Cost-effective OPEX-models for energy storage as game changer for improving operation and resilience of electricity

by Daniel Günther, Aggreko

SUMMARY

How to Future-Proof investments in grid infrastructure in a Time of Changing Markets?

▪ Africa, Middle East and South East Asia have a large pipeline of new microgrids and offer good conditions for even more growth.

▪ Microgrids can now economically compete with T&D expansion in rural areas, as prices for storage decline and controllers improve.

▪ There is a growing demand of C&I clients to increase their renewable generation or to enhance power reliability and quality with microgrids.

▪ Thanks to cheaper prices and a good forecast ability throughout the globe, PV is now more attractive than wind and the main choice of new projects, especially in emerging markets.

▪ Financing is still one of the main challenges. New financial tools like microgrid-as-a-service or shared-saving contracts are making it easier for customers to consider and budget microgrids.

KEY FACTS AND CHALLENGES BEYOND - Digitalization, Decentralization and Decarbonization

Increasing power demandT&D reinforcement strategies are needed• T&D sized for peak demand

• Service marginal demand growth is inefficient

Storage for:

▪ load-shifting behind the grid congestion to service additional load ▪ provide n-1 security ▪ Microgrid ability on substation to enable a higher renewable share

Renewable generation in all sizes and on all voltage levels are connected to the system, requiring new strategies for ISOs and TSOs in operating the grid.• High renewable share in the grid prevent new solar projects to be connected

• High costs of conventional systems to provide must run capacity

More fluctuating renewable generation within the grid

Storage for:▪ Reducing instantaneous fluctuations in the plant’s output (on

second-to-second basis)▪ Limiting ramp-rates (ramp up/ramp down) of the generation (on

minute-to-minute basis)▪ Overcome existing generation gaps with firm PV

Ramp rate requirements for renewable assets is selected market areas

Country/State Ramp rate limit per minute Applying to Source Alberta 4 MW/minute Wind power plants https://bit.ly/2NnHyOK (page 4)

Germany 10%/minute of rated power Reconnecting generation after disconnection

https://bit.ly/2JvnR5q (page 58)

Hawaii, USA 2-10 MW/minute New wind and solar pv PPAs https://bit.ly/21b6oE5 (page 158)

Hokkaido, Japan 1%/minute Wind and solar PV power plants https://bit.ly/2utgJSw (page 16)

Ireland 1-30 MW/minute Wind power plants https://bit.ly/2utGF0m (page 256)

Puerto Rico, USA 10%/minute of rated power Wind and solar PV power plants https://bit.ly/2uzXnLF (page 25)

Scotland, UK Ramp Up: 1-10 MW/minute Ramp Down: 3.3%/minute of

rated power

Proposal for wind power plants https://bit.ly/2JvnR5q (page 58)

South Africa 50 MW/minute Wind power plants https://bit.ly/2LrWdbc (page 10)

Both above mentioned applications can be achieved using battery storage. The two main issues to address from a system sizing perspective in this context are

▪ What are the ramping requirements for a PV + battery hybrid have to achieve in order to rate as a firm renewable asset, and based on this, and

▪ What system sizing is necessary for a battery storage system to achieve such firm power output.

Battery sizing examples to meet ramp rate requirements for renewable assets is selected market areas

Response behavoir of a Battery providing ramp rate control

Solution: Aggreko is introducing Storage as a service

GREATER efficiency and security through highly sophisticated software

Superior system management

▪ Automated response to grid fluctuations and

requirements

▪ Longer asset life thanks to advanced battery

management techniques

▪ Increased efficiency from intelligent SOC management

▪ “Hybrid” capability to control multiple battery

chemistries and distributed energy resources

▪ Flexibility for future system changes and new

applications

SOFTWARE PLATFORM

Our main selling points – Rental benefits

Back Up Slides

KEY FACTS

9,920 MWPower in our fleet

£1,720m

2017 revenue

208 locations

Sales and servicescentres

6,000 employees

Permanent & temporary

124 countries

Where we operateA global company, listed on the London Stock Exchange

Local expertise to help our customers make their difference

KEY FACTS

2017 Teaming up

Aggreko acquired battery storage and energy Manage-ment company Younicos

55 YearsTogether we have half a century of combined experience in power solutions

220 MWBattery storage deployed globally in more than 45 storage projects

2018 Birth of AMSS

In October 2018 Younicos rebranded as Aggreko and became an integral part of the company – Aggreko Microgridand Storage Solutions was born

Smarter energy systems

Microgrids as a service

Hybrid systemsThermal generation expertise

Mobile and modular approach

100% reliability thanks to generators

Renewable and battery expertise

Smart Software for seamless

system integration

More efficiency, less costs and

lower emissions

OUR COMBINED STRENGTHS

13

Aggreko Microgridsand Storage Solutions

WHAT WE DO

▪ Offer Energy-as-a-service and Microgrid-as-a-service-contracts

▪ Combine benefits of renewables, thermal generation and battery storage in one single contract

▪ Better economics, more flexibility and lower emissions

▪ Increased renewable penetration

▪ Optimized use of generators to lower fuel and O&M costs