Agenda 1. The Energy Union framework 2. A parcial view: 2 examples (Grid storage, behind the Meter) 3. Conclusions

Energy Storage

an enabler of the Energy Union

2

Not only about technology

The Energy Union: A multidimensional challenge

2 Copyright © 2016 KIC InnoEnergy

Societal &

Individual

Technology

Human Capital

Regulation

Value

Chain/Market/Biz Model

Supply Chain

Think City 2009 Platser: 2 Längd: 314 cm Max H ast:113 km/h 0 - 100km/h: 16 s. Räckvidd: 161 km Effekt: 34kW (46hk) Utrustning: Ej AC, Ej servo, direkt elvärme, ingen aktiv säkerhet…

VW e - Golf 2014 Platser: 5 Längd:425 cm Max Hast: 140 km/h 0 - 100km/h: 10,4 s. Räckvidd:190 km Effekt: 85 kW (115hk) Utrustning: ACC, servo, värmepump, aktiv säkerhet, LED - belysning….

Grid storage – TSO/DSO (1/3)

3

Category Service Arbitrage Arbitrage, energy transfers valorization

Production shaping Capacity guarantee Capacity guarantee, consumption peaks management Ancillary services Frequency regulation

Adjustment mechanism, tertiary reserve Voltage regulation Black start

Grid support Congestion relief Consumer services Voltage quality control

Reliability, supply continuity Caption

Service accessible and main business case driver Service not easily accessible

Service technically accessible Non-accessible service

The need

Services required => value => Business case drivers

2040

IEA

Grid storage – TSO/DSO (2/3)

4 Copyright © 2016 KIC InnoEnergy

Functionality/Technologies: the attributes

Business models - Situation in Europe

Discharge duration Response time Power Rating Frequency of use

Hours to tens of hours Milliseconds to 10s of

minutes depending on the set of services offered

Hundreds of kWs to tens of MWs

Daily, depending on the set of services offered

Minutes HoursSecondes

GWkW

Grid storage – TSO/DSO (3/3)

5

What KIC does

Our conclusion

Aspect Drivers Status in

2015 Anticipated evolution

Political Sustained political commitments to develop renewable energies

Economic & Technological

New network investments due to RES integration Limited direct competitiveness of storage with network upgrades Uncertainty around the valuation of network reliability and

market services of storage Limited influence of congestion valuation through nodal and

zonal pricing Long term competition of storage with demand management

Social & environmental

Stronger environmental and social opposition to new infrastructures and new technologies

Legal Uncertain legal access to storage assets ownership and operation

by System Operators

Caption - Status definition

Driver with positive impact Driver with important negative impact Driver with neutral or slightly negative impact

350M€

/year

Behind the meter (1/3)

6

The need /opportunity

Services required => value => Business case driver

Autonomy of

household with

5000kwh/year

Category Service Arbitrage Arbitrage, energy transfers valorization

Production shaping Capacity guarantee Capacity guarantee, consumption peaks management Ancillary services Frequency regulation

Adjustment mechanism, tertiary reserve Voltage regulation Black start

Grid support Congestion relief Consumer services Voltage quality control

Reliability, supply continuity Caption

Service accessible and main business case driver Service not easily accessible

Service technically accessible Non-accessible service

Behind the meter (2/3)

7

Functionality/Technologies: the attributes

Business models - Situation in Europe

Discharge duration Response time Power Rating Frequency of use

Hours to tens of hours Milliseconds to tens of

minutes depending on the set of services offered

One kW to hundreds of kWs

Daily to Weekly

Minutes HoursSeconds

GWkW

Behind the meter (3/3)

8

What KIC does

Our conclusion

1.500M€

/year

Aspect Drivers Status in

2015 Anticipated evolution

Political Sustained political commitments to deploy distributed renewable

energy resources

Economic & Technological

Growing deployment of distributed solar PV plus storage systems Emerging role of aggregators in capturing the full storage value

Limited influence of the quality and reliability of grid electricity supply

Improving cost/performance balance of storage technologies

Social & environmental

Increased end-user willingness to adopt storage systems Improving ergonomics and user-friendliness of storage systems

Legal Difficult legal access to storage assets ownership by Distribution

System Operators Uncertain evolution of tariff structures and electricity prices

Caption - Status definition

Driver with positive impact Driver with important negative impact Driver with neutral or slightly negative impact

Storage: An enabler – A must

1. The debate is not the technology, it is business models and the systemic

approach

2. There is value to be harvested. Business cases fly

3. Let´s converge to market homogeneity (rules) in Europe

Volume => Champions

4. New market players (ISO, LSO) , not only add-ons to existing ones

5. And many more (Thermal Storage, Power to gas, EV, ……). There is a case

for everybody, but let´s stay focused.

Conclusion