ENERGY STORAGE INSTALLATION POTENTIAL - THE CASE OF FRANCE

Transcription

1 ENERGY STORAGE INSTALLATION POTENTIAL - THE CASE OF FRANCE ARNAUD RENAUD, CEO ARTELYS EUROPEAN UTILITY WEEK, AMSTERDAM, 05/11/2014

2 COMPANY OVERVIEW Our structure Independent company created in 2000 PhD/engineers specialized in applied mathematics, computer science and energy Our core skills Numerical optimization and decisionsupport Consulting services and software Strong specialization in energy sector Locations Artelys Crystal Suite Paris, France Chicago, USA Montreal, Canada Customized software Core optimization tools Modeling and decision support skills Consulting November

3 DESCRIPTION OF THE STUDY 3

4 INVOLVED PARTIES Steering committee Industrial funders and contributors Technical contributors 4

5 AIM OF THE STUDY Assess the energy storage installation potential in Metropolitan France and its overseas territories by 2030 Identify the most economically relevant technologies Among 30 storage technologies (power storage, power to gas, heat and cold ) Out of scope : electrical mobility, uninterrupted supply and nomadic storage systems Point out possible actions (regulatory, economic) to make these technologies develop 5

6 GROSS VALUATION OF ENERGY STORAGE 6

7 3 SCENARIOS FOR 2030 Public scenarios on possible 2030 power mixes published by RTE (French TSO) and ADEME (French Agency for Environment) 20 to 40% intermittent renewable energies in the power mix ADEME scenario includes efforts in terms of load reduction. 600 TWh production 560 TWh production 440 TWh production RTE Intermediate scenario (MDN) RTE New Mix scenario (NMX) ADEME scenario (ADM) 7

8 9 CASE STUDIES For more details: artelys.com/media/peps/executive-summary.pdf Cogeneration VHV HV/MV Heating network France Cold storage LV Tertiary Non-interconnected Zone 8

9 METHODOLOGY Evaluation of the economic interest for the community as a whole: the social welfare increase when adding storage Total benefit of adding storage for the sum of all energy actors (consumers, producers, grid operators) Without taking into account regulatory constraints or incentive mechanisms The computed storage value comes from savings in Generation costs (arbitrage) Investments in peak plants (capacity value) Network investments (reduction of congestions) Ancillary services (spinning reserve and voltage stability) Storage potential was evaluated using detailed simulations (hourly) 9

10 Demand (GW) NEEDS FOR FLEXIBILITY Within a day, needs for flexibility in the system highly depend on solar capacity level. Power demand 20 GW of PV Solar production happens when power demand is high Hour of the day Need for flexibility (within a period): quantity of energy one has to shift to make the load curve flat. We introduced this measure to analyze drivers of value for storage. 10

11 NEEDS FOR FLEXIBILITY Electricity storage needs for intra-weekly cycles will increase significantly by Unlike solar, wind production statistically varies over cycles of several days Increases in tertiary uses lead to higher differences between weekdays and weekends 11

12 ENERGY STORAGE TECHNOLOGIES 12

13 VARIOUS TECHNOLOGIES TO FIT WITH VARIOUS NEEDS Temps de décharge Stockage thermique d électricité Energie Electrolyse AA-CAES 10 Heures Heures Nickel-Zinc Système de transfert par lest maritime ZEBRA VRB Zinc-Air Zn-Br Plomb-Acide Na-S STEP Marines STEP souterraine STEP Lithium-Ion Minutes Volants d inertie Super condensateurs Secondes Puissance 1 kw 10 kw 100 kw 1 MW 10 MW 100 MW 1GW Puissance 13

14 BUSINESS MODELS FOR ENERGY STORAGE 14

15 The French context BUSINESS MODELS FOR ENERGY STORAGE IN FRANCE An already important storage capacity (13 GW hydro, 4.3 GW PHS, 13 to 20 TWh of electrical hot water heaters in homes) Around 10 GW of interconnexions with neighboring countries French Islands with higher generation costs and larger variations in net demand Revenues for storage 60 to 150 k /MW/y for arbitrage and capacity in Metropolitan France 300 to 450 k /MW/y for storages dedicated to the spinning reserve (under technical feasibility constraints) 200 to 350 k /MW/y in the French Islands Foreseen needs in France 1 GW to 2 GW of PHS in Metropolitan France 600 MW of storage dedicated to the spinning reserve (flywheels or Li-Ion batteries) MW in French Islands + significant potential for Non-Interconnected Zones

16 CONTACT For more details: artelys.com/media/peps/executive-summary.pdf Artelys France 12 rue du Quatre Septembre Paris FRANCE Artelys Canada 1819 Blvd. René-Levesque O # 202 H3H 2P5 Montréal, QC CANADA Artelys USA 150 N Michigan Avenue, Suite Chicago, IL USA Artelys Booth 1.E48-7 (French Pavilion)

17 RECOMMENDATIONS 17

18 ALLOW FOR THE DEPLOYMENT OF THE MOST COST-EFFECTIVE TECHNOLOGIES Remunerate energy storage up to the services it provides in order to favor installation of the most efficient technologies Allow storage participation to capacity mechanisms and ancillary services Allow for the transfer of rights when storing energy (green certificates, feed-in tariffs, ) Limit taxes to the part of energy that is consumed Value demand flexibility on the same ground as storage technologies For already present technologies (home water heaters, for instance) Or for soon-to-come ones (managing EV recharging load) 18

19 NUMEROUS NECESSARY SHORT-TERM ACTIONS Meet the identified potential for storage in France 1 to 2 GW of PHS in Metropolitan France 200 to 400 MW of distributed storage in the French islands Also 5 to 10 GWh th heat storage capacity Implement an ambitious program of R&D and demonstrators to prepare for tomorrow s cutting-edge technologies and storage services (primary reserve, thermal storage with Power to Heat, etc.) Use Non-Interconnected Zones as an active terrain for experimentation 19