Webinar 2020

Storage, Technology, Markets

and Economics

June 22, 2020

Yves Schlumberger – ETIP SNET WG2 Chair

1. Yves Schlumberger, ETIP SNET Board member and WG2 Chair, EDF R&D Storage Program Chief:

- ETIP SNET and the role of WG2 (5 min)

2. Luigi Lanuzza, ETIP Batteries WG6 Chair, Head of New Technologies at Enel X:

- ETIP Batteries and WG6: stationary batteries (10 min)

3. Mark Howitt, Storelectric CTO and co-founder: Storage technologies overview (10 min)

&

Enrique Morgades Prat, Head for Market Development CIRCE: Storage technologies markets (10 min)

4. Etienne Sorin, EDF R&D Expert Stockage: Technico-economic analysis of storage technologies (10 min)

5. Silvia Bodoardo, Professor at Politecnico di Torino: Li-ion and other battery technologies (10 min)

6. Ramon Gero, R&D Engineer at Instituto Tecnologico de la Energia: V2G in energy system storage (10 min)

7. Michael Willemot, CFO Business Development, Oxto Energy: Inertia (10 min)

8. Mark Howitt, CTO & co-founder of Storelectric : Compressed gas technology (10 min)

9. Youlong Ding, Professor at University of Birmingham: Liquid air energy storage (10 min)

Webinar structureWorking Group 2

ETIP SNET ScopeWorking Group 2

10 INDUSTRY-LED EUROPEAN TECHNOLOGY AND INNOVATION PLATFORMS

ETIP SNET ScopeWorking Group 2

Objectives• Set R&I vision for Energy Transition

• Prepare Strategic R&I Roadmaps

• Shape the SET Plan through Roadmap

input

• Consolidate stakeholder views on R&I for

European Energy Policy initiatives

• Identify innovation barriers: regulation

• Communicate on R&I implementation

activities at European, national, regional

levels

5 Working Groups • SmarGrids

• Storage and Sector Coupling

• Flexible Generation

• Digitalisation

• Innovation

European Technology and Innovation Platform

Smart Network for Energy Transition

Name: Storage Technologies and Sector Interfaces

Specific objective: addressing the technological and market developments related to energy storage

All energy storage technologies and all possible interfaces are covered, among others:

Power-to-power

Power-to-gas

Hydro and marine storage

Compressed air energy storage

Thermal mass of buildings

Hot water storage…

Covering the entire value chain of all energy storage options

Including interface between the power sector and the heat, gas and transport sectors

WG2 scopeWorking Group 2

Welcome to this

Webinar

Working Group 2

EUROPEEUROPEAN TECHNOLOGY

AND INNOVATION PLATFORM

Linking European Battery NetworksE

uro

pe

an

Batt

ery A

llia

nc

e

EB

A250

, Mem

ber

Sta

tes,

EU

-led

init

iati

ves

Other legislative & funding initiatives at EU and national levelEU = Strategic Action Plan on Batteries

Cap

ture a

new

market

wo

rth

2

50

B€

/year

in 2

02

5

Eu

rop

ean

bat

tery

Cel

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ctu

rin

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Gig

afac

tori

es

• Batteries R&I strategies and technology roadmaps

• Federation of battery initiatives• Drive forward SET-Plan action

on batteries

Horizon 2020 & Horizon Europe batteries partnerships including Battery2030+

MS led Important Projects of Common European Interest=> R&I & and first commerical deployment

Interregional partnership on advanced battery materials (ERDF/Smart specialisation)

Other R&I activities

Main objectives Batteries

Europe

9

• Boost the growth of a European Battery industry through R&I activities

• Promote open cooperation and exchange of information, including on financing and funding from European, public and private sectors; this includes information of the stakeholders on main calls for proposals, information on the info days and main meetings in a timely and efficient manner

• Through working groups• develop R&D roadmaps• prepare Strategic Research and Innovation Agenda

• Promote research and innovation on all aspects of battery value chain: from raw materials, sourcing, advanced materials, cell design and manufacturing, applications and integration of batteries to recycling

• Keep up to date stakeholder basis for main meetings including reaching out towards new market segments, market players and ensuring full EU 28 geographical coverage

Thematic Working Groups

WG1New &

Emerging Technologies

WG2Raw

Materials and Recycling

WG3Advanced Materials

WG4Manufacturing & Cell Design

WG5Application and

Integration-Mobile

WG6Application and

Integration-Stationary

Governance Model- honouring the value chain approach

General AssemblyParticipation for all member organisations contributing at least through one

thematic work stream

Governing BoardRepresentatives from Industry and Research covering the entire Battery

