Enel Green Power

Integration of Storage System with RES

Riccardo AmorosoChief Innovation and Sustainability Officer

Naples, October 16th 2015

› Massive renewables growth expected worldwide

› Outstanding opportunities in Latin America, Africa, Middle East and Asia: areas with enormous untapped potential and with still conservative growth estimates

Worldwide RES trends2000 – 2030 Additional Capacity by Area

8431.326 1.436 1.551 1.680 1.814

2.790

5.160

2000 2010 2011 2012 2013 2014 2020 2030

Africa &Middle EastAsia andPacificLatinAmericaNorthAmericaEurope

CAGR:+4.6%

CAGR:+8.1%

CAGR:+7.4%

CAGR:+6.3 %Installed Capacity (GW)

Sources: National TSOs, Enerdata, IEA, EER, GWEC, EWEA, IRENA, Global Data, EPIA-SPE (2000-2013 figures). EGP estimates based on national plans, Government targets, WEO, IEA “Medium Term renewable energy report”, GWEC, EWEA, SPE-EPIA, BNEF (2020-2030 figures).

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In Italy electricity flow is no more unidirectional, from big power plants to final clients.

Power requested from TSO grid [MW]

0

10.000

20.000

30.000

40.000Mon 30 Aug 2010Mon 29 Aug 2011Mon 27 Aug 2012Mon 26 Aug 2013Mon 25 Aug 2014

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

-42%

Number of transformers HV/MV with inverted flow of energy between 2010 and July 2014:

+257%

Impact of distributed generation on the grids

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Clear sky day Cloudy day

‐100

0

100

200

300

400

500

600

700

800

16/03/2014 19:12 17/03/2014 00:00 17/03/2014 04:48 17/03/2014 09:36 17/03/2014 14:24 17/03/2014 19:12 18/03/2014 00:00

Average Output Power [kW] Maximum Output Power [kW] Minimum Output Power [kW]

‐100

100

300

500

700

900

1100

21/03/2014 19:12 22/03/2014 00:00 22/03/2014 04:48 22/03/2014 09:36 22/03/2014 14:24 22/03/2014 19:12 23/03/2014 00:00

Average Output Power [kW] Maximum Output Power [kW] Minimum Output Power [kW]

PV power plant:• Large Variation in few minutes in case of cloudy days

• Good average forecast

Wind power plant:• Large amount on power changing within minutes • Potential On-Off behavior in case of strong wind• More challenging forecast compared to PV

Time-window for energy

release

0

200

400

600

800

1000

1 21 41 61 81 101 121 141 161 181 201 221 241

Threat or opportunity

4

STATUS WITHOUT CURRENT AVAILABLE SYSTEM RESULTS STATUS WITH CURRENT 

AVAILABLE SYSTEM RESULTS

ANCILLARY SERVICES

Frequency primary regulation

technically possible

available

Frequency secondary regulationtechnically possible

Frequency tertiary regulation

Reactive power supply / Voltage regulation commercially available

commercially availableBlack starttechnically possible

Islanding

ENERGY MANAGEMENT FUNCTIONS

Unbalances limitations

not possiblecommercially available

Energy time shift

Energy peak shaving

Advanced curtailment management technically possible

Services from Renewable Energy Sources

Frequency regulation: storage price currently a limitation for secondary and tertiary regulation Voltage regulation: commonly implemented Unbalances: storage supporting forecast, defining the proper sizing in Energy and Power; advanced forecast/nowcast techniques to limit the

amount of storage required Time Shift: amount of energy and market knowledge key factors Peak Shaving: deep investigation required in order to design the proper system in terms of power and energy 5

ESS worldwide utility scale projects in 2015: 120 MW+ Commissioned (550 MW+ announced by Q2)

Market still largely policy driven (focus in regions with favorable regulatory framework, in particular for demand charge management and

frequency regulation)

• EMEA: Increase in end-users market sales, mainly in Germany (10,000 system sold, fostered by the KFW subsidy program)

• Asia-Pacific: stable development in Japan and South Korea, Australia and India as emerging market

• Significant increase in USA (California, New York, New Jersey, Texas, Arizona, Washington and Hawaii)

Market jeopardized application-wise (grid support, Renewables integration) and technology-wise (preferred Li-Ion):

Outlook:

• ESS Renewable applications facilitated by cost-reduction trend (Tesla, Samsung, LGchem, Renault-Nissan-Bouygues)

• Strategic partnerships (Tesla Mega-factory with Panasonic involvement, Samsung battery supply for BMW , LGchem-Audi agreement)

