![© Wärtsilä 23.5.2018 [Presentation name / Author]11
FUTURE-PROOFING ENERGY STORAGE
Short System Track-Record Market Uncertainty
• Median grid-scale ESS is <5 years old
• Only 14 grid-scale ESS globally have
operating history of >10 years
• Many storage revenues are paid via short-
term contracts or entirely merchant markets
• In 2017 PJM changed Reg D signal, cutting
revenue for ESS without flexibility in half](https://image.slidesharecdn.com/2latestinenergystorage-dakar-190104152930/85/Latest-in-energy-storage-11-320.jpg)
![© Wärtsilä 23.5.2018 [Presentation name / Author]18
ALISO CANYON GAS LEAK – ENERGY STORAGE RESPONSE
• Installed 20MW/80MWh in 4 months 12,500 ft2
• Largest in-building deployment globally
• Fastest responding asset in SCE territory (period)
• First Aliso Canyon system qualified by CAISO
• AltaGas paid for capacity by SCE but bidding into dynamic markets
Pomona System Time-Lapse Video – System of the Year Award
https://www.youtube.com/watch?v=fo6rnfqlVp8](https://image.slidesharecdn.com/2latestinenergystorage-dakar-190104152930/85/Latest-in-energy-storage-18-320.jpg)
![© Wärtsilä
23.5.2018 [Presentation name / Author]
27
FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION
Strategy 3: Contemporary Software Tools and Architecture](https://image.slidesharecdn.com/2latestinenergystorage-dakar-190104152930/85/Latest-in-energy-storage-27-320.jpg)
![© Wärtsilä 23.5.2018 [Presentation name / Author]28
Strategy 3: Track Ongoing Operation with Flexible Warranty
FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION
GEMS dashboard tracks
values associated with
warranty compliance
• Battery warranties are complex
− Annual energy throughput
− Peak DC charge/discharge rate
− Daily average DC charge/discharge rate
− Average daily temperature
− Maximum temperature deviation across
measurement points
− Common mode noise level (voltage)
− Common mode noise level (current)
• BMS does not track!
• GEMS tracks all values and provides
analytics for on-going plant optimization](https://image.slidesharecdn.com/2latestinenergystorage-dakar-190104152930/85/Latest-in-energy-storage-28-320.jpg)
![© Wärtsilä 23.5.2018 [Presentation name / Author]29
FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION
-500.0
-400.0
-300.0
-200.0
-100.0
0.0
100.0
200.0
300.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
PV Output Load Demand ESS Power
Net Load Threshold
ESS Charge
with excess PV
Load Threshold
ESS Discharges to
limit load demand
Net load at POI
(limited to 200kW
Actual Load
PV production
Fault Response
Frequency Regulation (Reg D)
System Load Leveling
Resource Adequacy
Ramp Rate Control
Solar Firming
0
50
100
150
200
250
300
12:00:00AM 4:00:00AM 8:00:00AM 12:00:00PM 4:00:00PM 8:00:00PM 12:00:00AM
Frequency Response
Voltage Control
(100%)
(50%)
0%
50%
100%
12:00 AM 6:00 AM 12:00 PM 6:00 PM 12:00 AM
Batterty(Charge)/Discharge
Profile
Peak Shifting
Strategy 3: Application Algorithms and Optimization](https://image.slidesharecdn.com/2latestinenergystorage-dakar-190104152930/85/Latest-in-energy-storage-29-320.jpg)
Latest in energy storage
- 1. © Wärtsilä LATEST IN ENERGY STORAGE Energy Integration Workshop Wartsila/Greensmith Dakar – 22 May 2018 Loïc CHARMOILLE Proposal manager Africa 1 23.5.2018 Energy Solutions
- 2. © Wärtsilä 23.5.2018 Energy Solutions2 WHAT IS ENERGY STORAGE ? Mechanical systems Electrochemical systems
