Gas Storage: The Role of Salt Caverns for Energy Storage Today and in the Future. Berlin,

Transcription

1 Gas Storage: The Role of Salt Caverns for Energy Storage Today and in the Future Berlin,

2 Agenda 1) TODAY IVG Caverns GmbH Salt caverns Traditional gas storage business Demand of flexibility Supply of flexibility 2) FUTURE From fossil to renewable energy storage Specific requirements of energy storage for balancing fluctuating wind power Large scale of storage options Geological potential for salt cavern storage in Europe How much storage will be needed? Summary 2

3 IVG Caverns GmbH Etzel Salt Dome 3

4 Salt caverns 4

5 The value of flexibility storage withdrawal consumption production storage filling temperature 5

6 Demand for flexibility Demand for Flexibility customer segment demand for half-year flexibility private and trade customers -increasing number of gas heaters (more economically and efficiently) - efficiency measures (building isolation) decrease the summer/winter consumption difference industrial customers -no significant changes regarding demand for flexibility customer segment demand for daily flexibility power plants -in general expected increase of gas-fired power plant capacities distributors - use of own balance circuits Source: The Boston Consulting Group 6

7 Supply of flexibility max. half-year flexibility (long term) max. daily flexibility (short term) gas fields high: fields close to markets with considerable swing flexibility low: only fields with close connection to markets can represent daily flexibility pipelines low: pipelines are only suited for showing temporary flexibility high: pipelines can be used for variation of temporary consumption fluctuations storage facilities high: storage facilities with large output capacities high: cavern storage low: pore storage Source: The Boston Consulting Group 7

8 Supply of flexibility and cost comparison supply curve applied logic Long-term flexibility costs ( / TW h Flex) Pipelines: No additional costs for flexibility representation, yet marginal flexibility capacity. Production NL (Groningen): illustrative model -low costs ( /cm), since exploited areas are used for storage - no decrease of total output due to delivery rate variability expected -Tough: Reduction of delivery rates within the next 20 years. Storage: Main cost driver for storage is investment ( million for capacity of Mcm), pore cavern storage storage Russia Flexibility capacity in TW h which are administered evenly across storage frequencies. Gas fields UK / Norway / Russia: Generally adherent to higher costs due to connection of delivery rate variability and reduction of total output (assumption: 5-10% reduction of total output). Source: The Boston Consulting Group 8

9 From fossil to renewable energy storage, energy supply chain - today primary energy carrier secondary energy carrier electr. power primary energy source power vs. time storage conversion to power power vs. time storage grid 20% of annual consumption 0.06% of annual consumption storage of primary energy carrier before conversion to electric power 9

10 From fossil to renewable energy storage, energy supply chain - tomorrow primary energy source secondary energy carrier: electr. power primary energy source power vs. time storage conversion to power power vs. time storage grid Tage 0 Tage 20% of annual consumption 0.06 % of annual consumption storage of primary energy carrier after conversion to electric power 10

11 Specific requirements of energy storage for balancing fluctuating wind power 11

12 Specific requirements of energy storage for balancing fluctuating wind power lack of wind power 670 GWh 12

13 Specific requirements of energy storage for balancing fluctuating wind power lack of wind power 670 GWh overrun overrun of of wind wind power power 336 GWh 13

14 Pumped hydro plant Goldisthal P = MW W = 8h MW η> 80% upper pond 12 mio m³ lower pond 1000m 14

15 320 MW CAES-Plant Huntorf, E.ON output 320 MW * 2h input 60 MW * 8h 2 cav. à m³ pressure bar 15

16 Hydrogen (electrolysis - storage - GT) η < 40% 16

17 Safe & economic large scale storage of gases in geological formations Hard rock caverns Oil and oil products Above ground facilities Benefits thick natural safety barriers > high tightness large high pressures low cost (kg H 2 / m³) minimum need for surface plant very high safety against blow out & damage / attack Aquifer formations Leaching and brine production H 2 Depleted Aquifer and oil & gas fieldsgas depleted deposits Deposi t Salt caverns Salt caverns 17

18 Geological potential for salt caverns storage in Europe 6 countries 15 countries 18

19 Location of IVG Caverns gas storage field Etzel ETZEL SALT DOME 19

20 Present European gas grid / strategic location of IVG Caverns in Etzel, Germany compiled from Petroleum Economist (2005) and Gas Infrastructure Europe (2006) 20

21 Future European gas grid / strategic location of IVG Caverns in Etzel, Germany compiled from Petroleum Economist (2005), Gas Infrastructure Europe (2006) and press releases 21

22 Wind speed distribution in Europe / strategic location of IVG Caverns Etzel, Germany, for future large scale energy storage max Etzel min Etzel 22

23 How much storage will be needed? GW residual load total load PV gas coalgas nuclear wind storage Source: Universität Stuttgart Institut für Energiewirtschaft und Rationelle Energieanwendung 23

24 How much storage will be needed? G W residual load PV total load gas wind coal storage Source: Universität Stuttgart Institut für Energiewirtschaft und Rationelle Energieanwendung 24

25 How much storage will be needed? 2% of annual consumption 8% of annual consumption i.e 2 (9) Bodenseen 6 (25) large cavern fields hydrogen pumped hydro CAES 25

26 Summary 26

27 Thanks for your attention. IVG Caverns GmbH Beim Postweg Friedeburg

28 Disclaimer This presentation was produced by IVG Caverns GmbH (hereinafter referred to as IVG) for ENERGY SECURITY-The role of fossil and renewable energies in the German-Norwegian energy cooperation It includes selected pieces of information and does not claim to be complete. Though this presentation was produced with care and attention, we cannot rule out that it is incomplete and incorrect. IVG, the board members, members of the Supervisory Board, executives managers and staff shall not be liable for the correctness and completeness of the pieces of information supplied. In particular, they shall not be liable for the statements, plans and other indications on the company included in these pieces of information, their stakes, strategies, economic situation, the situation in market, the competition, and the regulatory surroundings. Any incorrect or incomplete pieces of information do not substantiate any liability, neither for direct nor for indirect detriments. This presentation and any statements possibly included herein, referring to legal and fiscal circumstances, shall not be considered as legal or fiscal advice. Furthermore, IVG emphasises that this presentation shall be for ENERGY SECURITY exclusively and shall not be passed on to third parties. 28