Value Chain

Management TeamChairs of thematic working Groups and NRCG, convened and facilitated by

the representatives of the Support teamNRCG

National and Regional

Coordinators Group

Raw Materials

Advanced Materials

CellManufacturing

Battery Manufacturing

Applications

Recycling

Business Models & Market Development

Skills & Education

Policy & Regulation

Sustainability & Societal Aspects

Cro

ss-C

utt

ing

Issu

es*

Safety & Standardisation

WG1New & Emerging

BatteryTechnologies

WG2 Raw Materials and

Recycling

WG3AdvancedMaterials

WG5 Application and

Integration-Transport

WG6Application and

Integration-Stationary

Second Use* & V2G

Them

atic

Wo

rkin

gG

rou

ps

Benchmarking

Top

ics

to b

e ad

ress

edin

sm

alle

rsu

bgr

ou

ps/

Tas

k fo

rces

Modelling Platform

Characterisationmethods

Increased Performance

Sustainable Sourcing

Secure Raw Material Supply

Cell chemistry

Advanced materials

Charging Solutions, incl. Fast Charging*

Pack/ System/ BMS Design

ESS

Modelling

WG4Manufacturing &

Cell Design

Scale-up Issues

To be further developedby WG

To be further developedby WG

To be further developedby WG

To be further developedby WG

Advancedmanufacturing

To be further developedby WG

Design for Recycling-cross topic w WG4

Second Use

Battery 2030

Recycling

To be further developedby WG

Benchmarking

Modelling Platform

Characterisationmethods

Increased Performance

Sustainable Sourcing

Secure Raw Material Supply

Scale-up Issues

To be further developedby WG

To be further developedby WG

Design for Recycling-cross topic w WG4

Second Use

Battery 2030

Recycling

Working Group Structure and topics to be addressed

National and Regional Representatives Group

Business Models & Market Development

Skills & Education

Policy & Regulation

Sustainability & Societal Aspects

Cro

ss-C

utt

ing

Issu

es*

Safety & Standardisation

WG1New & Emerging

BatteryTechnologies

WG2 Raw Materials and

Recycling

WG3AdvancedMaterials

WG5 Application and

Integration-Transport

WG6Application and

Integration-Stationary

Second Use* & V2G

Them

atic

Wo

rkin

gG

rou

ps

Benchmarking

Top

ics

to b

e ad

ress

edin

sm

alle

rsu

bgr

ou

ps/

Tas

k fo

rces

Modelling Platform

Characterisationmethods

Increased Performance

Sustainable Sourcing

Secure Raw Material Supply

Cell chemistry

Advanced materials

Charging Solutions, incl. Fast Charging*

Pack/ System/ BMS Design

ESS

Modelling

WG4Cell Design &

Manufacturing

Scale-up Issues

To be further developedby WG

To be further developedby WG

To be further developedby WG

To be further developedby WG

Advancedmanufacturing

To be further developedby WG

Design for Recycling-cross topic w WG4

Second Use

Battery 2030

Recycling

To be further developedby WG

Benchmarking

Modelling Platform

Characterisationmethods

Increased Performance

Sustainable Sourcing

Secure Raw Material Supply

Scale-up Issues

To be further developedby WG

To be further developedby WG

Design for Recycling-cross topic w WG4

Second Use

Battery 2030+

Recycling

WG1New & Emerging

BatteryTechnologies

WG2 Raw Materials and

Recycling

WG3AdvancedMaterials

Them

atic

Wo

rkin

gG

rou

ps

Scope of WG 6: Application & integration – stationary

SCOPE OF WORK

Develop solutions for grid integration and stationary applications for batteries as well as assist in the benchmarking of the state of the art technologies, including Research, Regulation, Business models

Identify research priorities, especially at battery system level and integration into energy system

Identify the technological needs for efficient stationary battery storage system

Provide a working forum for second-life batteries R&I discussion

STAKEHOLDERS

EASE, EUROBAT > as representative of

storage and batteries industry

TSOs, DSOs, Renewable energy sector

representatives > to identify specific

integration and storage needs

OEM > to better identify technological

aspects and the business case for the

second life of batteries

Innovative companies in stationary

storage sector

Research: 25 organizations Industry: 27 organizations along the value chain

WG6 activities

Three first tasks:

T1. KPIs: Review of SET Plan KPIs and target values for batteries

T2. R&I fiches for upcoming Horizon Europe new funding programme

T3. USE-CASES: definition of main use-cases for stationary applications

Plus:

Review of outcomes of Bridge Project + Questionnaire

Strategic Research Agenda: contribution to vision and main

challenges for R&I

WG6 activities: Focus on T1, T2, T3Task 1:

Review of SET Plan KPIs target values to 2025

and 2030, selection and proposal of relevant

KPIs for stationary applications:

• 4 dimensions: Performance, Cost, Manufacturing

and Recycling, Safety and Sustainability

• 10 parameters: Battery life time, Charge/discharge,

Response, Energy density/power, Battery costs,

Production, Recycling, Second life, Safety,

Sustainability

• > 20 KPIs: Cycle life, FEC - Full Equivalent Cycle,

Calendar life, Throughput (proposed as NEW),

Charging Rate time, C-rate , Discharge duration, Self

discharge rate, Roundtrip efficiency (proposed as a

NEW KPI), Response time, Volumetric energy/power

density, Battery system cost for ESS, LCoES per cycle,

CAPEX, Battery cell BOM (€/kWh), Utility storage

Battery cell production, Collection rate, Recycling

efficiency, Economic viability, Second life business-

case, Safety, Sustainability, MTBI (proposed as NEW)

Delivery: End of June, then use-case specific KPIs

Task 2:

6 R&I short-term actions proposed

• Bottom-up process: 33 call topics

proposed, clustered in 10 topics (several

iterations)

• Wide participation: a team work

• Prioritization exercise: assessment round

on importance and urgency

• Optimization: from 10 to 6 topics

• Final drafting and review round

Task 3:

OBJECTIVE: identify BESS use-cases,

battery requirements and specific

KPIs.

OUTPUT:

• Description of the market segments

and estimate of size and trends (up

to 2030)

• Definition of use-cases considering

applications and services

Actions

• Collected and reviewed reports,

market studies etc.

