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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
ENERGY STORAGE: THE NEED HYDROGEN ENERGY SYSTEMS
CLEAN FUEL | ENERGY STORAGE | RENEWABLE HEAT
Electrolyser
Clean Fuel
Energy Storage
Renewable Heat
Wind Power
Grid
Solar Power
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