Energy Storage –
The Holy Grail for Energy Security?
Markus Hoehner, Founder and CEO
Solar Breakfast Briefing 2014, Riyadh, KSA
April 17th, 2014
About Us
The Hoehner Research & Consulting Group (HRCG) incorporates the expertise of EuPD Research,
360|Consult and 360|Concept in its integrated solutions. We combine market research with
strategic consulting and communications which enable us to provide our customers from
governments, associations, chambers of commerce as well as the finance and industry sectors
with sustainable integrated business solutions.
Ten years of focused Research and Consulting
 Founded: 11/24/2000
 CEO and Founder: Markus A.W. Hoehner
 Principal Offices: Bonn | Berlin | San Francisco
 Employees: >100 FTE analysts & consultants
 Interview Center: 60 agents (specialized in CleanTech)
 Core Areas: CleanTech, Pharmacy & HealthCare,
Sustainable Management
 Special Fields: Market Research, Strategic Marketing,
Strategy Consulting, Economics & Financial Research,
Commercial Due Diligences, Risk Management
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About Us
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Agenda
 About Us
 Energy Storage –
 Introduction
 Applications
 Technologies
 Utility Scale and Distributed Storage Global Project Profile
 What does it mean for the MENA / GCC region?
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Energy Storage – Introduction
Fundamental principle and very important characteristic of electricity:
‘Electricity cannot be stored directly as electrical energy unless
converted into another form’
Electricity
Severe Cost Implications
Supply
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Demand
 Excess Generation Capacity for
Peak Loads
 Reserve Generation Capacity to
account for changes in the load or
unplanned loss of a generator etc.
Energy Storage – Introduction
‘Although electricity cannot be stored directly, it can be converted to
another form and stored.’
Energy Storage
Primary Drivers for Energy Storage:
Chemical Energy (Batteries)
Kinetic Energy (Flywheels and
CAES)
Gravitational Potential Energy
(Pumped Hydro)
Others
(Capacitors and Magnetic Fields)
 Increase in peak demand and the need
to respond quickly given constraints in
generation and transmission capacity
 Continuous need of high quality,
reliable power
 Integration of distributed and
intermittent sources of RE
As we start to move away from fossil fuel based sources towards RE and
overhauling our electricity infrastructure energy storage systems would
play an increasingly important role!
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Agenda
 About Us
 Energy Storage –
 Introduction
 Applications
 Technologies
 Utility Scale and Distributed Storage Global Project Profile
 What does it mean for the MENA / GCC region?
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Energy Storage – Applications
A wide variety of potential storage applications exist and depending on the application
an appropriate technology needs to be chosen. Some key applications include –
Load Shifting:
Mitigating Transmission Congestion:
 Refers to usage of energy stored during periods
of low demand for periods with
high demand (production constant). During peak
demand hours, stored energy is discharged to
augment generation output or T&D capacity.
 Holding onto the generated capacity until
transmission lines clear up (especially in cases
where the generation is far from population
centers)
1
Renewables Time Shifting:
 RE generation and demand do not match and
typically occur in different periods during day /
year
 Wind and solar depend on weather conditions
 Similar to load shifting
3
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Energy Storage – Applications
A wide variety of potential storage applications exist and depending on the application
an appropriate technology needs to be chosen. Some key applications include –
Spinning Reserve:
Off-grid:
 Stored energy to compensate for unexpected
loss of generation resources
 Refers to stored energy that can be made
available immediately (i.e. very fast response
time)
 Off-grid consumers use fossil or RE sources
for their electricity
 Since these are variable in nature they need
to be complemented with storage solutions to
fill gaps between supply and demand
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Others:
 Regulation control
 Voltage support
 Etc.
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Agenda
 About Us
 Energy Storage –
 Introduction
 Applications
 Technologies
 Utility Scale and Distributed Storage Global Project Profile
 What does it mean for the MENA / GCC region?
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Energy Storage – Technologies
Major Energy Storage Technologies
Mechanical
Pumped Hydro
Compressed Air
Energy Storage
(CAES)
Global Energy Storage Capacity
(by technology)
Electrochemical
Lead Acid Batteries
Nickel Cadmium
(NiCad)
Lithium-ion
(Li-ion)
Flywheels
Sodium Sulfur (NAS)
Others (Vanadium
Redox, Zinc Bromine
etc.)
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Energy Storage Capacity:
 Pumped Hydro is the world’s most commonly used
storage technology with a global capacity of 140
GW (22 GW out of which are installed in the US).