• Classified specific aspects for Use

Cases of stationary batteries

• Segmentation of applications for

stationary batteries

• Link between Use Cases and KPIs

EUROPEEUROPEAN TECHNOLOGY

AND INNOVATION PLATFORM

Join the Battery R&I community at: info@batterieseurope.eu

June 2020

What is Batteries Europe ETIP?

A European Technology and Innovation Platform for Batteries

An R&I focused network for all battery stakeholders

The "one stop shop for Batteries R&I"

Batteries Europe is not a funding program however if you want to…

Network with the battery community

Understand the state of play in the battery eco-system

Influence the R&I agenda for batteries on both European and National level

R&I Initatives

TRL 7-9

TRL 1-7Batteries partnership, incl. longterm research

Connects all R&I at all TRL levels, industry driven R&I

EBA250: industrial projects

Inter-regional partnership Important Projects of Common European Interest (IPCEI's)Stakeholder

Networks

Linking European Battery Networks

Deliverables for next 12 months

• Benchmarking & development overview of the

current state-of-art

• Contribution to KPI setting

• Standardisation methodology - develops

standardised metrics for reporting results

• Revision of SET Plan targets

• Establishment of projects database

• First version of Strategic Research Agenda

19

Batteries Europe is an inclusive, operational and

proactive coordination platform focused on battery

related R&I

Batteries Europe develops key strategic documents for the Battery R&I community, covering the entire battery value chain and all TRL levels including technology roadmaps and an updated Strategic Research Agenda

• Identifies main research and innovation needs in Europe

• Provides strategic outlooks and timelines on what specific technologies are needed to reach the objectives identified – and what is need to keep their development on track

• Identifies the most important needs/areas/technologies for the upcoming 5-7 years covering the entire battery value chain – including specific technologies and timelines to develop those technologies

• Identifies new challenges and issues that could be faced by the Battery R&I community and ensures that R&I activities are inline with relevant industrial opportunities

• Provides clear and concise recommendations for actions to reach those goals

Batteries Europe is the “one stop shop for the Battery R&I Community

• Focal point of information, exchanges, priority setting and co-operation on batteries R&I

• Aims to create/reinforce networks between all stakeholders at international, European, national and regional levels

• Shares information about and brings together different projects to foster synergies

25th of June 2019 in Brussels

Over 230 stakeholders attended

Strong interest from Member states – large National and Regional presence

Strong support from European Commission incl. DG Energy, DG RTD, DG Move, DG Grow

Kick Off of Batteries Europe ETIP in June

2019

OVERVIEW OF THE CONSORTIUM AND IT'S NETWORK

Elected Governing Board Members 2019/2020

Positions Elected Candidates

Chair Michael Lippert, SAFT

France

Vice-Chair – R&I Paolo Cerruti, Northvolt

Sweden

Vice Chair - OEM Tobias Lösche-ter Horst, Volkswagen

Germany

Future and Emerging

Technologies

Rosa Palacin Peiro, CSIC

Spain

Raw Materials & Recycling Tuomas van der Meer, Outotec

Finland

Advanced Materials Kurt Vandeputte, Umicore

Belgium

Cell Design and Manufacturing Stefano Saguatti, Manz Italy SRL

Italy

Mobile Application Matthias Brendel, AVL List GmBH

Austria

Stationary Applications Etienne Brière, EDF

France

Heritage from SET Plan Implementation Plan

Working Group

• Initiated in March 2017

• Key stakeholders delivered the implementation plan in October 2017

• Working Groups continued to evolve and develop organically

• Laid an excellent foundation of experts for Batteries Europe ETIP

• Batteries Europe took up the task to support the work of the IWG in January 2019

Integrated SET-Plan Action 7"Become competitive in the global battery

sector to drive e-mobility and stationary storageforward

Continuation of the work started within IWG7

Recycling

Advanced Materials

Manufacturing

Application and Integration

Fast Charging

Second Use

Cross Cutting Issues

SET Plan IWG7 Subgroups

Lead: Pascal Newton

Transfer to BatteRIes EuropeIWG7 Meeting; January

New & Emerging Battery Technologies

Raw Materials and RecyclingContinues, broadened scope

Advanced MaterialsContinues

Cell Design & ManufacturingContinues, broadened scope

Application and Integration- Mobility

Application and Integration- Stationary

Split into mobile and stationary solutions

Fast charging included in MobilitySecond use is a cross-cutting topic

Integrated across all WG's

New, long-term perspective

National & Regional Coordinators Group (NRCG) – Current Lead: Pascal Newton Stronger involvement of MS

