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Canary

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Solar Energy + Energy Storagein Europe

MONETISING SOLAR + STORAGE EU3 MARCH 2016 /// MILAN, ITALY

www.monetisingstorage.com

Disclaimer: This overview is provided by Solarplaza International BV (“Solarplaza”) as a service to its customers on an “as-is, as-available” basis for informational purposes only. Solarplaza assumes no responsibility for any errors or omissions in these materials. Solarplaza makes no commitment to update the information contained herein. This overview is protected by copyright laws, and may be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner only by accrediting Solarplaza as the source of it and proving full hyperlink to www.monetisingstorage.com where it was originally published. Data as of 29-12-2015.

www.monetisingstorage.com

Top 10 Solar + Storage Installations

Project Name Country Technology Type Power (MW/MWh)

Equity Owner Technical provider(s)

Status Main Use Case

1. Bardzour Solar Farm and Storage Project

FR Lithium-ion Battery 4.5/9 Akuo Energy Saft, Ingeteam, Akuo Energy

Contracted Renewables Capacity Firming

2. ADEME Intelligent Electricity Networks

FR Lithium-ion Battery 3.3/1.65 Saft Saft Operational Renewables Capacity Firming

3. Graciosa Younicos Project

PT Lithium-ion Battery 2.5/2.8 Graciolica NGK Insulators Ltd., Samsung SDI, Leclanché, Younicos,

Under Construction

Distribution Upgrade Deferral

4. INGRID Hydrogen Demonstration Project

IT Hydrogen Storage 1.2/39 INGRID Consortium Hydrogenics, McPhy

Under Construction

Renewables Capacity Firming

5. Almacena Project ES Lithium-ion Battery 1/3 Red Eléctrica de España (REE)

A123 (NEC Energy Solutions, Inc.)

Operational Frequency Regulation

6. Smart Region Pellworm

DE Lithium-ion Battery + Vanadium redox flow battery

1/0.56 + 0.2/1.6

Hansewerk AG SAFT Batteries Operational Electric Energy Time Shift

7. EPFL Distributed Electrical Systems Laboratory

CH Lithium Ion Titanate Battery

0.7/0.5 EPFL Leclanche Operational Renewables Capacity Firming

8. Slepe Farm: Solar + Storage

UK Lithium-ion Battery 0.5/0.25 Farm Power Apollo Anesco (BYD), Opus Energy, Farm Power Apollo

Operational Electric Supply Reserve Capacity - Spinning8

9. EEBatt - Distributed stationary battery storage systems

DE Lithium Iron Phos-phate Battery

0.3/0.2 Technical University of Munich

VARTA Storage GmbH, Technical University of Munich

Under Construction

Electric Energy Time Shift

10. Win Inertia Ferro-linera WESS

ES Electro-chemical Capacitor

0.3/0.07 Administrator of Rail-way Infrastructures (ADIF)

Maxwell Technolo-gies, Win Inertia

Operational Transportation Services

Top 3 Announced Solar + Storage Installations

Project Name Country Technology Type Power (MW/MWh)

Equity Owner Technical provider(s)

Status Main Use Case

A. 30 MW SK Innova-tion BESS

DE Lithium-ion Battery 30/? Saxony-Anhalt, Germany

SK Innovation Announced Renewables Capacity Firming

B. Tilos Project GR Sodium-nickel-chlo-ride Battery

2/3 EU FIAMM Energy Storage Solutions SRL, SMA Solar Technology AG, EUNICE Laborato-ries SA

Announced Distribution Up-grade Deferral

C. Corsica Langa Project

FR Lithium-ion Battery 2/1.3 Langa Group Saft, Schneider Electric

Announced Renewables Energy Time Shift

Explanation of terms:• Renewables Capacity Firming - Use of storage to mitigate rapid output changes from renewable generation. These rapid output changes must be

offset by other “dispatchable” generation.• Distribution Upgrade Deferral - Defer the need to replace or to upgrade existing T&D equipment • Renewables Energy Time Shift - Energy storage to perform renewables energy time-shifting for end-use customers that generate renewable power

onsite.• Electric Energy Time Shift - Energy time shift involves storing energy during low price times, and discharging during high price times.• Transportation Services - Energy storage installed for electric vehicle charging purposes• Frequency Regulation - Moment-to-moment reconciliation of the supply of electricity and the demand for electricity.• Electric Supply Reserve Capacity (Spinning) - Generation capacity that is online but unloaded and that can respond within 10 minutes to compen-

sate for generation or transmission outages.

1

2

8

6

9

10

7

A

3

5

C

4

B

“A next-generation smart grid without energy storage is like a computer without a hard drive: severely limited.” - Katie Fehrenbacher, GigaOm

“While batteries remain the most expensive component of an energy storage system and have the most room for price declines, savings will be found across projects’ entire value chain.”- Luis Ortiz, GTM Research

“Residential battery storage will change entire infrastructure of the world.” - Elon Musk, Tesla

“Energy storage is becoming increasingly important to help strengthen the reliability and flexibility of the grid and integrate more renewable power onto the system.” - Phillip Grigsby, Duke Energy

“We believe 20-30 per cent yearly cost reduction is likely (for lithium-ion batteries), which could bring them at commercial/utility scale to the point of mass adoption potential before 2020.” - Vishal Shah, Deutsche Bank

“When overall system cost decreases are considered, we believe solar + batteries will be a clear financial choice in mature solar markets in the future.” - Jerimiah Booream-Phelps, Deutsche Bank

“The wind doesn’t always blow and the sun doesn’t always shine.”- Anonymous Cliché Person

Remarkable Quotes

Including NaS batteries, Terna is the European TSO with the most energy storage on the grid: 278 MWh of sodium based batteries!

El Hierro is a Canary Island that sometimes runs on 100% RE (and other times a bit less)

Ireland is the most interesting European country for ancillary services by energy storage

PV installations with storage

attached will grow from just over 200 MW

in 2014 to 3,500 MW in

2018

The energy storage market

is set to ‘explode’ to an annual

installation size of 6 GW in 2017 and over 40 GW

by 2022, from an

Exact figures vary a little bit, but

Li-ion batteries are now on

average priced around $300 / kWh. General

Motors however (IHS Technology) initial base of only 0.34 GW installed

in 2012 and 2013. (IHS Technology)announced that entering 2016, their

battery cells will cost $145 / kWh..!

Remarkable Facts

$3,000

$2,500

$2,000

$1,500

$1,000

$ 500

2013 2014 2015 2016 2017 2018

An

nu

al S

ales

($ m

illio

n)

The Combined Market for Integrated Solar and Storage Will Reach $2.8 Billion in 2018

Solar ($ million) Storage ($ million)

SOURCE: Lux Research Inc. (www.luxresearch.com)

2012 2013 2014 2015 2016 2017

20

18

16

14

12

10

8

6

4

2

0

SOURCE: IHS Research Inc.

Rev

enu

es ($

bn

)

World Market for Grid-Connected PV Storage

Projections