The missing link: Energy storage Alexander Peschl, Business Development Energy Sector CEE

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Why do we need energy storage ?

Growing share of energy generation out of renewables

Increasing interests in energy self sufficiency

Smart grids fostering smaller energy supply areas

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For high shares of fluctuating sources long time storage becomes necessary Contribution of Renewables to electricity consumption of Germany Non-renewables

TWh 800

Other RE generation

PV generation

Wind generation

600 400

80% Renewables

200

~50%

35-40% 0

2000 GW

2005

2010

2015

2020

2025

2030

2035

2040

Peak load

105

2000

21

57

105

6 11

2045

27

17 17

Min load 2010

80 17 54 53

2020

72 18 83

19

2050 37

158

120

62

84

108

2030

2040

2050

GW (Wind+Solar) ~3 x Peak load

Storage not an issue Mainly decentral and short time storage Central and long time storage essential Unrestricted © Siemens AG Österreich 2014. All rights reserved. Page 3

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Source: E ST MC SR 2012 until 2030, Extrapolation to achieve 80% RE by 2050 A. Peschl / RC-AT E

Storage applications can be differentiated by four major use cases and centralized / decentralized application

D

Energy reserve

Days/ Months

1

Cover low wind or sun periods H2O

Firming

Prosumer

2

Avoid curtailment

Energy self sufficiency

Power quality

Seconds

3 A

Generation buffer

Large renewable plants

Hours

B

H2 -

+

Minutes

Time shift

O2 +

4 C

Energy reserve

Conventional power plants

Decentralized generation units

Increase flexibility

Remote areas

Grid stability

Transmission grid

Distribution grid

Ensure power quality

1 kW

10 kW

100 kW

1 MW

10 MW

100 MW

1.000 MW Power

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Available storage technologies cover different requirements

D

Energy reserve

Days/ Months

1

H2/ Methan

Electrochemical

Prosumer

2

Minutes

Li-Ion

Electrical

Maturity:

Flywheel storage

Commercial

Grid stabilitySuper

Early commercial

capacitor

Seconds

Power quality

Pumped Hydro

Batteries

3 A

Mechanical

diabatic adiabatic

Aquion

NaNiCl

Firming

Thermal storage Generation buffer CAES 2)

NaS, Lead Acid

B

Thermal

Flow-Batteries

Hours

Time shift

Technology: Chemical

4 C

Energy reserve

Demonstration Concept phase

1 kW

10 kW

100 kW

1 MW

10 MW

100 MW

1.000 MW Power

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Why don't we use Pumped Hydro Storage as a proven technology ? Austria has stored 5,5 TWh in 2012 (Pumped Hydro Storage)

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It's a question of energy density and cycle efficiency Austria has stored 5,5 TWh in 2012 (Pumped Hydro Storage) Pumped Hydro Storage 5,56 km3

1.772 m

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It's a question of energy density and cycle efficiency Austria has stored 5,5 TWh in 2012 (Pumped Hydro Storage) Pumped Hydro Storage 5,56 km3 Compressed Air 1,39 km3

1.116 m

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It's a question of energy density and cycle efficiency Austria has stored 5,5 TWh in 2012 (Pumped Hydro Storage) Pumped Hydro Storage 5,56 km3 Compressed Air 1,39 km3 Double Layer Capacitor 0,37 km3

719 m

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It's a question of energy density and cycle efficiency Austria has stored 5,5 TWh in 2012 (Pumped Hydro Storage) Pumped Hydro Storage 5,56 km3 Compressed Air 1,39 km3 Double Layer Capacitor 0,37 km3 Vanadium Redox Flow Battery 0,12 km3

498m

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It's a question of energy density and cycle efficiency Austria has stored 5,5 TWh in 2012 (Pumped Hydro Storage) Pumped Hydro Storage 5,56 km3 Compressed Air 1,39 km3 Double Layer Capacitor 0,37 km3 Vanadium Redox Flow Battery 0,12 km3 Li-Ion Battery 0,02 km3 265m Unrestricted © Siemens AG Österreich 2014. All rights reserved. Page 11

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It's a question of energy density and cycle efficiency Austria has stored 5,5 TWh in 2012 (Pumped Hydro Storage) Pumped Hydro Storage 5,56 km3 Compressed Air 1,39 km3 Double Layer Capacitor 0,37 km3 Vanadium Redox Flow Battery 0,12 km3 Li-Ion Battery 0,02 km3 H2 210m

0,01 km3

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Battery storage projects in the grid Medium Voltage Integration of Battery Storage at ENEL Connection to the medium-voltage grid of Italy‘s largest energy distributor ENEL Performance: 1 MVA Capacity: 500 kWh Application: Frequency regulation Integration of photavoltaic power plants e-vehicle charging station Black start capability

