ESOF Energy Storage Workshop LCNI 2014 21st October 2014 Introduction • Welcome • Energy Storage Operators’ Forum session • Significant amounts of energy storage connected: – LCNF Conference 2013: 5.1MW, 6.4MWh commissioned – LCNI Conference 2014: 12.4MW, 20.1MWh commissioned • Learning being shared from full project lifecycle • “State of Charge of GB” paper Introduction: ‘State of Charge’ in October 2013 Key Commissioned Under construction Planned Decommissioned Darlington 2.5 MW 5 MWh 100 kW 200 kWh 50 kW 100 kWh Willenhall 2 MW 375 kWh Shetland 1 MW 6 MWh Shetland 1 MW 3 MWh Orkney 2 MW 500 kWh Nairn 100 kW / 150 kWh Wooler 100 kW 200 kWh 50 kW 100 kWh Maltby 50 kW 100 kWh Milton Keynes 150 kW 450 kWh Chalvey 25 kW 25 kWh Hemsby 200 kW 200 kWh Bristol 90 kW up to 321 kWh 6 kW 14.4 kWh Leighton Buzzard 6 MW 10 MWh Introduction: ‘State of Charge’ in October 2014 Shetland 1 MW / 3 MWh Shetland 1 MW / 6 MWh Key Commissioned Under construction Planned Decommissioned Orkney 2 MW / 500 kWh Nairn 100 kW / 150 kWh Darlington 2.5 MW / 5 MWh 100 kW / 200 kWh 50 kW / 100 kWh Wooler 100 kW / 200 kWh 50 kW / 100 kWh Maltby 50 kW / 100 kWh Willenhall 2 MW / 1 MWh Chalvey 75 kW / 75 kWh Milton Keynes 250kW / 500kWh (3 units) Bristol 90kW / 216 kWh Hemsby 200 kW / 200 kWh (25 domestic, 5 commercial units) Thames Valley 972 kW / 513 kWh (25 units) Leighton Buzzard 6MW / 10MWh Outline of Workshop • Introduction (Stewart Reid, SSE Power Distribution) • Developing the Business Case for Energy Storage (John Hayling, UK Power Networks) • Maximising the Benefits of Energy Storage (Nathan Coote, SSE Power Distribution) • Integrating Storage into Business as Usual (Dave Miller, Northern Powergrid) • Conclusion • Discussion Session Developing the Business Case for Energy Storage John Hayling UK Power Networks What drives the business case for distribution storage? Business case for distribution connected storage Avoided Reinforcement Value within DNO Business Additional Revenue Value outside conventional DNO business e.g. from ancillary / wholesale market Business case Case Study: SNS Project business case benefits Conventional Once Proven Smarter Network Storage Successful £m 16.0 12.0 3.0 8.0 2.0 11.5 2.5 4.0 5.1 4.0 0.0 Conventional Reinforcement Installed Cost Tech Cost Reduction / Ahead of Need Future Income Streams System Cost Savings Future Net Method Cost Source: UKPN analysis, Poyry Analysis. Includes Civil, Elec, Labour, Opex estimates. All values in 2013 prices. Discount factor 7.2% What distribution storage business models are there? Model Key points DNO merchant Full merchant risk, exposed to power price and balancing services Comments ► DNO builds, owns and operates the asset. ► DNO exposed to construction and operational risks DNO exposed to incentive scheme ► Prior to construction, long term contracts (e.g. 10 years) for the commercial control of the asset outside of specified windows are agreed DNO contracted DNO has full operational control ► Possible barriers: Are long term contracts feasible (risk appetite, credit risk)? Contracted services Low Commercial Risk for a DNO DSO Charging incentives No guarantee of asset being built ► DNO offers a long term contract (e.g. 10 years) for services at a specific location with commercial control in certain periods ► Third party responsible for building, owning and operating the asset, and monetising additional revenue streams What legal and regulatory barriers exist for storage? Key messages: • Default treatment of storage as a subset of generation creates uncertainty and raises potential issues • But generation licence exemption route does provide flexibility to progress distribution connected storage projects of appropriate size in a manner consistent with unbundling requirements • De minimis business restrictions do place a loose limit on deployment by DNOs, if storage continues to be classed as generation • Possible application and operation of assets is affected though by the need to ensure that competition in generation and supply is not distorted • Tax treatment for storage could lead to double counting of CCL and