- 3. © Wärtsilä 23.5.2018 Energy Solutions3 ENERGY STORAGE SYTEMS FUTURE DEPLOYMENTS Source: Bloomberg New Energy Finance
- 4. © Wärtsilä 23.5.20184 ENERGY STORAGE SYTEMS APPLICATIONS Grid Reliability • FR Regulation (PJM, CAISO) • Voltage Resp./PF Correction • Spinning Reserve • T&D Deferral/Peak-shift • Load leveling/Peak Shaving Hybrid Engine Optimization • DER Management • Fleet Aggregation • Asset Optimization Renewable Integration • PV Firming • PV Ramp Control • PV Smoothing • Curtailment Capture Microgrid • Islanding Grid • Grid Forming • Frequency Drooping • Black Start • Control DER Energy Solutions
- 5. © Wärtsilä 23.5.2018 Energy Solutions5 APPLICATIONS FOR EACH ESS System Power Rating (MW) EnergyDischargeTimeatRatedPower Seconds Minutes Hours 100 kW 1 MW 10 MW 100 MW 1,000 MW10 kW1 kW UPS Grid Support Energy Management Power Quality Load Shifting Bridging Power Bulk Power Management Peak Shaving T&D Deferral Load Leveling Ramping Energy Arbitrage Spinning Reserve Frequency Regulation Renewables -- Wind -- Solar Metal Air Battery Ni-Cd Battery Ni-MH Battery Lead Acid Battery High Power Super Caps High Power Fly Wheels Hi Energy Super Caps Pumped Hydro CAES SMES Flow Batteries ZrBr VRB PSB Novel Systems NaS Battery ZEBRA Battery Advanced Lead Acid Battery Lithium-ion BatteryLithium-ion Battery Source: EPRI and Greensmith
- 6. © Wärtsilä 23.5.2018 Energy Solutions6 COMMISSIONED BATTERY STORAGE SYSTEMS Source: Bloomberg New Energy Finance
- 7. 7 SOLAR AND STORAGE EXPERIENCE CURVES Note: Prices are in real (2015) USD. ‘Current price’ is $0.4/W Source: Bloomberg New Energy Finance, Maycock Source: Bloomberg New Energy Finance, Long-Term Electric Vehicle Outlook 2017, August 02, 2017 0.1 1 10 100 1 10 100 1,000 10,000 100,000 1,000,000 1976 1985 2003 2012 Cumulative capacity (MW) 2016 2008 SOLAR PV MODULE COST ($/W) SOLAR COSTS HAVE FALLEN 90% since 2009 Learning rate 24.3%
- 8. © Wärtsilä 23 May 20188 Utility-scale commissioned energy storage projects 55% 30% 57% 66% 58% 87% 98% 4% 6% 1% 18% 6% 32% 51% 15% 29% 15% 12% 12% 16% 4% 5% 3% 2011 2012 2013 2014 2015 2016 H1 2017 % by MW Other Flow batteries Lead-based batteries Sodium sulphur batteries Lithium-ion batteries BATTERY TECHNOLOGY MIX Source: Bloomberg New Energy Finance, 2H 2017 Global Energy Storage Market Outlook Energy Solutions
- 9. © Wärtsilä 23.5.2018 Energy Solutions9 COMMISSIONED BATTERY STORAGE SYSTEMS Source: Bloomberg New Energy Finance, survey of more than 50 companies
- 10. © Wärtsilä 23 May 2018 Energy Solutions10 Commissioned battery systems for grid storage (>10 MW) BATTERY TECHNOLOGY MIX Source: DOE Global ES Database
- 11. © Wärtsilä 23.5.2018 [Presentation name / Author]11 FUTURE-PROOFING ENERGY STORAGE Short System Track-Record Market Uncertainty • Median grid-scale ESS is <5 years old • Only 14 grid-scale ESS globally have operating history of >10 years • Many storage revenues are paid via short- term contracts or entirely merchant markets • In 2017 PJM changed Reg D signal, cutting revenue for ESS without flexibility in half
- 12. © Wärtsilä FUTURE-PROOFING ENERGY STORAGE January 2017 PJM changes regulation AGC signal without notice presenting significant challenge to 250MW battery investments - Energy neutrality from 15 minutes to 30 minutes - Energy throughput up 62% - More frequent full charge/discharge calls PJM old signal PJM new signal