Confirmed Working Group Chairs and Co-Chairs for

first year of operation

Michael KrausaKLIB

ThematicWorkingGroups

WG1

New & EmergingBattery

Technologies

WG2

Raw Materials and Recycling

WG3

Advanced Materials

WG 4

Manufacturing and Cell Design

WG5

Application and Integration-

Mobile

WG6

Application and Integration-Stationary

Chair Kristina EdströmUppsala University

Ilkka KojoOutotec

Fabrice Stassin Umicore

Oscar M. Crespo CIDETEC

Simon PerraudCEA

Luigi Lanuzza ENEL

Co Chair Stefano PasseriniHelmholtz Institute

Olli SalmiEIT Raw Materials

Silvia BodoardoPolitecnico di

TorinoEERA ES

Carlo Novarese,FAAM/Lithops

Franz GeyerBMW

Javier OlarteCIC Energigune

Co-ChairPhilippe Stevens

EDFAlain Vassart

EBRADaniel Gloesener,

SolvayJosef Affenzeller

AVL Jesus Varela Sanz

Iberdrola

Research Industry

Sherpa Ivana Hasa,KIT

Mari Lundström, Aalto university

Marcel Meeus, EMIRI Arno Kwade,TU Braunschweig

Lucie BeaumelEGVIA

Rachele Nocera, ENEA

Huge interest & motivation

WG1New & Emerging Battery

Technologies

WG2 Raw Materials and Recycling

WG3Advanced Materials

WG5 Application and Integration-

Mobility

WG6Application and Integration-

Stationary

WG4Cell Design & Manufacturing

National and Regional Coordinators Group (NRCG)

Industry

Associations

R&I Community

82 experts

58 experts

82 experts

58 experts

108 experts

69 experts

73 participants

Scope of WG1: New and Emerging Battery Technologies

SCOPE OF WORK

• BATTERY 2030+• Modelling platform• Characterisation methods• Increased performance• Benchmarking• And more suggested by the

WG members…

STAKEHOLDERS

• Universities and research organizations• Associations

Battery 2030+ members, EERA, Faraday Challenge, Alistore ERI, SAFT Alliance and REA (Research Executive Agency) ….. National, regional or European initiatives which are developing R&I roadmaps and research programs concerning low TRL battery technology

• IndustryBroaden industrial participation of material producers

Scope of WG 2: Raw Materials and Recycling

SCOPE OF WORK

• Securing the Supply of Primary Raw Materials

• Sustainable Sourcing, Traceability and Labelling

• Battery Raw Material LCA• Sustainable Processing of Li, Co,

Ni and Graphite materials up to precursor level

• Industrial Integration with Recycled Batteries

• 2nd Life

STAKEHOLDERS

Industrial participantsMiningProcessingRecycling (both collectors and processing)OEMs

Institutional participantsUniversitiesResearch Institutes

Scope of WG 3: Advanced Materials

SCOPE OF WORK

• Strong basis will be the EMIRI strategic innovation roadmap (close to completion)

• Technology scope will be gen 3, gen 4 and gen 5 to some extent (techs not being at TRL of 3 are better addressed in WG1)

• Next to product-related innovation, we need to address process-related innovation (producing with less environmental footprint)

STAKEHOLDERS

• Contributors with key knowledgeon advanced materials for batteries

• From university, RTOs, industry• Call for industrials to get on

board since our focus is on advanced materials reasonablyclose to the market

Scope of WG 4: Cell Design and manufacturing

SCOPE OF WORK

• To strongly support the development

and success of European large scale

battery cell production in Europe

• Enhance discussion across the value

chain

• Address R+D challenges

• Address CC issues: IPR,

sustainability, standardization, training

and others

STAKEHOLDERS

• INDUSTRY: Battery cell, Materials, Machinery manufacturers

• END USERS: integrators: OEMs, pack assemblers

• RTOs • Industrial ASSOCIATIONS & Platforms• Specific INITIATIVES: eg. EU Pilot Line

Network, IPCEI, Battery 2030+…

Scope of WG5: Application & integration – mobile

STAKEHOLDERS

• IndustryBattery modules/packsMotor vehicles (passenger cars, buses,

two-wheelers, trucks, construction vehicles, agricultural vehicles, etc.)

Rail transportWaterborne transportAerospacePowertoolsMobile robots, etc

• Universities and research organizations

• Associations

SCOPE OF WORK

• Application requirements• Module/pack design (electrical,

mechanical and thermal engineering)• Module/pack manufacturing• BMS (algorithms, software and

hardware)

Role of the thematic working groups

Composed of experts from industry, academy and associations, MS and Commission

Services

Involvement and contribution of all the stakeholders of the battery sector as a whole,

providing vision, inputs, guidance and continuous feedback for the development of the

integrated R&I Roadmap.

• Define scope and themes to be addressed in each WG• Identify new challenges and issues that could be faced by the Battery R&I community• Ensure that R&I activities are inline with relevant industrial opportunities• Share knowledge and expertise of existing R&I activities in their relative sector• Examine methodologies for implementation of concrete actions, especially SET Plan Action 7• Provide clear and concise recommendations for actions to reach those goals

Large degree of freedom to develop papers and initiatives aiming at fostering the development of thebattery value chain in Europe.

Your work will feed into key strategy documents of BatteRIes Europe!

Scope of NRCG

SCOPE OF WORK

Coordination of national & European R&D agenda in the field of a competitive European battery industry

STAKEHOLDERS

Representatives of National or

Regional authorities :

• Policy makers

• Programmes Owners

• Programmes Managers

Currently :

• 11 Countries : DE, FI, FR, LT, NL,

PL, PT, SE, SI, TR, UK

• 7 Regions : Basque country,

Bavaria, Brussels, Flanders,

Nouvelle Aquitaine, Vestland,

Wallonie,

Common tasks and deliverables for WG's

• Provide clear directional focus for Battery R&I to all stakeholders

• Build a well informed, well networked, co-operative Battery R&I community

• Support a continuous R&I flow to the growing battery industry

• Identify new applications and markets for today's and tomorrow's battery technology

• Boost the growth of European Battery industry through European R&I

Development the Strategic Research Agenda (SRA) by a collaboration of the JRC (SETIS), the EC, MS, the ETIP working group leaders and

other key stakeholders.

