Energy Storage Workshop

Hosted By: The UK Energy

Storage Operators’ Forum

Outline of Workshop

• Introduction (Peter Lang, UK Power Networks)

• Procurement (Nick Heyward, UK Power Networks)

• Safety (Ian Lloyd, Northern Powergrid)

• Installation and Commissioning (Mark Dale, Western Power

Distribution)

• Use Cases and Business Models (Alistair Steele, Scottish and

Southern Power Distribution)

• Discussion Session

• Conclusion

Introduction

• Welcome

• Energy Storage Operators Forum

• Electrical Energy Storage is happening

– There is 5.1 MW and 6.4 MWh commissioned

– And 7.2 MW and 13.8 MWh under construction or

planned

• White paper “State of Charge of GB”

• Questions will be taken after the last speaker

Installations as at 1 November

2013

Shetland 1 MW 6 MWh

Shetland 1 MW 3 MWh

Orkney 2 MW 500 kWh

Hemsby 200 kW 200 kWh

Leighton Buzzard 6 MW 10 MWh

Darlington 2.5 MW 5 MWh

100 kW 200 kWh

50 kW 100 kWh

Bristol 90 kW up to 321 kWh

6 kW 14.4 kWh

Key

Commissioned

Under construction

Planned

Decommissioned

Chalvey 25 kW 25 kWh

Nairn 100 kW / 150 kWh

Milton Keynes 150 kW 450 kWh

Willenhall 2 MW 375 kWh

Wooler 100 kW 200 kWh

50 kW 100 kWh

Maltby 50 kW 100 kWh

Procurement of Energy

Storage Systems

Led By: Nick Heyward

UK Power Networks

ESOF Procurement Approaches

• Limited history; but growing - 10MW+ of electrical

energy storage procured through LCNF

• DNOs have well established procurement

processes - Multi-stage procurement

commonplace, in line with EU Directives

• Evaluation criteria reflecting typical priorities: • Safety

• TRL

• Cost effectiveness

• Deployment track record

• Efficiency/Lifetime

• Technical product quality

• Strong financials

Limited ‘real’ supplier choice with

advanced TRL and experience

Initial

Search Pre-Qualification

Accepted for

Tender

Received /

Shortlisted

Challenges & Learning

• Storage Systems are not simple assets!

• Evolving structure & state of the industry

Ancillary Systems

Integration

Services

High-Level

Control /

Management

Core Hardware

Storage Medium – Cells etc.

Power Conversion / Inverters

Low-Level Control Systems Functional/component

level control

Ancillary / Safety

Hardware

System-level control

and integration

• Emerging players. No

manufacturing base

• Potentially small- scale /

VC-backed

• e.g. Greensmith,

Younicos

• Existing players

• Horizontally diversified

from renewables / power

engineering / ancillary

systems.

• e.g. S&C, Alstom, GE

• Technology specialists

with manufacturing base

• EV or Grid markets

• Potentially grant/aid

backing

• e.g. A123, Highview

Commercial Terms for Large-

Scale Energy Storage Systems

Contractual Provision Secured Rationale

Staged payments Incentivise delivery and commissioning on schedule;

mitigate against default

Performance bond Incentivise performance and mitigate against default

Delay compensation Mitigate against construction/storage related costs for

delays

Parental guarantees Mitigate default or non-delivery of supplier & sub-suppliers

Warranty periods and protection

for warranty payments Incentivise manufacturing quality, mitigate against defaults

Public & Product liability

insurances in excess of contract

Cover for catastrophic failures impacting network or public

assets

Professional / Design Indemnity in

excess of contract value

Cover for design failures impacting network security,

damages to network or public assets

Availability Performance KPIs Incentivise high system availability

Sell-back option Mitigate for significant changes to network security

requirements; lack of performance

Challenges & Learning

• Lack of Specifications and Standards

• As deployments grow, experience and

standardisation should follow

Source: Pike Research

Forecast Installed Capacity

Available Learning Outputs

• Orkney Storage Park Close-Down Report

(Commercials)

• Planning & Design Considerations for Large-Scale

Storage

• 1MW Battery, Shetland Interim Close-Down Report

• SoLa Bristol Battery Storage Designs

Safety

Led By: Ian Lloyd

Northern Powergrid

Safety Introduction

• Over the past 18 months ESOF forum members

have been meeting and exchanging their

operational and safety concerns relating to Energy

storage, and battery technology in particular.

• 10 different installations currently commissioned

across the UK totalling 6.4MWh fed into the

knowledge build and Safe systems of work to allow

the placement, installation and commissioning on

the electricity distribution network.

