Demand and applications for battery energy storage systems in new energy markets with high share of renewables

Batteriealterung Batteriemodelle Batteriediagnostik Batteriepackdesign Elektromobilität Stationäre Energiespeicher Energiesystemanalyse Demand and applications for battery energy storage systems in new energy markets with high share of renewables EUROBAT Forum Berlin, 17.06.2017 Prof. Dr. Dirk Uwe Sauer Chair for Electrochemical Energy Conversion and Storage Systems

Chair Electrochemical Energy Conversion and Storage Systems ayutaroupapa Fotolia.com Storage System Technology and Vehicle Integration Modelling, Analytics and Lifetime Prediction Grid Integration and Storage System Analysis 17.06.2016 Dirk Uwe Sauer - EUROBAT Prof. Sauer 2

Overview Challenges in the future power system Different markets for battery storage systems Primary reserve Secondary reserve Peak shaving in industry and local utilities PV-Home-Storage Systems Avoiding grid extensions Possible battery technologies Competing technologies 17.06.2016 Dirk Uwe Sauer - EUROBAT 3

Grafik: Wuppertal Institut Power in GW Future Energy Systems Development of residual load 200 Case: German grid 150 100 50 0 2424 2448 2472 2496 2520 2544 2568-50 -100-150 Share of fluctuating power generation on the total power generation: 83% hour of the year Laufwasser Hydro Power Wind onshore Wind offshore PV Last Load Residuallast Load PV: 151 GW, Wind onshore: 82 GW, Wind offshore: 20 GW, Power consumption: 602 TWh/year, FEE-share: 83 % 17.06.2016 Dirk Uwe Sauer - EUROBAT 5

*Besides other challenges Residual load [GW] Future Energy Systems 3 challenges in the future energy system* 100 Dunkelflauten Several days without PV and wind generation 50 Peak demand 0-50 -100 Strong power gradient about 6 weeks Use of surplus power -150 800 1000 1200 1400 1600 Hour of the year PV: 151 GW, Wind onshore: 82 GW, Wind offshore: 20 GW, Stromverbrauch: 602 TWh, FEE-Anteil: 83 % 17.06.2016 Dirk Uwe Sauer - EUROBAT 6

Storage Generation Grid congestions must be solved where they occur wind photovoltaic Electricity grid 220 / 380 kv 110 kv 10/20 kv 400 V Centralized storage Modular storage for grid use only Modular storage with double use ayutaroupapa - Fotolia.com PV-home storage system 17.06.2016 Dirk Uwe Sauer - EUROBAT 7

Overview Challenges in the future power system Different markets for battery storage systems Primary reserve Secondary reserve Peak shaving in industry and local utilities PV-Home-Storage Systems Avoiding grid extentions Possible battery technologies Competing technologies 17.06.2016 Dirk Uwe Sauer - EUROBAT 8

M5BAT project 5 MW 5 MWh 5 Battery technologies (3 different Li-Ion, 2 different lead-acid) Requirement: 15 to 30 min symmetric charging and discharging power (1C or 2C), in central Europe approx. 1 equivalent full cycle/day

Several MW-batteries in operation / under construction / in planning: in Germany ~ 250 MW (expert guess) 17.06.2016 Dirk Uwe Sauer - EUROBAT 10

Several MW-battery systems in operation or under construction in Germany ~ 250 MW (expert guess) Total market in Germany about 600 MW, in Europe about 3000 MW (Great Britain is an extra market) Currently an interesting business case for batteries Weekly bidding process Dominated by lithium-ion batteries With increasing number of installations market price for frequency control will decrease Primary control from batteries is the key to partially switch off conventional power plants during times of high renewable power generation 17.06.2016 Dirk Uwe Sauer - EUROBAT 11

Overview Challenges in the future power system Different markets for battery storage systems Primary reserve Secondary reserve Peak shaving in industry and local utilities PV-Home-Storage Systems Avoiding grid extentions Possible battery technologies Competing technologies 17.06.2016 Dirk Uwe Sauer - EUROBAT 12

Secondary reserve No business case today Best option is pooling with conventional power generators Batteries for fast ramp-up of short activation Power plants for supplying power for several hours Interesting market if battery system prices could decreased by another factor of 2 or 3 (difficult ) 17.06.2016 Dirk Uwe Sauer - EUROBAT 13

