Adiabatic Compressed Air Energy Storage in Context of the Markets - - PowerPoint PPT Presentation

Adiabatic Compressed Air Energy Storage in Context of the Markets

Policy Debate: Facilitating energy storage to allow fast growth of sustainable energy

RWE 7/4/2013 PAGE 1

Dr.-Ing. E. Hauptmeier Brussels, 26th of June 2013

Current Status: Preparation of a Demo Site

2012 2013 2014 2015 2017 2018 2019 2020

ADELE-ING ADELE ADELE-ING

> Grid and Market Integration of ADELE > Comparison of Variants

Concept Freeze

> Basic and Detail Engineering

ADELE-Staßfurt

Mile Stone: Concept Freeze

2016

Project Start ADELE-ING

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> Procurement Engineering > Permitting

Final Investment Decision (FID)

ADELE-Staßfurt

> Procurement and Construction > Comissioning > Begin of test operations

• Constr. & Comm.

FID

Why choosing Adiabatic Compressed Air?

Back in 2008 Pumped Hydro Storage looked very prosperous

> Typical operational schemes switched from classic day-night-cycles to short and frequent operation patterns > The RES directive (2009/28/EC) fixed RES goals by country, hence technical storage potential could be determined, especially steep RES introduced ramping

The identified first estimation of storage potential indicated that

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The identified first estimation of storage potential indicated that available PHS potential would not be fully sufficient

> RWE was involved in the European AA-CAES project and convinced of the technology > Adiabatic CAES seemed natural follower to PHS since:

– Theoretical efficiency of 70% was closest to PHS, even comparable with old plants – Potential German sites were close to wind generation centers in the north – CAPEX was expected to come close to PHS with larger scale deployment

Central Storage is macro-economically useful, but faces micro-economic pressure due to market and regulation

> Market evolution did not reflect the estimated need of flexibility sufficiently in any bulk market > Present energy only markets do not produce any business case for any new-built storage Reference CASE Germany

Since 05/2013: Incentive for residential batteries limiting PV feedings to 60%

German EEX-Spot Market Prices 2011 90,00 100,00

2030 with

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> Consequently storage roll out is

• limited. Hence CAPEX-decline for A-

CAES will be smaller as expected. > Yet, maximising social economic benefits central storage is still option

• f choice, but only after 2030

> Current regulation focuses on local remedies, not on the system

0,00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 19.07 00:00 19.07 06:00 19.07 12:00 19.07 18:00 20.07 00:00 [€/MWh]

No-PV-Age 2030 w/o any intervention? Today 2030 with new incentive?

Even demos must fully optimise economy!

THANK YOU VERY MUCH FOR YOUR ATTENTION AND LET´S COLLECTIVELY BE:

RWE 7/4/2013 PAGE 5

RWE is a major European player

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RWE Group is covering the whole value chain

Raw material production Power generation RWE Dea RWE Dea RWE Generation SE RWE Generation SE RWE East RWE East Conventional Conventional Renewables Renewables RWE Supply & Trading RWE Supply & Trading RWE East RWE East RWE Deutschland RWE Deutschland Gas and oil Gas and oil Lignite Lignite RWE Innogy RWE Innogy RWE Power RWE Power RWE East RWE East RWE Innogy RWE Innogy Wood pellets Wood pellets Energy trading/ gas midstream Electricity and gas networks Electricity and gas sales

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RWE Group Key Data (2012) € billion 53,227 external revenues 70.208 employees Power: 342.000 grid km, 278 billion kWh Gas: 38.000 grid km, 307 billion kWh 16 Mio. electricity customers

• 8 Mio. gas customers

RWE Group R&D (2012) 450 Employees R&D R&D-expenditure: ~ € million 150 p.a.

RWE npower RWE npower Essent Essent NET4GAS (unbundled) NET4GAS (unbundled)

ADELE-ING – Eight Partners, Six Tasks

AP1 Coordination AP2

• Syst. Integration

AP6 Cavern

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AP Overall Planning AP4 Thermal Storage AP5 Turbo Machinery