Tobias Badelt Siemens Ltd. Kenya Divisional Director Low and Medium Voltage, Africa Smart Power Applications and active influence of power quality in distribution networks with: Energy Storage Solutions
Agenda 1. Distribution Networks: The Challenge 2. What does Energy Storage do? 3. Applications Power Reactive Compensation Frequency / Voltage Regulation Spinning Reserve Generator Offset Island Solution 4. Technical Concept
Today, Generation follows Load to uncoordinated new players on the grid Conventional electricity generation and distribution Provides adequate short-circuit power The available short-circuit power is an indicator for power system stability This means: Electricity supply generated with conventional generators ensures system stability.
But the World is changing Generation from wind and solar Leads to considerable fluctuations in generating output Causes imbalance between generation and load Is stochastically dependent on the weather This means: + No short-circuit power + Variation between generation/load Low power system stability
Seconds Minutes Hours Days/months Solutions Peak Power Plants Grid Expansion Smart Grid Equipment Energy Storage Time in use H 2 / methane storage (stationary) Li-ion NaS batteries Redox flow batteries Dual film capacitor Flywheel energy storage Supercon-ductor coil diabatic adiabatic CAES Water pumped storage 1 kw 10 kw 100 kw 1 MW 10 MW 100 MW 1.000 MW Technology Chemical storage Electrochemical storage Mechanical storage Electrical storage Maturity Commercial application Market launch Demonstration Source: Study by DNK/WEC Energie für Deutschland 2011, Bloomberg Energy Storage technologies Q2 2011 CAES Compressed Air Energy Storage
Principle Renewable energy = incalculable Poduction Wind turbines Large solar power plants Required: Power system stability Output Overload Underload Load Time Significant Stabilization also for Grids with Low Renewable Generation
Battery Storage Setup POI Grid Connection Panel SCU NR1 NA1 Communication Panel NC1 NC2 NC3 ~ ~ ~ ~ = = = = ~ ~ ~ ~ = = = = ~ ~ ~ ~ = = = = Filter Aux Service Inverter Panel Battery Rack
Applications
Energy Storage Applications Customer Segments Applications C Rate Generation Transmission & Distribution Industry 1 Renewable integration 0.5 to 2 Microgrid 2 3 Frequency Control Diesel Off-Set 2 to 6 1 to 2 4 Blackstart 1 to 4 5 T&D Deferral 0.5 to 2 6 Peak load Management 1 to 2 7 Power Quality 2 to 4 18 Critical Power 2 to 4 High C Rate: short term high power / Low C Rate: long term lower power output Energy storage: 1. Solution to stabilize a series of critical grid events 2. Key element to run independent Micro Grids
1. Peak Load Management Industrial businesses and utility agree on fixed prices for power and maximun load; however, production factors can cause peak loads. Time Shifting Charging ($) Off Peak hour Discharging ($$) Peak hour Peak Load
2. Reactive Power Compensation Data Centers, Hospitals and Sensitive Production Plants requires absolute reliable power supply. Power Quality issues and Outage of only a few miliseconds can have serious consequences. Black-start capability and continuous power supply Balance loads to grid relief Voltage Fluctuation Improve voltage / frequency quality Compensate short power failures, voltage imbalances, and undesirable harmonic waves High degree of availability and reliability thanks to modular design
Efficiency (%) Power 3. Application: Diesel Offset 1 Surplus Deficiency Renewable Generation Load 1 Improvement on efficiency of diesel generators enhances overall fuel consumption and reduces gas emission. In Islands, E-Storage optimizes the size of generators while improving system performance Unbalance in Networks Time 50 40 30 20 10 A - + + + + Initial Investment Generator size Diesel consumption Gas emission Diesel reservoir B + - - - - 0 0 20 40 60 80 100 Output (% Rated Power) 2 MW A MW B P rated P rated = P max 0.4 x P rated Load Diesel Generation Diesel Generation Load Only Diesel Generator h Diesel Generator + Storage h
Generator rated power BESS 4. Spinning Reserve Agency Regulators requires spining reserves to correct quickly disruption to the power supply. E-Storage can instantaneously provide reliable power while freeing up capped assets to generate revenue. Power to the grid within miliseconds increases system stability and lower requirement for standby power ~ 3 to 7% 10-20 minutes ~ 3 to 7% Net Power Gain Additional fuel to ramp generator up upon request (Incremental emissions & Fuel consumption) ~ 93 to 97% Assets for revenue generation 100% Generator operates below its rated value (non optimal operation) Optimum performance Spinning Reserve Available commercial power
