INCENTIVISING RESPONSIVENESS AND THE...

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INCENTIVISING RESPONSIVENESS AND THE COMMERCIALISATION OF ENERGY STORAGE: 15TH OCT 2014 | REA | BIRMINGHAM NEC

Contents

• Introduction • Energy Storage • Grid Balancing • Rapid Response Electrolysis • Power-to-gas Energy Storage • Power-to-gas Technology • Summary

INCENTIVISING RESPONSIVENESS AND THE COMMERCIALISATION OF ENERGY STORAGE: 15TH OCT 2014 | REA | BIRMINGHAM NEC

GROWING WIND GENERATION

20% of peak capacity (55GW) in Winter

20% of peak capacity (40GW) in Summer

ENERGY STORAGE: THE NEED HYDROGEN ENERGY SYSTEMS

• Evidence of grid balancing problems from Germany and Denmark • Problems start at 20% capacity; UK hits this threshold by the end of 2013 • Energy Storage is a Market Pull

Source: ITM Power plc, data from BWEA

ENERGY STORAGE: THE NEED HYDROGEN ENERGY SYSTEMS

• Evidence of grid balancing problems from Germany and Denmark • Problems start at 20% capacity; UK hits this threshold by the end of 2013 • Energy Storage is a Market Pull

UK WIND CURTAILMENT

GRID BALANCING

FREQUENCY SUPPLY SIDE DEMAND SIDE

POWER GRID Mechanical Inertia | Dynamic Coupling • 3000 rpm | 50Hz • Power | Frequency shedding • Max 4% swing 48Hz|52Hz • Obligation average 50Hz in 1hour

MECHANICAL INERTIA

POWER GRID OPERATION

THE NEED: GRID BALANCING ENERGY STORAGE | CLEAN FUEL

BALANCING SUPPLY AND DEMAND: SECOND BY SECOND

THE NEED: GRID BALANCING ENERGY STORAGE | CLEAN FUEL

BALANCING SUPPLY AND DEMAND: SECOND BY SECOND

Dynamic

Rising Frequency

Falling Frequency

Supply Side Balancing Action

Turn OFF a generator

Turn ON a generator

Demand Side Balancing Action

Turn ON a load

Turn OFF a load

THE NEED: GRID BALANCING ENERGY STORAGE | CLEAN FUEL

BALANCING SUPPLY AND DEMAND: • A total of £725m paid for balancing services in 2010-11 • Estimates in 2020 are: circa £1.9bn - £5.9bn pa • Tariffs already operational in the UK: FCDM response sub 2 seconds

ENERGY STORAGE | CLEAN FUEL

360KW POWER TO GAS

360KW POWER TO GAS MODULE Available in 1MW modules

• 80bar self pressurising • 1 sec response • 1MW | 8760MWhr

PRIMARY SECONDARY RESERVE

RAPID RESPONSE

ENERGY STORAGE | CLEAN FUEL

PRIMARY VS SECONDARY RESPONSE

RAPID RESPONSE ELECTROLYSIS

RAPID RESPONSE ELECTROLYSIS ENERGY STORAGE | CLEAN FUEL

NATIONAL GRID: PAYMENT STRUCTURE

Four Grid Balancing Payment Tariffs: • Short Term Operating Reserve (STOR) • Fast Reserve • Firm Frequency Response • Frequency Control by Demand Management

Response time

Dur

atio

n

Short Term Operating Reserve

4h 1h ~1 s 30 s 2 m

30 s

30 m

15 m

2 h

4 h

Frequency Response

Prim

ary

Seco

ndar

y Fast reserve

ENERGY STORAGE | CLEAN FUEL

BALANCING SERVICES – SUPPLY SIDE PAYMENTS

RAPID RESPONSE ELECTROLYSIS

Response time

Dur

atio

n

Short Term Operating Reserve

4h 1h ~1 s 30 s

30 s

2 h

4 h Frequency Control by Demand Management

(FCDM)

