DNV GL © 2016 SAFER, SMARTER, GREENER DNV GL © 2016

ENERGY

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ENERGY

Mini seminar Energieopslag Zonder energieopslag is transitie van fossiele - naar duurzame energie niet mogelijk

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DNV GL – Global Leaders in Energy Storage Advisory Services

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Energy Oil & Gas Software Business

Assurance Maritime

Storage

Applications

Access to Global

Storage Experts

Leverage Experience

from multiple sectors

Example projects

across the entire value

chain

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Content

Global status of energy storage realisation

Developments in the Netherlands

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Lessons learned and best practices 3

Key take-aways 4

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Centralised and decentralised energy systems develop in parallel

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Future Energy Storage Requirements

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Storage technologies – high power and high energy options

High-Energy

High Power

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Energy/power ratio ≥ 1 hour

Energy/power ratio < 1 hour

High energy

High power

Pumped storage

Compressed air energy storage

Sodium sulfur (NaS) battery

Vanadium redo x battery

Advanced lead acid batteries

Zinc bromine flow battery

Sodium nickel chloride battery

Li-ion – high energy

Li-ion – high power

Flywheels

Double layer capacitors (supercapacitors)

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Storage Technologies

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Du

rati

on

an

d f

req

uen

cy o

f

po

wer s

up

ply

"Seconds to minutes“

Short term energy storage

systems

E2P ratio: 0,25h

Batteries

Supercapacitors

Flywheels

"Daily storage“

Medium term energy storage

systems

E2P ratio: 1 - 10h

Batteries

Pumped hydropower

storage

CAES / LAES

Thermochemical

Redox Flow

"Weekly to monthly“

Long term energy storage

E2P ratio: 50 - 500h

Sensible /

Latent thermal

Power to Gas

• Grid services

• Compensation for day-night

load imbalance

• Peak shaving, valley filling,

load shifting

• Correction of forecast errors

of renewable producers

• Prevention of re-dispatch

• Opportunity of spot market

price fluctuations

• Future application to bridge

periods of low wind and

photovoltaic generation

• Seasonal storage for thermal

energy

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Eight emerging dynamics for storage

Costs declining rapidly for energy storage

Storage will be a key enabler to increase RES penetration by smoothing variable resource on the grid and vice versa!

As with solar-PV, performance guarantees are one of the main contributors to market maturation

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+

Storage market widely seen as where solar market was 5 years ago

PV started as cost-intensive technology… now becoming competitive with conventional generation

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Eight emerging dynamics for storage

Resiliency: electric power systems interdependence – back up power – energy security

Stacked values: Storage deployments with solar PV can provide income and cost benefits on both sides of meter

Regulatory requirements and financial incentives emerging in several countries

Income opportunities for project developers deploying combined technologies in otherwise declining “solar only” markets – self consumption

Emotional appeal: customer demand for more energy independence – new product /appliance and services (the Tesla effect)

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Storage Maturation

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Technology Application System

Integration

Markets Business Case

Effort

Time Technology Business Realization, O&M

Benefit Stacking Flex Markets Control Algoritms

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The need for flexibility in our energy system: smart energy

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E.g. introduction of DER – in large volumes – will impact power flows, and power quality

Energy transition will result in larger fluctuations in supply, and in load – mainly

in electricity markets

Large number of inverters (PV solar) will result in voltage issues

Both developments put pressure on reliability of electricity supply

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-5000

0

5000

10000

15000

20000

25000

0 1000 2000 3000 4000 5000 6000 7000 8000

Me

gaw

att

Hour

Residual load Netherlands - 2030 (8 GW PV, 16 GW wind)

-5000

0

5000

10000

15000

20000

25000

0 1000 2000 3000 4000 5000 6000 7000 8000

Me

gaw

att

Hour

Residual load Netherlands - 2012 (0.7 GW PV, 2.5 GW wind)

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Flexibility instruments will enable high RES penetration

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Demand Side Management

Supergrids / Interconnectors Energy storage

Flexible Power

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Global status of energy storage market Projects and applications

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Global status projects

Source: DOE database

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In comparison: the top 7 countries

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Source: DOE database

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Global status of energy storage market Economics – li-ion

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Capital Cost

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€125-

310/kWh

€330-

2500/kWh

Verify the cost:

- Who is giving the quote?

- Is it turnkey?

- Who else is involved?

