Energy Storage - 10: Christian Metzger, RWE

RWE 05/01/2023 PAGE 1

Energy Storage in GermanySESSION THREE: INDUSTRY-LED DEMO PROJECTS

Second Trilateral Energy StorageParis, 19th November 2015

RWE Research and DevelopmentDipl. Ing. Christian Metzger

RWE Research and Development PAGE 2

Agenda

Energy Transition in Germany – Challenges and Solutions1

Energy Storage – Options and RWE’s Activities 2

Conclusion3


Germany’s renewable energy target anticipates 80% of fluctuating renewable energy generation in 2050

DescriptionRenewable share at Germany’s total electricity generation

> Additional renewable generation will depend on the fluctuating technologies of photovoltaic (PV) and wind

> Installed power of PV and wind is expected to double from 76 GW (2014) to 149 GW in 20501

> For comparison: Germany’s total power demand is approximately between 30 and 80 GW (also in future)

in %

80

58

43

28

17

2010 2014 2025

+11% in 4 years

2035 2050

Realised shareTarget of German Government

1 According to the German Transmission grid development plan 2015, Scenario „B“


10

20

0

242628

32

6

1416

2

30

8

12

18

22

4

28.03. 30.03. 31.03. 01.04. 02.04. 03.04. 04.04. 05.04. 06.04. 07.04. 10.04.

German wind energy production at selected days in March and April 2015

Wind generation in GW

Integration of fluctuating power generation requires a high degree of flexibility in the energy system

Supply of very high load

Very high load gradients

Provide large amounts of power for a long period

Potential application for short-term storagePotential application for long-term storage

09.04.08.04.30.03.29.03.


Energy storage is just one of four ways to increase the flexibility of the system

Applications for energy storagePossible technical measures to increase flexibility

> “Energy transition needs no Energy Storage”1 Several recent studies agree, that in the next 10 to 20 years the flexibility required in the power system can be provided by other, more cost-effective technologies. New storage capacity will be only required when renewable energies reach very high shares.

> At the same time a market for decentral home storage in Germany (ca. 20.000 installations at the end of 2015) is established

> What is the way forward?

Flexible power generation

1Grid expansion

Energy storage

4Demand side management

3

2

1 Headline of German Newspaper “FAZ”, September 2014


Agenda



Decentral energy storage2.1Regional energy storage2.2Central energy storage2.3

Conclusion3


Decentral energy storage is driving the market growth in Germany

Other ancillary services

Arbitrage

Frequency regulation

T&D deferral

E-mobility

Markets and value pools

Flexibility for electricity sector

Grid-relief

Others

Short/mid term profitability

Limited short/mid term profitability

No short/midterm profitability

Service can not be provided

Potential additional application for already financed storage

Conclusion

> Ramp-up of storage capacities will be driven by decentral energy storage systems

> This trend is driven by individual profitability based on increase self-consumption

> If aggregated decentral energy storage can offer additional flexibility and grid release services at low marginal costs

> Decentral storage ramp-up will potentially reduce the demand for regional and central storage capacity

Increase self-consumption

Potential storage locationsDecentral Regional Central

1

3

Mobile

2


Home storage increases PV self-consumption and is close to individual profitability

1

Local PV power generationand consumption can be decoupled time-wise

For a typical1 B2C customer a battery will increase the self consumption by about 20 %

1 Family household, 4.500kWh annual consumption, 5 kWh Battery, 5 kWp PV

2423222120191817161514131211109876543210

Housholdpower consumption

PV powergeneration

Battery charging

Battery discharging

hour of the day

kW

1 2 3 4 5 6 7 8 9 100%

20%

40%

60%

80%

100%

15,00 kWh5,00 kWh0,00 kWh

PV System size [kWp]P

V s

elf c

onsu

mpt

ion

+20%

> The economics of batteries rely on the avoided power purchases> Business case depends on regulation and avoided grid fees, taxes, …> With decreasing battery prices home-storage will be profitable for the investor

RWE Group R&D

RWE participates in the decentral energy storage market with a broad product portfolio – Tesla shacked up the market

Tesla PowerwallPortfolio RWE HomePowerStorage

Product

Typ

Capacity(kWh)Life time(cycle)

StorageBasic

Lead-Acid

4,9 – 14,8

2500 (10 years)@50% DoD

StorageEco

Li-Ion

4,5 – 13,5

5000 (20 years)@80% DoD

StorageVario

Li-Ion

4,6 – 10,1

8000 (> 20 years)@90% DoD

10 kWhBackup power

Li-Ion

10,0

500 (< 8 years)

7 kWh

Li-Ion

7,0

n.A.

