1 Oportunidades en almacenamiento de electricidad Juan Ramón Morante IREC, Catalonia Institute for Energy Research and University of Barcelona.
6 A synthetic view in 4 large categories of applications (in view of the roadmapping activity) Sources : Energy Storage for the Electricity Grid : Benefits and Market Potential Assessment Guide. Sandia National Laboratories (2010). Le Stockage d'energie : Enjeux, Solutions techniques et opportunités de valorisation. ENEA-Consulting (2012) Revisiting Energy Storage. The Boston Consulting Group (2011) Electricity Energy Storage Technology Options : A White Paper Primer on Applications, Costs,and Benefits. EPRI (2010) Moving Energy Storage from Concept to Reality. Southern California Edison (2011) Prospects for Large-Scale Energy Storage in Decarbonised Power Grids. International Energy Agency (2009) The prospects for energy storage. EDF (2009)
7 Applications and related requirements
8 Energy storage can supply more flexibility and balancing to the grid, improving the security and efficiency of electricity transmission and distribution (reduce unplanned loop flows, grid congestion, voltage and frequency variations), stabilizing market prices for electricity, while also ensuring a higher security of energy supply. Likewise it can provide a back-up to intermittent renewable energy. Locally, it can improve the management of distribution networks, reducing costs and improving efficiency. Quick energy injection and quick energy extraction are expected to make a large contribution to security of power supplies, power quality and minimization of direct costs and environmental costs.
9 Energy storage technologies : Our segmentation in four main categories Electrochemical + Electromagnetic Storage : Batteries, Super Capacitors, SMES Chemical Storage : Power to Gas, Hydrogen & Fuel cells, Methane Mechanical Storage : Pumped Hydro, Fly Wheels, Compressed Air Thermal Storage : Sensible, Latent, Thermochemical
12 The portfolio of storage technologies R&D (TRL 1-4) Demonstrator (TRL 5-7) Commercial (TRL 8 9) Energy Power Compressed air stockage Electrochemical storage Electrostatic storage Potential energy storage Chemical storage Inertial storage Thermal storage Flow battery Electromagnetic storage
13 Comparaison of technology features Source: EERA Joint Programme Smart Grids, Deliverable D4.1 Source* : 2011 Technology Map of the European Strategic Energy Technology Plan (SET-PLAN)
14 the dynamic behavior of storage is even more important than its long term capacity.
15 Large bulk energy (GW): o pumped hydro; o Thermal storage, o Compressed Air Energy Storage (CAES); o Chemical storage (e.g. hydrogen (other CH4)- large scale >100MW, up to weeks and months) Grid storage systems (MW) able to provide: o Power: super-capacitors, Superconducting Magnetic Energy Storage (SMES), flywheels, o Energy : batteries such as Lead Acid, Li-ion, NaS & Flow batteries o Energy & Power: LA & Li-ion batteries, Flow batteries o Hydrogen Energy Storage / CAES / Pumped Hydro Energy Storage (PHES) (small scale, 10MW< P > 100MW, hours to days) End-user storage systems (kw): o Power: super-capacitors, flywheels o Energy: batteries such as Lead acid, Li-ion, redox flow batteries o Energy & Power: Li-ion batteries, flow batteries
16 Storage serves several purposes in today's power system
17 Storage serves several purposes in today's power system
18 Storage serves several purposes in today's power system
19 Which technology is best suited for which application: example for Wholesale Energy services applications
24 Energy storage will play a key role in enabling the EU to develop a low-carbon electricity system. In this way, it can ease the market introduction of renewables, accelerate the decarbonisation of the electricity grid. Pumped Hydro Storage Systems (PHS) for large scale electricity storage represents almost 99 % of current worldwide storage capacity
26 Installed Pumped Hydro Storage power capacity in Europe
28 Nowadays, there is limited storage in the EU energy system (around 5% of total installed capacity) almost exclusively from pumped hydro-storage, mainly in mountainous areas. (Alps, Pyrenees, Scottish Highlands, Ardennes, Carpathians). Other forms of storage batteries, electric cars, flywheels, hydrogen, chemical storage - are either minimal, or at a very early stage of development offering large opportunities for the next future
29 Compressed Air Energy Storage Basic principle: to store energy mechanically by compressing the air from the atmosphere, in e.g. underground caverns. Worldwide capacities: 320 MW (Germany), 110 MW (USA). Projects: USA, Italy, Japan, South Africa, Israel, Morocco, Korea. Developments in Europe Underground caverns potential: DE, DK, ES, FR, NL, PT, UK R&D Adiabatic CAES: ADELE project (DE). Research fields: Identification of new locations: in vessels or above ground (SSCAES) Adiabatic CAES (AA-CAES): demo; lower the cost. Isothermal compression (thermo-dynamically reversible cycle, theoretical efficiency of 100%): demo; lower the cost. Huntorf, Germany, KBB, E.ON CAES potential, Calaminus (2007) Source: EC, JRC- SETIS, Technology Map (2011).