• Renewable/hybrid system with energy storage as emerging business for grid limited/growth markets

• Retail Market: Tesla, Samsung, LG, Mercedes, Panasonic show a strong interest in retail market

Storage Market Evolution in 2015: Key Facts

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Global Market is expected to rapidly growfor utility scale for ESS

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Storage costs are expected to strongly decrease in the future

Potential

Source: Navigant Research ‘’Advanced Batteries for Utility-Scale Energy Storage8

Possible business models

A

B

C

• Primary regulation• Secondary regulation• Terziary regulation• Reactive supply and Voltage control

Ancillary services

• Curtailments: due to transmission:• constraints and generator flexibility, energy• storage helps to increase grid flexibility and• reduce curtailment.

• Day/night

Price Arbitrage (Energy-shift, peak-shaving)

• Mitigate RES generation unbalance and reduce relevant penalties together with the improvement of weather forecast:• Day-ahead market• Intra-day market

Unbalance

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Catania 1 BESS Project – Overview

Rated Power: 10 MW (connection up to 8MW )

Year of COD: 2012

Grid connection: MV

Catania

To design, install and test a first full scale on-grid Battery Energy StorageSystem (BESS) integrated with the existing EGP Catania 1 PV Power plant

Project Description

Project Description

EGP Catania 1 PV Power Plant

ObjectivesObjectives

TimetableTimetable

To assess the integration between RES and BESS, testing differentBESS technologies to define the most appropriate for each application;

To verify the BESS benefits in terms of increased RES dispatchability(energy shifting and peak shaving) and provision of services for the grid(voltage and frequency regulations);

To acquire first hand O&M experiences with BESS technologies;

2014 2015

J F M A M J J A S O N D Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Site preparation and Installation Start Up

Plant Operation & Continuous O&M

Improvement

Project Preparation, site selection and BESS contract

negotiation

TODAY

Master Scada development and Experimental Activities

19/11/14Start site works

15/03/15Start commissioning tests

1/05/15Start experimental activities 10

1MW-2MWh Catania 1 BESS

Catania 1 BESS Project – RES dispatchability

UNBALANCINGREDUCTION

ENERGY SHIFTINGNight Production

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To design, install and test a full scale on-grid BESS integrated withthe Potenza Pietragalla WPP (18MW), in order to increase theprogrammability of RES and experimentally verify the possibility toexecute Energy Production programs and ancillary service supply.A lithium-ion 2MW/2MWh BESS will be tested, the first utility scaleapplication in Italy of a BESS integrated with a Wind power plant,connected to the HV line, by using the high efficiency and fastresponse lithium-ion technology.

Project Description

Description Next stepCurrent Phase

2014 2015

J F M A M J J A S O N D January February March April May June July August September October

Installation and authorization obtainment for connection to the HV grid Commissioning Experimental

activities

TODAY

Potenza Pietragalla BESS Project

CommissioningCommissioning

• Installation of the BESS completed;• Definition, of new grid code for BESS connected to the HV grid;• Commissioning activities with BESS connected to the grid almost completed, expected by

end of September; interesting results registered during tests (high efficiency• Remote control by PT (Global Generation) under development.

• Passed “Site Acceptance Test” → COD

• Operation & test

30/07 → Connection to the HV grid

Project Preparation and BESS contract negotiation

30/03→TPA signature30/03→Site work begin31/03 →contract signature

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g2MW/2MWh Potenza Pietragalla BESS

Pietragalla

EGP Potenza PietragallaWind Plant

Rated Power: 18 MW

Year of COD: 2012

Grid connection: HV

Other Storage applications in EGP

Microgridin Chile

Microgridin Kenya

Microgridin Peru

Retail PV+Storage

Status Objective/description

In execution

Advanceddevelopment stage

Advanceddevelopment stage

Under definition

The plant supplies the Ollagüe village (in Chile at 3700m above sea level) is a stand alone micro-grid of more than nominal 250kW, consists of solar power plants and wind turbines integrated with a sophisticated electrochemical storage system. The hybrid system thus produced is able to fully meet the electricity needs of the local community (about 300 people) and the public school heat demand, with recourse to the pre-existing diesel generator only in rare cases, and only for the winter months.

To sell photovoltaic systems and batteries to final residential clients who want to become independent from diesel generators

EGP is studying the best business case with the objective of shaping a profitable & replicable business model in order to develop productive, affordable, and reliable micro-grid electricity for rural homes and businesses

To contribute to socio-economic improvement of local population through sustainable economic development of aquaculture and artisanal fisheries in the south coast of Peru realizing a dedicated hybrid system

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Ollagüe