Electricity Storage for Large Enterprises Andrew Pimm Centre for - - PowerPoint PPT Presentation

electricity storage for large enterprises
SMART_READER_LITE
LIVE PREVIEW

Electricity Storage for Large Enterprises Andrew Pimm Centre for - - PowerPoint PPT Presentation

School of something School of Chem. and Proc. Eng. FACULTY OF OTHER FACULTY OF ENGINEERING Electricity Storage for Large Enterprises Andrew Pimm Centre for Integrated Energy Research Energy storage workshop at University of Leeds 14 June


slide-1
SLIDE 1

School of something

FACULTY OF OTHER

School of Chem. and Proc. Eng.

FACULTY OF ENGINEERING

Electricity Storage for Large Enterprises

Andrew Pimm Centre for Integrated Energy Research Energy storage workshop at University of Leeds 14 June 2016

slide-2
SLIDE 2

Introduction

Energy storage of interest to businesses/universities/hospitals, particularly those with on-site generation Economics of storage to enterprises poorly understood Many revenue streams exist Lancaster University interested in installing electricity storage

slide-3
SLIDE 3

Case Study on Lancaster University

Carried out case study with Lancaster University after presentation given there in January 2016 13k students, 4.5k staff, 8 halls of residence

  • n campus

Annual elec. demand ≈ 22 GWh; spend ≈ £2m pa MD ≈ 6 MW 2.35 MW wind turbine, 50 kW PV and 1.9 MWe CHP on-site 2 days w/o power in early Dec due to floods Energy Manager (Jan Bastiaans) interested in installing up to 4MW / 4MWh of mixed storage devices

1 2 3 4 J F M A M J J A S O N D

Monthly Elec. (GWh) Month

Import WT CHP 2 4 6 8 0.5 1 1.5 2 2.5 3 J F M A M J J A S O N D

Maximum Monthly Demand (MW) Monthly Elec. Import (GWh) Month

2014 (import) 2015 (import) 2014 (MD) 2015 (MD)

2014

slide-4
SLIDE 4

Electricity Prices

Price made up of commodity and non-commodity components Non-commodity = DUoS + TNUoS + RO + FiT + BSUoS + BS + HDC Commodity price set after forward purchase and trading by broker (Inenco)

0% 20% 40% 60% 80% 100% Red Amber Green

% of marginal price DUoS Time Band

DUoS REO BS BSUoS HDC FiT Energy Cost (avg.)

Time periods Red Time Band Amber Time Band Green Time Band Mon to Fri 16:00 – 19:00 09:00 - 16:00 00:00 - 09:00 19:00 - 20:30 20:30 - 24:00 Sat and Sun 16:00 – 19:00 00:00 - 16:00 19:00 - 24:00

DUoS charges for HV meters in north west region

slide-5
SLIDE 5

Electricity Prices

Time-varying marginal price is of interest to storage operator

LU’s marginal price of electricity, 04/2015-04/2016 (Mean commodity price of ~£0.06/kWh used, not including Triads)

slide-6
SLIDE 6

Transmission Network Use of System (TNUoS) Charges

HH metered customers charged for use of transmission network according to consumption during “Triads” Triads: 3 half-hours of highest GB system demand between Nov-Feb (separated by at least 10 days) Since 1990/91, >80% have been 17:00-17:30 Triad alerts issued by electricity suppliers and utility management companies

slide-7
SLIDE 7

Optimisation Algorithm

Modified arbitrage optimisation algorithm to take into account generation and demand (excess generation effectively costs the storage 4.91 p/kWh) Results below for no generation… currently trying to work out how to synthesise total demand and so half-hourly export based on monthly export figures

slide-8
SLIDE 8

Optimisation Algorithm

Modified arbitrage optimisation algorithm to take into account generation and demand (excess generation effectively costs the storage 4.91 p/kWh) Results below for no generation… currently trying to work out how to synthesise total demand and so half-hourly export based on monthly export figures

slide-9
SLIDE 9

Savings Breakdown

Breakdown of savings available to Lancaster University and required expenditure.

  • 2015 demand data &

charges

  • 85% round-trip efficiency
  • tch ≤ 12.5 hrs
  • tdch = 2 hrs
  • Hitting all Triads
slide-10
SLIDE 10

Total Savings

Total savings

Total annual savings available to Lancaster University = £27,000/MWh

  • 2015 demand data &

charges

  • 85% round-trip efficiency
  • tch ≤ 12.5 hrs
  • tdch = 2 hrs
  • Hitting all Triads
slide-11
SLIDE 11

