Realising the True Value of Energy Storage. Mick Barlow, Scott Osborne, S&C Electric Europe Ltd Nick Heyward, UKPN Alistair Steel.

Transcription

1 Realising the True Value of Energy Storage Mick Barlow, Scott Osborne, S&C Electric Europe Ltd Nick Heyward, UKPN Alistair Steel. SSE 1

2 Today s network Power networks Large scale generation, through transmission, distribution to users Limited embedded generation Limited number of self suppliers System planned to meet peak demand plus reserves spare or under utilised assets Low level of interconnections to other systems Regulated wires businesses Facing substantial change The future Shift from dispatchable generation to time variable generation Peaky demands from digital society, switch to heat pumps, electric vehicles Distributed community and domestic level generation and trading Average and peak domestic demand likely to increase Balancing the system requires more flexibility 2

3 The Problem Demand Wind Typical Household Daily Solar 3

4 Storage can help with this and more!! 4

5 Storage Comes in Many Forms From this 5

6 To this and much in between 6

7 Storage Technologies 7

8 So what services could storage provide? Storage can provide a whole range of services that contribute to both the transmission and distribution system. Peak shaving by active power control Fast response system balancing services Very fast response balancing service (synthetic inertia) Reserve system balancing services Wholesale market services Reactive power services to support voltage Asset deferral 8

9 What are the possible benefits of grid storage? Market Services Electric Energy Time-Shifting Frequency Response Frequency Regulation Up Frequency Regulation Down Ramping Real-Time Energy Balancing Synchronous Reserve (Spin) Non-Synchronous Reserve Black Start Capacity Products System Electric Supply Capacity Local Electric Supply Capacity Resource Adequacy Generation Services Intermittent Resource Integration (Ramping & Voltage Support) Variable Energy Resource Shifting, Voltage Sag, Rapid Demand Support Supply Firming Transmission/Distribution Peak Shaving: Load Shift Transmission Peak Capacity Deferral Transmission Operation Transmission Congestion Relief Distribution Peak Capacity Deferral Distribution Operation (Voltage/VAR Support) Additional Grid Benefits Reduced fossil fuel use Increased renewables Grid Reliability Faster build time Modularity/incremental build Mobility Flexibility of purpose Optionality Locational flexibility Multi-site aggregation 9 9

10 These markets need to be accessible to storage? Fast Reserve Frequency Response STOR (short term operating reserve) Capacity payments Arbitrage Capex Reduction Reactive Power Services It is important that these markets must be correctly formulated if they are to support storage. 10

11 Value Chain Problem One of the problems with Storage is that it is often considered another form of Generation IT IS NOT Also in our unbundled electricity system it can offer benefits across a number of competing sectors. Transmission Distribution Generation In the Carbon Trust report in 2012 it stated that 15GW of storage by 2030 it would save 2bn/annum 25GW of storage by 2050 it would save 10bn/annum 11

12 Currently only some revenue streams are accessible Source POYRY Revenues attributable to the wider system benefits which form a large part of the storage value are currently not available. 12

13 Smarter Network Storage (SNS) LNCF Project by UKPN 6MW/10MWh Installed at 11kV Substation in Leighton Buzzard Objective the project is exploring the capabilities and value in alternative revenue streams for storage, while deferring traditional network reinforcement at the site. Project Currently under Construction 13

14 SNS Value Proposition 14

15 Community Energy Storage System Comprised of small, distributed energy storage units Each is connected to the secondary of a transformer serving a few houses or small commercial loads 15

16 Load Factor Improvement By shifting the peak demand by discharging storage and then increasing minimum demand by charging the storage the load factor of the feeder can be improved. This may also allow asset replacement deferral. 16

17 Voltage Profile Improvement Storage can be used to help keep voltages within statutory limits. On lower voltage systems this is mainly affected by real power flows. Discharge Charge 17

18 Reverse Current Flow Mitigation The introduction of embedded renewable generation often causes reverse current flow. Many utilities would like to avoid or keep this to a minimum. 18

19 So What is Happening in the California to Encourage Storage? 19

20 California Storage Procurement Targets 20

21 Why is Storage Beneficial? If we take the Solar and Wind as ve demand 21

22 If we Net the Load, Wind and Solar 22

23 Change of Net Load with increase of Renewables The flexibility required is typically provide by gas turbines 23

24 Comparing Peaking Plant with Energy Storage Energy storage can provide much greater benefits per MW as a flexible resource! VS 100 MW Gas Turbine 10 minute ramp 50 MW flexible range 2768 useable hours/year (1) 6500 gallons per hour Status quo GHG emissions Source CESA Energy Storage Benefits >600x the ramp rate >4x the flexible range >3x the operational hours Less water usage on many sites Lower GHG emissions 100 MW Energy Storage <1 second ramp 200 MW of flexible range >8300 useable hours/year Little to no water usage Reduces GHG emissions by up to 90% (2) (1)Excluding start-up and shutdown time (2) ocuments/ _workshop/comments/California_Energy_Stora ge_alliance_ _tn pdf 24

25 Conclusions Energy storage holds great potential for enabling embedded renewable generation. In countries where demand is rapidly increasing and where a greater proportion of the generation mix is renewable energy then storage will form an essential part of the system. The biggest barrier to large deployment of this technology is being able to realise it s full value chain. However, the momentum has started and more utilities are realising it s value and creating market mechanisms to support it. This will drive down cost in the same way that it has with wind and solar. 25

26 From NGET Enhanced Fast Frequency Control NIC If we continue to utilise the existing process and techniques available for managing frequency control, the operating cost is anticipated to increase from around 60m per annum to 200m- 250m per annum by The successful development and implementation of this project may result in a saving to the end consumer of 150m- 200m per annum. 26

27 Thank you Stand AB36 27