The Future Role of Energy Storage in South Eastern Europe Enlargement and Integration Action Tirana, 21 st 22 nd October 2014

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1 The Future Role of Energy Storage in South Eastern Europe Enlargement and Integration Action Tirana, 21 st 22 nd October 2014 Regulatory incentives to facilitate storage investments Ass. prof. Goran Krajačić, University of Zagreb Faculty of Mechanical Engineering and Naval Architecture (UNIZG FSB)

2 - 3 Study Programmes - 13 Departments - 40 Chairs Laboratories ZGRADE - 74 PhD students Researchers Students

3 Sustainable Energy Development Conference on Sustainable Development of Energy, Water and Environment Systems 2002 (INCO FP5), 2003, 2005, 2007, 2009, 2011, 2012, 2013,

4 Hydropower renewable, clean and secure energy

5 Source of Data Eurostat 100% RES-E production in EU?

6 Feed in tariffs for energy storage? no subsidies no storage no RES-E development above certain limit

7 Installed wind capacity EU (MW) Energy policy and planning supply forecasting uncertainty % 83% 86% 93% Actual capacity ACTUAL 2010 EC_2010_PRIMES IEA_2010 EWEA_ % 9% Year Source: EWEA 2011, Pure Power - Wind energy targets for 2020 and 2030

8 Installed wind capacity EU (MW) Wind energy development? real cumulative EU predicted polynom EC_2030_PRIMES IEA_2030 EWEA_ Year Sources: EWEA Statisitcs 2012 and Pure Power - Wind energy targets for 2020 and 2030

9 Subsidies and costs of EU energy An interim report Ecofys 2014 by order of: European Commission Subsidies of EU energy

10 Estimate of Fossil Fuel-related Subsidies Country Energy related subsidies as % of GDP Albania 7-8% Bosnia-Herzegovina 9-10% Croatia 5-6% Macedonia 8-9% Montenegro 10-11% Serbia 7-9% Kosovo 35-36% Source: Aleksandar Kovacevic, UNDP Fossil Fuel Subsidies in the Western Balkans

11 Internal energy market

12 Flexibility assesment FAST method- IEA

13 Energy storage Electricity Storage Heat Storage Cold Storage Hydrogen Storage Biomass Storage Gas Storage Storage of Liquid Fuels Alternative Storage Technologies

14 PHS characteristics

15 MW MW Flexibility needs in Croatian power system Wind 2400 MW Load time period for ramping - hours RAMP UP RAMP DOWN

16 El Hierro 100% RES island!

17 El Hierro 100% RES island! Wind turbines 11.5 MW Wind energy Hydro 27 GWh 6.87 GWh Hydropower plant (turbines) Pump station 11.3 MW 6 MW Diesel Total 11 GWh GWh Upper reservoir 556,000 m 3 Lower reservoir 150,000 m 3 New Diesel power plant 0 RES penetration 80% Peak load (2010) Off-Peak load (2010) TOTAL INV MW 2.59 MW ~60 MEUR

18 Sources: El Hierro PHS

19 PHS AVČE, Slovenia Max. gross head: Hb = m Volume upper storage: Vk = m³ Flow (turbine mode): Qt = 40 m³/s Flow (pump mode): Qp = 34 m³/s Capacity (turbine): Pt = 185 MW Capacity (pumping): Pp = 180 MW Yearly electricity production: E prod. = 426 GWh Yerly electricity consumption for pumping: E Tot. = 553 GWh

20 PHS AVČE construction

21 JRC-IET Scientific and Technical Reports 2012: Pumped-hydro energy storage: potential for transformation from single dams (Analysis of the potential for transformation of non-hydropower dams and reservoir hydropower schemes into pumping hydropower schemes in Europe) 2013: Assessment of the potential for European pumped hydropower energy storage (GIS-based assessment of pumped hydropower potential)

22 PHS- EU Austria France Germany Spain Source: JRC-IET

23 PHS mapping Spain. JRC-IET the theoretical potential at a maximum of 20 km reaches 123 TWh in Europe of which 60 TWh in the EU. The corresponding realisable potential is 80 TWh in Europe of which 33 TWh in the EU. For shorter distances between the existing dam and the best potential site the realisable potential is reduced to 10 TWh (5 km, Europe) of which 4 TWh in the EU, and 180 GWh (1 km, Europe), most of which in the EU (155 GWh), mainly in Sweden (128 GWh)

24 PHS Croatia JRC mapping Country potential: 13 sites 60 GWh capacity Natura 2000 constraint has a considerable effect disqualifies over half of suitable sites No Topology B solutions for Croatia Source: JRC, UCC (Pumped-hydro energy storage: potential for transformation from single dams)

25 PHS Analysis Croatia 25

26 Installed generation capacity [GW] 100% SEE (PHS 100 GW, 45 TWh) Geothermal PV Wind Biomass Nuclear Thermal PP Hydro PP

27 FIT for PHS System organization PHS Invoicing for difference between delivered electricity from PHS and taken RES electricity Invoicing for delivered electricity from RES RES Privileged producer GO Payment for difference between delivered electricity from PHS and taken RES electricity Market operator Incentive collection and distrib. Payment of the delivered electricity from RES Privileged producer GO GO Registry Other incent. sources Calculation for the delivered GO - TSO - Invoicing for the collection of fees and delivered electricity Payment for electricity from RES and PHS Fees Electricity supplier - DSO - Invoicing Delivered/Taken electricity Payment Guarantees of origin (GO) Buyer

28 FIT for PHS and Hydrogen Working hours at full load (or energy equivalent) FIT PHS_WGO [ /MWh] <1750 h > FIT H2_WGO = 50 c /kwh <=27%FLH FIT H2_WGO = 25 c /kwh > 27% FLH

29 Stepped FIT - PHS

30 FIT PHS: Croatian case studies - mainland

31 FIT PHS: Croatian case studies - mainland Cost of the electricity production from PHS in /MWh, based on 870 full load hours of turbines or energy equivalent Cost of the electricity production from PHS in /MWh, based on 1750 full load hours of turbines or energy equivalent.