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Projected costs

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Price floor in 2020:

$100/kWh at the cell level

$200/kWh at the system level

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Project realisation in the Netherlands

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Routekaart 2030 & Nationaal Actieplan EnergieOpslag

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Frequency Containment Reserve – AES

10 MW of interconnected advanced,

battery-based energy storage

First deployment of AES’

Advancion solution in continental Europe

First battery project in the Netherlands

for Frequency Containment Reserve

purposes

45.000 lithium ion batteries

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Energy storage for Alexia wind farm - Nuon

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Currently balancing and FCR

Storage system 3MW to expand to

12MW

Prinses Alexia Windpark (122

MW), Zeewolde

Car batteries

Alfen as system integrator

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Solar+storage at a farm in Odoorn for multiple applications

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Solar + storage

Balancing, self-consumption,

peak-shifting

At farm ‘De Jong en Bos’

294 kWh system

ATEPS, Jules Energy, GroenLeven

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Community storage/De Buurtbatterij

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Commercial,

industrial &

residential

Etten-Leur

Enexis

Smart Storage Unit

Economically most attractive rev.

100kW-400kW / 240 kWh

Jouw Energie Moment

Haarlemmermeer

Alliander

120kW/120kWh

Rijsenhout

Distribution grid services

Market services

Solar storage

Buurtbatterij

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Behind the meter

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CrowdNett

400 Powerwalls = 1 MWFCR. In NL by Q1 2017.Then scaling up in NL and starting in BE.

Eneco aggregates capacity for FCR application at first instance

Additional value streams at later stage (e.g. post-net metering)

Jouw Energy Moment

Meulenspie in Breda 39 Tesla Powerwalls Testing flexible tariffs For trading and avoiding grid congestion

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Project realisation and risk mitigation

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Realisation – best practices & lessons learned

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Kick-off

manufacturing

Review quality

plan

Review progress

reports

Factory

acceptance test

Kick –off project

Review contract

Review project

plan

Review design

Check compliance

HSE

Kick –off

construction

Review

construction

plan

Review

progress

reports

Progress

meetings

Site visits/

inspections

Punch list

Review

commissioning

plan/procedures

Monitor commis-

sioning test

Witness

acceptance tests

Progress

meetings

Review as-built

documents

Review O&M

plans

Support take-

over

Punch list

Monitor

operations

Follow up punch

list

Lessons learned

Co

nstr

ucti

on

co

mp

lete

Sta

rt

co

mm

ercia

l o

perati

on

Rele

ase

tran

sp

ort

to s

ite

Rele

ase

man

ufa

ctu

rin

g

Co

ntr

act

aw

ard

Feasibility,

preparation and

tendering

Engineering

design Operation Manufacturing Commissioning Construction

Technical

feasibilty

Technical design

Request for

Proposal

Selection of

proposals

Employer’s

Requirements

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Real-life examples of materialised risks

Feasibility risks

System dimensioned on minimum

CAPEX instead of TCO

Market saturation not taken into account

Sub-optimal combination of technology

and applications

Performance risks

Cycle life data under different

conditions (DoD, temperature, C-rate)

Standby losses not taken into account

Contract risks

Conditions warranty and guarantees

unclear

System boundary unclear – e.g. safety

responsibility

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Regulation/certification risks

System specification not in line with

market regulation / grid code

Systems not meeting standardisation

Commissioning risks

FAT / SAT testing inadequate

Handover unclear

Safety risks

Fire suppression for li-ion batteries

No FMEA analysis, no adequate

measures and training

Cyber safety

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Defining building blocks

for an open competitive

market place

Continuous updates

following technology

development and

end-user applications

DNV GL issued a Recommended Practice (DNVGL-RP-0043) on grid-connected energy storage

Guidelines and methods to evaluate, assess and test safety, operation and performance of grid-connected ES

Referencing ISO, IEC and IEEE standards if possible, enhancing where needed

Industry supported: created by consortium of 7 parties, 36 parties involved in review process

Comprehensive

Free to use

Methodology for de-risking energy storage: GRIDSTOR

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For more information, see www.dnvgl.com/services/gridstor-recommended-practice-for-grid-connected-energy-

storage-52177 and rules.dnvgl.com/docs/pdf/DNVGL/RP/2015-12/DNVGL-RP-0043.pdf

GRIDSTOR Update!

New technologies (CAES,

ultra-caps, inorg. Li-ion)

Cybersecurity

Communication protocols

Decommissioning

Warrantees, guarantees

Contracting aspects

Bankability

LCoS

Residual value assessment

Procurement

Inverter aspects

…and more…

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Training course Grid-connected energy storage – March 23 & 24, 2017

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Key take-aways

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Key take-aways

2016 was an

important year for

storage in the

Netherlands and

globally

Costs becoming

commercially

attractive, but

depending on

many aspects

Various projects in

the Netherlands,

breakthrough yet

to come, new

values to be

disclosed

As a relatively new

and complex item,

various examples

of materialised

risks

GRIDSTOR

Recommended

Practice as the

technical

framework for

risk analysis

DNV GL © 2016

SAFER, SMARTER, GREENER

www.dnvgl.com

Thank you

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Jillis Raadschelders

Email: Jillis.Raadschelders@dnvgl.com

Tel: +31 (0)6 150 633 90