Prim

ary

Seco

ndar

y

30 m

ENERGY STORAGE | CLEAN FUEL

BALANCING SERVICES – DEMAND SIDE PAYMENTS

RAPID RESPONSE ELECTROLYSIS

Response time

Cap

acity

Short Term Operating Reserve

4h 1h ~1 s 30 s 2 m

1 MW

10 MW

3 MW

50 MW Frequency Response

Fast reserve

FCDM

Load Aggregation

ENERGY STORAGE | CLEAN FUEL

CAPACITY DELIVERY PAYMENTS

RAPID RESPONSE ELECTROLYSIS

RAPID RESPONSE ELECTROLYSIS ENERGY STORAGE | CLEAN FUEL

FREQUENCY CONTROL BY DEMAND MANAGEMENT (FCDM) • Deliver in less than 2 seconds • Maintain demand reduction | increase for at least 30mins • Demand greater than 3MW; which may be achieved by aggregating a number of small loads • Have a suitable operational metering • Provide output signal into National Grid’s monitoring equipment

INTRODUCTION

P2G RATIONALE ENERGY STORAGE RENEWABLE HEAT

ENERGY STORAGE | CLEAN FUEL

WHY POWER-TO-GAS?

POWER-TO-GAS RATIONALE

Electricity cannot be stored easily | Hydrogen can be stored easily in the gas grid

Source: ITM Power plc

ENERGY STORAGE | CLEAN FUEL

ENERGY STORAGE TECHNOLOGIES

ENERGY STORAGE TECHNOLOGIES Power-to-gas is efficient | long term | low energy cost

Source: ITM Power plc

0%

5%

10%

15%

20%

25%

30%

35%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0 2 4 6 8 10 12

Frac

tion

win

d ou

tput

cur

taile

d

Hydr

ogen

frac

tion

(vol

%)

Excess wind (TWh pa)

725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020)

Hydrogen fraction

Curtailment

HYDROGEN FRACTION VS EXCESS WIND LEVELS

ENERGY STORAGE | CLEAN FUEL

• Capturing 2.8 TWh pa of excess wind (ie 4% of 2020 output) • Requiring 978MW of electrolysis at 30% utilisation • Results in average national hydrogen content of 0.5%, reducing carbon footprint by 0.2%

Source: ITM Power plc

POWER-TO-GAS IN THE UK

ENERGY STORAGE | CLEAN FUEL

EU POWER-TO-GAS ENERGY STORAGE

EU Hydrogen Limits for Injection into the HP Gas Grid Covered by a range of local laws and EU Directives Note: interpretation of these rules is complex

Limit falls to 2% if there is a CNG station downstream

ENERGY STORAGE | CLEAN FUEL

WHERE DOES THE GAS GO?

GAS USAGE IN THE UK (DUKES 2013)

Source: Dukes 2013

Where does the gas go?

• 906 TWh of natural gas consumed in the UK in 2011 • 52% was used to provide heat • 34% burned in power stations to make electricity

ENERGY STORAGE | CLEAN FUEL

ELECTRIFY HEAT?

REFERENCE PLANT

REFERENCE PLANT | GERMANY | UK | USA

A major barrier to entry has been overcome

• NRE has been invested • Products have been standardised • Compliance in UK | EU | USA • Power-to-Gas and Refuelling Stations • £6.8m of projects under contract

HYDROGEN ENERGY SYSTEMS

P2G: ELEMENTS OF VALUE ENERGY STORAGE | CLEAN FUEL

Value to the Power Grid •Avoided wind curtailment •Avoided infrastructure upgrades •Reduced reserve power •Reduce CO2 from open cycle GTs •Absorbing reactive power

Value to the Gas Grid •Decarbonising gas •Providing renewable heat •Reducing GHG emissions

from gas transportation

Value to the UK Economy •Reducing fuel imports • Improved energy security •Creating jobs in manufacturing

• Value to the power grid • Value to the gas grid • Value to the economy

P2G: ELEMENTS OF VALUE

Summary:

• Energy storage firmly on the energy map • The case for hydrogen Power-to-gas Energy Storage is very strong • Technologies and supply chains have matured • Need to unbundle value to provide payment structures

INCENTIVISING RESPONSIVENESS AND THE COMMERCIALISATION OF ENERGY STORAGE: 15TH OCT 2014 | REA | BIRMINGHAM NEC

INCENTIVISING RESPONSIVENESS AND THE COMMERCIALISATION OF ENERGY STORAGE: 15TH OCT 2014 | REA | BIRMINGHAM NEC

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