A table for all stakeholders

• Get involved:

• Ensure industry gets it's say and gains a strong position in the Battery Ecosystem

• WG members engagement

• National and Regional Coordination Groups engagement

• National Battery Networks also very necessary to identify the opportunities unique to each country

Industry

EU Commission

The Need

1. Energy Balancing

Enabling renewables to power the grid

The Problem

1. The world’s power grids are moving to

renewables

2. Most renewables are intermittent

They generate when they want to, not when we want

3.Demand is baseload (constant)

and dispatchable (variable)

4.Therefore storage is needed to turn

intermittent generation into

baseload and dispatchable supply

Energy Transition Plans

Most EU countries expect to import

during times of system stress

1. After sunset on a windless winter evening

2. Weather patterns that extend this to max. 2

weeks over most of the continent (“kalte

dunkel Flaute”)

3. Cost of 120-180GW interconnectors 2,000

miles across EU, both north-south and east-

west

4. Cost of grid stability services

But if all are importing, who is

exporting?

1. Need to store to keep the lights on

2. Large-scale long-duration storage: multi-GW,

up to 2 weeks, in each country

Scale, Duration, Response Times

Response Times Duration (max.) Size (max. economical UK)

Technology Ine

rtia

Pse

ud

o-i

ne

rtia

Sub

-se

con

d (

EFR

)

Fre

qu

en

cy R

esp

on

se 1

:

10

se

con

ds

Fre

qu

en

cy R

esp

on

se 2

:

30

se

con

ds

STO

R:

30

min

ute

s

15

min

ute

s

30

min

ute

s

2 h

ou

rs

5 h

ou

rs

Day

s

To 2

MW

To 2

0M

W

To 2

00

MW

> 2

00

MW

Flywheels

Demand Side Response

Lithium batteries

Lead-acid batteries

Flow batteries

Pumped hydro

Compressed Air Thermal

Compressed Air Hybrid

The winning technology is…

All of the above!

Each brings its own benefits

All together enable renewables to power the grid

The Need

2. Distributed Systems

Enabling renewables to power the grid

Demand Turn-Up

• When system energy drops too low (UK: 5GW), it has insufficient power to start and synchronisegeneration

• Black Start Mode

• Excessive distribution-connected generation reduces demand on the transmission grid

• Transmission demand needs to be increased to keep enough electricity flowing

• Curtailment

• Negative prices: paying to turn up demand

• Storage can absorb this, if big enough

Coronavirus: a Dry Run for 2030 Demand Minima?

Renewables are a very high % of

demand

1. Peak demand holds up well

2. Off-peak demand plummets

Afternoon low is lower than overnight

3. Peak-to-trough increases rapidly

4. Storage / load-shifting requirement is

more than doubled

5. This graph highlights distributed

renewables: adding grid-connected

renewables makes the challenge even

more extreme.

9-10 May 2020: National Grid

Turned down nuclear and wind to turn on

CCGTs

Started using SuperSEL, a new contract

type to run inertial plant at ultra-low

output, just to increase inertia

3 May 2020

The Need

3. Grid Stability

Enabling renewables to power the grid

What Is Inertia?

45

• If a car engine fails, the car’s weight gives inertia so the car can stop safely

• Otherwise comes to a dead halt immediately

• Inertia in the electricity system slows the rate of change of voltage and frequency

• Power stations deliver inertia• Large rotating machines

• Power stations are closing fast

• Too little inertia means an unstable grid

Grid Stability: Falling Inertia

Inertia Dropping Rapidly

1. Synthetic inertia is NOT like the

real thing – UK black-outs 9/8/19

2. Many stability services depend on

real inertia, e.g. ROCOF (Rate of

Change of Frequency)

3. Real reactive power/load

Costly and inefficient for batteries

Cheap and easy for inertial storageUK as an example for Europe. Source: National Grid 29/4/20

Systems With and Without Inertia

Without Inertia

• Wind generation

• Solar generation

• Interconnectors

• Batteries

• All kinds

• Flow batteries

• Vehicle to Grid (V2G)

• Any DC connected

technology

With Inertia

1.Power stations

Fossil fueled

Biomass

Green gas (e.g. from anaerobic digestion [AD])

2.Hydroelectric and Pumped Hydro

3.Compressed Air Energy Storage

(CAES)

4.Liquid Air Energy Storage

5.Flywheels

The Need

4. Black Start

Enabling renewables to power the grid

When All Else Has Failed: Black Start

Black Start Sequence

1. Start the facility without external

power

2. Create a frequency reference

3. Start neighbouring generation to

create a “power island”

Power

Inertia

Frequency

Duration

4. Synchronise with neighbouring

power islands

Conclusion

Enabling renewables to power the grid

Fitting the Technologies Together

• If we only had motorways and main roads…

• We couldn’t get to our homes, offices and shops

• If we only had small roads…• We couldn’t get anywhere fast or far

• If we go far on small roads…• It’ll take forever to get there

• If we go fast on small roads…• We’ll crash

Use each technology for its strengths

Don’t try to apply one solution to all problems

Enabling renewables to power grids is

like the road system enabling the

economy.