 Other popular storage technologies include CAES
and various types of battery technologies
Energy Storage – Technologies
Energy Storage Technologies
Mechanical
PUMPED HYDRO
Pumped Hydroelectric Storage (PHS) System:
 Most mature form of energy storage
Working Principle:
 A pumped hydroelectric energy storage system uses electricity to pump water to higher altitude where it
is stored as gravitational potential energy
 To generate electricity water is released and passed back through turbines/generator on its way to a
lower reservoir
Efficiency and Applications:
 PHS efficiency is between 75 and 85%
 Load Leveling and Peak Shaving
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Energy Storage – Technologies
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Energy Storage – Technologies
Energy Storage Technologies
Mechanical
Compressed Air Energy
Storage (CAES)
Compressed Air Energy Storage:
 Relatively mature form of energy storage
Working Principle:
 CAES system uses a compressor which uses low cost off-peak power to store energy as
compressed air inside an air-tight vessel
 The energy is converted back to electricity by reheating pressurized air. It is then passed through an
expansion turbine where it is combusted to drive an electric generator
Efficiency and Applications:
 Large CAES efficiency is 73 to 89%
 Load Shifting, regulation control, spinning reserve are some applications where CAES technology can
be used
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Energy Storage – Technologies
Energy Storage Technologies
Electrochemical
Battery Technologies
Batteries:
 Widely used form of energy storage both in distributed and centralized systems
Working Principle:
 Use chemical reactions with two or more electrochemical cells to enable the flow of electrons
 Examples include – Lithium based batteries (lithium-ion etc.), Lead Acid based batteries, Sodium
Sulphur (NaS) amongst others
Applications:
 Grid Support and integration of intermittent renewables
 Consumer electronics
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Agenda
 About Us
 Energy Storage –
 Introduction
 Applications
 Technologies
 Utility Scale and Distributed Storage Global Project Profile
 What does it mean for the MENA / GCC region?
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Utility Scale and Distributed Storage Global Project Profile –
Several utility scale energy storage projects have been operational and under
construction. Below are a few examples:
Technology Type
Project Name
Country
Description
Pumped Hydro
Goldisthal
Project
Germany
Was fully commissioned in 2004. Its capacity of 1,060 MW
makes it the largest hydroelectric power plant in Germany
and one of the largest in Europe. Construction costs
amounted to about € 623 million.
CAES
Kraftwerk
Huntorf
Germany
1st commercial CAES plant, operational since 1978. The
321-MW plant utilizes nuclear-sourced night-time power for
compression and produces peak power during the day via a
natural gas turbine. Recently used as a spinning reserve for
industrial customers and to level power from wind energy.
Li-ion Battery
Samsung SDI
Project
South
Korea
Samsung SDI installed 1MW/1MWh of Li-ion battery based
energy storage system for industrial energy management
with peak-shifting. The system is located at the Samsung
SDI Headquarters in Yongin-Si, South Korea.
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Utility Scale and Distributed Storage Global Project Profile –
Several distributed energy storage projects are also being incentivized globally –
For example Germany has introduced a subsidy mechanism for battery storage
technology with Photovoltaics.
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Agenda
 About Us
 Energy Storage –
 Introduction
 Applications
 Technologies
 Utility Scale and Distributed Storage Global Project Profile
 What does it mean for the MENA / GCC region?
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What does it mean for the MENA / GCC region?
Various GCC countries have embarked upon their plans to make renewable energy
(solar, wind and other sources) a cornerstone of their future electricity mix.
Saudi Arabia:
 54 GW of RE by 2032
• Solar PV – 16 GW
• CSP – 25 GW
UAE:
 Both Dubai and Abu Dhabi have
launched tenders for two largescale solar plants, each 100
MW.
 Furthermore, Dubai plans to
introduce a rooftop PV program
to promote solar
Source: IRENA
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What does it mean for the MENA / GCC region?
 Such ambitious RE plans will make solar and other sources of renewable
energy an essential component of the energy mix thereby altering the
energy mix of this region
 Furthermore, it is estimated that the energy requirement of the region
would only increase in the next years
 Such circumstances would require utilities in the region to think ahead to
provide secure network for transmission of such intermittent energy –
WITHOUT APPROPRIATE ENERGY STORAGE SOLUTIONS IN
PLACE, COMPLEX INTEGRATION ISSUES COULD ARISE –
A CASE WHICH SEVERAL EU NATIONS FACE TODAY
THEREFORE, THERE IS A NEED TO THINK AHEAD!
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Thank you for your
attention!
Markus Hoehner
Founder and CEO, HRCG
hoehner@hrcg.eu
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