Energy storage and power grid of the future Restricted © Siemens AG 2016

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The energy business is changing dramatically

Customer behavior Dependency relationships dissolve

Big data has to be turned into smart data

Distributed Energy Systems increase complexity

Frequency and voltage stability challenges More load swings need to be managed

Shorter market time intervals make asset management more difficult

Capacity constrains require fast reacting grid control and adaptive assets

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Value stream

Grid resilience

Power quality

Energy savings

CAPEX and OPEX savings

Outage management

Outage avoidance

Grid security

Safety

Flexibility

Transparency

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Energy Storage

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Siemens AG 20XX All rights reserved.

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Energy storage drivers and asset performance

Cash flow/ROI

Financial incentives

Environment impact

Revenues

€/$ 1

2

3

4

5

6

7

8

9

10

Year

Risk management

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Energy storage technologies and application areas

Days/months

Time in use

H2 / methane storage (stationary) Diabatic adiabatic

CAES

Hours

Redox flow batteries

SIESTORAGE

batteries

Minutes

Li-ion NaS

Water pumped storage

• Know-how in different battery technologies and chemistries • Designed for the use of various battery suppliers • Technical data depending on supplier • Maximum savings through optimized plant operation

Technology

Flywheel energy storage

Chemical storage Seconds

Dual film capacitor

Electrochemical storage

Superconductor coil 1 kW

10 kW

100 kW

1 MW

Mechanical storage Electrical storage 10 MW

100 MW

1,000 MW

Source: Study by DNK/WEC “Energie für Deutschland 2011“, Bloomberg – Energy Storage technologies Q2 2011 CAES – Compressed Air Energy Storage

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Reserves

Segmentation Reserve capacity

Days

Application

Weeks

Energy Storage for very different purposes

SIESTORAGE

Time shifting

Hours

Consumer / Prosumer

• Residential/ commercial selfsupply • Industrial peak shaving

Minutes

Firming

• On-grid + grid upgrade deferral • Remote areas/ off-grid

Variable generation (PV, Wind)

100 kW

1 MW

• Increase flexibility / load optimization

Transmission grid • Ensure power system stability

• Ensure stability • Load optimization

1 kW

Conventional power plants

• Avoid curtailment • Rules for grid integration • Energy arbitrage (time shifting)

Distribution grid

Seconds

System stability

Decentralized generation

• Response to emergencies

10 MW

20 MW

Power

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Applications and use cases APPLICATIONS

USE CASES

Electricity supply for microgrids and off-grids

• • • • • • •

Black start Ramping control Time shifting Capacity firming Diesel offset Frequency regulation (Primary Control Reserve) Peak load management

Electricity supply for industry

• • • •

Black start Backup energy Diesel offset Peak load management

Integration of renewable energy

• Ramping control • Time shifting • Capacity firming

T&D upgrade deferral

• Peak load management • Ramping control • Frequency regulation

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SIESTORAGE Battery energy storage system Benefits • One-stop shop: From analysis to planning, system integration and services • Advanced technology: Cutting-edge power electronics and control combined with Li-ion batteries • Safety: Fully security-tested and certified system

• Reliability: Power supply in milliseconds and high redundancy for outstanding availability • Cost-efficiency: Optimization and savings potential for a wide range of applications • Flexibility: Covering many power and capacity needs thanks to a modular system design • Eco-friendly: Integration of renewables and less CO2 emissions

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SIESTORAGE technical features and advantages

1

Flexible configuration covering all BESS* applications

2

Worldwide operation

3

High quality

4

Cutting-edge technology

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SIESTORAGE technical features and advantages

1

2

Flexible configuration covering all BESS* applications

Worldwide operation

• Power Converter System (PCS) hardware and software developed specifically for BESS applications • Grid-forming parallel operation with wind, solar and diesel possible • Black start capability • High system dynamics: POI voltage regulation within < 10ms

3

4

High quality

Cutting-edge technology

• High short-circuit power

• Choice of different external communication interfaces (IEC 61850, IEC 60870-5-104, DNP3 and others)

