The Future of Energy Storage

By Alvaro Garcia MartinezManaging Director of SREnergy

Wednesday, 12th April 2017

Modern Applications and Latest Developments

The Kettle

How does the Kettle Relate to Energy Storage?

Agenda

Part 1 – Our Energy Challenges

Part 2 – Introduction to Energy Storage

Part 3 – How Do Batteries Work

Part 4 – Assessing Current Technology

Part 5 – Basic and Advanced Applications

Part 6 – Summary

About the Speaker

Our Energy Challenges

✓ Matching Supply and Demand

✓ Energy Losses

✓ Volatile Renewable Supply

Matching Supply and Demand

Source: Spanish National Grid 2016

The amount of electricity needs to match exactly the amount of consumption every instant. The challenge is forecasting energy consumption at every second.

Energy losses

Source: US energy use 2015, Lawrence Livermore national laboratory, 2016

In our current energy mix, more energy is lost in transformation and transmission than used.

Volatile Renewable Supply

Source: Wind power generation Australia 2015, AEMO 2016

Renewable energy is cheap and plentiful. Unfortunately, we cannot choose when the wind should blowor when the sun should shine.

Introduction to Energy Storage

✓ Basic Concepts

✓ History of Batteries

✓ Market Landscape

The Basics of Energy StorageEnergy storage breaks the classic energy supply-demand tie up.

The History of Batteries

250 BC – 224 AD

1749

1800

1859

1970s

Energy storage has a been a topic of research for hundreds or even thousands of years.

First BatteryBenjamin Franklin

Voltaic PileBaghdad Pile

First Rechargeable Lead Acid Battery

First Lithium Ion Battery

Modern Batteries

Source: Bloomberg New Energy 2016

Due to resource scarcity and a variety of applications, many battery technologies have been developed. Lithium ion has been the dominant technology due to its energy density, performance and life.

Market LandscapeEnergy has been a prolific industry since the first electricity grid was established. Nowadays, there are companies working at every level of the supply chain, some of which are world leaders.

Sources Transmission Consumption

WindVestas

Gamesa-SiemensGE

SolarTrinaJinko

Canadian Solar

Other generationAreva

BechtelTotal

National Grid

National companies

UtilitiesEDFEnelEON

IberdrolaDuke Energy

Network Operators

Local companies

Residential

CommercialStorage

Batteries

BYD

Panasonic

AESC

LG Chem

Services

Sonnen

Sharp

Moixa

Other hardware

SMA

Siemens

ABB

Victron

How Do Batteries Work

✓ Component Description of Lead Acid

✓ Component Description of Lithium Ion

Component Description - Lead AcidLead acid has been the "go to" technology for electric vehicles and stationary storage, for numerous years.

Source: Saylor Academy 2016

Component Description - Li ion

BMS

BYD

Lithium ion is already the most popular technology for portable applications. It is already becoming the number one choice for stationary applications.

Source: Saylor Academy 2016

Power cables:Large → InverterSmall → BMU

Communications cable to any of the two RS485 port

CAN ports H&L

BMU

BATTERY

Important:Set up the correctADDR

Component Description - Li ion

Source: BYD 2017

Assessing Current Technology

✓ Safety

✓ Performance

✓ Return on Investment

Safety

Is it safe to have batteries in your home?

Safety Features of Li Ion Among the various lithium ion chemistries, there are significant differences in runaway temperatures and energy released.

Source: Electropedia, 2005

Safety Testing

✓ Overdischarge ✓ Short Circuit ✓ Nail Penetration ✓ Short Circuit ✓ Fire Simulating

✓ Overcharge ✓ Oven ✓ Crush ✓ Soaking Simulating ✓ Gas Flaming

Thanks to the expansion into consumer goods and electric mobility, modern batteries go through extensive safety testing and quality control.

Source: BYD 2017

Performance

What matters when choosing a battery?

Parameters Impacting Investment

Company Product Chemistry

Depth of

Discharge

(DOD)

Nominal

Lifetime Cycles

C-rate

(kw/kwh)Efficiency Weight/kwh

Tesla (Panasonic) Powerwall 6.4 NMC 100% 3650 0.47 92 15

LG Chemical RESU 6.5 Main Pack NMC 90% 6000 0.6 95 10

Pylon Extra2000 LiFePO4 80% 4000 0.5 92 16

Aquion energy Saltwater Battery Saltwater 100% 2500 0.18 85 48

Narada REXC Lead carbon 80% 3000 0.33 97 38

BAE Gel Secura PVV Solar Lead acid 50% 3000 0.34 80 32

BYD 2.5Kw B-Plus Module LiFePO4 100% 6000 1 97 16

Source: Manufacturer datasheets 2016, Note: Samsung is not in the list as their datasheet doesn´t show separate battery parameters

Battery Selection How to determine the best long-term return

There are several performance factors to take in consideration when choosing the best battery. Some of these will impact investment directly and others will impact your system design.

Cell (RT and 45℃) Pack (RT and 45℃)

Cell Cycle Life Test：

50Ah, 1C/1C，100%DOD

Cycle Life as a Key DriverOne of the main recent advances in battery technology has been cycle life. Modern lithium ion batteries can work for several decades.

Cycle LifeHighly Accelerated Life Testing (HALT)

Source: BYD 2017

Cost

What is the true cost of batteries?

Cost Drivers

Source: Bloomberg New Energy 2016

Thanks to economies of scale (especially related to electric mobility), changes of format and improvements in design and manufacturing lithium ion batteries will continue to decrease price.

Battery Cost ForecastData Based on Survey on Key Manufacturers

Economies of Scale

Production Capacity and Automation

Main cost and quality driver will be the necessary investment to automatize the manufacturing of cells

Source: Bloomberg New Energy 2016

High quality-low cost battery manufacturing require very large investment in manufacturing equipment and techniques. Therefore, obtaining a large market share will be key to competitiveness.

Basic and Advanced Applications ✓ Storage at Home

✓ Basic and Advanced Uses

Storage At Home

Source: BYD 2017

Basic and Advanced Applications

✓ Renewable Energy deferred generation

✓ Peak/Off-peak consumption

✓ Peak shaving

✓ Frequency response

✓ Demand side response

✓ Cash pull out

✓ Energy sharing

✓ Virtual Energy trading

✓ *Energy saving incentives

Basic Advanced

✓ No access to power supply -off grid

✓ Intermittent power supply -backup

✓ Excess of self generation -Increased self consumption

The reliability, high power output and response time that Lithium ion provides has made it possible to bring in applications of energy storage that can change the electricity landscape.

Summary

✓ Key Takeaways

✓ Thoughts for the Future

✓ Energy storage, at any level, is a reality today.

✓ Current performance/cost is sufficient to see the

market develop.

✓ A greater development of advanced business models,

especially grid support services, will trigger

exponential growth.

Summary

✓ The energy positive house is a reality.

✓ The energy positive community is a reality.

✓ Can we do an energy positive city or country.

✓ How? (HVDC power lines, High efficiency

prefabricated construction...)

Thoughts for the Future

Thank you. Alvaro Garcia Martinez

Managing Director Storing Renewable Energy

P: (UK) +44 734 190 2891, (ES) +34 639 433 225 E: agarcia@srenergy.co.uk W: www.srenergy.co.uk