30 Questions arisen about energy storage: 1. What is the role of energy storage in today's and tomorrow's energy system? 2. Why is storage becoming more important for energy policy? 3. At which level of electricity networks should storage be integrated? 4. What is the state of play for main storage technologies? What are the challenges to further development and deployment? 5. How could the regulatory framework be adjusted to integrate storage better in the supply chain? What can do to enable the short and medium term development and deployment of storage at all levels?
31 1.- What is the role of energy storage in today's and tomorrow's energy system? Energy storage is essential to balance supply and demand. Peaks and troughs in demand can often be anticipated and satisfied by increasing, or decreasing generation at fairly short notice. Higher levels of energy storage are required for grid flexibility and grid stability and to cope with the increasing use of intermittent wind and solar electricity. So, in a low-carbon system, intermittent renewable energy (RES) makes it more difficult to vary output, and rises in demand do not necessarily correspond to rises in RES generation. Likewise, in the next future, smart cities, a key energy policy goal, will require smart grids and smart storage
32 Natural gas combined cycles power plants as well as modern fossil fuel based plants are becoming more and more flexible. These natural gas power plants have a very high efficiency (above 60% for the best available technology), a very high flexibility and low CO2 emissions (CO2 emissions per kwh can be reduced up to 80%) These performances as well as the actual gas prices, have reduced the economic competiveness of pumped hydro storage. So, utilities are tending to rely on combined-cycle gas turbine systems. Likewise, their ramping up speed in response to rapid changes in demand is increasing. They can provide reliable and flexible back-up power. Nevertheless, electricity storage needs to fill the gap between the ramping down time of wind and solar and the ramping up time of these back-up plants. The challenge is to increase existing storage capacities and increase efficiencies.
33 Decisions to invest into the development of storage and deployment of adequate storage capacity will depend on the evolution of the whole energy system. They are closely linked to developments such as (a) electricity super-highways with large-scale RES in North Sea and North Africa combined with distributed/regional RES solutions; (b) penetration of electric vehicles; (c) improvements in demand response/demand side management / smart grids.
34 2.- Why is storage becoming more important for energy policy? When the fluctuation or the intermittent renewable share is lower than 15% to 20 % of the overall electricity consumption, the grid operators are able to compensate the intermittency. Nevertheless, this is not the case when the share exceeds 20-25%, as is reached at times in Denmark, Spain and Germany. When these levels of 25% and above are reached, intermittent RES need to be curtailed during the low consumption periods in order to avoid grid perturbation (frequency, voltage, reactive power) and grid congestion, unless the RES excess can be stored. Alternative resources back-up and/or storage are needed when demand does not fall at the same time as the fall in RES generation. The peak increase issue can also be solved where energy storage is available at different levels of the Electrical System: centralised energy storage as a reserve; decentralised storage in the form of demand management and demand response systems. In CHP district networks, the storage of heat (or cold) can be much more cost effective than the storage of electricity, if the CHP system is operated according to the electricity demand.
35 3.- At which level of electricity networks should storage be integrated? Energy storage can be integrated at different levels of the electricity system: Generation level: Arbitrage, balancing and reserve power, etc. Transmission level: frequency control, investment deferral Distribution level: voltage control, capacity support, etc. Customer level: peak shaving, time of use cost management, etc. These different locations in the power system will involve different stakeholders and will have an impact on the type of services to be provided. Each location will provide a specific share of deregulated and regulated income streams Different energy storage systems will have to be considered (centralised and decentralised) and specific business models will have to be identified and potential needs for regulatory change and incentives must be identified. It is important to ensure that electricity from RES keeps its RES label, even if it has been stored before the final consumption. Possible feed in tariffs should not be affected by intermediate storage. Only the share of renewables at the point of pumping should qualify as renewable electricity.
36 4.- What is the state of play for the main storage technologies? What are the challenges to further development and deployment? Depending on the location storage can be large-scale (GW), medium-sized (MW) or micro, local systems (kw). Still, research and technological development is needed to enable the wider application of many known technologies, and to develop new ones. Some of the key technologies, not all of which are at the stage of commercial application, need to be improved constituting an excellent opportunity for new business based on energy storage. The main challenge forenergy storage development is economic. Moreover, there are 1) Technological : i)increasing capacities and efficiencies of existing technologies, ii)developing new technologies for local (domestic), decentralised or large centralised application, and iii) market deployment; 2) market and regulatory issues: i)- creating appropriate market signals to incentivize the building of storage capacity and provision of storage services, ii) building up a international market and common balancing markets, as exist in Nordic countries and between Germany and Austria, 3) strategic: developing a systemic or holistic approach to storage, bridging technical, regulatory, market and political aspects.
37 A number of uncertainties strongly affect the value assessment of energy storage: The existence of compensation schemes for storage: this is a key issue when some stakeholders are part of the regulated market (TSO s/dso s) and the other are part of the deregulated market (e.g. producers and end customers) The potential to develop new and innovative business models: energy storage studies in both Europe and US demonstrate that the provision of a single service (e.g. kwh) was not sufficient to make the storage scheme cost effective; services such as frequency stabilization and voltage stabilization have a much higher commercial value. Ownership of the future energy storage systems whatever the location and the grid connection (Transmission or Distribution): should storage be owned by utilities or TSOs? A further issue is overall system cost. One single solution will probably not be the most cost-optimal solution. A mix of all solutions is needed, tailored for each region and system architecture.
