LEADING THE ENERGY TRANSITION ELECTRICITY STORAGE Insights from SBC Energy Institute FactBook SBC Energy Institute IEA Workshop on Energy Storage September, 2013 1 Electricity storage SBC Energy Institute is a non-profit organisation that promotes understanding of key global energy issues INSTITUTE IDENTITY TECHNOLOGIES ADDRESSED Focused on crossover technologies related to the energy space Founded in 2011 Registered in the Netherlands as a non-profit organization Governed by its own Board Members, including external people: Claude Mandil, Former Executive Director of the International Energy Agency Dr. Adnan Shihab-Eldin, Former OPEC Acting Secretary General. Focus 2013 on Electricity Storage and Hydrogen-based conversion technologies 2 ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. Electricity storage Integrating intermittent sources of energy requires additional flexibility resources and results in a new momentum for electricity storage solutions WIND & SOLAR GENERATION VS. DEMAND IN NORTHERN GERMANY MW, December 2012 on the 50Hertz Operated Grid VARIABILITY & NONCONTROLABILITY 14,000 GENERATES SURPLUS & DEFICIT 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 2,000 4,000 0 0h 6h 12h 18h 24h 2,000 Focus on 27th December 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Solar PV Source: Wind Demand SBC Energy Institute Analysis based on 50Hertz data archive (Wind and Solar Actual In Feed 2012, Control Load 2012) ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 3 Electricity storage Electricity storage is a three-step process that consists in withdrawing electricity from the grid, storing it and returning in it at a later stage STORAGE SYSTEM PROPERTIES E1 Withdrawal 1/ CHARGE P1 2/ STORE E2 E4 E5 Injection 1 Charging can be seen as a form of consumption and is characterized by the rate at which energy can be withdrawn (power) and the time needed to start (ramping rate). Source: E3 3/ DISCHARGE P2 2 Storing phase adds the timeshifting dimension and is characterized by the amount of energy the system can store (energy being equal to power multiplied by time). 3 Discharging can be seen as a form of power generation and is characterized by the rate at which energy can be injected (power) and the time needed to start (ramping rate). SBC Energy Institute Analysis ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 4 Electricity storage Electricity storage technologies vary in maturity depending on their conversion principles Capital requirement x Technology risk TECHNOLOGY MATURITY CURVE Flow batteries Lithium-ion batteries Molten salt Supercapacitor Flywheel (low speed) Sodium-sulfur (NaS) batteries Superconducting magnetic energy storage (SMES) Adiabatic CAES* Compressed air Hydrogen energy storage Synthetic natural gas (CAES) Legend A Fact Card illustration. Mechanical storage Electro-chemical storage Thermal storage Electrical storage Chemical storage Research Note: Source: Development Demonstration Deployment Pumped hydro storage (PHS) Mature Technology Time * CAES: compressed air energy storage. SBC Energy Institute Analysis ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 5 Electricity storage Electricity storage technologies features have to match application requirement ELECTRICITY STORAGE APPLICATIONS Discharge Time vs. Power requirements (MW) Discharge Time ELECTRICITY STORAGE TECHNOLOGIES Discharge Time vs. Power capacity (MW) Discharge Time Hydrogen & synthetic natural gas Intermittent balancing Month Month Power fleet optimization Day Hydrogen fuel cells Day Batteries (conventional & flow batteries) Black start services Hour Power quality Minute Minute Long duration flywheels Transmission & distribution investment deferral Hour Operating reserve High power supercapacitor Second 1 10 1000 100 Power requirement (MW) 0.1 Efficiency Source: Compressed air energy storage (CAES) High energy supercapacitor High power flywheels Second 0.1 Pumped hydro storage (PHS) 1 Superconducting magnetic energy storage (SMES) 10 85-100% 100 70-85% 1000 Power rating 45-70% 30-45% SBC Energy Institute Analysis; EPRI (2010), “Electricity Energy Storage Technology Options”, Bradbury (2010), “Energy Storage Technology Review” ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 6 Electricity storage Except pumped hydro storage, electricity storage deployment is only nascent TOTAL ELECTRICITY STORAGE CAPACITY MW, 2012 ELECTRICITY STORAGE CAPACITY EXCLUDING PUMPED HYDRO STORAGE MW, 2012 Pumped hydro storage Flywheel Hydrogen Thermal-based 3% 12% ~45 MW ~170 MW 0% ~4MW ~127,000 MW Other storage ~1,366 MW Technologies Other battery Compressed air energy storage 29% ~400 MW 20% ~274 MW 2% ~32 MW Flow battery 32% ~441 MW Sodium-sulfur (NaS) battery 99% of storage is pumped hydro Note: Source: * CAES: compressed air energy storage. SBC Energy Institute Analysis based on Bloomberg New Energy Finance database extracted on 12th April 2013; Jun Ying (2011); “The future of energy storage technologies and policy” ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 7 Electricity storage Research, Development & Demonstration is buoying to sidestep the main obstacles of each technology SUMMARY OF MAIN DRIVERS OF R,D&D AXIS BY TECHNOLOGY TECHNOLOGY 1 2 3 PUMPED HYDRO STORAGE COMPRESSED AIR ENERGY STORAGE