Energy Storage is the key to kicking the diesel habit ... for good! Renewables in Remote Microgrids Yellowknife, NWT September 2015 NRStor Company Introduction History Ø
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Founded in 2012 by Annette Verschuren O.C., former CEO of Home Depot Canada & Asia Headquartered in Toronto, Ontario Financial Backing by Northwater Capital Our Business Model Ø
Develop, build, own and operate energy storage facilities backed by offtake agreements Technology Partnerships Ø
Multiple partnerships with energy storage technology providers, including: Ø  High powered flywheels (Temporal Power) Ø  Compressed Air Energy Storage “CAES” (General Compression) Ø  Solid and Flow Batteries: Preferred battery integrators and technology suppliers, including Tesla’s Powerwall for residential storage Projects Ø
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2MW / 0.5MWh Temporal Power Minto flywheel project (NRStor owned) 2MW / 300MWh General Compression Gaines CAES project (GC Owned) Multiple projects in development phase Forming strong partnerships to deploy storage projects that make sense © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
2 Energy Storage Applications for Remote Communities NRStor’s Objective n
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Partner with remote communities to assess opportunities to deploy energy storage Review the technical challenges that can be solved and quantify the financial benefits to communities and local utilities NRStor believes there are positive business cases for the following energy storage applications: n
Reliable Peaking Power & Renewable Integration n
Backup Power Transmission & Generation Asset Deferral n
Frequency Regulation & Voltage Control n
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Government funding is available for smartgrid & energy storage projects Build projects together and operate long term Building business together © 2014 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than
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Temporal Power: Flywheel Overview
Energy Storage Applications Reliable Peaking Power & Renewable Integration Backup Power Frequency Regulation & Voltage Control Transmission & Generation Asset Deferral 4
© 2014 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than
NRStor Technology Solutions Flywheels Batteries Preferred Supplier Temporal Power Ltd. Storage Medium Kinetic energy Storage Duration Seconds -­‐ Minutes Technology Maturity Commercial Project Operational Preferred Integrator S&C Electric Canada Storage Medium Chemical Energy Battery Chemistries Li-­‐ion NaNiCl NaS Lead Acid Vanadium Flow •
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Storage Duration Seconds -­‐ Hours Technology Maturity 100’s of MW installed Technology partners with the right technical and commercial fit © 2014 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than
5 First Commercial Project: 2MW Minto Flywheel Facility The first contracted, grid-­‐connected, flywheel storage project in Canada §
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NRStor selected by Ontario’s IESO, through a competitive RFP process to provide 4MW of flexibility to Ontario’s grid (+/-­‐2MW) in 2012 Construction began in late 2013 with the balance of plant completed in 2014 Temporal Power, manufacturer of the world’s highest power flywheels, supplied turnkey solution including 10 flywheels Commercial operations began on July 7th 2014 $3M debt financing from the Business Development Bank of Canada
6 project in Canada Successfully executed the first commercial flywheel © 2014 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than
6 Flywheels NRStor 2MW Flywheel Facility (Exterior) 7 NRStor 2MW Flywheel Facility (Interior) © 2014 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than
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Battery Facilities Can Store Solar Energy Batteries are now commercially available on any scale and at low cost © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
8 Business Case Example 9 © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
Opportunity Concept Centralized Ground mount solar + Energy Storage w/large scale batteries Distributed OR Rooftop solar + Home Energy Storage w/Tesla Powerwall How the system would operate: Ø
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All solar generation used to power community/home load when available Store excess solar generation in the battery system Run community off the battery when solar generation insufficient Smart system management to control generation and storage Size solar plus storage to reduce all diesel consumption Use existing diesel generators as emergency backup to make up any shortfall Concept is solar plus storage to take entire community off diesel © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
10 Study: Example Community Assumptions •  Studied an example remote community located in Ontario •  The community consumes about 5,760,000 kWh per year •  Or 480,000 kWh per month •  Peak load is ~1,200 kW •  Population of roughly 700 people •  Experiencing electricity load growth of 2% per year •  Diesel fuel price of $3.00 / L •  Fuel price inflation of 2% per year •  Centralized microgrid solution We studied an example remote community in northern Ontario © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
11 Example Community: Electricity Usage (by month) Community Load Profile (kW) 1400.0 1200.0 January February 1000.0 March April 800.0 May June 600.0 July 400.0 August September 200.0 October November 0.0 December Hour An example of the load profile for an average day in each month of a remote community in northern Ontario © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
12 Two Project Scenarios Scenario 1 •  Keep existing diesel generators that work •  Upgrade diesel generators that are end-­‐
of-­‐life •  Continue supplying community with diesel fuel as only source of fuel over the next 20 years Scenario 2 •  Keep existing diesel generators that work •  New build solar array combined with a battery energy storage device •  Supply all electricity to community off the solar array and battery •  Use existing diesels as back up in case of emergency We compared the current diesel-­‐based scenario to a renewable + solar scenario © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