Webinar 2020

Storage in the energy system

Market overview

June 22, 2020

Enrique Morgades Prat – ETIP SNET WG2 Co-Chair

Webinar structureWorking Group 2

Webinar structureWorking Group 2

Webinar structureWorking Group 2

Webinar structureWorking Group 2

TECHNICO-ECONOMIC ANALYSIS OF STORAGE TECHNOLOGIES

ETIP SNET – Webinar on energy storage

Etienne SORIN - EDF R&D

June 2020

HOW TO EVALUATE THE FUTURE POSITION OF STORAGE IN THE ELECTRIC SYSTEM?

STORAGE CANNOT BE PERCEIVED AS A SINGLE PRODUCT

BNEF’s 2019 forecast for stationary storage

STORAGE TECHNOLOGIES ARE NOT ONLY IN COMPETITION BUT CAN ALSO BE COMPLEMENTARY

Examples of application

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Consommation Production

Generation

injected in the grid

Consumption from

the grid

Self consumption

Charge

Discharge

Consumption Generation

PHS

CAES

Hydrogen

< Seconds Minutes Hours

Power

Energy

Batteries

Flywheels

Frequency regulation

Congestion management

Peak shaving

MonthsDays

Heat & cold storage

Services

Technologies

Load shiftingSource: EDF R&D

Auto-consumption Frequency regulation

Grid frequency (Hz)

Storage dispatch (kW)

A SMALL CHANGE IN THE MARKET STRUCTURE CAN HAVE A STRONG IMPACT ON STORAGE

PROFITABILITY

Peak price drop

Discharge price (peak)

Charge price (off peak)

Pri

ce

sp

rea

d

Storage losses

Storage revenue

[€/MWh]

Sp

ot p

rice

[€/M

Wh

]

0

Discharge price 50€/MWh

Price spread 30€/MWh

Storage revenue ~26.5€/MWh

Efficiency : 85% Charge price : 20€/MWh

Exam

ple

Discharge price -10%

Price spread ~-17%

Storage revenue ~-19%

Efficiency : 85% Charge price : 20€/MWh

Capex

&Opex

Sp

ot p

rice

[€/M

Wh

]

Discharge price (peak)

Charge price (off peak)

Pri

ce

sp

rea

d

Storage losses

Storage revenue

[€/MWh]

0

THE REVENUES OF STORAGE CANNOT BE EXPLAINED ONLY BY AVERAGE PRICES

0,5

0,6

0,7

0,8

0,9

1

1,1

1,2

2010 2011 2012 2013 2014 2015 2016 2017 2018

Evolution of the revenue of a 6 hour storage (85% eff) VS the yearly average price in France(base 2010)

Storage revenue Yearly average price+

THE VERSATILITY OF STORAGE PUSHES FOR AN DETAILED MODELISATION OF THE SYSTEM

System modelisation

Generators and

storage dispatch

Investment loop

Storage outputs

Revenues and

profitability

Market depth

Technology

comparison

Other Inputs

Investment costs

Fuel costs

CO2 prices

Network transfer capacities

Variable generation

Location of VG

Hourly load factors (or

lower resolution)

VG forecast errors

Other variability sources

Demand time series

Generation dynamic

constraints

THE MARKET DEPTH FOR STORAGE HIGHLY DEPENDS ON THE CONTEXT THROUGH THE ENERGY

MIX AS WELL AS THROUGH GRID INTERCONNECTIONS

EV charging

infrastructure and Grid

inertia

How does a flywheel work

Energy= ½*Inertia*Speed²

Energy from the Grid

time

Pow

er

/

Speed

Energy into the Grid

time

Pow

er

/

Speed

• Speed matters more than

mass

• The ratio of material

strength and density

determines the maximum

energy which can be

stored

Rotation

PHYSICSCONSEQUENC

E

The OXTO battery technical legacy

Inertia Drive (ID), the Next GenerationFlywheel *

The Inertia Drive technology is based on the flywheel mechanical battery concept that stores

kinetic energy in the form of a rotating mass . Our innovations focus on Design, Assembly and

Manufacturing Processes.

We have taken proprietary

& proven space technology

…and brought it to

earth to commercialise

it! *IP granted: Patent

#GB2489523 (hyperlink)

International Patent Application

No: PCT/GB2019/052636Member of the 1000 Solutions

initiative (Solar Impulse

Foundation)

OPERATIONAL IN WIDE TEMPERATURE

RANGES

(-45°C to +65 °C)

HIGH POWER DENSITY – Very fast

response

100% DEPTH OF

DISCHARGE

No degradation

HIGH AVAILABILITY (>99%) – LOW

MAINTENANCE

EASY TO MASS MANUFACTURE

– Pure metallic steel, no magnets

UNLIMITED CYCLES OF

CHARGE

+ 20 YEARS

Main differentiation points with other

flywheels – Safe design and mass-

manufacturing focused

SAFE DESIGN,

CONTAINMENT

Flywheels can play a critical role in the circular economy

• Clean tech – steel or carbon fibre

• Emission free

• Ultra low noise levels

• No hazardous material

• 100% recyclable

LARGE NUMBER OF CYCLES PER DAY

CONTROL OF VOLTAGE VARIATIONS TO

AVOID EV CHARGER DAMAGE

REDUCE STRESS ON DISTRIBUTION GRID

TOP-UP OVER GRID CONNECTIONS

FAST CHARGE GUARANTEE ANYTIME

Application #1 – EV charging

Enabling EV charging

stations to guarantee

the fastest charging

time for any fleet of

vehicles

CUSTOMER BENEFIT

Flywheel vs. Chemical storage – significant cost savings and faster charging

£ £ £ £Interconnection & Infrastructure

Cost

£Maintenance Cost Chemical

£Replacement Cost

Disposal Cost £0£

𝟏

𝟒

£Installation Cost

Fast charging - Anywhere

Anytime

The Grid

Chemical

Hybrid Is The SolutionThe future is hybrid storage systems – where flywheels compliment Chemical and Hydrogen storage solutions

