seconds Discharge duration Sources of revenue for electrical storage Minutes Hours Uninterruptable Power Supply Reduced reliance on income from regulated businesses Grid Support Reliance on income from services to regulated businesses Energy Management Reduced reliance on income from regulated businesses Income from regulated sources Income from non-regulated sources 10MW 100MW 1GW Source: UK Power Networks 6 6
Compressed Air Energy Storage Pumped Hydro Storage Storage technology power costs and maturity Source: UK Power Networks 7 7
The smart interconnected world requires energy storage Smart Buildings Smart Devices Smart Cities / Smart Government Smart HVAC Smart Homes Smart Fire & Security Smart Appliances Smart Telecoms Smart Government Building Energy Mgt. Building Automation Energy Storage + Renewables Smart Devices Smart Publ. Security Smart Education Smart Grid Smart Distr. Energy Smart Health DR Demand Response Smart Grid Management Energy Storage + Renewables Smart Metering Smart Transport 8
Energy storage will be integral Demand Response to smart grids Curtail/shift demand to remove peaks/troughs, flexible generation, storage and usage of energy. Manual demand response (DR) / automated demand response (ADR) Building Energy Management Systems (BEMS) Computer software-based system to help manage building technical services (HVAC, lighting etc.) and their energy consumption Smart Meter Collect/ communicate consumption data at regular intervals Monitoring, billing, analysis, display Adjust prices according to the time of usage Energy Storage Store electricity for short/medium term using range of technologies: Pumped water, batteries, flywheel, hydrogen etc. 9
Battery storage one of the most discussed technologies Commercialized batteries: lead-acid and sodium-sulphur. Many new technologies under demonstration, prototype, laboratory and at concept stage Cost is main issue - industry working hard to drive it down. Development of new battery technologies in terms of cyclability, lifecycle cost, energy density (size), safety, operating temperature, degradation, etc. Demonstration stage: zinc bromine, advanced lead-acid, vanadium redox, nickel-metal hydride, lithium-ion. Prototype stage: lithium ion, iron chromium, ZEBRA. Laboratory stage : zinc-air, advanced lithium ion, and other lithium based types. Idea-concept stage: nano supercapacitors, new electrochemical couples (metal-air, Na-ion, Mg-based, etc.). 10 10
Vehicle & building battery storage market about to take off Battery storage has been prohibitively expensive Lead and lithium batteries now commercially available for c. 1,000 ($1,200) per KwH. PV with battery storage can have lower unit price than mains electricity. Many German manufacturers now offering solutions. April 2015 US Tesla launched Powerwall - battery storage aimed at the residential market. 7kWh unit for $3,000 10kWh unit will retail for $3,500 Further costs will be incurred for the battery management system and the installation itself June 2015, Mercedes launched 2.5KwH home battery - up to 8 can be used in combination, providing 20KwH Batteries from Tesla and Mercedes target residential market - technology moving into the built environment from elsewhere. The potential for significant cost reduction of some battery technologies provides real opportunity for significant deployment in multiple applications. In particular, Li-ion batteries prices are expected to reduce by over 60 percent and flow battery prices by over 40 percent by 2020. (Study for the Australian Renewable Energy Agency, July 2015) 11
Hydrogen fuel cells available for smart phones In August 2015, Intelligent Energy announced a prototype hydrogen powered fuel cell which can power an iphone for up to one week Embedded within the phone, it emits small quantities of water vapour The company already supplies fuel cells for a range of consumer electronics 12
Commercial and industrial energy storage markets Annual C&I energy storage expected to grow from $970 million in 2016 (~500MW power capacity ) to $10.8 billion by 2025 (9 GW) Industrial building segment expected to be largest, deploying ~9.3 GW cumulative new capacity over coming decade, followed by office and education buildings Despite substantial market growth and momentum in past two years, C&I energy storage market remains in its infancy. Challenges: poor understanding and undervaluation by stakeholders; but regulatory reforms and tech. advances will bring C&I energy storage into mainstream. Growing number of technologies now being deployed, including advanced battery and electromechanical storage technologies Lithium ion (Li-ion) batteries remain leading form of energy storage for new projects and most popular tech. for the growing distributed energy storage system (DESS) and behind-the-meter (BTM) market segments. 17 17
Energy storage strategies for utilities and automotive Cost-effective advanced energy storage tech. providing utilities and grid operators with new tools to improve system reliability and lower costs. Utilities - one of the most important drivers for energy storage to scale globally. Utility-owned energy storage systems (ESSs) account for 27% of the global pipeline - nearly 9,000 MW of new utilityowned energy storage capacity expected to be deployed by 2020. Automotive is fastest growing segment in the global ESS market. Attributed to increasing use (in developing and developed economies) of electric vehicles (Evs). 18 18
Energy storage strategies for utilities and automotive Rapid investment growth to develop battery systems has enabled advanced low cost, energy-efficient batteries for grid storage and EVs. Has caused surge in use of Li-ion batteries for energy storage. Li-ion batteries preferred for microgrids with renewable energy sources owing to their deep discharge life cycle, high energy, and power density. High energy-to-weight ratios allow these batteries to store large amount of energy in a small space. Remote off-grid storage, industrial peak shaving, and frequency regulation should also increase their deployment for energy storage. 19 19
Global market players The major companies in energy storage systems market comprise battery technology providing companies and include: GS Yuasa Corporation (Japan) Samsung SDI Co. Ltd. (South Korea) Hitachi Limited (Japan) Exide Technologies (U.S.) L.G. Chem. Limited (South Korea) Various others. Another major technology i.e. pumped hydro energy storage dominated by companies such as: Toshiba Corporation (Japan) ABB Limited (Switzerland) Siemens A.G. (Germany) Voith (Germany) Alstom (France) Dominion Energy (U.S.) Various others. 20 20
Thermal storage Energy storage market timeline - thermal storage fastest in achieving a large scale replication Super capacitors Flywheel CAES Medium to long term Liquid air storage Short term can be widely deployed today Medium to long term will take 3 to 20 years development Long term will take 10 to 40 years development Battery Advanced Pumped hydro Short term Hydrogen & Other (power to gas) Long term 2010 5 10 15 20 25 30 35 40 years 21 21
Identifying the higher potential storage markets Criteria for spotting the higher potential energy storage markets in the world in countries: Where renewable integration is very high which wish to avoid curtailment and intermittency In which there is an open energy market which can provide attractive return on investment In which there is a shortage of peak demand and shortage of energy. (However, this problem is more commonly found in developing countries, but these countries may not have the funding for investment) Locations lacking demand side management 22
Thank you! More information at https://www.bsria.co.uk/market-intelligence/ Jeremy Towler BBA (GSBA Zurich). Betriebsoekonom dipl. oek. Senior Manager Energy and Smart Technologies Old Bracknell Lane West, Bracknell, Berkshire RG12 7AH D : +44 (0)1344 465573 F : +44 (0)1344 465626 M : +44 (0)77 2527 8637 E : jeremy.towler@bsria.co.uk W : www.bsria.co.uk 23 23