13 Assumptions & Results Scenario 1 Scenario 2 Description Status Quo (diesel only) Solar + Storage (existing diesel gen. as backup) Existing Diesel Generation 1,200 kW 1,200 kW New Diesel Generation 500 kW No diesel upgrade required Cost of Diesel Upgrade $1,250,000 No diesel upgrade required Diesel Price (in Year 1) $3.00 $3.00 Diesel Fuel Consumed (20 yr total) 38,500,000 L 1,900,000 L Solar Array -­‐ 13.7 MW Battery Energy Storage System -­‐ 2.6 MW power rating; 18.8MWh energy rating Total Project Cost (CAPEX/OPEX) -­‐ $27.5 M CAPEX / $230k per year OPEX Cost of 20 Year PPA with NRStor -­‐ $0.45/kWh (includes CAPEX, OPEX, financing) Average Lifetime Energy Cost $1.11/kWh $0.62/kWh Total 20 Year Cost (NPV, 3% discount rate) $109,000,000 $60,300,000 Total CO2 Emissions 62,000 tons of CO2 3,000 tons of CO2 Results: 14 45% energy cost reduction over 20 years and 59,000 tons of CO2 eliminated © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
Ontario Solar Generation Profile (by month) 10000.0 Solar Genera:on (kW) 9000.0 January 8000.0 February 7000.0 March 6000.0 April 5000.0 May June 4000.0 July 3000.0 August 2000.0 September 1000.0 October November 0.0 December Hour Clean renewable solar energy will be generated each month for 20 years © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
15 Battery Charging/Discharging Profile 18000.0 BESS State of Charge (kW) 16000.0 January February 14000.0 March 12000.0 April May 10000.0 June 8000.0 July August 6000.0 September 4000.0 October November 2000.0 December 0.0 Hour The battery provides power to the community during periods without sun © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
16 Significant Cost Savings over 20 Years $80,000,000 $69,149,436 $10,000,000 $70,000,000 $64,580,318 $60,158,957 $55,882,912 $8,000,000 $51,734,210 $47,712,610 $43,820,931 $40,059,793 $6,000,000 $36,422,326 $32,901,785 $29,498,535 $4,000,000 $26,209,583 $23,034,587 $19,970,213 $17,012,082 $14,156,429 $2,000,000 $11,400,898 $8,738,287 $6,159,017 $3,660,933 $1,250,000 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Accumulated Cost Savings ($) Annual Cost of Energy Supply ($) $12,000,000 Scenario 1: Diesel Only Scenario 2: Diesel + Solar + Storage CumulaTve Cost Savings Year Cumulative savings of ~$69,000,000 (non-­‐discounted) over 20 years © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
17 Significant Emissions Reduction Over 20 Years 70,000,000 8,000 58,911,089 55,561,298 7,000 52,256,324 48,997,423 6,000 45,773,391 42,586,772 39,442,742 5,000 36,344,848 33,290,272 4,000 30,276,060 27,305,414 24,378,570 3,000 21,498,186 18,664,140 15,875,196 2,000 13,130,583 10,430,834 1,000 7,771,414 5,144,924 2,551,460 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Year 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Accumulated Reduc:on in CO2 Emissions (kg) Total Annual Diesel Genera:on (MWh) 9,000 Scenario 1: Diesel Only (MWh) Scenario 2: Diesel + Solar + Storage (MWh) CumulaTve ReducTon in CO2 Emissions (kg) The project will reduce emissions by ~59,000 tons of CO2 over 20 years © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
18 How Do These Scenarios Compare to Transmission? Status Quo: Diesel Solar Plus Storage Transmission 20 Year Lifetime Electricity Cost $1.11 per kWh (price includes $1.25 million CAPEX and OPEX) $0.62 per kWh (price includes $27.5 million CAPEX and OPEX for solar + storage as well as some diesel to for top up as load grows) Ontario electricity prices Capital Investment Included in cost of electricity Included in cost of electricity $100 million project cost? (varies by location) Operating Expenditures Included in cost of electricity Included in cost of electricity Significant costs to maintain and repair lines Time to Completion Approximately 2 years Approximately 3 years Approximately 6 years or longer Reliability of Electricity Supply Poor-­‐Medium; Depends on state of repair, aging units can be unreliable and require significant maintenance and take time to repair Medium-­‐High; Solar has no moving parts and requires little maintenance, batteries are a proven technology Medium; Transmission lines are subject to weather and impairments such as falling trees Carbon Emissions Significant CO2 emissions from diesel generation Zero CO2 emissions Depends on source of generation; gas produces CO2 while hydro is emissions-­‐free Solar Plus Storage solution has many advantages over both diesel and transmission © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
19 Project Summary Ø  Solar and energy storage technologies are cost effective and can be deployed today Ø  A solar plus storage solution can: Ø
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Save the community ~$69 million over 20 years Ø
Eliminate almost all the CO2 emissions (59,000 tons CO2 over 20 years) Ø
Improve energy reliability, grid resiliency and energy independence Ø
Create energy independence Time is of the essence -­‐ every year we do not take action means the community spends ~$3.5 million more than it should Renewable generation and energy storage is clearly economic © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
20 Intentions and Taking Action Ø  NRStor wishes to: Ø
Inform and educate communities about this concept Ø
Understand community interests in pursuing the concept together Ø
Work on developing the concept in a way that aligns with community interests Ø
See the community, or its energy company, have a significant equity ownership stake in the project Ø  Actions we can take together: Ø
Refine the project scope and business case economics Ø
Determine local employment and other community benefits Ø
Jointly approach Government to support the project To go farther we have to work together! © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients
21 Contact Information Jason Rioux Vice President Tel: (416) 427 9434 E-­‐mail: jrioux@nrstor.com 22 © 2015 NRStor Inc. CONFIDENTIAL AND PROPRIETARY – Not to be used by anyone other than the intended recipients