Energy Storage Summit - Amazon Web Services · Energy Storage Summit February 28th – 1st March...
Transcript of Energy Storage Summit - Amazon Web Services · Energy Storage Summit February 28th – 1st March...
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Energy Storage Summit February 28th – 1st March
• Victoria Plaza – London
storage.solarenergyevents.com/
#storagesummit 28th February – 1st March Victoria Plaza | London, UK
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WEST BURTON
49MW BATTERY STORAGE PROJECT
Christophe Banos
New Technologies Development Manager
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EDF Energy Renewables is a joint
venture between EDF Energies
Nouvelles and EDF Energy
We lead EDF Group’s renewable
development activities in the
United Kingdom and the Republic
of Ireland
We have 31 wind farms with a
total of 323 turbines in operation
with a total of 598 MW installed
capacity
We have five projects under
construction, with others in
development
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BATTERY STORAGE: EDF GROUP STRATEGIC RATIONALE
Low Carbon Ambition: Battery Storage complements EDF’s Low Carbon Generation fleet, providing Flexible Generation and Grid Services.
Customer Focus: EDF Group able to further mature its industrial expertise in order to be a leader in innovative products to serve both business and residential markets.
International Development: Battery Storage represents a new market for EDF in the UK which can be achieved by leveraging Group expertise.
EDF RE –McHenry, Illinois
Feb 16 1MW / 600kWh Dynamic Frequency Regulation
project in R&D France
EDF WORLD-WIDE BATTERY STORAGE PROJECTS (ca. 80MW)
PEGASE PROJECT 1MW/7MWh
Renewable Integration (Wind-PV)
Operational since 2011
REUNION ISLAND
West Burton CCGT
49MW/24.5MWh
Enhance Frequency Response
Under Construction UK
PROVIDENCE 1MW/1.25MWh
Island energy management
Operational since 2015
KAW
1MW/1.25MWh
Operational since 2009
REMIERE-MONTJOLY
5MW/4MWh
Operational since 2015
FRENCH GUIANA
TALUHEN
1MW/1.25MWh
Island energy management
Operational since 2015
CAES LES RESNARDIERES (Paris)
1MW/0.6MWh
Test facility
Operational since 2014
NICE GRID (Nice)
1MW/0.6MWh
Smart Grid demo
Operational since 2014
VENTEEA (Troyes)
2MW/1.3MWh
Wind Integration & DNO services
Operational since 2015
FRANCE McHENRY (Illinois)
20MW/8.5MWh
Frequency Response
Operational since 2015
Potential Future Portfolio
USA
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EFR TENDER - THE REVENUE STREAM DILEMMA
FACTORS TO CONSIDER
New Technology – innovative
technology and new EFR market,
provides no previous projects to
model business case on
Competitive Bid – assuming just EFR
revenue would not secure a contract
in the competitive EFR tender
Regulatory Uncertainty – unclear
government classification and
regulatory rules for battery storage
Business Appetite – how much
revenue uncertainty is the business
willing to tolerate in order to enter the
market
In order to build a strong business case we needed to understand what revenue streams could be
assumed in order to achieve an appropriate rate of return and a competitive EFR bid.
EFR YR 1-4
EFR YR 5 +
BLACK
START
ARBITRAGE
BALANCING MARKET
IMBALANCE MANAGEMENT DEMAND
TURN UP
REACTIVE POWER
CAPACITY MARKET
TRIAD AVOIDANCE
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7 7 SOLVING THE PROBLEM – FRAMEWORK OF ANALYSIS
We used analysis and expertise from across EDF Group to decide which revenue streams were
most appropriate for the business case.
•Is the battery
system suitable?
•How does usage
affect
degradation?
TECHNOLOGY
•How valuable is
each revenue
stream?
•How risky is the
revenue?
VALUE
•Can the battery
target revenue
streams
simultaneously?
STACKABILITY
• Does the
National grid
EFR contract
allow revenue
stacking?
CONTRACTUAL
• Is the overall
risk of future
revenue
streams
investible?
RISK
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8 EDF GROUP EXPERTISE
Project Development, Planning and Construction
Supply Chain Management
Financial Modelling
Battery Storage System Expertise
Supply Chain
Lessons Learnt from other projects
Optimise Land/Grid Connection at West Burton CCGT
Market Analysis – Ancillary Services
UK Regulation Expertise
In-house O&M
Asset Sizing and Modelling Expertise
In-house Command-Control
20MW McHenry Lessons Learnt
Project Development synergies
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CONTRIBUTING SUCCESS FACTORS
Co-location on existing asset
Co-locating at West Burton CCGT allowed to optimise on land and spare grid
connection capacity to reduce upfront costs.
EDF Group Expertise
Mobilisation of experts from the Group show-casing the depth of the organisation
from project development, supply chain and market analysis.
Revenue Stacking
Early understanding that stacking revenues is key and ability to navigate through
complex commercial and contractual framework allowed to unlock opportunities to
improve the business case.
Strategic & Business Appetite
Storage seen as key area of business model and growth within EDF.
“Green light” to seek securing an EFR contract with a competitive bid but under the
established commercial return framework for this asset class.
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10 HIGH-LEVEL PROGRAMME
Aug 16 EFR Contract
Sept 16 Planning Consent
Dec 16 T-4 Capacity Market & FID
Jan 17 Supply Agreement with NIDEC
March 17 Civil Works Start
H2 17 Battery System components delivery
Q4 17 Commissioning
Q1 18 Commercial Operation
March 18 EFR Long Stop Date
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ARTIST IMPRESSION AS OF FEBRUARY 17