Solar & Storage the Opportunity Battery & Energy Storage Show – Warwick University

Dr. Mike Garland – Head of Delivery & Operations - E.ON Solar & Storage UK

29.11.2017

M.Garland

E.ON positioned for the new energy world

Energy Networks RenewablesCustomer Solutions

Customised energy solutions

> 22 million customers across Europe~15% of EBIT from Heat & New Solns

State of the art green energy

> 6GW delivered globally> 10bn Euros invested

Connecting platform

> 860,000km of electric & gas grids 390,000 renewable connections

Solar & Storage in E.ON

Energy Networks RenewablesCustomer Solutions

B2B & B2MB2C

Innovation projects

DSO & TSO

PV + Storage Multiple site specific, central market & grid service applications

RES Developers

Small scale Large scale

Texas waves project USABlackburn Meadows , UKPellworm project Germany

Solar & Storage is just one solution which we offer to customers around the world…

Boilers

Insulation

Smart meters

E.ON See Energy tool kits

Solar & storage

Demand side response (DSR)

Energy storage

EV charging stations

Energy connections

Combined Heat &

Power (CHP)Energy

Efficiency

District heating

Energy Management

Systems (EMS)

Air source heat pumps

Street lighting

Onsite generation

Gas & Electricity Supplies

Operation & Maintenance

Market access & optimisation

E.ON energy solutions for homes, business, & communities

The opportunity for Solar & Storage

Source: IEA & BNEF

Historic & current global solar capacity

100

200

300

400

GW

Predicted future solar capacity?

IEA 2050

Estimate

The opportunity for Solar & Storage

Source: OFGEM & National Grid FES 2017.

0

5

10

15

20

25

30

35

40

45

50

2008 2013 2018 2023 2028 2033 2038 2043 2048

GW

UK Solar – Actual & estimated capacity

Actual growth

Two Degrees

Slow Progression

Steady State

Consumer power

Average

The opportunity for Solar & Storage

Source: IRENA, DOE , IEA & BNEF

Current & predicted global storage capacity

Today ~ 1.5GW and ~ 1GWh

Power vs Energy

Solar & storage applicationsDue to the modular nature of solar & storage all storage applications can be accessed...

Frequency services - E.ON’s EFR project first to be delivered

• Development project start summer 2015 - Leveraged many cross functional teams and assets within E.ON.

• Four year EFR contract (£11.09 per MWh) & 15 year CM contract (£22.50 per MWh) won in 2016.

• Build started early 2017 & system operational in Oct 2017

1

2

Low frequency event , dropping to 49.89Hz. Battery system discharges power to a peak of +3,600kW.

High frequency event , rising to 50.16Hz. Battery system charges power to a peak of -2,700kW.

1

2

10MW, 5MWh - Li-Ion battery

29.11.2017

Frequency response markets dominate large scale business cases

Source: National Grid FES 2017 & Bringer Partners

02

4

6

8

10

12

14

16

2015 2020 2025 2030 2035 2040 2045 2050

Ins

tall

ed

ca

pa

cit

y (

GW

)

Two Degrees Slow Progression

Steady State Consumer Power

4040

Storage cap. under Consumer Renewable scenario

• Today frequency market volumes ~0.6GW verses ~3GW of installed storage + other flexible technologies.

• 2030 1.8-2.4 GW of frequency response verses ~5.8-8.8 GW of storage + other flexible technologies.

• Consumers could drive storage capacities higher still.

UK future Storage Capacity? UK future value of frequency response?

Need for floor price?

Beyond frequency response - Iron Horse project in Arizona, USA

Project Description

• Storage retro fitted to existing solar park

• Commercial operation since April 2017

• Project award 10 year contract through a competitive tender

Storage applications & advantages

• Provides services to the distribution network i.e. frequency response & voltage control.

• Increases the value and quality of the renewable energy generated via ramp rate smoothing & curtailment avoidancethus maximises consumption of renewable energy.

• Utilised existing grid connection

10MW, 2.5MWh - Li-Titanate battery

2.4MW Solar PV

Small scale Solar & Storage for residential customers

Currently offering Solar & Storage products to customers

across Europe

Range of products to reflect country & market specifics

Global marketing campaign with the Gorillaz in 2017

Customer drivers for purchasing Solar & Storage

• Generation & use of own low carbon renewable power

• Reducing dependency on grid system

• Increasing own self consumption

• Electricity bill savings

• Financial benefit of government subsidies

• Technology enthusiasts

Find out more … www.eonsolar.co.uk

E.ON UK current product offerings

Essentials Classic PremiumBasics

320 Watt Smart 280 Watt Non-smart

Warranties from 5 to 25 Years

No monitoring or optimisation

275 Watt Smart 295 Watt Smart

Warranties from 10 to 25 Years

Warranties from 10 to 25 Years

Warranties from 10 to 25 Years

No performance guarantee

Aura Solar

Manager

Aura Solar

Manager

Aura Solar

Manager

No performance guarantee

Find out more … www.eonsolar.co.uk

• Storage Retro fit from £4,495

• 12 month interest fee payment scheme now available

E.ON UK current product offerings

Single PylontechNominal – 2.4kWhUseable – 1.9kWh

LG Chem 3.3Nominal – 3.3kWhUseable – 2.9kWh

Double PylontechNominal – 4.8kWhUseable – 3.8kWh

Triple PylontechNominal – 7.2kWhUseable – 5.8kWh

LG Chem 6.5Nominal – 6.5kWhUseable – 5.9kWh

LG Chem 10Nominal – 9.8kWhUseable – 8.8kWh

Quad PylontechNominal – 9.4kWhUseable – 7.7kWh

Storage

• Currently provide AC connected systems only

• Batteries are sold with Solar or as a Retro fit for customers with existing Solar

• Battery portfolio of Pylontech & LG Chem provides install flexibility and customer choice..

Prices & payment plan

• Solar from £3,095

• Solar & Storage from £6,095

Find out more … www.eonsolar.co.uk

Solar enabling new products - E.ON SolarCloud Germany

30%

PV + Battery

65%

PV only PV+ Battery + SolarCloud

100%

Providing customer 100% renewable consumptionE.ON SolarCloud

In Germany we offer customers a basic and a premium package

✓ Virtual storage: 100% self-sufficient ✓ Virtual storage: 100% self-sufficient

✓ E.ON Aura app ✓ E.ON Aura app

✓ E.ON Aura solar panels ✓ E.ON Aura solar panels

✓ E.ON efficiency-check of the PV system

✓ E.ON sunshine guarantee

✓ All-risk insurance

Maximum of self-sufficiency…

…with a maximum of security

from21,99 € monthly

E.ON SolarCloud E.ON SolarCloud Premium

from26,99 € monthly

Three persons Three persons

We are just at the beginning of the Solar & Storage opportunity…

Solar

Source: R.M Swanson, Progress in Photovoltaics: Research and Applications, & BNEF.

2017400,000 MW~$0.45/ Watt

2040 = $0.18 per watt

Storage (Li-Ion Battery)

2030 = $74 per

kWh

LCOE (£/MWh) estimates for projects commissioning in 2020

Future developments will make solar more competitive & drive down wholesale electricity prices

Source: OFGEM

New solar technologies

New storage technologies

Post subsidy world

New business models

Zero marginal cost technologies

???

???

Conclusions…

If we could capture all the solar energy hitting earth, it would take ~90 minutes to provide enough energy to power the world for a year

Solar90,000TWHydro & Wave

14TWBiomass

90TWWind

870TW

Global energy capacities...

Thank you!www.eonsolar.co.uk