32 Energy storage in the Directive 2009/28/EC? Case study of Portugal - RES share in the gross electricity consumption calculated according the rules of the directive: a b = a t + a s b f + b t + b s + a s = a t + a s b f + a t + η s a s + a s = = Real RES share calculated for Portugal = 80.8%

33 Energy storage in the Directive 2009/28/EC Case A where Slovenia is producing all needs by coal PP and Croatia is curtailing 500 MW of wind Case B where Slovenia has reduced production of coal and importing 500 MW from Croatia and providing reserve for the system stabilisation Case C where coal power plant has been shut down in Slovenia and all electricity is imported from Croatia Case D where Slovenia is producing all needs from coal while Croatia is operating 500 MW PHS in a pumping mode Case E where Slovenia is producing all needs from coal while Croatia is charging electric cars with connected power of 500 MW MW tco 2 MWh Coal PP - SI Wind - SI 0 0 Wind - HR Gas CC - HR PHS - HR EV - HR A B C D E CO 2 CO 2 RES CO 2 [t] RES [t] RES CO 2 [t] RES CO 2 [t] RES [t] SI HR SI-HR

34 Energy storage in the Directive 2009/28/EC when calculating the share of renewable energy sources in the transport the Member States may choose to use either the average share of electricity from renewable energy sources in the Community or the share of electricity from renewable energy sources in their own country as measured two years before the year in question. electricity from renewable energy sources consumed by electric road vehicles, shall be considered to be 2.5 times the energy content of the input of electricity from renewable energy sources

35 Energy storage in the Directive 2009/28/EC EnergyPLAN calculations for 2020 RES share in GFCE = 18.2% RES share in GFCET = 9.69% EnergyPLAN calculations for 2020 RES share in GFCE = 17.9% RES share in GFCET =10.8% (2000 MW wind), 1.91 TWh 0.83 TWh export RES share in GFCE = 20.1% 2020 (-3 TWh Petrol in transport) RES share in GFCE = 19.6% RES share in GFCET =16.7% 2020 (- 0.3 TWh EV from 2018) RES share in GFCE = 20% RES share in GFCET = 15.3% reduce 1.2 TWh or 131 million litters of biodiesel and still be at 10% transport target

36 PHS beyond RES integration irrigation flood protection and water management fire protection coupled with desalination provides extra flexibility and increases security of supply of water and energy

37 NOT TO FORGET Environmental impact Long construction time Investment costs Legislation and policy (regulations, grid codes, etc.) Electricty market

38 Conclusions Due to large interconnection capacities and installed capacity of the hydro power plants Croatian power system has big technical flexibility which could be unlocked by the advanced system operation and market incentives Current pumps/turbines have the capability to work in all possible modes of operation with automatic control Large potential for PHS exists in Croatia (HEP is considering construction of 4 PHS; RHE Korita 3x200 MW, RHE Mosor 3x270 MW, RHE Vinodol and RHE Senj/Kosinj) there are some private PHS initiatives According the RES Directive, electricity that is used by the pumped storage is counted as part of the gross final consumption of energy Flexibility of existing power plants, electricity export and trade, EV and DSM should be evaluated as alternatives for integration of variable RES

39 THANK YOU FOR YOUR ATTENTION! Books: Energy Technology Perspectives 2012, IEA, 2012 Energy Technology Perspectives 2014, IEA, 2014 Harnessing Variable Renewables, IEA, 2011 Lund, H. Renewable Energy Systems, The Choice and Modeling of 100% Renewable Solutions, Elsevier, 2010 Papers: Krajačić, Goran; Lončar, Dražen; Duić, Neven; Zeljko, Mladen; Lacal Arántegui, Roberto; Loisel, Rodica; Raguzin, Igor, Analysis of financial mechanisms in support to new pumped hydropower storage projects in Croatia // Applied energy. 101 ; (2013) Krajačić, Goran; Duić, Neven; Tsikalakis, Antonis; Zoulias, Manos; Caralis, George; Panteri, Eirini; Carvalho, Maria Graça, Feed-in tariffs for promotion of energy storage technologies // Energy policy 39, 3; (2011) Krajačić, G., Duić, N., Zmijarević, Z., Mathiesen, B. V., Anić Vučinić, A., Carvalho, M.G. Planning for a 100% Independent Energy System based on Smart Energy Storage for Integration of Renewables and CO2 Emissions Reduction. Applied Thermal Engineering. 31, (2011) Duić, N., Krajačić, G., Carvalho, M. G. RenewIslands methodology for sustainable energy and resource planning for islands. Renewable and Sustainable Energy Reviews, 12 (2008), 4;