Overview Challenges in the future power system Different markets for battery storage systems Primary reserve Secondary reserve Peak shaving in industry and local utilities PV-Home-Storage Systems Avoiding grid extentions Possible battery technologies Competing technologies 17.06.2016 Dirk Uwe Sauer - EUROBAT 14

PV-home storage systems Unloading the grid by using forecast algorithms Increasing self-consumption by using an own battery becomes more and more economic and attractive Limiting feed-in to the grid from the PV generator by using a battery unloads the grids e.g. by a factor of 2 In addition, home storage systems can be pooled to offer grid services Good results even with persistence forcast method 17.06.2016 Dirk Uwe Sauer - EUROBAT 16

Monitoring program Trend in PV-home storage - installations Cumulated installations in Germany ~100MW @ 200MWh* ISEA / RWTH Aachen 2015 17.06.2016 Dirk Uwe Sauer - EUROBAT *with each system having a 3kW power connection and 6kWh capacity 17

Percentage Monitoring program EV & PV-storage becoming lifestyle products May 2013 December 2014 Jan 2015 December 2015 Hedging against increasing electricity cost Discontinuation of guaranteed feed-in tariff Contribution to the German Energiewende Protection against power failures Safe investment General interest in storage technology 17.06.2016 Dirk Uwe Sauer - EUROBAT 18

Monitoring program Trend in PV-home storage market share ISEA / RWTH Aachen 2015 2.5 years ~10% Lead-Acid ~70% Lithium-Ion 17.06.2016 Dirk Uwe Sauer - EUROBAT 19

Price per usable capacity [ /kwh] Monitoring program Trend in PV-home storage price development ~20%/a ISEA / RWTH Aachen 2015 ~7%/a Li:1.800 /kwh Pb:1.300 /kwh 17.06.2016 Dirk Uwe Sauer - EUROBAT End of 2016: Li systems below 1000 /kwh 20 are expected in the market

Grid extensions vs. batteries Difficult task for batteries In transmission grids (high and extra high voltage) batteries beyond power quality issues hardly never become economic compares with grid extensions In distribution grids (low and medium voltage) there are few scenarios for batteries instead of grid extension Best case is if double-use applications can be used for unloading the grid 17.06.2016 Dirk Uwe Sauer - EUROBAT 22

Various battery technologies 17.06.2016 Dirk Uwe Sauer - EUROBAT 24

New players in the battery market automotive industry Battery cells purchased in large quantity orders for the automotive market Using the same cells and battery pack production lines for stationary batteries (all sizes) 17.06.2016 Dirk Uwe Sauer - EUROBAT 25

visdia/ Fotolia Thecrygroup / Wikimedia Commons Imaginis / Fotolia Visual Concepts / Fotolia Future Energy Systems needs Flexibility Options: generation Flexible power generation technologies (net power production) Concentrated Solar Power with thermal storage Flexible conventional power plants Demand-controlled CHP units Geothermal with thermal storage Demand-controlled biogas plants 17.06.2016 Dirk Uwe Sauer - EUROBAT 28

Markus Gössing / Fotolia coppiright / Fotolia Vladislav Kochelaevs / Fotolia Gert Skriver / Wikimedia Commons vege / Fotolia exclusive design / Fotolia Andrei Merkulov / Fotolia Petair / Fotolia Hanno Böck / https://hboeck.de/ Future Energy Systems needs Flexibility Options: areal & time shift Flexibility technologies for areal and time shifting of energy Demand Side Management (private households) Demand Side Management (industry) Double use storage system Power-to-Gas (Chemicals) Grid extension Power-to-Heat Energy storage systems Smart grids Shut-down of renewable power generators 17.06.2016 Dirk Uwe Sauer - EUROBAT 29

Distributed storage systems as part of supply package and as flexibility for grid services communications power mobility One contract fits it all heat Demand side potential - PV home storage system - Electric vehicle - Electric hot water and space heating - Applicances Assumption - 2 kw / household - 4 kwh shiftable load / household - 40 Mill. Households (Germany) 80 GW, 160 GWh flexible power 17.06.2016 Dirk Uwe Sauer - EUROBAT 30

Summary Lots of market opportunities are upcoming for flexibility technologies including batteries Strong competition with other flexibility technologies Significant cost reduction of lithium-ion batteries for the automotive industry challenges also the stationary market All cost reduction potentials of other technologies must be realized It becomes very difficult for totally new technologies to enter the market 17.06.2016 Dirk Uwe Sauer - EUROBAT 31