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What Can 1,000 MW of Battery as Distributed Storage do for UK?. PROPOSAL Price Evolution has now made new build Distributed Electricity Storage economically feasible in UK. Executive Summary. UK electricity fundamentals are: Demand keeps growing Low cost generating capacity is shrinking
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What Can 1,000 MW of Battery as Distributed Storage do for UK? PROPOSAL Price Evolution has now made new build Distributed Electricity Storage economically feasible in UK
Executive Summary UK electricity fundamentals are: • Demand keeps growing • Low cost generating capacity is shrinking • The N. Sea gas bubble has gone and UK must now compete with World for access to international gas supplies... • ...where other fundamentals will keep gas prices high • …and daily peak demand will have to be met with high cost CCGTs 1000 MW of Batteries can supply part of this peak
Recent Price History - SBP Peak supplied by CCGTs Nuclear & coal offpeak
Recent Price History - SSP These differentials could not justify new storage investments – hence previous failure of Regenesys
Differences between selling & buying price Sell Sell Buy Buy
Are we seeing the future? • Gas is now a global commodity • Gas and oil reserves are concentrated in Russia and OPEC countries • Gas prices are likely to converge with oil prices and any way... • ...OPEC will cartelize OPEC’s gas production... • Covertly supported by Russia and Norway Expect gas prices over $10/mmBtu for indefinite future
What other Options? • More nuclear capacity • Unavailable for 10 – 15 years • Clean coal (with CCS) • Unavailable for 5 – 10 years • Renewable energy? • Only supplying firm capacity with storage
Storage Options • More Pumped Hydro ? • Out of the question for environmental reasons • Compressed air energy storage ? • Salt domes are needed to increase gas storage capacity • Flow batteries • Only VRB can be realistically rolled out in immediate future • VRB owns Vanadium and Regenesys processes It looks like VRB
VRB Demonstration Plants World-wide Nine Years - no re-invention of wheel needed
Large batteries are in daily use VRB battery at 30.6 MW Tomamae wind park, Hokkaido 4 MW, 6MW Pulse 6 MWh Smoothing spiky windfarm output
Multi-Applications & Benefits Spinning and standby reserve 100 MW Black start Load levelling/following Frequency 10 MW control Load factor increase Capacity deferral Voltage support Power rating 1 MW Integration of renewables VAR support Tariff trading Transmission stability 100 kW Power quality Peak shaving Un-interruptible power supplies 10 kW 0 0 1s 10s 1 min 30 min 1 h 2 h 4 h 8 h Storage inventory
Storage is Necessary for Development of Renewables Experience in Denmark & Germany shows: • That the threshold capacity of intermittent renewables is very low before… • …use of balancing capacity becomes significant • When balancing capacity is fossil, fuel and CO2 savings are reduced Nuclear and ”clean coal” cannot be cycled
Storage is necessary for the development of off-shore wind - 1 Behaviour of wind farm offshore DK is certain offshore UK
Storage is necessary for the development of off-shore wind - 2 ..in 8 months winter 2004 - 2005
Preliminary Calculation(discounting other ancillary services) There seems to be a case!
Next Steps • Agree technical feasibility • Agree economic feasibility • Agree presentation documents • Presentations to, dialogue with • National Grid • OFGEM • DTI • Potential Investors • “Go” – “No go”! • If “go” – develop early cases on fully commercial grounds In modules of at least 5 MW or larger