5 10 15 20 25 10 20 30 40 50 60

DUoS Red - Green (p/kWh) TNuoS Demand (£/kW) Distribution Area

TNUoS DUoS R-G

DUoS charges for HV HH metered customers effective from 1st Apr 2017 & TNUoS demand charges effective from 1st Apr 2016 Area ID Area DUoS for HV HH Metered (p/kWh) TNUoS Demand (£/kW) Red Amber Green 10 Eastern 6.384 0.020 0.004 46.543113 11 East Mids 7.391 0.121 0.021 44.724594 12 London 1.921 0.017 0.000 51.870233 13 Manweb 10.508 0.348 0.180 42.678395 14 West Mids 7.156 0.392 0.007 45.738925 15 North East 7.556 0.364 0.036 42.927953 16 North West 6.265 0.463 0.057 42.828015 17 Scots Hydro 4.044 1.393 0.313 40.966038 18 Scots Power 7.856 0.470 0.017 40.244453 19 South East 7.632 0.097 0.008 49.204313 20 Southern 6.572 0.210 0.044 50.078028 21 South Wales 9.942 1.155 0.055 42.306722 22 South West 19.170 0.117 0.046 48.580421 23 Yorks 6.253 0.476 0.033 42.493827

36.60 38.11 27.97 44.76 38.17 34.20 33.52 20.46 31.28 41.09 38.80 43.67 69.83 33.82 10 20 30 40 50 60 70 80

Value of Storage (£k/MWh.yr) Distribution Area Value of storage to HV HH metered customers in 2017

slide-12
SLIDE 12

On-Site Generation

In 2015, Lancaster Uni exported 241 MWh (~1% of demand) Could potentially have reduced spend in 2015 by £17,500 Detailed analysis not possible due to lack of data

Stephenson Halliday

slide-13
SLIDE 13

Payback Period & NPV of Tesla Powerpack

Tesla Powerpack (May 2016) Technology Li-Ion Storage capacity per module 100 kWh Peak discharge power per module 50 kW AC-AC efficiency (2 hour system) 82% AC-AC efficiency (4 hour system) 83% DC-DC efficiency (2 hour system) 91% DC-DC efficiency (4 hour system) 93% Cost per module $47,000 Cost per bi-directional 250 kW inverter $65,000 Cost of cabling & other hardware $2,000+$500/module

Powerpack costs equate to £417,000 for a 1 MWh, 500 kW system Regular annual savings of £26,000/MWh & 5% discount rate give 33 year discounted payback period in north-west (but 15 year projected life!) In the south-west in 2017, annual savings of £65,000/MWh give 8 year discounted payback period. After 15 years, NPV is £258,000/MWh, giving 13% annual rate of return EOS Aurora advertised at £138,000/MWh, but 75% round-trip efficiency Incentive schemes in US give >£1.6m/MW for electricity storage (up to 50% of project cost)

slide-14
SLIDE 14

Near-Delivery Electricity Trading

Investigated value of purchasing on day ahead market, assuming 2 hr discharge at 16:30-18:30 weekdays Nov-Feb,

  • ptimal schedule elsewhere…

Up to £40,000/MWh.yr in north-west, an increase of £13,000/MWh.yr over a flat commodity price

slide-15
SLIDE 15

Other Revenue Streams

Several other revenue streams exist for small-/medium-scale storage:

Service Response Time

  • Max. Duration
  • Min. Power

Trigger Enhanced Frequency Response 1 s 9 s 3 MW Static frequency point Firm Frequency Response (Primary) 2-10 s 1-2 m 10 MW Static or dynamic frequency Firm Frequency Response (Secondary) 30 s 30 m 10 MW Static frequency point Fast Reserve 2 m 15 m 50 MW NG request Short Term Operating Reserve 4 h 2 h 3 MW NG request Curtis M. Overview of the UK Demand Response Market. EPFL Workshop, 11 Sep 2015, University of Reading

slide-16
SLIDE 16

Other Revenue Streams

Market size and returns (Curtis, 2015):

Service Overall Capacity Per Year (MW) DR Capacity Per Year (MW) Procurement Method Returns Per Year, Per MW Enhanced Frequency Response 200 ?? ??? Tender ??? Firm Frequency Response (Primary) 200-700 ??? Tender £15,000 - £20,000 Firm Frequency Response (Secondary) 700-1400 ??? Tender £30,000 - £40,000 Fast Reserve ??? ??? Tender ??? Short Term Operating Reserve 2500-3500 200-700 Tender £20,000 - £30,000

EFR aimed specifically at storage FFR runs 24/7 STOR has 2 daily availability windows (~07:00-14:00 & ~16:00-20:00) Returns based on availability payment & utilisation payment

slide-17
SLIDE 17

Conclusions

  • Savings from reducing network charges: £20 - £70/kWh.yr
  • South-west highest, north Scotland lowest
  • Value increased by on-site generation, up to £17.5/kWh.yr extra at

Lancaster Uni with 2.35 MW WT & 1.9 MWe CHP, 6 MW max. demand

  • Additional revenue from near-delivery trading: up to £13/kWh.yr
  • Payback period with Tesla Powerpack: 8 yrs in south-west; 33 years in

north-west

slide-18
SLIDE 18

School of something

FACULTY OF OTHER

Electricity Storage for Large Enterprises

Thank you

Dr Andrew J. Pimm a.j.pimm@leeds.ac.uk