Flexible Sector Coupling The Role of Energy Storage in Our Future Energy System

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1 Flexible Sector Coupling The Role of Energy Storage in Our Future Energy System Dr. Andreas Hauer September Prague Czech Republic Faciliator

2 Content Flexible Sector Coupling Definition a little bit of Statistics Flexible Sector Coupling Implications for Energy Storage and Examples Conclusion Eigenen Namen ergänzen Page 2

3 Flexible Sector Coupling Definition

4 What is Sector Coupling? In this context electricity, heat or mobility are described as a sectors Is it an energy form (like electrical, thermal, mechanical or chemical)? Is it an area of consumption (like transport, buildings, industry, )? Not only in the electricity sector, but in the heat, cold and mobility sector fossil energy carriers shall be replaced by renewable energies step by step. The so called sector coupling can support this Electricity from renewables can be utilized to produce heat, cold and propulsion energy. The overall goal is a replacement of fossil energy sources BMWI /

5 Sectors Fossil Gas Oil Coal PV Wind Electricity Energy Supply for different Sectors Thermal Mobility Solarthermal Geothermal Biomass Gas Oil Coal Fossil PV Wind Gas Oil Fossil

6 Storage within Sectors EES = Electrical Energy Storage CES = Chemical EnergyStorage TES = Thermal Energy Storage Energy Storage within the Sectors EES Electricity P2H2P PV Wind P2G2P P2L2P P2H2P= Power-to-Heat-to-Power P2G2P= Power-to-Gas-to-Power P2L2P= Power-to-Liquid-to-Power Solarthermal Geothermal Biomass Thermal TES PV Wind Mobility EES CES

7 Sector Coupling PV Wind Decarbonising the Thermal and Mobility Sector by Sector Coupling Electricity Thermal Mobility Solarthermal Geothermal Biomass PV Wind

8 Sector Coupling PV Wind Electricity Sector Coupling Thermal Mobility Solarthermal Geothermal Biomass PV Wind

9 Flexible Sector Coupling EES = Electrical Energy Storage CES = Chemical EnergyStorage TES = Thermal Energy Storage PV Wind Electricity Flexible Sektorenkopplung Thermal TES CES CES EES Mobility Solarthermal Geothermal Biomass PV Wind

10 for politics better make it simple!

11 Flexible Sector Coupling s Wind PV Electricity Heating/ Cooling Energy Storage Energy Storage Mobility

12 Benefits of Storage Close the gap between supply and demand Japan: Ice storage for air conditioning due to high electricity prices in peak hours

13 Benefits of Storage Close the gap between supply and demand Support the integration and utilization of renewable sources

14 Benefits of Storage Close the gap between supply and demand Support the integration and utilization of renewable sources At the same time increase efficiency of power utilization Heating: 1 kwh of renewable electricity can replace 2-4 kwh oil / gas (heat pumps) Mobility: 1 kwh renewable electricity can replace about 3 kwh fossil fuel (high efficiency propulsion) What does this mean for the reduction of CO 2 emissions?

15 a little bit of Statistics

16 Energy Demand Sectors and CO 2 Emissions Final energy demand in Germany about 2,600 TWh per year M. Rasch, A. Regett, S. Pichlmair, J. Conrad, S. Greif, A. Guminski, E. Rouyrre, C. Orthofer and T. Zipperle, Eine anwendungsorientierte Emissionsbilanz Kosteneffiziente und sektorenübergreifende Dekarbonisierung des Energiesystems, Forschungsstelle für Energiewirtschaft FfE, bwk, Ausgabe 03/2017

17 Energy Demand Sectors and CO 2 Emissions Distribution of CO 2 emissions among the demand sectors: Industry > 32 % Private Housholds > 21 % Trade & Commerce > 15 % Transport > 24 %

18 Energy Demand Sectors and CO2 Emissions Distribution of CO2 emissions among the Sectors : Electricity 9 % Lighting 5 % ICT 4 % Mech. Energy in Ind./T&C 16 % (?) Mobility 24 % Thermal > 50 % DHW 4 % Process Cold 3 % Process Heat 24 % Space Heating 19 % AC <1 %

19 Final Energy Demand - Future Mechanical Energy 38% Lighting 2 % ICT 1 % Process Heat 21 % Process Heat 37 % 2005 Final Energy Demand ca. 9,747 PJ Electricity about 9-25 % Thermal 59 % Mobility about 30 % Space Heating 33 % DHW 5 % Industry Private Household s Trade & Commerce Transport ICT 2 % Lighting 1 % 2050 Final Energy Demand ca. 6,099 PJ Mechanical Energy 28% DHW 6 % Space Heating 26 % Electricity about 15 % Thermal 69 % Mobility about 15 %

20 Flexible Sector Coupling Implications for Energy Storage

21 Which way to go? Thermal Energy Storage Chemical Energy Storage Electrical Energy Storage Inexpensive Storage Solutions High Energy No Transformation Many Storage Applications (Buildings & Industry) Many Storage Technologies (Sensible, latent and thermochemical) Thermal Energy has to be stored close to the consumer Density Long-term Storage Transportable (Gas Grid) needed High Efficiency High Power Transportable (Electricity Grid)

22 Which way to go? Potential of CO 2 Reduction Heat & Cold for Buildings and Industry: 50 % of the CO 2 emissions Value of Replaced Energy Heat for Buildings: about 50 / MWh Atmospheric Heat Storage Pressurised Heat Storage

23 Which way to go? Potential of CO 2 Reduction Transportation & Mobility: 24 % of the CO 2 emissions (related to the final energy demand in Germany) Value of Replaced Energy Power-to-Gas converting surplus energy into sustainable fuel Transportation & Mobility: / MWh (Fuel Prices Germany 2018)

24 Which way to go? Efficiency of Storage Technologies Heat for Buildings : % (incl. Heat Pump) Cost of Installed Storage Capacity Heat & Cold Storage Systems: / kwh (storage capacity!) Seasonal hot water storage in Denmark

25 Which way to go? Efficiency of Storage Technologies Transportation & Mobility: % (P2G Li-Ion Batteries) CO 2 to Methanol Plant, Iceland Cost of Installed Storage Capacity Batteries: > 250 / kwh (storage capacity!) Power-to-Fuel: Not applicable!

26 Conclusion

27 Flexible Sector Coupling = Think Sector Coupling together with Energy Storage!

28 Thank you for your attention! Dr. Andreas Hauer ZAE Bayern Dr. Andreas Hauer Page 28