How to build a battery in Australia: Lessons learned and how to … › wordpress › wp... · 2019-06-20 · Results: Technical Lessons Learned •MASS Tool: AEMO’s MASS tool was

How to build a battery in Australia: Lessons learned and how to think about your projectJaad Cabbabe, Sr. Manager, Business Development, Fluence

Fluence is the global leader in energy storage

18COUNTRIES

820+ TOTAL MW

11+YEARS

80+PROJECTS

Created and backed by two industry powerhouses

EXPERIENCE

11+ years of experience in energy storage from two proven industry pioneers

• World’s leading storage provider• Deployed or been awarded 80+

projects, in 19 countries, 823+ MW

Fluence brings unmatched experience at scale from the partner you can trust

3

SCALE

Complete technology and service offerings delivered worldwide

• Proven technology platforms that address full spectrum of applications

• Delivery & integration in 160 countries

• Comprehensive services including financing

CAPABILITY

Deep experience in modern power markets, customer needs, and local market challenges

• Collaborate with customers to help solve energy challenges

• Avoid pitfalls of inexperienced packagers and integrators

• Strong financial backing and industry staying power

Navigant Research Energy Storage Leadership Grid

© Fluence Energy LLC. All Rights Reserved.4

Energy storage continues to gain momentum worldwide

CALIFORNIATARGET FOR 1,325MW BY 2020

HAWAIIISLANDED SYSTEM STORAGE PROCUREMENT

PUERTO RICOSTORAGE FOR RENEWABLES & MICROGRIDS

NEW YORKTARGET FOR 1,500 MW by 2025

UNITED KINGDOMSTORAGE FOR FREQUENCY

GERMANYSTORAGE FOR FREQUENCY

ITALYISLAND MICROGRIDS

CHILESTORAGE FOR ANCILLARY SERVICES

PHILIPPINESSTORAGE FOR SYSTEM SECURITY

JAPANWIND STORAGE, CHANGING MARKET STRUCTURE

AUSTRALIASUPPORTING TRANSMISSION STABILITY & RENEWABLES

KOREA200+MW INSTALLED

INDIASOLAR + STORAGE

MEXICOSTORAGE IN MARKET REFORM

DOMINICAN REPUBLICSTORAGE FOR FREQUENCY & RESILIENCY

Transmission/Trading Enhancement

AusNet / Energy Australia Ballarat, VIC, Australia30 MW / 30 MWh

SERVICES• Local capacity• Peak/off-peak management• FCAS/Ancillary Services

IMPACT• Competitive selection • Maximizes transmission• Increases Security and Reliability

String of Firsts in Australia


• First project of its kind built by Australian EPC

• First standalone market facing battery-based energy storage asset in nation (i.e., not co-located)

• First commercial installation of latest generation Advancion platform

Contracting Challenges

• Novel contracting model in deregulated market pioneered under significant time pressure:� Multiple funding partners;� Asset owner (AusNet)� Offtaker/Registrant (EA)


• Performance guarantees were standard practice for Fluence, but new for Australian utility procurements � Energy storage projects require end-to-

end continuity on warranties and guarantees

Source: EnergyAustralia

Commissioning Challenges

• GPS: Prior to Ballarat deployment, GPS standards did not consider the possibility of standalone energy storage assets

• Parallel: Due to tight timeframe, elements of registration had to be completed in parallel with financing/construction

• Technical Details: eg. Confusion regarding who sets system ramp rate

• Market First: First instance of R2 testing for a standalone battery, which required testing operation as both generator and load


Entering Operation – sub 10ms. Response timeBallarat system was put to work even before placed into commercial service, in response to contingency events, incl. lightning strike/outage at Ballarat


Entering Operation

In first 3 months of operation, the Ballarat system has been dispatched to provide FCAS over 1,400 times –averaging 15 interventions per day –injecting or absorbing power to compensate for excessive drops or rises in frequency on the Victorian grid


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ESS

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VIC1 Scheduled Demand Generation Load

Entering Operation

Ballarat system providing power injections daily into VIC/NEM based on EA dispatch, charging and providing load during low-demand periods


Results: Performance

Ballarat system providing power injections daily into VIC/NEM based on EA dispatch, charging and providing load during low-demand periods

© Fluence Energy LLC. All Rights Reserved.13 Source: EA, NemSight and AEMO market data, 1 January 2019 –20 May 2019 (~5 months)

Results: Technical Lessons Learned

• MASS Tool: AEMO’s MASS tool was for FCAS with fixed ramp rates, but battery storage’s ramp rate can be set based on need (down to millisecond-range).

• Chicken & Egg: connection required for Registration, but Registration required for connection

• Fast Response: Strong response time by Ballarat system – both in terms of FCAS provision and peak power dispatch -> Better performance than the market pays for.

• Monetising Additional Services: Ballarat is capable of more (FFR, synthetic inertia, Volt/VAR), but no active markets = no money.


New Processes, New Guidelines• Registering an unmanned, standalone energy

storage system in the NEM

• Registering an asset owned by another entity

• R2 Test Plan for standalone asset (has informed subsequent releases of AEMO MASS tool)

• Collaboration with AEMO for an exemption to solve the “chicken and egg” for Registration/Connection

• AEMO produced guide to registering storage for FCAS informed by experience with Ballarat.


Market First

New and Improved Process

Market First

New and Improved Process

Market First

Learnings for other NEM-connected BESS assets.• Connections: Expertise to connect and configure storage

assets, as well as co-located and complex connections.

• GPS Compliance: Approval of a BESS and new type of NEM asset. More to come.

• Business Case / Right Sizing: Techno-economic optimization for multiple stakeholders.

• FCAS Registration: Specific body of knowledge and capability.

• Registration and R2 Testing: Specific body of knowledge and capability.


Are you Serious?


• What is the job storage is going to do?• Sharp sense of MW/MWh requirements and operations• Balancing flexibility with specificity

Application(s)

• Have you got one?• What is your risk appetite?• Who is funding, how, and what is their risk appetite?• Contracting model

Business Case

• Do you have a connection point?• Are you ready and able to engage with AEMO and the

D/TNSPs? (time, cost, headaches)Connection

Advanced Capabilities of Grid-connected Energy StorageNetwork Resilience

Provide fast primary and secondary frequency response and high ramp rates, including FFR, synthetic inertia, SIPS/WAPS and RoCoF response/ management.

Voltage management (Volt/VAR)

Frequency Regulation / FFR / Synthetic Inertia

Voltage Regulation

Transmission-level load balancing and post-contingent power and energy dispatch (“Spinning Reserve”)

Grid following and forming.

Load Balancing & Post Contingent Dispatch

Strengthen network in areas of low fault.

System Strength

Maximise Tx and interconnector utilisation.

Increase resilience and network services.

Virtual Transmission

Lines

• These capabilities are already here and are being deployed.• Regulatory change is needed to unlock value in these services.

If that was too fast, check out our blog


Thank you

Jaad Cabbabe | Fluence, Senior Manager, BDm: +61 488 884 954| jaad.cabbabe @fluenceenergy.com

Documents

How to build a battery in Australia: Lessons learned and how to … › wordpress › wp... · 2019-06-20 · Results: Technical Lessons Learned •MASS Tool: AEMO’s MASS tool was