- 13. © Wärtsilä Greensmith Snapshot GREENSMITH – A WÄRTSILÄ COMPANY INTRODUCTION • VC-backed, founded in 2008 • Grid-scale energy storage leader • Turn-key, integration and software • Now a Wärtsilä company – operating in 176 countries with 64GW installed base • Multiple awards: fastest growing • Over 60 systems delivered globally • A third of total 2016 US capacity • Five top systems in PJM FR market • Battery-agnostic:16 battery and 12 inverter types integrated – allows for best of breed • Total raw pipeline reaching $1B globally
- 14. © Wärtsilä 23.5.201814 GREENSMITH EXPERIENCE Technology neutral. Total flexibility. Power electronics Batteries Energy Solutions
- 15. © Wärtsilä Indicative Deployments GREENSMITH EXPERIENCE 2MW/6MWh - CA Grid Deferral to Utility 1MW/500kWh – Puerto Rico Microgrid/Solar Integrated to OEM 1MW/500kWh – Puerto Rico Microgrid/Solar Integrated to OEM 20MW/9MWh PJM - IL Freq Regulation to IPP 2MW/14MWH – WV Backup & Freq Regulation to Utility 23.5.2018 Energy Solutions
- 16. © Wärtsilä GREENSMITH EXPERIENCE 23.5.2018 Energy Solutions Power Energy Battery PCS SW Control Application Location Scope COD 40 MW 15 MWh Leclanché WSTech GEMS 5 PJM FR PJM Hybrid Q4 2017 13 MW 53 MWh Leclanché WSTech GEMS 5 Frequency Resp, Cap. Ontario, Can SW Control Q4 2017 10 MW 4 MWh Toshiba Parker GEMS 5 PV Integration + Frequency Response AZ Hybrid 2017 20 MW 80 MWh Samsung Parker GEMS 5 Resource Adequacy/FR CA Turnkey 2016 125 kW 250 kWh Kokam Ideal GEMS 4 BTM Microgrid with PV CA Turnkey 2016 2 MW 800 kWh LG Chem Parker GEMS 4 PJM FR PJM Hybrid 2015 18 MW 7 MWh LG Chem Parker GEMS 4 PJM FR PJM Hybrid 2015 1 MW 500 kWh JCI Eaton GEMS 4 PJM FR OH Hybrid 2015 1 MW 500 kWh JCI Ingeteam GEMS 4 Solar PV RRC Puerto Rico Hybrid 2015 1 MW 3 MWh Samsung ABB GEMS 4 Distribution Deferral CA Turn-Key 2015 20 MW 9 MWh LG Chem ABB GEMS 4 PJM FR PJM Turn-Key 2014 1 MW 3 MWh Samsung ABB GEMS 4 Distribution Deferral CA Turn-Key 2014 50 kW 100 kWh Aquion Siemens GEMS 4 PV Integration VA SW Control 2014 10 kW 40 kWh ViZn Siemens GEMS 4 PV Integration VA SW Control 2014 500 kW 1.5 MWh Winston Satcon GEMS 3 PV/EV Integration CA Turn-Key 2012 3@30 kW 30 kWh Saft PowerHub GEMS 3 CES Fleet Control CA SW Control 2013 50kW 83kWh Int’l Bat Satcon GEMS PV/EV Integration CA Turn-Key 2011
- 17. © Wärtsilä GREENSMITH EXPERIENCE Alta Gas 20MW/80MWh KEY TAKEAWAY 5 months NTP to COD DEPLOYMENT 20MW/80Mwh ESS SOLUTION Renewables integration CLIENT PARTNER Alta Gas
- 18. © Wärtsilä 23.5.2018 [Presentation name / Author]18 ALISO CANYON GAS LEAK – ENERGY STORAGE RESPONSE • Installed 20MW/80MWh in 4 months 12,500 ft2 • Largest in-building deployment globally • Fastest responding asset in SCE territory (period) • First Aliso Canyon system qualified by CAISO • AltaGas paid for capacity by SCE but bidding into dynamic markets Pomona System Time-Lapse Video – System of the Year Award https://www.youtube.com/watch?v=fo6rnfqlVp8
- 19. © Wärtsilä 23.5.201819 METAL PRICE IMPACT Energy Solutions • alternative to NMC Batteries are lithium-ion chemistries such as lithium manganese oxide (LMO) or lithium iron phosphate (LFP), which are suitable for applications like power tools and electric buses. However, both these alternatives are not energy dense enough to be used in automobiles or mobile phones
- 20. © Wärtsilä 20 Greensmith Energy A global leader in energy storage integration Germany/EU PRC > 1GW Weekly Auction North America Bilateral Agreements with various integrated utilitiesCAISO Reg Up/Reg Down Merchant Market United Kingdom EFR 201MW FFR > 1GW 4,2 year contracts PJM Reg A: >2GW Reg D: > 250MW Merchant Market ERCOT REM: 60MW Demo Market Hawaii Ramping/Duck Curve Bilateral Agreements Philippines Bilateral Agreement Puerto Rico MTR: RRC -> FR All solar Australia FCAS: >1GW Merchant India Bilateral Agreement Thailand Bilateral Agreement Over 70 systems deployed around the world
- 21. © Wärtsilä FUTURE-PROOFING ENERGY STORAGE Energy Storage As a Major Grid Resource in 2016 • Ancillary Services in PJM and other ISOs, Canada, United Kingdom with International Growth • AB2514 and Aliso Canyon Crisis in California − California transitioning towards renewables − Major gas reservoir leak − Three ESS projects, totaling 70 MW / 280 MWh installed in <6 months to meet peak power crisis − Kevin Payne, CEO of SCE: “procurement validates that energy storage can be part of the energy mix now” • Global market growth is strong − 2016 Global ESS market: $1.6 billion − 2025 Global ESS marekt: $7 billion (IHS Market forecast) 20 MW / 80 MWh delivered in 2016 by Greensmith in response to Aliso Canyon crisis
- 22. © Wärtsilä 23.5.201822 Minimize, Optimize and Monetize FUTURE-PROOFING ENERGY STORAGE – DESIGN, SIMULATION AND BUSINESS CASE When a location has run out of energy, the VPP allows for energy to be pulled from other sources on the network When a location has energy to spare, it can share it with the network When a location has used too much energy, the VPP recommends other sources of energy Energy produced in different locations by multiple generation sources is controlled and monitored by the VPP What if Scenarios/NOC Decision Support • Historical load data and forecast • PV generation forecast • Weather forecast • Fleet management Greensmith Virtual Power Plant Energy Solutions
- 23. © Wärtsilä 23.5.201823 FUTURE-PROOFING ENERGY STORAGE – FLEX TECH AND COMPONENT-AGNOSTICISM Storage Technologies Electrochemical Batteries Lead Acid Nickel Cadmium Nickel Metal Hydride Lithium Ion Sodium Sulfur Flow Batteries Vanadium Redox Zinc Bromine Zinc Iron Mechanical Pumped Hydro CAES AA-CAES Flywheels Thermal Solid Heat Storage Fluid heat Storage Electromagnetic SMES Super-Caps Energy Solutions Single Architecture for Multiple Components
- 24. © Wärtsilä 0 5 10 15 UsableEnergyCapacity(kWh) Project Years Replenished Targeted 24 Degradation Management BATTERY DEGRADATION 0 5 10 15 UsableEnergyCapacity(kWh) Project Years Declining Target Declining Description Comments • Most attractive option for rate base • Incur capital at highest point of cost curve • Only Applicable for PPAs up to 10 yrs Oversized Capacity Initial oversizing of batteries to ensure constant power level in each year Augmented Capacity Oversize batteries to support initial yrs of degradation then augment with new batteries Declining Capacity Change Capacity nomination in each year based on degradation of batteries • Most cost-effective option; optimizes against degradation curve • Less attractive to utility • Not feasible for many off-take agreements • Benefits from declining cost curves and TVM • VOM structure less attractive to Utilities • Best suited for developer economics and for longer term PPAs > 10 yrs • Requires multiple inverters 0 5 10 15 UsableEnergyCapacity(kWh) Project Years Oversized Targeted Energy Solutions23.5.2018