Flywheels will guarantee charging

thanks to large cycles and power density

Energy sourcesChemical batteries and Hydrogen storage technologies will act as an

energy tank

SMOOTHEN RENEWABLE PRODUCTION

(50+ cycles/day)

SYNTHETIC INERTIA

LOWER COST OVER LIFETIMEi.e. improves ROI of wind farms by 15%

with xx% less cost over lifetime

CORRECT VOLTAGE

SPIKES/SAGS/SURGE

S

FLICKER-LESS POWER PROVISION

Application #2 – Grid stabilisation for renewable energy

sources

•Enabling solar and wind

farms to become

autonomous and perfectly

neutral for grid stability.

• Islanding & connected

modes

CUSTOMER BENEFIT

Electricity grids – main challenge

The grid needs to continuously balance

what is been generated and what is been

consumed to ensure a stable supply of

electricity to homes and businesses.

Grid transition from high to low inertia

HIGH

INERTIA

LOW

INERTIA

What is inertia

Low inertia = Sudden stop of

movement

High inertia = Continuous

movement allowing momentum

growth

Connection loss with grid The grid system continues to

perform with slow fading and

allows time for generators and

other infrastructures to act

vs.

Why is inertia important?

Lack of inertia can result in massive blackouts and

subsequent critical financial damage to cities.

2003

NYC to Toronto

2016

Australia

2019

UK

Renewable integration presents a challenge for inertia

To ensure the best integration of renewable energy

with the grid we need advanced controls and

technologies that will ensure grid stability and

reliability

OXTO flywheel

Fast & very high power density

Lifetime of power plants (+25

years)

Existing markets & evolution

Ireland DS3

DS3 services include inertia (2018)

Australia

• South Australia: regulator

imposes inertia capabilities for

new non-synchronous

generators (2017)

• Australia: AEMC makes

frequency response mandatory

for all generators (March 2020)

UK

National Grid Stability Pathfinder

(2020)

Thank you

Index

History of Storelectric 3

CCGT CAES Solution 4

TES CAES Solution 5

Hybrid Solution 6

Key Developer Benefits 7-8

Magnum, Storelectric and MHPS 8

Plant Revenue Streams 9

Team 10

Contact Information 11

History of Company

Jeff Draper identified the need for

large-scale long-duration storage

to make tidal power economic

JD having identified CAES, Mark

Howitt developed TES CAES:

increasing efficiency 50 => 70%,

eliminating emissions

Tallat Azad ran an Alstom

business which provided the

TES; joined Storelectric,

developed CCGT CAES: retro-

fittable, 60%

Wyre estuary at low tide: 10m range

La Rance Tidal Barrage, Britanny France

McIntosh CAES, Alabama, USA

Huntorf CAES, Germany

Storelectric CAES Solutions (1) – CCGT CAES

Gas based CAES Solution

♦ Uses natural gas or other gas-based

energy sources◊ Transition to hydrogen as it becomes available

♦ Emissions ~half of conventional CCGT

plants

♦ Round trip efficiencies between 50-60%

depending on MW size

♦ Multiple power trains to improve plant

flexibility, opex and revenues

♦ Retro-fittable on brownfield sites with

existing OCGT or CCGT plants – new life

to stranded assets

♦ Can re-purpose existing gas caverns

♦ Co-location with renewable generators

and interconnectors improves the

profitability of each

♦ Profitable without subsidy

♦ Technology owned by Storelectric Ltd

Storelectric CAES Solutions (2) – TES CAES

Thermal Energy Storage (TES) Based CAES

Solution

♦ Green solution – no emissions

♦ Round trip Efficiency of 62-70% depending

on MW size, configuration

♦ Multiple power trains to improve plant

flexibility, opex and revenues

♦ Re-purposing of existing gas caverns

possible

♦ Co-location with renewable generators and

interconnectors improves the profitability of

each

♦ Levelised cost of electricity is cheaper than

a gas-fired peaking plant

♦ Profitable without subsidy

♦ Licensed from TES CAES Technology Ltd

Storelectric CAES Solutions (3) – Hybrid CAES

Hybrid of the 2

technologies

• Normal operation: a more efficient

and more powerful CCGT CAES• Can operate in TES CAES mode

• Can operate as a CCGT if stored energy is

exhausted

• Longer duration than TES CAES

• More flexible

Key Magnum Benefits (1)

© Storelectric Ltd 2020 All rights reserved. Information in this document is indicative only, and is the view of the management at the time of writing. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular

project, which will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use, disclosure to third parties without Storelectric’s express written authority is strictly prohibited.

Advanced Compressed Air

Energy Storage (CAES)

The world’s most cost-effective

large-scale long-duration

electricity storage

Widely implementable globally

Low risk technologies

Validations by global

engineering multinationals

Outstanding benefits to grids,

renewable generators

Strong returns on investment

Storelectric’s large-scale long-duration storage is the key

to enabling renewables to power the grid, by providing

services including:

• Arbitrage (making the markets work better)

• Balancing services (e.g. producing when wind/solar

don’t, and vice versa)

• Ancillary services (where response time is at a

premium)

• Grid stability services (helping grids to ride out faults

etc.)