Cost 4.1.Spinning Reserve - ROI Application 1 $1,32 Spinning Reserve Company Cost of Event vs Storage Investment Storage Description Data Unit Description Data Unit 1 Customer KPI 1 Installed Power 7,28 MW 2 Nominal Power MW 1 Events per Months 2 times 182 / Months 3 Spinning Reserve % 4% % 1 Time Period 40 Min 4 Spinning Reserve MW 7,28 MW 1 DoD 10% 5 $ / kwh 0,05 $ 1 Energy required 3,64 MWh 6 $ / MWh 50 $ 1 C Rate 2 7 Number of Frequency events / months 2 1 CAPEX 8 Lenghts of Frequency event 20 min 1 / MWh 1.600.000 9 YOY Energy Price increase 5% % 1 CAPEX Storage 5.824.000 10 Monthly Energy 131040 MWh Capex others 3.000.000 11 Needed Energy "Spinning Reserve" 5242 MWh / months Capex Total 8.824.000 12 Needed Energy "Spinning Reserve" $ $262.080 $ / months 1 OPEX 13 Year Lost Revenue "Spinning Reserve" $3.144.960 $ / year 1 Running time 10 years $ 14 Lost Revenue "Spinning Reserve" $ $31.449.600 $ / 10 Years 1 Charging Cost 0,05 /kwh Cost 15 Year Lost Revenue "Spinning Reserve" 2.382.545 / year 1 Cycles of 10 years 240 16 Siestorage Sizing 1 Annual Service 3% % of CAPEX 17 Power 7,28 MW 1 Chargin Cost (annu 4368 18 Energy need 2,4 MWh 1 Service Cost 174.720 Maintenance 19 c rate 3,00 1 Opex Year 179.088 20 Energy need design 3,6 MWh 1 Opex 10y 1.754.315 21 c rate need design 2,00 1 7.578.315 Storage 22 Price per kwh C-rate 2 1.600.000 1 2.081.955 MWh 23 Price per kwh C-rate <2 24 Est. Price EUR 5.824.000 25 Total Cost / kwh 1.600,0 26 MW 7,28 7,28 27 MWh 2,4 3,6 28 C-Rate 3 2 Interest 10% Year 1 2 3 4 5 6 7 8 9 10 Capex - 8.824.000 Opex Cash out - 179.088 188.042 197.445 207.317 217.683 228.567 239.995 251.995 264.595 277.824 - - - - - - - - - Cash Out - 9.003.088-188.042-197.445-207.317-217.683-228.567-239.995-251.995-264.595-277.824 Storage Cash In 2.382.545 2.501.673 2.626.756 2.758.094 2.895.999 3.040.799 3.192.839 3.352.481 3.520.105 3.696.110 Cash Flow 2.203.457 2.313.630 2.429.312 2.550.777 2.678.316 2.812.232 2.952.844 3.100.486 3.255.510 3.418.286 Barwert Cash Flow EUR 16.393.309,54 Total -6.620.543 2.313.630 2.429.312 2.550.777 2.678.316 2.812.232 2.952.844 3.100.486 3.255.510 3.418.286 Accumulative -6.620.543-4.306.912-1.877.600 673.177 3.351.493 6.163.725 9.116.569 12.217.055 15.472.565 18.890.851 25.000.000 Return of Investment after 3 years Cash Flow Spinning Reserve / ROI NPV 7.390.222 20.000.000 Calculation of Business Case 15.000.000 10.000.000 5.000.000 0 1 2-5.000.000-10.000.000 Year
5. Off-Grid Island Solutions Fuel Tanks Li-Ion Battery Storage Legend Information Diesel Gensets Electricity Customer benefits: Reduced fuel costs by up to 60% Fleet Control System incl. Power Management Reduced CO2 emissions by up to 50% Reduced logistic/transportation costs High grid stability Consumption Solar Park or Wind Park Off-Grid Power Solutions Manage the complexity of diesel power installations with volatile renewable energy sources Are customized for different local conditions (wind or solar intensity and specific loads) Ensure high grid stability in renewable power thanks to integrated battery storage
5.1.Savings in Island Networks Diesel Price Development 14,00 12,00 10,00 8,00 6,00 Diesel adjustment Based on 3,71 /l 15Y Average Diesel Fuel Consumption per day in Liter 4,00 2,00 0,00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 8% 10% 12% 15% Average (10%) Liter Diesel Fuel / day Diesel Only Diesel + Siestorage Diesel + Renewable Diesel + Renewable + Siestorage 18.05.2011 9063 8745 7310 6746 17.08.2011 10382 10143 8976 8549 19.10.2011 9589 9255 6522 5677 14.12.2011 8673 8375 5946 5946 Average 9426,75 9129,5 7188,5 6729,5 Year Fuel Consumption in Liter 3440764 3332268 2623803 2456268 3,71 average over a period of 15y Diesel Cost /a 12.781.768 12.378.725 9.746.916 9.124.556 Diesel Cost /15y 191.726.517 185.680.881 146.203.736 136.868.337 15Y Saving 9.335.399 9.3 million Diesel Fuel saving within a 15 year operation time
Storage Modular Concept
Storage Reference Connection to the medium-voltage grid of Italy s largest energy distributor ENEL Performance: 1 MVA Capacity: 500 kwh Application: Frequency regulation Integration of photavoltaic power plants and for an e-vehicle charging station Black start capability Pilot project in Italy