aliquò - ges...the fti pilot (2015-2016) is the only fully bokom-up measure in horizon 2020...
TRANSCRIPT
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Business Plan
Angelo Aliquò Senior Advisor, Green Energy Storage
• MarketAnalysis• Implementa1onStrategy• FinancialBudgets&Forecasts• Go-ToMarketApproach
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MarketAnalysis
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• EnergyStorageMarket
MarketAnalysisBenefitsofElectricEnergyStorageEnergystoragetechnologyholdsthepromisetoprovidemanybenefitsacrosstheenergydeliveryvaluechain—fromgenera>ontotransmissionanddistribu>on(T&D)toend-users.Specifically,energystoragetechnologyisconsideredakeycomponentforintegra>onofrenewableenergyandasanessen>altoolforsmartgrids.Inaddi>on,anumberofsocietalbenefits,suchasreducingemissions,canbecapturedusingstoragetechnologies.
Battery storage for grid regulation
Community scale Battery storage
Battery storage for renewables integration
Commercial campus Battery storage
EESApplica1onAreas
ElectricSupply
AncillaryServicesGridSystem
EndCustomerEndCustomer
RenewablesIntegra1on
mainly PHS, CAES
up to 100 kW power
MarketAnalysisEESmarketwillboominnearfutureEnergystoragewillplayakeyroleinenablingtodevelopalow-carbonelectricitysystemsupplyingmoreflexibility,balancingtothegridandprovidingaback-uptointermiKentrenewableenergy.Locally,itcanimprovethemanagementofdistribu>onnetworks,reducingcostsandimprovingefficiency.Inthisway,itcanenablethemarketintroduc>onofrenewables,windandsolarandimprovethesecurityandefficiencyofelectricitytransmissionanddistribu>on.Currently,inEurope,thereislimitedusageofenergystoragesystems(almostexclusivelyfrompumpedhydro-storage).OtherformsofstoragelikebaKeriesarejuststar>ngtobeused.ThebaGerymarketfortheElectricEnergyStorage(EES)isattheearlystageofdevelopmentanditwillincreasedrama1callyinthenearfuture(5-7years).
2020 - 2022
Total Market Size
2015
> 200 B$
1 B$ Source: EPIA, PiperJaffrey, BCG Mckinsey
MarketAnalysisEnergyStorageworldwideMarket• EnergyStoragetechnologymayprovidemanybenefitsacrosstheenergydeliverychain
fromgenera>ontotransmissionanddistribu>ontoendcustomer.IndetailtherearetwomajoremergingmarketneedsforElectricEnergyStorage(EES)technology:
– Integra>onofrenewableenergy(solarandwind)– BuildingoffutureSmartGrids.
• EEScanbeconnectedatdifferentlevelinthegridsystem,mostimportantandsizeablestorageApplica>onsare:
– DistributedEES–forresiden>alandsmallcommercialsloads(10–100kW)– RenewablesIntegra>on–levelingsolarandwindfarmgenera>oncapacity(1–10MW)– AncillaryServices–usedbygridoperator(TSO)tobalancethegrid
• StoragecapacityMarketgrowingx20in5-7years:
actuals year 2014: 0.98 GW installed (excluding PSH)
forecast year 2020: 20-25 GW
Renewables: 10 -15 GW Ancillary Services: 6 - 8 GW Distributed: 3 - 4 GW
Sources: Navigant, IEA, IRENA According to a report by Germany Trade and Invest the solar PV battery in German market is forecast to reach more than 100,000 systems to be sold annually by 2018 (from 6,000 in 2013).
MarketAnalysisEnergyStorageMarketTrendsandOutlook
Poten1alMarketSize
TotalAddressableMarketin$Bby2020:200-400
McKinseyresearchlistsEnergyStorageasoneofthekeydisrup>vetechnologyfornextdecadewithaglobaleconomicimpactof$B100-600.
EuropeanEESmarketaccountsforabout30-40%
ofworldwidemarket.(about$B80-160)
Renewablesandelectricitystorage(IRENAJune2015)…es>matesthat150GWofbaGerystorageand325GWofpumped-storagehydroelectricitywillbeneededtodoubletheshareofrenewablepowergenera>onby2030.
MarketAnalysisGlobalMarket–forecast2014-2023
Source:MAINelabora0ononNavigantResearchdata(a) includes4,000MWand$2,200mofu>lityscalewind/solarintegra>on
Year2014 Year2023 CAGR
TypeofStorageApplica1on
installedpower(MW)
annualrevenue($m)
installedpower(MW)
annualrevenue($m)
(revenue)
DistributedESS 172 452 9,500 12,800 45%
Wind/SolarIntegra>on
110 150 21,800 10,300 60%
ESGAncillaryServices 538 675 (a)16,500 (a)13,000 39%
TOTAL 820 1,277 43,800 33,900 44%
MarketAnalysisKeymarkets
WhileNorthAmericacon>nuestomovethemarketforwardwithcommercialanddemonstra>onenergystorageprojects,WesternEurope–Germany,Italy,andtheUnitedKingdominpar>cular–isalsoleadingthemarketwithu>lity-scaleanddistributedstorageadvancedbaKeryinstalla>onsandannouncements.Thees>matedshareofEuropeanESSmarketisabout32%ofglobalmarket.
23%
32%
31%
8%6%
NorthAmerica
Europe
AsiaPacific
La>nAmerica
MiddleEast&Africa
MarketAnalysisEnergyStorageMarket–FlowBaKery
Poten1alMarketSizeforFlowBaGery52%shareofoverallESSmarket(*)by2017 -source:Lux,2012$7billionofESGmarketby2021(Gridstorage) -source:PikeResearch,2012
(*)excludingPHSandCAES.
Flow Battery
Implementa>onStrategy
• Masterplan• RiskAnalysisandMi>ga>on
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MasterplanTimelineandInvestments
2016 2017 2018
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
ExperimentReplica1on
ProductDevelopment
Battery Prototype 1 kW
Storage System 1kW
Storage System 10 kW
Q2 Q3
Marke1ngExecu1onMarke1ngPlan Commercializa1on
Produc1onESSmodules
Q2 Q3
PilotProject
ManufacturingSupplyChainSetup
Battery Lab 1W
€ 0.5m
€ 5-7m
€ 2-5m
MasterplanExperimentReplica>on
2015 M2 M3 M4 M5 M6
License Agreement signature
Productspurchasing
Knowledge&TechnologyTransfer
Assemblingexperiment
Conductexperiment
Measures&finetuningNew
experiment condition
Experimental battery
UniversityPartnershipsetup
TheDepartmentofChemicalScienceandTechnologiesofUniversityofRomeTor
Vergataisthescien>ficpartnerinchargeofbaKeryexperimentreplica>on.
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M7 M8
MasterplanProductDevelopment
2016
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018
Technologyscreening
DevelopmentofBaGeryComponents
DevelopmentofControlSystem
1kWPrototypeOp1miza1on
10kWSystemDevelopment&Integra1on
Tes1ng&MarketCer1fica1on
Stack 1 kW
Battery Prototype
1 kW
Optimized Prototype
1kW
Storage System 10 kW
Prototype 10 kW
Q2 Q3
Stack 10 kW
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DemonstratethetechnologicalfeasibilityandeconomicviabilityofstoragesystemsbasedonAQDSflowbaKeriesofrelevantpowerandcapacityforindustrialuses.ThetwoAQDS/HBrbaKeryprototypesof1and10kW,4hoursdischarge>me,willbetestedinlabandrealopera>ngenvironments.Intermsofmaterialproper>es,theexpectedresultswillberelatedofefficiency,cyclabilityandcost,inpar>cularforthestack:-Uniformflowdistribu>onbetweencellsandthroughbipolarplates<1%difference;-Shuntcurrentlosses<1%;-Energyefficiency>70%AC/AC;-Currentdensity>200mA/cm2;-Retainedcapacityaqer10,000cyclesofcharge/discharge>70%.-Itcanbeeasilyproducedonalargescaleatlowprice(<€400/kW).Forthemanagementandcontrolsystem:-Defini>onofopera>ngprocedures;-Analysisofthedegradedmodesandvalida>onofmi>ga>onprocedures;-Adap>veManagementforop>miza>on,andself-learning.
MasterplanProductDevelopmentProjectobjec>ves
RiskAnalysisandMi>ga>onRiskArea Poten1alrisk Mi1ga1onplan
Technology • Productsdonothaveperformance,scalability,costsasplanned
• Productsarenotcer>fiedbecauseofsafetyissue
Conductearlyassessmentoftechnologyreadiness.Engagethirdpartyforcer>fica>onandsafetyissue.
Technology&Market
• TechnologyspeedcouldmakeorganicflowbaKeryobsoleteveryquickly
• EESandflowbaKeryindustryishighlycompe>>vedrivingbaKerypricedownquickly
Monitorresearchtoquicklyiden>fynewtechnologiesandimprovements.Monitorcompe>torsac>vity
Financial • Requiredasubstan>alamountoffundstofinancecapitalrequirementsandthegrowthofthebusiness
FocuseffortsonfewproductsUseofPublicgrantsfunding
Market • BusinessesandconsumersmightnotadoptflowbaKerystoragetechnologyinthenearfuture.
• Wemaynotbeabletorapidlygrowtoachieveprofitability
• marke>ngandsellingproductsinnumerousinterna>onalmarketscouldbedifficultandexpensive
AdaptpricingstrategyReviewProductandServiceofferingUseoflocalsalesworkforce
Opera>on • noexperienceinmanufacturingstoragesystemproductsonalarge-scalebasis
Partnerwithmoremanufacturerstolimitrisk.
