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Energy Storage for Low Carbon Grids

Energy storage:

a game changer for the energy market

Goran Strbac Imperial College

0"

5"

10"

15"

20"

25"

30"

10" 20" 30"Percentage"of"wind"curtailed"

Wind"penetra8on"(GW)"

Year U'lisa'on

2015 55%

2025 35%

System integration challenges of lower carbon system

2030+ <25%

Degradation in infrastructure utilisation

Balancing and need for flexibility

Poten'alvolumeofthemarketforflexibletechnologies–storage-post2030UK>£8bn/year

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3 3

System benefits flexibility (storage) CCC Roadmap scenarios

Meeting carbon target with minimum low carbon generation

Localdistrictlevel UK&EUsystemlevel

DE-NW

DE-NE

DE-S

DE-W

NL

BE

FR-NE

FR-NW

IT-N

NO-N

FR-SE FR-SW

NO-S

SE-S

SE-N

IT-S

AT-E CH

ES-CE

ES-N

ES-NE

ES-S

DK-W

PT

GR

UK-S

CZ-W

UK-N

IR

BG

RO

HU

SK

SI

PL-S

FI

EE

LV

LT

YU

LU

ES-SE

CZ-E

AT-W

BiH + HR

PL-N

AL

DK-E

IntegratedLocal&Nat&IntInfrastructure

Demand-SideResponse

FlexibleGeneration

Network Storage

Increasingassetutilisationandefficiencyofsystembalancing

|h|!

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|y|!y = 1

s = 1

d = 1

h = 1 Δhh

Δss

Δdd

Δyy Years&

Seasons!

Days!

Hours!

Mins/Secs!

Milliseconds&

Δmm

ΔmS

Whole-system modelling critical for capturing Time and Location interactions in low carbon systems

Time

Tongland

THE SHETLAND ISLANDS

400kV Substations275kV Substations132kV Substations400kV Circuits275kV Circuits132kV Circuits

Major Generating Sites Including Pumped Storage

Connected at 400kVConnected at 275kVHydro Generation

2008/09 TRANSMISSION SYSTEMAS AT 31st DECEMBER 2007

ISSUE B 15-07-09 41/177625 C Collins Bartholomew Ltd 1999

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21

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109

8 2

1

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67

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Pentland Firth

17

16 15

14 11

12 10

13

9

867

5

9

10

11

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12

14

2

3

41

23

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Space

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Multi-service provision by storage •  Arbitrage

ü Participate in day-ahead energy market •  Balancing services

ü Participate in real-time balancing market

•  Frequency regulation services ü Providing primary/secondary / tertiary frequency regulation services

•  Contribution to meeting peak demand ü Reducing need for peaking plant

•  Network Support ü Reducing need for network reinforcement

•  Low carbon generation mix ü Meeting carbon targets with minimum LC generation

•  Option value ü Providing flexibility to deal with uncertainty

0.001$

0.01$

0.1$

1$

10$

100$

1000$

10$kW$ 100$kW$ 1$MW$ 10$MW$ 100$MW$

Storage(Time((m

inutes)(

Storage(Power(Requirements(for(Electric(Power(Applica;ons(

(Management(of((

Low(Carbon(System($

Power(Quality(&(Reliability(Transmission(

System(Stability(

Energy(Arbitrage(

Rapid(Reserve(Customer((Energy(Management( TN(Voltage(

Regula;on((

Gen(&(TN((Deferral(

Frequency(Response(

10h((((1h((((((1m((((((1s((((100ms(

DN,(TN(&(Gen(Deferral(

DN(Voltage(Regula;on((

Batteries

Thermal Storage

Flywheels / capacitors

Storage technologies and grid applications: Hybrid Solutions should be considered

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7 7

Business case for energy storage: Provision of multiple services and access to corresponding revenue streams

0 1,000 2,000 3,000 4,000 5,000

(1)=Arbitrageonly

(2)=(1)+Balancing

(3)=(2)+PVsupport

(4)=(3)+Networksupport

(5)=(4)+FRprovision

(6)=(5)+Capacitymarket

Value(£/kW)

EnergyArbitrage Balancing PVSupport NetworkSupport FR CapacityPayment

Flexibility- market design?

National level services

Local level services

Value of storage in supporting system balancing

2015 2030

ShareofAncillaryServicesFrom1.5%to25%

2015 2030

5

!10

0

10

20

30

40

BaU Smart(sched. Fully(smart

Carbon

(emission

s(from

(sup

plying(EVs((gCO

2/km

)

DEDDK

Italy

UKDRI

Spain

!!

!!

!!

0

1000

2000

3000

4000

5000

Va

lue

of f

re

qu

en

cy

re

sp

on

se

(£

/kW

)

2015 2020 2030

Frequency regulation challenge

Storage increases the ability of the system to integrate intermittent RES

High Flex

No Flex Whole-SystemCostsandcompe''venessofRESdrivenbybysystemflexibility(storage)Marketdesign?

WSCRES= LCOERES System Integration Cost

±

6

11 11

Size of the storage tank has a significant impact for large volumes of deployed storage capacity

Value of storage with different durations (operation costs)

Avoidingnetworkreinforcementwithenergystorage

Demandgrowth

?

DemandGrowth

A B

Fundamentalreviewofnetworksecuritystandards:Establishinglevelplayingfieldiscri'cal

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Flexibility – key driver for cost effective evolution to low carbon energy system

Flexibility –Storage and flexible demand

Carbonbenefitsofstorage

UKscenario

Noflexibility

Flexibility/storage=10GWlessnuclear

Flexibility/Storage=15GWlessoffshorewind

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8

15

Dealingwithuncertaintyinfuturedevelopment:where,whenandhowmuchtoinvest?intowhat?

?

?

Significant value in investing in flexibility to deal with uncertainty

Present deterministic planning leads to investment strategies that may ignore energy storage and favour conventional investments

Interconnection Demand

Response

Storage Flexible

Generation

Increasing asset utilisation and efficiency of

operation

Warning from economists: think about competition!

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Challenges•  Technology:reducingcosts,improvingperformance...

•  Standards,Markets&Policy– Networkplanningstandards,level-playingfield,T&Dservices

– Marketdesign–alignobjecMvesofindustrywithobjecMvesofsociety...

– OpMonvalue...– RegulaMon,businessmodels..

•  SignificantIncreaseinresponsibiliMesandcomplexityofsystemoperaMon

•  Government:roleofstorageinUKlowcarbonenergyfuture–turningtheproblemintoopportunity?

Energy Storage for Low Carbon Grids

Energy storage:

a game changer for the energy market

M Aunedi, D Pudjianto, F Teng, R Moreira, P Djapic, I Konstantelos, Goran Strbac