Status and Demand Perspective for Energy Storage in the EU

01 March 2018

Roundtable on Sectorial Integration Supported by Energy Storage and Hydrogen

European Commission, Brussels

Patrick Clerens

EASE Secretary General

1. Introduction to EASE European Association for Storage of Energy…

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…is the European voice of the energy storage community

…advocates the role of energy storage as an indispensable instrument for the energy system

…supports a sustainable, flexible and stable energy system

…shares and disseminates information

Fair market design for energy storage

Promotion of the role and benefits of energy storage

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Promotion of funding for Energy Storage (mainly RD&D)

Strategic objectives:

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1. Introduction to EASE EASE Members

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Decarbonisation and the Energy Union

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Without energy storage no:

• limitation of global warming <2°C

• ambitious RES targets

• electrification of heating & cooling

• decarbonisation of the transport sectors

• active consumers (‘prosumers’)

Achieving ambitious decarbonisation targets requires significant energy storage capacity.

* Scenario assumes the achievement of actions to limit the rise in long-term average global temperature to 2°C.

Source: IEA World Energy Outlook 2016

Installed Capacity of Energy Storage Systems in the 450 Scenario*

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2. Need for Storage and Future Demand

PHS still dominates the EU energy storage market:

• >140 GW Pumped Hydro Storage (PHS) capacity installed world-wide, around 99% of installed capacity

• 40 GW installed in Europe + 5 GW under construction

• 90% of energy storage investments* go to PHS

Yet the valuable role of PHS in supporting system flexibility is not fully recognised by policymakers.

*as of 2015, source: IEA

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140 000 MW PHS

Compressed Air ES – 400 MW

NaS batteries - 300 MW

Li-ion batteries >1GW

Lead-based batteries - 100 MW

Flywheels – 40 MW

Nickel Cd batteries – 30 MW

Global ES Capacity, 2016

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Lack of recognition of the value of PHS (and of flexibility in general)

2. Need for Storage and Future Demand

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Market Outlook for Europe

2. Need for Storage and Future Demand

*Source: EASE/Delta-ee: European Market Monitor on Energy Storage, Dec 2017; http://ease-

storage.eu/category/publications/emmes/

Electrical energy storage capacity annually installed in Europe (MWh), excluding PHS

3. Technologies and Applications Many Energy Storage Technologies on the Market and in R&D

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Electrochemical

Flow Batteries Classic Batteries

Lead Acid

Li-Ion

Li-Polymer

Li-S

Metal Air Na-Ion

Na-NiCl2 Na-S

Ni-Cd Ni-MH

Vanadium Red-

Ox Zn-Br

Chemical

Synthetic Natural Gas

Hydrogen

Electrical

Superconducting Magnetic ES (SMES)

Supercapacitors

Mechanical

Adiabatic Compressed Air

Flywheels

Diabatic Compressed Air

Pumped Hydro

Liquid Air Energy Storage

Thermal

Thermochemical Storage

Latent Heat Storage

Sensible Heat Storage

Ammonia

Methanol

Drop-in Fuels

Synthetic Fuels

Zn-Fe

Hybrid Supercapacitors

3. Technologies and Applications

Energy Storage can provide many valuable services, making it essential to

support the transition to a decarbonised energy system.

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Conventi

onal

Renew

able

Generation Transmission Distribution Customer services

Black start

Arbitrage

Support to conventional generation

Curtailment minimisation

Distributed Generation Flexibility

Capacity firming

Limitation of upstream disturbances

Participation to the primary frequency control

Participation to the secondary frequency control

Participation to the tertiary frequency control

Improvement of the frequency stability of weak grids

Investment deferral

Participation to angular stability

Capacity support

Dynamic, local voltage control

Contingency grid support

Intentional islanding

Reactive power compensation

Distribution power quality

Limitation of upstream disturbances

End-user peak shaving

Time-of-use energy cost management

Particular requirements in power quality

Continuity of energy supply

Limitation of upstream disturbances

Compensation of the reactive power

3. Technologies and Applications Short-term energy storage applications

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Today, there are many short-term (second-minutes) energy storage applications for reserve services and frequency regulation:

• Enhanced frequency response (UK): providing frequency response in one second or less

• Frequency containment reserve (EU): increasing/decreasing power output at very short notice, within 0 to 30 seconds

• Synthetic inertia: inertia-like response via super fast active (milliseconds) power injection and import

Seconds and Minutes

3. Technologies and Applications Long-term energy storage applications

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We see more and more needs for longer-term storage:

• The European Parliament wants to reach a target of 35% RES in total EU energy consumption by 2030.

• Yet, RES are variable: RES generation changes in the year

• This variability can endanger the energy system stability and security

Bulk energy storage technologies (e.g. thermal storage, power-to-x, CAES and LAES) can support variable RES integration by providing long term/seasonal balancing.

Source: DNV GL

Transmission Bottlenecks

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Energy storage technologies (e.g. thermal storage, power-to-x, electrochemical storage) have also valuable applications beyond the electricity sector:

Sector interfaces can support the decarbonisation of the heating & cooling and transport sectors

Sector interfaces increase the overall efficiency at energy system level while contributing positively to energy security.

4. Energy storage and sector interfaces

*SNG = Synthetic Natural Gas Source: Uniper, 2017

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EASE Student Award’s winner, Oliver Schmidt, published a study on “future cost of energy storage based on experience rates”, available on the EASE website.

4. Energy storage and sector interfaces Future costs of power-to-hydrogen (P2H)

With an increase of P2H installed capacity, the P2H unit price decreased between 1956 and 2014.

Source: Schmidt, O., Hawkes, A., Gambhir, A. & Staell, I. The future cost of electrical energy storage based on

experience rates. Nat. Energy 2, 17110 (2017).

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4. Energy storage and sector interfaces Future costs of power-to-hydrogen (P2H)

Increasing investments in P2H will contribute to further decreasing the P2H price.

Source: Schmidt, O., Hawkes, A., Gambhir, A. & Staell, I. The future cost of electrical energy storage based on

experience rates. Nat. Energy 2, 17110 (2017).

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4. Energy storage and sector interfaces Future costs of power-to-hydrogen (P2H)

In order to continue to have the P2H costs decreasing in the future and supporting the decarbonisation of transport, heating and cooling, we need to strengthen EU R&D efforts and encourage investments in P2H.

Source: Schmidt, O., Hawkes, A., Gambhir, A. & Staell, I. The future cost of electrical energy storage based on

experience rates. Nat. Energy 2, 17110 (2017).

Thank you for your attention!

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Tel: +32 2 743 29 82 Twitter: @EASE_ES

info@ease-storage.eu www.ease-storage.eu

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EASE Members