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FinancialBudgets&Forecasts
• Financialhighlights• Profit&LossForecast• PublicFundingopportuni>es
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FinancialhighlightsEESPriceprojec>ons
EESsystemprice(forwhichbaKerycontributesfor50-70%)representstodaythemajorbarrierforenergystorageadop>onanditispredictedtodeclinebynextdecadetarge>ngarangeof$100-150/kWh(equalto$600-900/kWforatypical6hdischarge>me)duetoperformanceimprovementsandscaleefficiency.
FinancialhighlightsPreliminary5yearsSalesforecastGESisplanningtosellthefirst5kWESSsystemmoduleby2017andisforecas>ngasteadygrowthofrevenueupto$170million/yearin5yearswithamere2%ofmarketshare.GEStargetstodeliveryEESsystemsupto200MWofannualpowerby2021(about800MWhenergy)atapricebelow$200/kWh.
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2,615,8
52,1
86,2
165,3
0,0
50,0
100,0
150,0
200,0
250,0
2017 2018 2019 2020 2021
AQDSbaKeryInstalled/year(MW)
RevenueForecast($m)
Profit&LossForecastPreliminaryPriceandCostAssump>ons
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AverageESSprice €200/kWh
TargetESScost <€170/kWh(85%offinalprice)– BaKery(electrolyte,stack) 60-65%– PowerConversionSystem – BaKeryManagementSystem 35-40%– Other(TMS,tanks,frames,…)
Totalcosts 2016–2018 2019-2021• SG&A €3.2m €8m• R&D €5m €4.5m
Profit&LossForecastOpera>ngProfit5yearsforecastGESisplanninginvestmentsinR&Dforabout€10m.
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-4,0
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
12,0
2016 2017 2018 2019 2020 2021
R&D
S&GA
Opera>ngProfit
PublicFundingFundingOpportuni>esforGES
EUROPEANUNION–FASTTRACKFORINNOVATIONPilot(FTI)TheFTIpilot(2015-2016)istheonlyfullyboKom-upmeasureinHorizon2020promo>ngclose-to-the-marketinnova>onac>vi>esthatisopentoalltypesofpar>cipants.Thebudgetfor2016isofEUR100million.Calldeadline:December1,2015.EUROPEANUNION–Horizon2020Workprogramme2016-2017‘Secure,CleanandEfficientEnergy’ThenewWorkProgrammefor2016-2017intheareaofH2020energyresearchwillbepresentedon14September2015.FirstcalldeadlineisexpectedtobeinApril2016.ProvinceofTrento(Italy)–Fundsforappliedresearchprojects(Lawn.6/99)GEShassubmiKedonJuly2015arequestforfundingtodevelopthe1kWand10kWbaKeryandstoragesystem.ForthisprojectwearepartneringwiththeresearchcenterFBK(Founda>onBrunoKesslerhKp://www.uk.eu/andhKp://ares.uk.eu).
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Go-ToMarketApproach
• TargetCustomers• Product&Services
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Go-ToMarketStrategyTargetCustomers
TheTargetMarkethasbeensegmentedinthreemajorclustersofendcustomersdependingontheApplica>onareaoftheEESSystem:• Buildingowner/energymanager• SolarandWindplantowner/operator• TransmissionGridSystemOperator(TSO)Giventhedifferentregulatorylaws,standardsandincen>veschemesexis>nginEuropefortheenergysectoreachsegmentwillbeproperlyaddressedatcountrylevelwithlocalsalesforcestructure.
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Go-ToMarketStrategyProducts&Services
Productfeatures:ThreeEESSystemproductsmodularandscalableandhavebeendefinedtocovermarketneedsbasedonpower/energyrequired:
– EESSystemSmall: 5–50KWp 2-8h– EESSystemMedium: 50–500KWp 2-6h– EESSystemLarge: 0.5–5MWp 2-6h
Services:• Preliminaryenergyauditandeconomicanalysis• BusinesscasedevelopmentforESSadop0on• EnergyStorageSystemandSitedesignandengineering• Submissionandapprovalofallnecessarypermitsandu0lityinterconnectfiling• Completeinstalla0on,includingallmechanicalandelectricalwork• Systemstart-up• Fullmaintenanceandservice
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Go-ToMarketStrategyProductValueProposi>on
• EESSystemasaturn-keysolu1onreadyforuse.ForcustomerswhowanttoowntheirEESSystem,GESoffersa"turn-key"op0onprovidingequipment,systemsengineering,installa0on,interconnectapprovals,on-sitelaborandstartupservicesnecessarytobringthecompletestoragesystemon-line.• EnergyStorageasaService(EESaaS)fortheendcustomer.Forcustomersseekinganalterna0vetotheoutrightpurchaseofaEESSystem,GESmayinstall,maintain,finance,own,andoperatecompleteon-sitesystemsthatsupplyelectricitystorageservicesonalong-term,contractualbasis(EESaaS).
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Businessplan
Fly High, Look Far