BATTERIES HYDROGEN & 4 SYNTHETIC NATURAL GAS Source: DRIVERS − Facilitate intermittent integration − Sidestep site availability issues − Avoid/limit natural gas use − Sidestep site availability issues − Increase power & energy density − Lower costs & increase lifecycle − Reduce environmental impact − Adjust hydrogen technologies to intermittent needs (production, storage, end-uses) SBC Energy Institute Analysis; EPRI (2010), “Electricity Energy Storage Technology Options”, Bradbury (2010), “Energy Storage Technology Review” ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 8 Electricity storage The economics of electrical storage are affected both by technological features and applications, making them difficult to assess MAIN PARAMETERS OF ELECTRICITY STORAGE FULL COST APPLICATION REQUIREMENTS Matching with technology features to determine available options. Power capacity (MW) TECHNOLOGY PARAMETERS Power costs* ($/MW) Energy costs ($/MWh) Fixed O&M costs ($/MW) Storage duration (h) Variable O&M costs ($/MWh) Response time (min) Efficiency (%) Total capital costs = (Power costs + Energy Cost * Storage duration) * Power capacity Annual O&M costs = Fixed O&M * Power capacity + Variable O&M * Energy delivered Frequency of discharge (cycles/year) Replacement costs ($/kW/Y) Cycling life (cycles number) Operating parameters impact the feed-in electricity price. Note: Source: Electricity price Annual replacement costs if life cycle < number of discharges Annual electricity costs TOTAL CAPITAL COSTS ANNUAL OPERATION COSTS Discounted PRESENT COSTS* * Power costs include storage device costs, balance of plant costs and power conversion costs. ** O&M: operation & maintenance except electricity price. Include gas price for compressed air energy storage. SBC Energy Institute Analysis ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 9 Electricity storage The capital cost of a storage device per unit of power (MW) and per energy capacity (MWh) varies significantly between technologies CAPITAL COSTS PER UNIT OF POWER $/kW CAPITAL COST PER UNIT OF ENERGY $/kWh 6,000 50,000 5,000 2,500 4,000 2,000 3,000 1,500 2,000 1,000 1,000 500 0 0 PHS CAES NaS Flow Li-Ion FW Batteries Note: Source: SC SMES H2 PHS CAES NaS Flow Li-Ion Batteries FW SC SMES PHS: pumped hydro storage; CAES: compressed air energy storage; Li-ion: lithium-ion battery; FW: flywheels; SC: supercapacitor; H2: hydrogen SBC Energy Institute Analysis; EPRI (2010), “Electricity Energy Storage Technology Options”, Bradbury (2010), “Energy Storage Technology Review” ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 10 Electricity storage As with the economics, the environmental impact of electricity storage is difficult to evaluate IMPACT CATEGORIZATION Impact categorization GHG* emissions Land use Water use Direct No GHG emissions except conventional CAES** Depends on energy density & power density of storage technologies Can be high for Conventional PHS*** & CAES** Lifecycle: Construction Depends on the energy intensity and the way it is produced. Some issues with batteries Depends on the energy intensity and land use during construction. No major issues No major issues outside CAES** salt caverns construction Lifecycle: Operation Depends on storage efficiency and GHG emissions of upstream energy Depends on land footprint of electricity stored and storage efficiency Depends on water use of electricity stored and storage efficiency Induced Positive: − Maximize intermittent renewable or nuclear production; − Avoid using peak power plants. Negative: − Increases energy losses in the system (to be compared on a lifecycle basis with alternative solutions). Environmental and social impacts vary according to the technology and might hinder development in some cases Note: Source: * GHG: greenhouse gas; ** CAES: compressed air energy storage; *** PHS: pumped hydro storage. SBC Energy Institute Analysis; NREL (2012), “Renewable Electricity Futures Study – Volume 2: Renewable Electricity Generation & Storage Technologies” ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 11 Electricity storage Recent studies suggest batteries are difficult to deploy as a large-scale storage solution because of their high energy intensity RATIO OF ELECTRICAL ENERGY STORED IN THE LIFETIME OF THE STORAGE DEVICE TO ITS EMBODIED PRIMARY ENERGY MJ/MJ 250 240 210 200 150 100 50 10 6 3 3 2 Li-ion NaS Vanadium redox Zinc bromide Lead-acid 0 Compressed Pumped air energy hydro storage storage Note: Source: The graph displays the ratio of electrical energy stored over the lifetime of a technology to the energy needed to build it. Stored energy over the lifetime depends significantly on the cycling life, the efficiency and the depth of discharge. Charles J. Barnhart (2013), “On the importance of reducing the energetic and material demands of electrical energy storage” ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute. 12 Electricity storage SBC Energy Institute Thank you very much! Electricity Storage FactBook available for download http://www.sbc.slb.com/SBCInstitute.aspx Hydrogen-based energy storage solutions Report to be released in Q4 2013 For more information: Benoit Decourt BDecourt@slb.com +33 (0)6 77 01 04 82 13 ©2013 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute.