introduction, objectives, plan and background · 2015. 12. 7. · the sns core business case 3rd...

Energy Storage Workshop 07/12/2015

2015. UK Power Networks. All rights reserved

Housekeeping

Fire

evacuation

Toilets

Phones Feedback

UK Power Networks Hosts

Asset Management

Sotiris Georgiopoulos

Matt White

Dr José Barros

Itayi Utah

Strategy and Regulation

Dr Panos Papadopoulos

Adriana Laguna

Connections

Steve Halsey

Kellie Dillon

Register in

Reception

Introduction, objectives, plan and background


Today’s agenda

4

Arrive from 09:00 to Colorado room, 6th Floor after reporting to reception

09:15 Tea and coffee on arrival

09:30-10:00 Introduction, objectives, plan and background Steve/Sotiris

10:00-11:00 Learning from the SNS Project Panos

11:00-11:10 Short Comfort Break

11:10-12:00 Technical break-out sessions 2 groups (José/Panos, Matt/Sotiris)

12:00-12:10 Short Comfort Break

12:10-12:50 Commercial break-out sessions 2 groups (Sotiris/José, Steve/Matt)

12:50-13:00 Wrap-up and close

14:00-14:15 Feedback and next steps


Setting the scene

• Changing landscape

• Lessons learned

• Technical and commercial challenges

• Service Development

– Stakeholder engagement

– DG Customer Forum

– Niche workshops

• Incentive on Connections Engagement (ICE)


Energy Storage Installations in UK in 2014

(circa 15MW)


Energy Storage Applications in UK Power

Networks 2015

EPN Apps Capacity (MW)

40 385

SPN Apps Capacity (MW)

15 199

LPN Apps Capacity (MW)

7 349.3

Total:934MW


Our work in storage connections - Objectives

• Develop policies that can provide affordable and timely

access to storage customers while developing an

economically efficient distribution network for all

customers

• Incorporate the lessons learnt from the solar “boom” in

managing capacity and avoiding contracted bottlenecks

• Work with customers to get their input to shape the

proposals in this complex topic


A phased approach

9

Guidance for assessing storage applications

End of 2015

Flexibility requirements for demand-driven constraints

Q2 2016

Exploring new flexible contracts

2016 onwards

Learning from the

Smarter Network Storage


Use cases of Energy Storage are numerous

• Arbitrage

• Portfolio Balancing

• Voltage Control

• Losses Reduction

• Local Area/ Community Energy Balancing

• Peak shaving

• Response

• Reserve

• Tolling

• Power Factor Correction

• Triad


The Smarter Network Storage Project

• £13.2m LCN

funding awarded

in Nov 2012

• £4.0m investment

by UK Power

Networks

12

Partners

Suppliers

Location:

Leighton Buzzard

Energy capacity:

10 MWh

Real power:

6 MW

UK Power Networks/Innovation

http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Smarter-Network-Storage-(SNS)/


An integrated business model to access maximum value

Response Services

Reserve Services

Wholesale Energy

Market (buy & sell)

New / Additional

Services

Services / value streams Ownership / Operation

Operations &

dispatch

• Full

operational

control &

override

• Optimised

service

selection

• Dispatched

for ancillary

services on

instruction

from Kiwi

(National

Grid)

• Tolling

Option

Distribution Services

(Peak shaving,

Reactive power,

Voltage support)

DNO (Eastern Power Networks plc)

DNO 3rd party Contract

Energy

supply

Smartest Energy

Smartest

Kiwi Power

Energy Supply

& Tolling Agreement

e.g. Enhanced Frequency Control, Demand Turn Up

CSA (Aggregator

Services Agreement)


The SNS core Business Case

3rd circuit cost

Total SNS cost Non-core/R&D

Capex +Opex

for 10 years

Asset cost

reduction

36% FFR and

STOR each

GB system

cost saving

All values are Net Present Value, over a 10 year period; Discount factor used is 7.2%; Revenues based on 72% availability for commercial services, including c0.1% downtime for calibration

Stora

ge

23%

9%

69%

Design, Civils and Electricals

Storage Opex (10 yr est.)

Storage Capex

7%

33%

11% 25%

7%

14%

3% Design

Civils Typical

Civils Specific

Electrical Typical

Electrical Specific

Overheads

Landscaping


Sensitivity analyses

Factors affecting the business case:

• Period of deferral of any conventional reinforcement

• Storage technology cost

• Market value of existing, and new, flexibility services procured by

National Grid

• Level of availability for commercial services vs. network services

• Success in achieving TRIAD revenues

• Margins taken by operational partners (Aggregators and Supplier)


SNS Findings

Based on the trials we have developed modelling

assumptions

• Fixed and variable operational costs are £45k pa

• Aux consumption costs are £16k pa

• Storage is operated (& hence incurs revenues/costs) during

and up to the deferral period only (i.e. not used for additional

revenues post reinforcement)