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SIESTORAGE technical features and advantages

1

Flexible configuration covering all BESS* applications

• Wide grid voltage range (for LV and MV grids and up to +/-15% voltage deviation from nominal) • Wide grid frequency range (45…65Hz)

2

Worldwide operation

• CE-certified and UL/CSA-ready • IEC- and IEEE-compliant • Compliant with international grid codes

3

4

High quality

Cutting-edge technology

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SIESTORAGE technical features and advantages

1

Flexible configuration covering all BESS* applications

• Best-in-class overall efficiency

• Longevity: design lifetime ≥ 20 years • High reliability and availability

2

Worldwide operation

3

High quality

4

• IT security (remote access) according to IEC 62443-3-3

Cutting-edge technology

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SIESTORAGE technical features and advantages

1

Flexible configuration covering all BESS* applications

• State of the art Power Converter System (PCS) and battery technology • Modular BESS design with wide capacity range

2

Worldwide operation

3

High quality

4

Cutting-edge technology

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Modular concept for standard applications design Example of a schematic diagram Point of interconnection (POI)

A

GRID CONNECTION CABINET

B

• S nominal: 140 kVA or 800 kVA • V nominal: 400 V

• Cable tap for grid connection • Busbar system

C

CONTROL CABINET • HMI (Human Machine Interface) • SCU (System Control Unit) • Ethernet switch • 24 V DC power distribution • Auxiliary power transformer

INVERTER CABINET

D

BATTERY CABINET • Use of various battery suppliers • Technical data depending on supplier

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Recent references in Europe Finland 2015 Helsinki; Renewable Integration Test Plant; 118 kVA / 45 kWh

Finland

UK 2015 Manchester; Research & Test Plant; 236 kVA / 180 kWh

Germany

 ~ 20 MW storage projects

2015 Sindelfingen; Renewable Integration; 360 kVA / 180 kWh

 Variety of customers: Grid operators, utilities, industries and ports

2015 Flein; Renewable Integration; 118 kVA / 135 kW 2015 Eisenhuettenstadt; Black Start; 2.8 MVA / 720 kWh

 Variety of applications:

UK

Italy Germany

2015 Expo Milano; Smart Grid Test Plant; 354 kVA / 135 kWh

Islands, Diesel offset, renewable, integration, black start, shore-to-ship connection

2015 Roma; Renewable Integration & Smart Grid; 118 kVA / 45 kWh 2015 Ventotene; Island/Microgrid Application; 500 kW / 600 kWh 2015 Sardinia; Storage Lab Test Plant; 1 MVA / 500 kWh

Portugal

Italy

2014 Sicily; NAS Storage Test Plant; 12 MW / 82 MWh 2012 Isernia; Smart Grid Test Plant; 1 MVA / 500 kWh

Portugal 2015 Evora; Smart Grid Integration; 472 kW / 360 kWh

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Energy storage for DSO Enel Distribuzione S.p.A. in Isernia, Italy

• 1 MVA /500 kWh SIESTORAGE system • Used for storing electricity in a smart grid environment • Network stabilization with infeed of power generated from decentralized, renewable sources • Testing of black start suitability for smaller grid sections • Fast source of energy with controllable system perturbations • Container solution for decentralized setup for renewable energy producers or in neural network nodes

We need better ways to store energy for our pilot projects, and because Siemens was strongly committed to investing its expertise and efforts into the new energy storage system, we chose Siemens from among seven bidders.

Paola Petroni Head of Network Technologies, Infrastructure and Networks Division

Cus- tomer logo

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Critical Power in the industry VEO (Vulkan Energie Oderbrücke GmbH), Eisenhüttenstadt, Germany

• • • • • •

Power output: 2.8 MVA / 1.2 MW, Capacity: 1080 kWh Supply security for the AMEH steel works even when the local 110 kV integrated power grid is interrupted Independency of power plant by switching over to a standalone grid Black start of a gas turbine (if switchover is unsuccessful) Grid stabilization (frequency, voltage) Intelligent load peak management (energy management system)