- 25. © Wärtsilä 23.5.201825 FUTURE-PROOFING ENERGY STORAGE – FLEX TECH AND COMPONENT-AGNOSTICISM Battery Degradation Management Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 $/kWh Racked Battery Cost1 $274 $256 $249 $245 $243 $241 $239 $229 $220 $211 $203 $195 $187 $180 $172 $166 Oversize Strategy MWh Installed 108 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Racks Installed 1980 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Battery $NPV $26.9 million Augmentation Strategy MWh Installed 74.8 0 0 0 7.0 0 0 0 7.6 0 0 0 8.4 0 0 0 Racks Installed 1370 0 0 0 12 8 0 0 0 14 0 0 0 0 15 3 0 0 0 Battery $NPV $25.4 million 0 5 10 15 UsableEnergyCapacity(kWh) Project Years Oversized Augmented Targeted 1 Based on average 1C values received by top tier 1 battery OEMs • Battery cost is typically 50%-60% of project cost • Augmentation strategy takes advantage of both rapidly declining cost curves and TVM • Augmentation can amount to an NPV savings to battery cost of >5% Energy Solutions
- 26. © Wärtsilä GEMS – Energy Storage and Integration Platform FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION Components BMS Adaptors PCS Adaptors Grid Adapters Other Device Adaptors Temperature sensors Fire suppression HVAC, etc. AMI Adaptors Computational Platform Operation Scheduling • Peer-to-Peer Group Control • Real-time Equipment Control • Local HMI Applications Ramp Rate Control Renewables Smoothing Capacity Shifting Demand Management EV Charge Management Black Start Frequency Regulation
- 27. © Wärtsilä 23.5.2018 [Presentation name / Author] 27 FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION Strategy 3: Contemporary Software Tools and Architecture
- 28. © Wärtsilä 23.5.2018 [Presentation name / Author]28 Strategy 3: Track Ongoing Operation with Flexible Warranty FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION GEMS dashboard tracks values associated with warranty compliance • Battery warranties are complex − Annual energy throughput − Peak DC charge/discharge rate − Daily average DC charge/discharge rate − Average daily temperature − Maximum temperature deviation across measurement points − Common mode noise level (voltage) − Common mode noise level (current) • BMS does not track! • GEMS tracks all values and provides analytics for on-going plant optimization
- 29. © Wärtsilä 23.5.2018 [Presentation name / Author]29 FUTURE-PROOFING ENERGY STORAGE – SOFTWARE, DATA AND OPTIMIZATION -500.0 -400.0 -300.0 -200.0 -100.0 0.0 100.0 200.0 300.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PV Output Load Demand ESS Power Net Load Threshold ESS Charge with excess PV Load Threshold ESS Discharges to limit load demand Net load at POI (limited to 200kW Actual Load PV production Fault Response Frequency Regulation (Reg D) System Load Leveling Resource Adequacy Ramp Rate Control Solar Firming 0 50 100 150 200 250 300 12:00:00AM 4:00:00AM 8:00:00AM 12:00:00PM 4:00:00PM 8:00:00PM 12:00:00AM Frequency Response Voltage Control (100%) (50%) 0% 50% 100% 12:00 AM 6:00 AM 12:00 PM 6:00 PM 12:00 AM Batterty(Charge)/Discharge Profile Peak Shifting Strategy 3: Application Algorithms and Optimization
- 30. © Wärtsilä FUTURE-PROOFING ENERGY STORAGE – HYBRIDS AND INTEGRATION Strategy 4: GEMS Virtual Power Plant Functionality
- 31. © Wärtsilä INTERNAL Greensmith Experience SMART POWER GENERATION + + ENGINE POWER GENERATION SOLAR GENERATION ENERGY STORAGE & ENERGY MANAGEMENT SYSTEMS OPTIMISED GENERATION MAXIMIZE RENEWABLE PENETRATION SYSTEM STABILITY + + ENERGY SYSTEM INTEGRATOR