STORAGE AS A PART OF VIRTUAL POWER PLANTS - EFFECT ON BUSINESS STRATEGIES Jan Schelling

Transcription

1 STORAGE AS A PART OF VIRTUAL POWER PLANTS - EFFECT ON BUSINESS STRATEGIES Jan Schelling

2 Statkraft Delivering Pure Energy Norway MW Sweden MW (+ project) Installed capacity MW * Power production 56 TWh ** 99% renewable energy employees UK 243 MW (+ project) Germany MW Nepal 23 MW Panama (project) Peru 295 MW Albania (project) Turkey 122 MW (+ project) India 91 MW Laos 50 MW Philippines 146 MW STATKRAFT Chile 140 MW Brazil 172 MW Zambia 6 MW SN POWER * Includes: Statkraft/SN Power s share of installed capacity per Q ** Actual production 2014.

3 Virtual power plant (VPP) Definition Many smaller decentralized power plants, linked together and controlled by computers Statkraft Germany s largest power plant: ~9 GW Integrates >1000 assets (wind, solar, run of river hydro) Production can be throttled within milliseconds 3

4 Spot price, EUR/MWh Why Germany? Germany Thermal stack, growing variable renewables Wind and solar increasingly important for residual demand Limited flexibility results in intra-day price fluctuations Norway Hydro power dominated - flexible Demand-driven variations Relatively flat intraday price profile Higher marginal cost (fuel) > higher power price Higher retail price (taxes, levies) week 6 Germany Norway Feb 3-Feb 4-Feb 5-Feb 6-Feb 7-Feb 8-Feb 9-Feb -20 4

5 The future energy system is distributed 5

6 Distributed technology options Electricity generation Rooftop solar PV (1.5 million) Micro-CHP (25 000) Community solar PV Heat production Solar water heater (2 million) Heat pump (0.6 million) Biomass heater Energy efficiency Appliances Insulation Heat recovery Energy management Demand flexibility Battery storage (15 000) Thermal storage 6 Numbers refer to approx. no. of systems installed in Germany (end 2014)

7 The disruptive cycle of distributed energy Increased distributed generation Reduced demand 7 Source: Edison Electric Institute

8 The merit order effect Renewables displacing conventional generation from the spot market 8 Source: Agora Energiewende

9 Increasing demand for flexibility Germany: July median generation profile (GW) Wind Demand Solar Call on dispatch Ramping requirements (GW/h) Source: Bloomberg New Energy Finance

10 Power Current purpose of Statkraft VPP 1. Monitoring and power production forecasting positive 3. Regulating power (negative only) Primary reserve Secondary reserve Balancing power Tertiary reserve 30 s 5 min 15 min 60 min negative 2. Curtailment in case of negative power prices 10

11 Power Regulating power from wind assets Generation potential Actual generation Positive regulating power is uneconomical as it requires curtailment over extended periods Negative regulating power delivered 11

12 The Virtual Power Plant of the Future Expansion strategy Increase flexibility: add loads, storage assets Expand towards smaller assets Market access Provide positive reserve From tertiary towards primary reserve services A step towards a self-regulating grid - More flexibility - Enable more variable renewables - Reduce EEG levy NB: Not a grid asset. Requires price signals (or regulation) to provide services. 12

13 Falling ICT costs allow smaller units to be connected economically Smaller power plants Industrial loads Battery storage systems Individual households Vehicles/charging stations 13

14 Stationary applications for battery systems Application in grid-> Location in grid Power quality Power reliability Increase utilization Arbitrage Behind-the-meter / at consumer End-consumer quality and reliability Increase (PV) selfconsumption End-user daily arbitrage In-the-Grid Primary reserves Further ancillary services T&D investment deferral Whole-sale arbitrage Plant co-located, renewable generation RES smoothing RES firming RES arbitrage Plant co-located, conventional generation Black start Load following 14

15 Power-to-gas pilot 6 MW PEM electrolyser Hydrogen fed into - natural gas grid - storage for industry and transportation To be connected to Statkraft VPP in 2016 Associated project partner: Project of Stadtwerke Mainz, Linde, Siemens and University RheinMain; start of operation in 2015 Source: 15

16 THANK YOU