Commissioning in February 2012

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Large anticipated price decrease of batteries will produce many positive business cases by 2020 Battery prices for PV storage (US$/kWh)

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Source: IHS (EER / Isupply / IMS research) 2013 A. Peschl / RC-AT E

For Hydrogen many different applications exist economics and technology readiness will determine final use Power Generation

Conversion In / Out

Utilization H2

Pure Hydrogen pathways

H2

Mobility / Industry Industry / Fuel Cell Car

Above ground H2 storage

H2

Energy (Re-Electrification) H2-Engine

O2

H2

+

-

H2

H2

H2 small cavern storage

Energy (Re-Electrification) Small GT

H2O

PEM-Electrolyzer

Energy (Re-Electrification)

CH4 + H2

Fluctuating Renewables

CC-Turbine

H2 CO2

Power to gas pathways

Methanation

CH4 Gas pipeline

Mobility / Heating / Industry

CO2

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First Hydrogen projects are on the way CO2RRECT Using regenerative energy for H2 generation H2 together with CO2 further used to form carbon chemistry precursor

Power2Gas in reality energiepark-mainz.de Unrestricted © Siemens AG Österreich 2014. All rights reserved. Page 16

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Source: Stadtwerke Mainz A. Peschl / RC-AT E

Decentralized storage will be influenced by ease of use and integration DC Renewable Storage Backbone – a common development of Siemens and Karlsruher Institut für Technologie (KIT)

Grid

Potential integration of

Filter Wind Inverter

further renewables: Hydropower Cogeneration Power-to-Gas Redoxflow

DC/DC Converter KIT Central Control Unit

E-vehicles

Local Grid Controller Photovoltaic

Battery

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The most mature and economical scenario will drive the storage game

Application cases by location of storage DECENTRAL - Small utilities, municipalities, Industry - Prosumer Industry Prosumer

CENTRAL - Large Utilities

Pumped Storage Upper reservoir Lower reservoir

Thermal

H2 O2 +

Battery

H2 H2O

Electricity Mature technology High efficiency

Geographical restrictions Large required area: for 8 h storage Size: 55 ha

H2 Fuel for car Only long term storage option Very different uses Existing infrastructure can be used

Electricity H2/ Methan (gas grid)

Technical maturity High capital costs Low round-trip efficiency

Heat (Power)

Electricity

All components are state of the art Very low capex if no re-electricifcation

High potential for cost reduction High efficiency Low maintenance

Unmature for re-electrification Without re-electrification not feasible for positive load balancing

No independent scaling of power and energy for most battery types

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Installed storage will grow significantly - despite varying expectations Estimates for newly installed storage power (without hydro)

BNEF (2014), Pike (2011)

IHS (2013/14) – “most likely scenario”

[GW p.a.]

[GW p.a.]

Main drivers (IHS)

11,9 2,3

Co-location renewables

2,3

Co-location conventional generation

6,2 1,5

3,6

In the grid

Co-location with generation Grid requirements for renewables (ramps) Compulsory direct marketing for renewables

In the grid / grid sites • Stress on networks through renewables • Regulation requiring storage

1,0

0,9 0,3 2015

0,1 0,3 0,2

1,7 0,7 0,6

3,0 0,0 1,4 0,1 0,3

2017

0,5 1,1

Others Storage on generation sites Storage on grid sites Storage on residential site

2020

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1,4

2,1 0,6 0,8 2015

0,3 0,4

3,7 2,3

2017

Residential / behind the meter

Residential / behind the meter • Subsidies for decentral storage • Cost advantage of PV + storage over retail power prices • Inclusion of SMEs (e.g. for peak shaving)

2020 Source: IHS; Bloomberg New Energy Finance (BNEF); Pike; own research A. Peschl / RC-AT E

Different roles and actors for centralized energy storage will come up in liberalized markets Potential roles for Energy storage as a business case

Storage Owner

• strategic investor • no operational energy-related interests • enhanced economic utilization return on investment

Storage Operator

Storage User

Trading Platform

• operational responsibility

• grid operator (DSO/TSO*)

• connects market participants

• primary intended application

• plant operator (conventional and RES)

• pricing and billing

• may request a preferential right to use

• energy trader

• provides systems of the storage applications

• balancing power pool

• revenue by charging user fees

• industrial consumer *: as control area manager Source: SolVer www.solver-hessen.de Unrestricted © Siemens AG Österreich 2014. All rights reserved. Page 20

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The future of energy - storage will play an essential part of the future multimodal grid - decentralized and centralized Storage will be an essential part of the future multimodal grid – decentralized and centralized

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Any questions ? Alexander Peschl Business Development Business Excellence Siemensstraße 90 1210 Vienna Phone: +43 (0) 51707-25909 Mobile: +43 (0) 664 80117-25909 E-mail: [email protected]

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