Safety in the Business

• Following a Safety

driven process

• Identifying key

personnel

• Identifying the

hazards

• Impact assessment

and safety cases

• Training requirements

Safety in the communities

• Engineering

Safety

• Community

Engagement

• Local

authorities

• Fire and

emergency

services

• Press coverage

and visitors

Safety in installation

• Working groups

and planning

activities

• Toolbox talks,

safety walks

• CDM

coordination

• Safe systems

of work

Safety in operation

• Train the business and

service providers

• Issue Operational guidance

• Develop Operational

strategy

Installation & Commissioning

Led By: Mark Dale

Western Power Distribution

Installation Issues

• Domestic Storage

– Sola Bristol……6kW 14.4kWh

• Grid Storage

Orkney…….. 2MW 0.5MWh Chalvey… 25kW 25kWh

Darlington… 2.5MW 5MWh Hemsby... 200kW 200kWh

Darlington… 100kW 200kWh Wooler..... 100kW 200kWh

Darlington… 50kW 100kWh Falcon….. 150kW 450kWh

Maltby……... 50kW 100kWh

Domestic Installation Challenges

• General Installation issues with Domestic system

– Customer Engagement

– Prelim surveys

– Structural re enforcement

– Specialist Lifts

– Logistics/equipment

Grid Scale Installation Challenges

• Large Form Factor

• Difficult to manoeuvre

• DC wiring knowledge gaps

• Fan Noise

• Switching Frequency Noise

• Environmental Conditions

• Heat Dissipation

• Electrical Protection

• Modes of Failure

• Harmonic Content

• Planning Consents

• Factory Acceptance Testing

• Control of on site changes

• Have the right people on site

• G59/G83

• Documentation / risk management

• Specialist skills

General Commissioning issues:

Domestic

• Battery Control Systems

• Radio Equipment

• System Integration

• Maximise cold

commissioning before

connection to grid

General Commissioning issues:

Grid Scale

Business models & use case

Led By: Alistair Steele

SSE Power Distribution

Introduction

• Distribution network benefits of energy storage

• Additional storage benefits

• Business models

• Real project examples

How can energy storage benefit

networks?

• Network constraint management • Peak demand reduction

• Absorption of excess generation

How can energy storage benefit

networks?

• Voltage management • Reactive power compensation

• Real power management

• Phase balancing

How can energy storage benefit

networks?

• Reserve power • To meet planning standards / save

network upgrades

How can energy storage benefit

networks?

• Optimising back-up generation • Mobile generation (faults)

• Static generation operated by distribution business

Non distribution networks

benefits

To become economically viable storage projects

may need to operate in additional markets:

• Energy arbitrage

• Frequency response

• STOR

• Avoiding customer capacity

charges (demand / generation)

Business models

To operate network connected energy storage there are multiple ownership models under investigation:

• DNO unmetered

• DNO metered

• 3rd party network side of meter

• 3rd party customer side of meter

Business models

Application DNO

Unmetered

DNO

Metered

3rd party

network side

of meter

3rd party

customer

side of meter

Peak demand reduction

Absorption of excess generation

Voltage management

Reserve power to meet planning

standards

Optimising back up generation (faults)

Energy arbitrage

Frequency response / STOR

Capacity charge reduction

Network results (graphs)

• Network constraint management • Peak demand reduction at Chalvey (9kW feeder limit)

Network results (graphs)

• Network constraint management • Hemsby peak shaving based on previous day’s demand

Network results (graphs)

• Network constraint management • Absorption of excess generation - Orkney

Network results (graphs)

• Voltage management • Reactive power control at Hemsby

Network results (graphs)

• Optimising back up generation

0

0.5

1

1.5

2

2.5

3

3.5

4

1 3 4 6 7 8 9 10 11 12

[kW

h/L

]

[kW]

Efficient loading point for the 16kVA generator with lithium battery

Learning points

• Real projects with real results feeding into new storage

projects

• Results prove tangible network benefits

• Multiple business ownership models under

investigation

• Storage can now be implemented to solve real network

issues

• Additional work / learning required before storage can

compete with traditional network upgrades

PANEL DISCUSSION Peter Lang, UK Power Networks (Chair)

Simon Brooke, Electricity North West

Ian Lloyd, Northern Powergrid

Alistair Steele, Scottish and Southern Energy Power Distribution

Alan Collinson, SP Energy Networks

Nick Heyward, UK Power Networks

Mark Dale, Western Power Distribution

Conclusions

• The ESOF has allowed DNOs to share experiences

• We are here demonstrating that it works

• Energy storage is a diverse technology

• DNOs have learnt many lessons, reducing the risk

of demonstrations not delivering the expected

benefits.

THANK YOU