• Other services, e.g. black start

Grids and governments globally are appreciating the

issue; e.g. UK National Grid’s Future Energy Scenarios

2019 requires 20-28GW of mostly long-duration storage

by 2050 to achieve 80% emissions reduction; Net Zero

will require more.

Key Magnum Benefits (2)

© Storelectric Ltd 2020. All rights reserved. Information in this document is indicative only, and is the view of the management at the time of writing. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any

particular project, which will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use, disclosure to third parties without Storelectric’s express written authority is strictly

prohibited.

Stand-Alone Plants

• Profitable without subsidy when trading in a

moderately level regulatory playing-field• Already profitable in the UK

• Best mitigation of regulatory risk• No long-term contracts in electricity in Europe

• Regulators change constantly as they work out

how to regulate net-zero grids

• Best mitigation is to have a plant flexible

enough and with a big enough revenue stack

to trade profitably however regulations may

change

• Storelectric’s CAES are the most flexible

plants, with the tallest revenue stacks, on the

grid

• Essential for de-carbonizing grids

In Conjunction with Renewables

1. For the renewable generator: Halves the size of wind farm grid connection (2/3

reduction for solar)

Corresponding reductions in grid reinforcement

Enables wind farms to be doubled (solar tripled) on

the same grid connection

Eliminates grid access charges

Reduces curtailment

2. For interconnectors Enables import/export even when there is insufficient

imbalance of resources

Carries up to 6x solar energy than direct connection

3. For the storage plant: Shares the grid connection (zero cost)

Assured clean energy supply

Zero grid access charges for purchase

Storelectric and MHPS

Storelectric has a close

relationship with MHPS in Europe,

and a Letter of Intent saying that

they:

Have validated our technologies;

Can build them from existing

equipment;

Would consider providing an

EPC Wrap;

Are considering investment

Other Technical Validation Results

• Costain• “The system is robust and works well under all the sensitivities tested

during this study. For the base case the efficiency calculated was

63.1%, with a range of 61% to 63.5% .... The dynamic simulation

conducted by Fortum show good correlation with the results of this

report stating efficiencies of 62 to 64%. Previous works by Oswald

Consultancy and Siemens put the efficiency at 62.3 and 62.7%

respectively, albeit the process setup was marginally different.”

• Fortum• “The simulations confirm the system is dynamically stable and should

operate satisfactorily as intended on a daily cycle with equal power

ratings for both compression and generation;

• “The expected system round trip efficiency for the base case is 62.5%

(this includes idle time heat losses and the higher losses associated

with a sub optimised thermal storage tank),• They later evaluated a revised TES configuration, which both simplified

the system and increased efficiency to 63.5%

• “In the scope of this study no specific problem areas have been

identified that would affect performance or operability of the TES

CAES plant.

• Siemens• "The components are available, the caverns are available, it does

work and it will work."

Revenue Streams Per Plant – 2020 and Forecast

Distributio

n

Connected

Plant

Transmissi

on

Connected

Plant

£/kW p.a.

Gross

Margin

£124/kW £116/kW

£p.a. per

typical

40/500MW

plant

£4.96m £58m

Not Evaluatedand therefore up-side potential♦ Black Start;♦ Other stability services such as those currently being

developed by National Grid;♦ Location-specific revenues e.g. for constraint management;♦ Seasonal Storage;♦ Contracts with Distribution Services Operators (DSOs) such

as are traded on PicloFlex (and further platforms and services are also under development);

♦ Imbalance pricing arbitrage and hedging services;♦ Bilateral Agreements (e.g. Power Purchase Agreements) for

sale of electricity;♦ Bilateral Offtake Agreements for purchase of electricity;♦ Potential synergies from co-locating with renewable

generation, such as sharing grid connections and eliminating grid access charges for purchase;

♦ Selling to local consumers by private wire, hence eliminating grid access charges for sale.

Source: Baringa, 2020

All figures assume zero public

funding and zero subsidies

Revenues apply to both

technologies

UK Revenues

TeamTallatAzad

Managing Director

Project Director for Alstom’s CAES product

solution within Alstom Switzerland before

returning back to the Alstom UK.

Mark Howitt

Chief Technical Officer (CTO), Co-founder

Graduated in Physics with Electronics, 12

years management and innovation

consultancy world-wide.

Jeff Draper

Chief Financial Officer (CFO), Co-founder

Graduated in Maths and Physics, chartered

accountant, worked with Arthur Andersen

and as an accountancy

partner.

Paul Davies

Advisor to the Board

Former Senior Partner, PwC Corporate

Finance. Was instrumental in the corporate

structuring of Carbon Capture and Storage ,

the Channel Tunnel Rail Link, the widening of

the M25, and London Underground.

Professor Stuart HaszeldineOBE

Geotechnical Advisor, Geosciences,

University of Edinburgh

Professor of CCS at the University of

Edinburgh School of GeoSciences, ranked

6th in world for Environment & Ecology

behind five US institutions.

Tim Leaman

IT Director

In 2006 set up a small agency focusing on

marketing for SME’s. This business then

evolved into its present format, i.e. websites

and online marketing.