1 Modular battery storage system 2 Starting motor of the gas turbine 3 Natural gas turbine 4 Standalone grid/plant grid 5 Public grid 6 Integrated steel works

7 Power failure/blackout in the local grid

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Diesel off-set & Renewable Integration - Island Island of Ventotene, Italy

• 500 kW / 600 kWh SIESTORAGE accompanied by a Microgrid Controller • Increased renewable energy yield • Optimized diesel engine operation for maximum fuel efficiency and longevity of the engines and minimized O&M. • Network stabilization by helping to balance supply and demand, • Reduction of the volatility caused by variations in load and unpredictable fluctuations in power generated by decentralized renewable energy resources.

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Energy Storage for DSO EDP: InovCity Évora – Portugal • • • • • •

472 kW / 360 kWh SIESTORAGE system 8 battery racks, 4 three-phase inverters , 1 transformer & 1 GIS Main applications: Energy backup, voltage regulation, peak shaving Fully containerized Turnkey solution Fully Developed by local CoC

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Center of Competence Storage Enabled Islanded µGrids © Siemens AG 2016 All rights reserved.

Microgrid – just another definition Microgrid A Microgrid is electricity generation and loads, and in some cases storage managed collectively in a network. Besides electricity, microgrids may include other vectors such as heat, gas, water.

Microgrids manage energy resources according to a given set of criteria. They may be operated in off-grid-, on-grid as well as in dual mode to optimize technical (e.g. power quality, frequency) and economic aspects (e.g. optimal use of renewable energy). In an optional emergency mode the microgrid provides blackstart capabilities.

Source: Microgrd Market, Global Forecast & Analysis (2012-2022), adapted Unrestricted © Siemens AG 2014 All rights reserved. Siemens AG

Typical Microgrid Installations Campuses

Remote Locations and Islands

Industries with critical Processes

Critical Infrastructures / Military Institutions

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Energy Management Division

CoC Islands Islands …facing significant challenges But the requirements for energy providers are not the same everywhere... Dependence on oil: The current electricity mix of most small islands is dominated by diesel or heavy fuel oil

Missing interconnections

Diesel based Islands w/ cost up to 1 USD/kWh

Power demand: Islands expect an average increase of 24% from 2009 to 2020

Emissions: To comply with the IED, small isolated energy system operators need to reevaluate the energy chain of value

Moving towards low-carbon generation led by RES Security of supply and system stability Average generation cost for solar energy with storage, calculated at USD 0.27/kWh (Source: Tractebel, 2012).

How to address these challenges?

Solution: Storage Enabled Islanded µgrids Confidential © Siemens AG 2014 All rights reserved. Page 24

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Energy Management Division

CoC Iberia Value Chain

Consulting / solution design

Support on Implementation

• Business Models development

• Identification of requirements

• Hardware delivery and integration

• Concept development

• Software implementation

• Feasibility studies

• Engineering services

• Grid studies

• Project management

• System Modeling (Tooling) Operation & maintenance • Long-term partnership

• 24/7 service Confidential © Siemens AG 2016 All rights reserved. Page 25

Contact page Hélio Jonathan Jesus CoC Lead

Eduardo A. Cerón Marco Energy Management

Energy Management

Medium Voltage & Systems

Head of Technology

Business Development

LCB Portugal

Ronda de Europa, 5

Rua Irmãos Siemens, N.º1 2720-093 Amadora, Portugal

28760 – Tres Cantos - Madrid

Mobile: +351(96) 171 25 40 Phone: +351(21) 417 82 69 Fax: +351 (21) 417 87 77

Mobile: +34 648 69 99 19 Phone: +34 91 514 8000 Fax: +34 91 514 7038

E-mail: [email protected]

E-mail: [email protected]

www.siemens.com/microgrids www.siemens.com/siestorage

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Strategic positioning Empowered by Innovation Export competences Smart & Sustainable Growth Generation of new value streams

INNOVATION

Investment Antecipation

Learn by doing Results Quantitative

Competences Value Creation

Qualitative

Knowledge

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Hélio Jonathan Jesus / Energy Management Division