Agenda 1. The Energy Union framework 2. A parcial view: 2 examples (Grid storage, behind the Meter) 3. Conclusions
Energy Storage
an enabler of the Energy Union
2
Not only about technology
The Energy Union: A multidimensional challenge
2 Copyright © 2016 KIC InnoEnergy
Societal &
Individual
Technology
Human Capital
Regulation
Value
Chain/Market/Biz Model
Supply Chain
Think City 2009 Platser: 2 Längd: 314 cm Max H ast:113 km/h 0 - 100km/h: 16 s. Räckvidd: 161 km Effekt: 34kW (46hk) Utrustning: Ej AC, Ej servo, direkt elvärme, ingen aktiv säkerhet…
VW e - Golf 2014 Platser: 5 Längd:425 cm Max Hast: 140 km/h 0 - 100km/h: 10,4 s. Räckvidd:190 km Effekt: 85 kW (115hk) Utrustning: ACC, servo, värmepump, aktiv säkerhet, LED - belysning….
Grid storage – TSO/DSO (1/3)
3
Category Service Arbitrage Arbitrage, energy transfers valorization
Production shaping Capacity guarantee Capacity guarantee, consumption peaks management Ancillary services Frequency regulation
Adjustment mechanism, tertiary reserve Voltage regulation Black start
Grid support Congestion relief Consumer services Voltage quality control
Reliability, supply continuity Caption
Service accessible and main business case driver Service not easily accessible
Service technically accessible Non-accessible service
The need
Services required => value => Business case drivers
2040
IEA
Grid storage – TSO/DSO (2/3)
4 Copyright © 2016 KIC InnoEnergy
Functionality/Technologies: the attributes
Business models - Situation in Europe
Discharge duration Response time Power Rating Frequency of use
Hours to tens of hours Milliseconds to 10s of
minutes depending on the set of services offered
Hundreds of kWs to tens of MWs
Daily, depending on the set of services offered
Minutes HoursSecondes
GWkW
Grid storage – TSO/DSO (3/3)
5
What KIC does
Our conclusion
Aspect Drivers Status in
2015 Anticipated evolution
Political Sustained political commitments to develop renewable energies
Economic & Technological
New network investments due to RES integration Limited direct competitiveness of storage with network upgrades Uncertainty around the valuation of network reliability and
market services of storage Limited influence of congestion valuation through nodal and
zonal pricing Long term competition of storage with demand management
Social & environmental
Stronger environmental and social opposition to new infrastructures and new technologies
Legal Uncertain legal access to storage assets ownership and operation
by System Operators
Caption - Status definition
Driver with positive impact Driver with important negative impact Driver with neutral or slightly negative impact
350M€
/year
Behind the meter (1/3)
6
The need /opportunity
Services required => value => Business case driver
Autonomy of
household with
5000kwh/year
Category Service Arbitrage Arbitrage, energy transfers valorization
Production shaping Capacity guarantee Capacity guarantee, consumption peaks management Ancillary services Frequency regulation
Adjustment mechanism, tertiary reserve Voltage regulation Black start
Grid support Congestion relief Consumer services Voltage quality control
Reliability, supply continuity Caption
Service accessible and main business case driver Service not easily accessible
Service technically accessible Non-accessible service
Behind the meter (2/3)
7
Functionality/Technologies: the attributes
Business models - Situation in Europe
Discharge duration Response time Power Rating Frequency of use
Hours to tens of hours Milliseconds to tens of
minutes depending on the set of services offered
One kW to hundreds of kWs
Daily to Weekly
Minutes HoursSeconds
GWkW
Behind the meter (3/3)
8
What KIC does
Our conclusion
1.500M€
/year
Aspect Drivers Status in
2015 Anticipated evolution
Political Sustained political commitments to deploy distributed renewable
energy resources
Economic & Technological
Growing deployment of distributed solar PV plus storage systems Emerging role of aggregators in capturing the full storage value
Limited influence of the quality and reliability of grid electricity supply
Improving cost/performance balance of storage technologies
Social & environmental
Increased end-user willingness to adopt storage systems Improving ergonomics and user-friendliness of storage systems
Legal Difficult legal access to storage assets ownership by Distribution
System Operators Uncertain evolution of tariff structures and electricity prices
Caption - Status definition
Driver with positive impact Driver with important negative impact Driver with neutral or slightly negative impact
Storage: An enabler – A must
1. The debate is not the technology, it is business models and the systemic
approach
2. There is value to be harvested. Business cases fly
3. Let´s converge to market homogeneity (rules) in Europe
Volume => Champions
4. New market players (ISO, LSO) , not only add-ons to existing ones
5. And many more (Thermal Storage, Power to gas, EV, ……). There is a case
for everybody, but let´s stay focused.
Conclusion