• Hurdle rate is the £5.1m NPV cost of conventional

reinforcement

• Discount rate 7.2%

• 30% of the year storage is needed to support the network


Scenario Modelling

Scenario # Aggregator Fees Triad Revenues

1.STOR/FFR: Low Revenue

a NO

b AVERAGE

c AVERAGE

2. FFR: High Revenue

a NO

b AVERAGE

c AVERAGE

3. FFR/EFR: Future Services

a NO

b AVERAGE

c AVERAGE

STOR: Short Term Operating Reserve

FFR: Firm Frequency Response

EFR: Enhanced Frequency Response


DNO owned and operated storage Range of fixed annual revenues and deferral periods necessary for storage to be

equally competitive (i.e. break even) to the ‘conventional reinforcement’ cost, for a

range of storage system costs

200

300

400

500

600

700

800

900

1000

0 5 10 15 20 25 30

SNS Storage Cost (2013)

An

nu

al

Reven

ues,

£k p

a

Deferral Period (Lifetime), Yrs

3.c

3.b

2.b

1.b

1.a

2.c

2.a

10% reduction on Storage

(System) Tech Costs


(System) Tech Costs


(System) Tech Costs


(System) Tech Costs

1.c 2.a


In an ideal world..


In reality..

• Networks are constrained

• Energy storage is a key

source of flexibility

• The first step in exploring

how we can facilitate

cheaper and faster

storage connections, is to

understand the impact of

storage systems in our

networks

• Using learning from the SNS Project, we have investigated

the usage of storage for the most profitable applications for

third parties and the impact on our network

Source: DG mapping tool

https://www.ukpowernetworks.co.uk/internet/en/our-services/connections-work-outside/electricity-generation/find-out-where-our-overhead-network-is/


Different profiles depending on the service

• Arbitrage

• Balancing Services

–Response

• FFR

• SFR

• EFR

–Reserve (Short Term Operating Reserve-STOR)

• Triad


Arbitrage As arbitrage and other services based on energy prices are difficult to predict


Balancing Services Timeline


Frequency Response (Dynamic and Enhanced)

- Deadband and High/Low

Frequency thresholds agreed

with National Grid for each

provider

- Typical parameters:

FFR:

i. Deadband: ±0.05Hz

ii. Threshold: ±0.3Hz

iii. Response time: <10s

iv. Response period: 30s-30m

EFR:

i. Deadband: ±0.1Hz

ii. Threshold: ±0.2Hz

iii. Response time: <1s

iv. Response period: 9s


FFR parameters used with 1 second response time


EFR parameters used with 1 second response time (higher deadband-less usage)


Combined EFR/FFR: EFR parameters used with 30 minutes response period (no

deadband control-not enough capacity, deadband control high utilisation)

Not enough

capacity


Static FFR

- Delivery only when

frequency crosses high

or low threshold

- Response time: <10

seconds

- Response period:

30mins

- May be bidirectional

service or single

direction service

Grid Frequency that triggers Frequency Response (both EFR/FFR) is also unpredictable


Real Static FFR event from November 2015

Active power output of the storage (orange line), grid frequency (purple line).

The yellow line indicates the state of charge and the blue line the reactive power.

State of Charge

Active Power Export during event

Grid Frequency

Event


Short Term Operating Reserve

A utilisation event occurred on the 27th of August

STOR has more defined windows however due to the uncertainty of dispatch, contracted export should be considered during the windows and full import in between (to re-charge

and be available for next window)


Triad Avoidance

31


-8

-6

-4

-2

0

2

4

6

8

10

12

00

:00

:00

00

:30

:00

01

:00

:00

01

:30

:00

02

:00

:00

02

:30

:00

03

:00

:00

03

:30

:00

04

:00

:00

04

:30

:00

05

:00

:00

05

:30

:00

06

:00

:00

06

:30

:00

07

:00

:00

07

:30

:00

08

:00

:00

08

:30

:00

09

:00

:00

09

:30

:00

10

:00

:00

10

:30

:00

11

:00

:00

11

:30

:00

12

:00

:00

12

:30

:00

13

:00

:00

13

:30

:00

14

:00

:00

14

:30

:00

15

:00

:00

15

:30

:00

16

:00

:00

16

:30

:00

17

:00

:00

17

:30

:00

18

:00

:00

18

:30

:00

19

:00

:00

19

:30

:00

20

:00

:00

20

:30

:00

21

:00

:00

21

:30

:00

22

:00

:00

22

:30

:00

23

:00

:00

23

:30

:00

Power

Energy

-8

-6

-4

-2

0

2

4

6

8

10

12

00

:00

:00

00

:30

:00

01

:00

:00

01

:30

:00

02

:00

:00

02

:30

:00

03

:00

:00

03

:30

:00

04

:00

:00

04

:30

:00

05

:00

:00

05

:30

:00

06

:00

:00

06

:30

:00

07

:00

:00

07

:30

:00

08

:00

:00

08

:30

:00

09

:00

:00

09

:30

:00

10

:00

:00

10

:30

:00

11

:00

:00

11

:30

:00

12

:00

:00

12

:30

:00

13

:00

:00

13

:30

:00

14

:00

:00

14

:30

:00

15

:00

:00

15

:30

:00

16

:00

:00

16

:30

:00

17

:00

:00

17

:30

:00

18

:00

:00

18

:30

:00

19

:00

:00

19

:30

:00

20

:00

:00

20

:30

:00

21

:00

:00

21

:30

:00

22

:00

:00

22

:30

:00

23

:00

:00

23

:30

:00

Power

Energy

IMP

OR

TEX

PO

RT P

ow

er (

MW

)