StorageFlex

Li-Ion

3,9 – 7,8

10000 (> 20 years)

1


Local grid storage is not the best flexibility option – grid extension is generally more cost-effective

2

Grid type Description

Medium voltage grid

> Medium voltage grid extension cost per kW is even cheaper than in low voltage

> Although distances are longer, the storage business casesin the regarded scenarios do not close

> However, in specific situations energy storage is competitive (e.g. Wettringen)

Low voltage grid

> Typical example: increasing PV generation requires more flexibility in the system – low voltage grid extension (600 m branch length) competes with the installation of a 100kW/4h battery storage

> Grid extension costs around € 60k, even with branch length as long as 600 m

> Battery storage using a 100 kW/4h Lithium-Ion Battery will still cost about € 90k assuming a optimistic future specific price of 225 EUR/kWh

> With more than 40 years grids have at least twice the operational life time compared to storage


RWE installed a 1MWh-Lithium-Ion-Battery in a rural distribution grid with high PV feed-in for peak shaving

Battery storage near Wettringen Motivation

> Close to Wettringen (100km north of Essen) the 400V-grid was utilized above design load due to strong PV feed-in

> Planned 110kV-grid extension will solve this overload issue in several years

> Temporary grid congestion can be eliminated cost-competitively with a battery due to it‘s reusability

2

Technical parameters

> 250 kW/1000 kWh> 400 V> Lithium-Ion-Battery-Cells> Complete system in 40” container> Autonomous control based on local grid signal> Minimal expected lifetime: 15 years

Battery racks

Inverter and transformer

Climatisation


The battery storage relieves the distribution grid by cutting the photovoltaic mid-day peak

2

CommentShaving of photovoltaic mid-day peak

With storage

Without storage

> Current German regulatory frame for energy storage in distribution grid is unclear. Discussions with the regulator are ongoing

> Around 1000 operational hours per year for peak-shaving (ca. 11% of total time). Due to unbundling constraints the operating DSO is not allowed to use energy storage for other application (e.g. primary reserve, arbitrage) in the residual time


The battery storage system was delivered completely preassembled


The entire batter storage system fits into a 40’ container


Inside view (1/2)


Inside view (2/2)


Only with a share of RES exceeding 50% significant storage increase on system level will be required

ActivitiesIncreasing share of renewable generation

3

Today

20 to 25%

2020

35 to 40%

2030

50 to 60%

2050

75% to 100%

Relevance of new storage

New Pumped Hydro

Compressed Air

Long-term storage

(e.g. Power-2-Gas)

Build up of decentral storage capacity might reduce the need for central storage

> Keep future options open

> Pursue R&D projects

> Pursue R&D projects


RWE participates in research activities for central energy storage

P2G Demo plant in Ibbenbüren

ADELE-ING

Adiabatic compressed air storage

> Use of Power-to-Gas-technology in intermittent operation mode – operated exclusively with green electricity from a wind farm

> Application of innovative PEM (Proton Exchange Membrane)-Technology

> Standard operating point 150 kW (el. consumption)> Production of approx. 30 m³N/h hydrogen at 14 bar(g) –

Feed-in into the regional gas grid of RWE Deutschland AG

Description

3

> ADELE has reached advanced development stage – Cost target of 1.300 EUR/kW reached – on par with

pumped hydro storage– Charge 200 MW, discharge 260 MW, capacity 1-2

GWh (4-8 h), round trip efficiency 70%> Plans for demonstration plant were suspended due to

insufficient profitability> Currently working on further improvement of system

design to facilitate market entry. The explored options are– Downscaling of system (10-30 MW) to access more

applications– Hybrid-configuration (semi-adiabatic systems using

natural gas)


Current R&D storage activities cover the complete energy value chain

Generation Trading Retail Distribution Grid

Short-term Storage

Long-term storage

Power-to-Gas Ibbenbüren

Neighborhood-Storage

Upgrading of industrial assets via battery storage

Peak-shavingbattery Wettringen

Primary reserve battery plant

ADELEAggregated Decentral Storage


Agenda



Conclusion3


Conclusions

The regulatory frame – not the macroeconomic benefit – decides upon the future success of energy storage technologies

The increasing presence of decentral energy storage will reduce the demand for regional and central energy storage

Energy storage is installed in Germany rather decentrally and can serve all markets when aggregated

Environment

Energy Storage - 10: Christian Metzger, RWE