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Energy Storage Paths To Market
David Surplus Chairman
B9 Energy Group
Paths to market
This presentation covers the following paths to market...
• Onshore wind farm re-powering • Onshore wind farm extensions • Offshore wind curtailment • Integration with Anaerobic Digestion • Integration with large scale biomass • Sub-station support and Microgrids • Independent Peak Lopping plant • Industrial site energy cost management • Solar power station development • Innovative wind farm O&M – Revenue Guarantees
Paths to market
• Onshore wind farm re-powering
Re-powering of 20+ year old wind farms • Repowering market is growing • Modern wind turbines are more productive for a given land area • Grid connection equipment has much longer life than wind turbines • Increasing the export capacity is likely to require high cost re-enforcement • Storage allows existing grid to be used • Storage is easier to finance as an integral part of a new build site
Paths to market
• Onshore wind farm extensions
Slieve Divena II • “Slieve Divena II (20MW) wind farm extension was consented in October
2007. The eight turbine site is currently on hold pending grid connection infrastructure availability. Subject to the grid connection becoming available in 2015, we expect to begin construction in late 2015.”
• Energy storage could allow the existing grid connection to be used. • Saving time, increasing revenue, reducing intermittency • Cost of storage plant is offset against grid connection cost savings
Paths to market
• Offshore wind curtailment
Offshore wind project location
600 MW wind
600 MW Offshore wind
404 + 595 + 636 + 600 = 2235MW
Curtailment of 3% to 9% in 2020
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2235 max wind generation
NI Electricity Demand 2011
Export through interconnectors? ROI and Scotland are windy too!
German offshore wind constraint
Curtailment projections
• Scenarios for increasing installed capacity of wind • Predictions of future wind speeds • Predictions of future electricity demand • Grid capacity constraints tempered by program of re-enforcement • Projection of extent and duration of curtailment • Projection of consequential loss of revenue for First Flight Wind
• Storage projects provide load to avoid curtailment • The SMP is very low at times of curtailment – see chart below • This helps maximise the arbitrage opportunity
Minimum System Marginal Price
2p to 3p /kWhr
“Load on demand” for offshore wind
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Series2
Series1
Double ROCs / EMR strike price Electricity sales
Offshore wind farm Income stream with curtailment p/kWhr
offshore wind farm income stream could
be restored at a reduced rate and...
Time
Time
NB: This is less attractive to onshore wind with 0.9 x ROCs / lower EMR strike price.
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If we provide “load on demand” to keep the
turbines running then.....
storage could be paid at the rate of 5p/kWhr....
Which makes arbitrage energy costs become
negative overall
Paths to market
• Integration with Anaerobic Digestion
B9 Energy’s 60 kTPA AD plant at Dungannon
Could sell waste heat to make ICAES more efficient
German retrofit market –
7000 AD Plants
Paths to market
• Integration with large scale biomass
• Former Power station West • 16.2 acres controlled by NIE • Additional 4.07 acres from BHC • 240MW former coal fired plant • 110kV grid connection • No competing heat customers
Proposed biomass plants in the UK
• Sub-station support and Micro-grids
Paths to market
11kV Network (3-phase)
Lecale DSU
33kV sub-station (Community Sub-station)
Farm scale AD ICAES (N I Energy Storage Demonstration Park)
“Lecale” Aggregated DSU for
11kV circuits
• Aiming to be self-sufficient in electricity • Aiming to be a net exporter of electricity • More than 70 x rural 33kV sub-stations in NI
250kW wind turbines Solar PV Additional AD 2nd life traction battery charging Ammonia production 300 houses + EVs as a captive customer base “Seagen” Tidal test site
NB: Ammonia can power... • Tractors • Fishing boats • Ferries • Standby gen-sets upsold as... • Peak lopping gen-sets
Small wind planning applications
Thermal constraint management
Microgrid revenue streams...
• Arbitrage – Buy at £20 to £30 / MWhr Sell at £80 to £250 / MWhr • “Load on Demand” services to avoid external curtailment (30% of wind strike price?) • Direct sales on long term fixed price (+RPI) basis • Consideration for avoided cost of grid upgrade • Ancillary services: Reactive power management Voltage regulation Possible provision of inertia
• Capacity market payments
Other microgrid benefits...
• Additional microgrid revenues allow voluntary reduction of ROC revenues on single generator projects – easing price rise pressure
• Security of supply to load customers is improved • Autonomous operation possible - to ride through
central system blackouts if necessary
• Independent Peak Lopping plant
Paths to market
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Winter day - 1/2 hourly demand
08/11/2011
300MW Peak
4 hour duration
“Load following” generation mode
Peak lopping services from... •Batteries •Salt cavern CAES •ICAES Expanders •NH3 powered gen-sets
• Industrial site energy cost management
Paths to market
Industrial site energy cost management • NI has 2nd highest industrial energy costs in the EU. Higher than both GB and ROI • Many industrial facilities have fitted gen-sets to run at peak times of day • ICAES is projected to provide a cheaper solution for such peaker plant applications • LightSail have focussed strongly on this route to market
• Solar PV management
Paths to market
Solar PV management
Smooth out the cloud variations and reduce ramp rates
Shift export from lunch time to tea time
• Innovative wind farm O&M – Revenue Guarantees
Paths to market
Guaranteed Revenue Post Warranty
• As wind turbines get larger, O&M KPI’s are shifting focus from “availability” to “Yield” • Deployment of an energy storage facility allows aggregation of the wind farms output • This output can be sold at higher prices to compensate for a turbine being off for planned maintenance or a fault condition • Revenue can then be guaranteed in the O&M agreement • Higher yields can be achieved by doing planned maintenance on calm days • Wind farm technicians can service ICAES systems on windy days
THANKYOU!