FiTs levee In Conclusion Three points to take away: • With suitable site selection, by incorporating the right additional revenue and system cost savings distribution grid scale storage will deliver a competitive business case • DNO Contracted and Contracted Services are the two operating business models most likely to deliver success • Providing the legal and regulatory issues identified can be resolved Maximising the Network Benefits of Energy Storage Nathan Coote Scottish and Southern Energy Power Distribution Scope • • • • • Smarter Network Storage FALCON 1MW Battery, Shetland Conclusions Further Information Benefits of energy storage • • • • • • • Peak shaving Frequency response Reactive power and voltage support Reserve services Back up power or black start Avoided or deferral of cost Generation optimisation Smarter Network Storage • 6MW/10MWh Li-ion • 3 x 2MW PCS • Commissioning stage Smarter Network Storage: Design Considerations Realising Value: Operations and Maintenance SAFETY Specification Development and Procurement Installation and Commissioning SAFETY Identify Requirement for EES, Develop Business Case and Commercial Model Realising Value: Operations and Maintenance End of Life Disposal SAFETY FALCON Milton Keynes • 100 kWh sodium metal halide • 50 (100) kW inverter • Site controller • DC switchgear FALCON: Peak shaving FALCON: Frequency response 1MW Battery, Shetland • 1MW / 3MWh VRLA battery • 1.25MVA PCS • 11kV connection • ANM and SCADA control 1MW Battery, Shetland Time [hh:mm] 23:00 22:00 21:00 20:00 19:00 18:00 17:00 16:00 15:00 14:00 13:00 12:00 11:00 10:00 9:00 8:00 7:00 6:00 5:00 4:00 3:00 2:00 1:00 0:00 Demand [MW] 1MW Battery, Shetland 28.00 Shetland Demand 26.00 24.00 22.00 29-Sep 20.00 30-Sep 01-Oct 02-Oct 18.00 03-Oct 16.00 14.00 1MW Battery, Shetland 4.00 Shetland Wind 3.50 3.00 28-Sep 29-Sep 2.00 30-Sep 01-Oct 1.50 02-Oct 03-Oct 04-Oct 1.00 0.50 Time [hh:mm] 23:00 22:00 21:00 20:00 19:00 18:00 17:00 16:00 15:00 14:00 13:00 12:00 11:00 10:00 9:00 8:00 7:00 6:00 5:00 4:00 3:00 2:00 1:00 0.00 0:00 Wind [MW] 2.50 1MW Battery, Shetland 49.9 Hz 47.8 Hz t = 2.90s t = 546ms t = 1.83 s 44.8 Hz 088 094 080 024 021 022 025 023 007 1L5 2L5 3L5 Conclusions • The benefits of energy storage are wide ranging • Maximising the benefit from energy storage is a complex task • Quantifying the total value is challenging as not all benefits are captured within markets • O+M phase of the project provides opportunities to realise value while evaluating against actual losses more accurately • Pursuing a commercial model which stacks multiple benefits and technologies can make the business case work More information – https://www.ukpowernetworks.co.uk/internet/en /community/smarter-network-storage/ – http://www.westernpowerinnovation.co.uk/Falc on.aspx – https://www.ofgem.gov.uk/ofgempublications/89496/sset10011mwbatteryshetla nd-closedownreport20141.1.pdf Integrating Storage into Business as Usual Dave Miller FIET Northern Powergrid Integrating Storage People and Process – Storage is different to conventional solutions – Like any business process change, introducing storage needs careful management, and every individual is different – From a planning and control perspective, storage and demand response are similar – If you own your storage, the ESOF GPG captures what we’ve learnt about the practical on-site issues Integrating Storage Control for Thermal Constraints Integrating Storage Control for Voltage Constraints Integrating Storage Optimising for Commercial Benefit Session Conclusions • Three key areas shared today • LCN Fund projects have developed the State-of-the- Art throughout the whole project life cycle. • Lessons learnt being shared – including consolidating into a Good Practice Guide on EES (published in December) • Some areas still to develop PANEL DISCUSSION Stewart Reid, SSE Power Distribution (Chair) Geraldine Bryson, Electricity North West Dave Miller, Northern Powergrid Nathan Coote, SSE Power Distribution Alan Collinson, SP Energy Networks John Hayling, UK Power Networks Philip Bale, Western Power Distribution
© Copyright 2024 ExpyDoc
