How To Start An Open Market For Second Life

Batteries In Order To Lower The Costs Of Energy

Storage Systems

Energy Storage World Forum

Oliver Weinmann

Vattenfall Europe Innovation GmbH

April 28, 2015

Renewable Power Generation Development in Germany

2

Scenario 2011 A – Renewable power generation [in TWh/a]

Total production

2014: 614 TWh

(Ren 161 TWh)

2012

Water

Photovoltaic

Wind onshore

Wind offshore

GeothermalEuropean network

Biomass

Goal of the German Government

2025: 40-45% ren. el.

2035: 55-60% ren. el.

Vertical Load, Wind Energy Forecast and Wind Energy Feed-in in East Germany

(01-30.06.2013, in MW)

Volatile wind integration as a challenge for transmission

grids

3

1 Deviation

from forecast

Wind Energy Forcast Wind Energy Feed-in Vertical Load

01.06. 08.06. 15.06. 22.06. 29.06.

1 2

3

4

Source: 50Hertz Transmission

2 Calm 3 Gradient 4 Production

> Load

In fu

ture

2015

2030

Nuclear Fossile

Wind Solar

Decentralized

Centralized

Production

Trade & Industry sector

Transport sector

Household sector

ConsumptionFlexibility options

Demand Response

Flex. Power Plants

Network Expansion

Power2X

Storage

Quelle: Sebastian Gerhard, Vattenfall

Transmission Grid Development Plan

(Netzentwicklungsplan)

5

Investment needed until 2022:

1.5-2 bn EUR p.a.Source: NEP 2012, www.netzentwicklungsplan.de

Situation today Lead scenario B 2022 Scenario B 2032

Energy Storage Solutions for the Integration of Renewables

6

Pumped

StoragesCompressed AirHeat Hydrogen Batteries

Markets to be addressed for batteries

Utility

• Auxiliary services

- Primary control

(limited size)

- Secondary control

- Reactive power

- Inertia

• Progonsis error

(renewable feed in)

• Increased

availability of PP

• Peak shaving/avoid

grid extension

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Industry

• Optmize energy

purchase

• Peak shaving

• UPS

• Compensate flicker

Residential

• Optmize own

consumption of

renewables (PV)

• Minimize energy

purchase

• UPS

Two Main Possible Use Cases for Utility Applications:

Primary Frequency Control and Energy Sale Improvement

8

Battery Storages4.2

Battery projects by Vattenfall

9

What is planed?

WAS1

BESIC2

SHC –

Telekom

SHC –

Bat.-PV-System

Battery storage as a buffer

between grid and

(fast)charging station

Where? Brief description of the benefits

• In or next to former Hot

Module building on the

premises of the heating

plant HafenCity

• Battery storage as a buffer between grid and

(fast)charging station is supposed to decrease the

additional load due to charging processes of E-Cars

• Perspective a possible secondary use of battery

storages should be identified

E-Mobility pilot project in

commercial vehicle segment

near to offshore wind farms

• HHLA CTA (Container-

Terminal Altenwerder

GmbH)

• Integration of further B-AGV in vehicle fleets

• ICT-application concepts for energy management und

consumer side load management

• Secondary use of quasi-stationary storage volume

• Integration of wind turbines into harbor operations

Control and marketing of free

storage capacities of UPS

units in Telekom network

nodes

• First Pilot Plant in Greater

Hamburg (not HafenCity)

• second plant planned for

Greater Hamburg

• Due to the decreased energy demand of Telekom-

infrastructure the existing battery storages are

oversized

• Free storage capacities can be charged and discharged

in a controlled scheme and put on the balancing energy

market

Installation of Photovoltaic-

plant and a battery storage to

increase the potential

personal use

• Pilot Plant on the

premises of the heating

plant HafenCity

• PV-Plant on the roof of

premises of heating plant

• Shifting consumption of PV-production from sunny

hours to hours with a high energy consumption

(increase personal use from 30% to 50%)

• Under the assumption of rising electricity prices, the

consumer saves with each self-consumed kWh

USV 1 USV 2

1.

2. ?

2MW-Container Huge 2 MW battery storage

for Balancing Power

• Hamburg (2nd Life, in

Q1/2016)

• Battery storage system which is controlled by an in

place measure for frequency

• 2nd Life Project together with BMW and Bosch

2n

d L

ife

Battery Storages4.2

Cooperation Vattenfall, BMW & Bosch

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Production of

renewable energy

Demand for

renewable electricity

for sustainable E-

Mobility

After end of

operation in the

vehicle, continuing

use of resources

Better grid

integration of

fluctuating power

generation, so further

expansion is

supported

Vattenfall and the BMW Group bundle their competences in the development of

sustainable E-Mobility and the intelligent integration of renewable energies into

energy markets

Battery Storages4.2

2nd life vs 1st life

Advantages of 2nd life

- Cost savings

- Benefitting from high volume/high quality purchaser

- Life time extension of batteries – improvement of life cycle

Disadvantages of 2nd life

- Remaining battery quality (capacity, lifetime, cycles, etc.) uncertain ->

test/certification of vendor

- Balance of plant more costly

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From 1st to 2nd Life

12

VattenfallSystem integrator

BMSBMS

BMS

BMS

Storage

cabinetControl cabinet

+

BMW

BMS

Battery Storages4.2

2nd Life Pilot Project Hamburg Hafencity

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Battery Storages4.2

2nd life Pilot Battery Storage in Hamburg Harbour

Key figures

• Power/Capacity: 2MW/1.6MWh

• Partners: Bosch / BMW

• Batteries: 52 modules

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• Start operation: Q1 2016

• Market: primary frequency control

Conclusion

• Energy system

- Renewable share of electricity production will further increase

- Volatile feed in from wind and solar will be the dominating source in the

future

- Need for auxiliary services and storage will increase

• Batteries

- Batteries will play a more significant role in our energy system

- Business cases for utility applications today are only in niche markets

(eg PFC)

- Market rollout needs more business opportunities

- 2nd life batteries are an option to reduce cost

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