storage: the dno perspective - power...
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2016. UK Power Networks. All rights reserved 1
Adriana Laguna
Storage: The DNO Perspective Evidence from SNS
2016. UK Power Networks. All rights reserved
• £17.2m (£13.2 LCNF award)
• 4 years (2013 - 2106)
• Location: Leighton Buzzard
• Energy capacity: 10 MWh
• Real power: 6 MW
Smarter Network Storage: Innovation
Partners
Suppliers
2016. UK Power Networks. All rights reserved
Smarter Network Storage
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We are the first to deliver multiple services to the DNO and TSO through different contracting mechanisms
Our system schedules the battery’s activities and dispatches the storage system when required
We have provided BEIS, Ofgem and the industry insight to the regulatory and commercial barriers of storage
We have built, developed and now operate a
6 MW / 10 MWh energy storage facility
We have published analysis on different business models and value of available services
2016. UK Power Networks. All rights reserved
What were we trying to understand?
• Technical functionality: is it really multi-purpose?
– Support distribution network
– System stability
• How fast can it respond?
• Can it do several things at the same time?
• Is there value to customers from investing in this technology?
2016. UK Power Networks. All rights reserved
Operation and value
• How does SNS support the network?
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33/11kV substation Leighton Buzzard
town
Wind farms
Grid scale PV
TSO
2016. UK Power Networks. All rights reserved
Peak shaving: SNS trial results
• Best value for the DNO: deferred reinforcement: £6.2m – increase the capacity of the
Leighton Buzzard substation
• Provision of the service with Active Power, Reactive Power or both
• There are synergies in providing local network relief and reducing congestion at GSP
• Total requirement: 97 hours, 48 days, 19.9 MVAh/day max 6
2016. UK Power Networks. All rights reserved
Voltage support
• The reactive capability of the
plant can add value in the power
factor correction and the voltage
support of the network
• Provision of the service with
Active Power, Reactive Power
or both
• Can reduce losses, improve the
power quality and extend the life
of the local voltage control
system
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SNS exports or imports
reactive power to retain the
voltage within the set limits
2016. UK Power Networks. All rights reserved
Multipurpose capabilities
• SNS demonstrated the provision of different services utilising its Active and
Reactive power capabilities
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SNS provides Dynamic
FFR utilising Active power
SNS provides Voltage
control utilising Reactive
power
2016. UK Power Networks. All rights reserved
What did we learn?
• Energy storage operators need to encompass load
forecasting, price forecasting and risk management skills
in order to optimise operating schedules and maximise
the value of the asset
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2016. UK Power Networks. All rights reserved
Key findings
The energy storage plant should not stay idle due to the auxiliary
consumption and the running connection costs
Not all services are economically favourable for an energy storage system
Firm Frequency Response is currently the highest valued commercial
service for storage
Multiple provision of services provide higher value (i.e. FFR with capacity
market)
Profitability of tolling is currently low but depends on the market conditions
and the continuous monitoring in operations
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2016. UK Power Networks. All rights reserved
Does SNS stack up?
• Four key factors determine the business case for storage:
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Capex Opex Revenues Financing
2016. UK Power Networks. All rights reserved
Size of storage is critical to the cost
• To provide a response of under one second and sustain for 15 minutes…
you only need 0.5 MWh for each MW
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EFR
Firm Frequency Response
Short Term Operating Reserve
Distribution peak shaving
15 min 2 hrs 30 min
2016. UK Power Networks. All rights reserved
Key variables for storage CBA
• Cost of storage
–Not just batteries!
–Depending on the size and location specific
• Revenue streams – certainty on income
• End value assumption – what will the asset be worth in
10 years?
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2016. UK Power Networks. All rights reserved
Insights from SNS
• Targeting and capturing value from the current balancing services is
essential for project economics, but specialisation around today’s products
carries risk
• Developing storage projects to provide a single service for a short term is
not efficient for the electricity system in the medium and long term
• There is a balance to be struck between pursuing short-term value and
catering for longer-term uncertainties
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2016. UK Power Networks. All rights reserved
Recommendations
• Whole system approach to service and product design to integrate battery
storage effectively
• Improve visibility of opportunities for batteries to provide services to DNOs
and the framework within which this operates
• Explore the possibility to provide access to longer-term contracts to improve
revenue certainty and mitigate risk
• Define storage as a distinct activity to enable the market
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2016. UK Power Networks. All rights reserved
SNS: a fundamental contribution
Smarter Network Storage has been fundamental in informing the industry
on the how the uptake of storage can materialise. The regulatory barriers
unveiled by the project are now the basis of the government’s policy
agenda
National Grid have the best leverage to trigger the market. However, there
are no drivers for developers to connect storage at specific distribution
network locations
DNOs must work collaboratively with NG to ensure we bridge the gap
between TSO services provision and DNO potential requirements
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2016. UK Power Networks. All rights reserved
Future of storage looks bright
Increasing need for flexibility
For system stability
For electricity network
Improving enablers
Falling storage costs
Increasing storage experience
New services development
Increased focus on storage
Stronger business case for
storage deployment
2016. UK Power Networks. All rights reserved
We are leading the charge on storage
Making transition to BAU simpler
Developed the ENA storage
application form
Conducting storage surgeries
for customer
Making storage information accessible
Published two guidance for
storage
Leader on storage heat maps
Starting trials for further DSO capabilities
Domestic Energy Storage and
Control project
Transmission & Distribution
Interface 2.0
2016. UK Power Networks. All rights reserved
Going forward
• We will seek flexibility services next year
• We must continue to collaborate with government and regulator on
addressing the regulatory challenges
• We will work with the System Operator to improve our interface
• We will always seek the lowest cost solution for our customers out in
the market
• Where the market cannot provide our requirements we should not
be excluded from building and operating storage solutions
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2016. UK Power Networks. All rights reserved
More Information available at:
http://innovation.ukpowernetworks.co.uk