38 5.- How could the regulatory framework be adjusted to integrate storage better in the supply chain? What can do to enable the short and medium term development and deployment of storage at all levels? The development of a low-carbon electricity system, set out in the EU 2050 Energy Roadmap, requires Member States work together to optimize the different technologies, drive the necessary investments and to harmonize the different rules within the European energy market. European energy storage development requires new, European rules to enable its speedy development while avoiding distortion in competition and allowing cross-border trading. Improved market conditions and regulations agreed at EU level could spur an massive effort in technology development. Today, development is very slow due to the poor economic/business case and related uncertainties. However, by investing heavily in RTD, European industry could bring to the market a large number of innovative storage technologies within a few years. Once these technologies have successfully passed the R&D phase, some large scale, European demonstration projects on commercial scale could be launched. The EU has suitable instruments: e.g. the RTD Framework Programme and Horizon 2020, the Strategic Energy Technology plan (SET-Plan).
39 The regulatory framework should aim to create an equal level playing field for crossborder trading of electricity storage. The regulatory framework needs to provide clear rules and responsibilities concerning the technical modalities and the financial conditions of energy storage. It must address barriers preventing the integration of storage into markets. It should guarantee a level playing field vis-à-vis other sources of generation, exploit its flexibility in supplying the grid, stabilise the quality and supplies for RES generation. This will require new services and business opportunities linked to the deployment of electricity storage solutions. The framework should be technology neutral, ensuring fair competition between different technological solutions (not picking a winner). It should ensure fair and equal access to electricity storage independent of the size and location of the storage in the supply chain.
40 It should ensure medium-term predictability in the investment and financial conditions (taxes, fees etc), enabling favourable conditions for all kinds of storage, particularly micro-storage (home and district level). It could help improve the business/economic model for energy storage. The principal domains where intervention are needed relate to ancillary services and the grid tariff. For example, the grid tariff should be based on the principle of cost causality: if an energy storage system is systematically using the grid during off-peak periods and not during peak periods, it should not generate grid investment. Thus, the introduction of a time component in grid tariffs could take account of the part of grid investment due to energy storage.
41 EU policy is giving clear and consistent signals to technology developers, the industry and consumers. The optimisation of the power system and the synergies between the existing system and storage technologies must be explored and promoted. Strategic: Developing and assessing visions for the role of storage in integrating variable renewable electricity generation, optimizing the use of generation and energy network capacities, providing services to the electricity system and promoting distributed generation to improve energy efficiency and reduce CO2 emissions. Synergies could be made by a common approach to storage for electricity systems and storage for transport (upcoming Electric vehicles, Plug-in hybrid vehicles); Consumer level: Supporting the development of consumer-based energy storage services linked with local RES production, smart meters and smart local grids that ensure financial benefits for the consumers;
42 Market issues: Developing a level playing field removing barriers related to accessing neighbouring markets and cross border trading; Regulatory: Support for storage within the EU internal electricity market and regulatory adjustments to enable storage to facilitate the progress towards a single internal electricity market in Europe; Technological development: Mapping storage potential, storage technology development and demonstration including the interoperability of different smart energy networks and deployment Investment support: All different forms of energy storage could be supported providing they contribute towards the European climate and energy targets (technology neutral; target oriented).
43 Market features Market and regulatory issues: - Uncertainties related to the future energy supply and demand: On the power sector evolution, RES level, CO 2 price, base-load (e.g. nuclear) Effectiveness of demand-side management in curbing and peakshaving energy consumption - The difficulty to evaluate the storage profitability due to: The overlap of multiple services brought by storage at different system levels (generation, T&D, end-user) The difficulty to assess a common framework of regulation and market evaluation in EU given the heterogeneity of power systems and markets among Member States Needs for storage operators: To be able to accumulate all multiple value streams to become profitable To establish a framework to assess the economic potential of storage To build scenarios on the future needs for storage To synchronize storage planning with the investment in electricity generation, transmission and distribution (T&D)
44 Ending remarks
45 Conclusion It should be a stronger focus on storage in the energy policies, and improved coordination between the issue of storage and other key policy issues. Energy storage should be integrated into, and supported by, all relevant existing and future energy related measures and legislation, including strategies on energy infrastructure, including facilities; RES promotion; Smart Cities etc., etc. Storage becomes a key point of opportunities
46 Currently approximately GW energy storage capacity is installed globally. The majority of energy storage is in the form of pumped hydro. Electrochemical energy storage systems and flywheels constitute less than 1% of the total storage capacity for electrical energy. The annual global demand for grid-scale energy storage will reach an astounding GWh by 2017 and represent a B USD incremental revenue opportunity for an industry that currently generates sales of $50 to $60 billion a year The potential global market 2030 for energy storage technologies according different sources are 330 GW or about 280 B of which battery technologies such as NaS, VRB and lithium ion stand for about 120 GW/412 GWh and a market value of approximately 50%.
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