Energy (M

Wh

)

Example charge/discharge profile for

“TRIAD avoidance” (6MW/10MWh)

Effect of “TRIAD avoidance” profile on

substation A

Profile before

battery storage

Profile after

battery

storage

Max. import

limit

Possible operation regimes for battery storage

32

Planning for Triad has a generally more predictable profile, however it is unlikely that an operator will be only scheduling for Triads during winter days

2015. UK Power Networks. All rights reserved 33

Voltage step change 33kV site in EPN

Technical Limitations to Enhanced Frequency Response

- Protection;

- Voltage regulation (compliance with

Engineering Recommendations P28).

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

-25 -20 -15 -10 -5 0 5 10 15 20 25

P28 limit

P28 limit

BATTERY EXPORT(MW)

BATTERY IMPORT(MW)


Typical winter day

Cheap!

----------------------SFFR---------------------- Recovery

Triad Export

Recovery

Dispatch

-----SFFR----

constraint


Conclusions

• Different Services/applications-> Different Profiles

• For third parties, the uncertainty of energy prices and

Transmission Network triggers (frequency), shows that storage

could be dispatched to provide these services anytime.

• In constrained networks, this could lead to expensive

connections.

• New flexible connections for Storage need the storage owner’s

input to understand the anticipated profile

• The value that a Storage developer may get from a flexible

connection depends on the site and application

Technical Break-out Sessions

2015. UK Power Networks. All rights reserved 37

Objectives

- Obtain information ahead of changes in the ENA form (we

cannot change it unilaterally).

- Understand customer requirements to allow us to consider

updating our offering.

Additional information being requested to battery storage customers

Early indications - Most applications are for green/yellow areas of the

generation heat map. This indicates the objective of

obtaining a viable export connection.

- Most applications are for standalone operation;

- Most customers apply for “symmetrical” import/export

requirements;


“Triad avoidance”

Predictable

charging/discharging

profiles can be agreed.

EFR/ Full FFR

Unpredictable

charging/discharging

profiles.

STOR

Predictability

depends on the

STOR contract

agreed.

Careful

assessment

required

Access to full

contracted export

for at least two

hours per day, 3

times a week, is

required.

Access to full export

only required in

specific times.

Customer

requirement

Expected

profiles

Network

requirement

Any combination of , and

To be analysed

on a case by

case basis.

To be analysed

on a case by

case basis.

Summary of different customer requirements

38


Consistent Approach

39

1. Assessment of import and export requirements

Agree import/export profiles (based on capacity / times depending on

network availability) for different customer expectations (profiles to be

reviewed on a agreed regular basis);

2. Offer a Flexible connection.

Within flexible DG areas, interruptible connections are available where

specific capacities / windows can not be guaranteed and curtailment risk

lies with the customer.

For the Walpole zone, we are minded to continue on this basis.


Possibilities for a consistent offering

3. Active Network Management – Current focus of Flexible DG Connections is on managing constraints when they

occur and not predicting them (i.e., dispatching customers on the basis of the

constraints during a period of time).

– Technically local optimisation is possible via greater level of integration between

UK Power Networks, National Grid and customer control systems:

• The scheme would require UK Power Networks will need to have direct

influence on the customers charging and discharging;

• UK Power Networks sets upfront a optimisation scheme that, taking into

account customer expectations, manages the access to the network on the

basis of live (or near live) network operation.

• Which are the opportunities towards such a model that we can take

which do not require any major regulatory or commercial changes?

40

Commercial Break-out Sessions


The Connection Offer – getting a connection

Planning submission

Planning approval

Start on site

Completion

1. What is the £/MW threshold for viability of a storage connection?

2. Existing connections – designed on the basis of the technology on site,

addition of storage might affect the profile and will be treated as material

change

3. Introduction of new milestones specific to storage technology

• SO contract award such as EFR

• What other milestones can we introduce?


The Connection Agreement – remaining

connected

• Connection agreements which reflect

1. The services, operating profile that the storage developer has

declared

2. The time period of the contract award – introduce review point

lined to SO contract (2 – 4) years

• Suitability of current flexible DG terms

• Fully interruptible backed by constraint modelling


Network support services

• UK Power Networks will be running a flexibility scheme in ED1.

• It will be used to shift demand to defer network reinforcement.

• We are agnostic to the type of the response however we understand

that each type might have different characteristics.

• We are looking to give an indication on potential

requirements/locations in 2016 for those who are interested to locate

the storage schemes close to these locations in preparation.

Next Steps


Next steps

• Ongoing work on a complex topic

• We will continue to work closely with customers

and the regulator

• DG surgeries can be used to discuss storage

projects

• Next update in February’s UKPN DG Forum

Please send any questions/feedback to:

[email protected]

mailto:[email protected]

introduction, objectives, plan and background · 2015. 12. 7. · the sns core business case 3rd...

Documents