Sanjeev Choudhary SunEdison Advanced Solutions€¦ · P. 6 | SunEdison Confidential Significant Australian Presence Energy Matters was acquired in 2014 and is now SunEdison Australia

Sanjeev Choudhary

SunEdison Advanced Solutions

P. 2 | SunEdison Confidential

Australian Energy Storage Conference

Topics

Introduction to SunEdison

What makes a viable energy storage market opportunity?

Where from here?

Studies of Customer-Sited Battery Storage Systems and Solutions for Australia

BTM storage activity in the U.S.


World’s Largest Renewable Energy Developer


Active Across Entire Renewable Energy Value Chain


Industry Leading Value Creation Platform

SunEdison: Renewable energy developer and operator

TerraForm Power: YieldCo, owner of 1.7 GW of solar and wind assets

TerraForm Global: owner of 1 GW of solar, wind and hydro in developing world

5 GW managed Pipeline 7.5 GW


Significant Australian Presence

Energy Matters was acquired in 2014 and is now SunEdison Australia

• One of Australia’s largest companies dedicated to solar energy

• Australia’s leading commercial installer

• More installed 10-100kW systems in 2014 than any other installer (SunWiz)

• More than 20,000 systems installed nationwide

• Apollo Energy distribution arm

Drawing on our history of solar financing, SunEdison Australia now offers

• Solar PPAs for residential and commercial customers

• Zero money down solar systems

• Guaranteed savings


Australian Energy Storage Association

Topics

Who is SunEdison?


Where from here?




The Storage Buzz Keeps Growing


But Not Everyone Is Convinced


Generation Services

Intermittent Resource Integration (Ramping & Voltage Support)

Variable Energy Resource Shifting, Voltage Sag, Rapid Demand Support

Supply Firming

Transmission/Distribution

Peak Shaving: Load Shift

Transmission Peak Capacity Deferral

Transmission Operation

Transmission Congestion Relief

Distribution Peak Capacity Deferral

Distribution Operation (Voltage/VAR Support)

Many Storage Applications, Few Viable Today

Market Services

Electric Energy Time-Shifting

Frequency Response

Frequency Regulation Up

Frequency Regulation Down

Ramping

Real-Time Energy Balancing

Synchronous Reserve (Spin)

Non-Synchronous Reserve

Black Start

Capacity Products

System Electric Supply Capacity

Local Electric Supply Capacity

Resource Adequacy

Additional Grid Benefits

Reduced fossil fuel use

Increased renewables

Grid Reliability

Faster build time

Modularity/incremental build

Mobility

Flexibility of purpose

Optionality

Locational flexibility

Multi-site aggregation

Demand charge reduction UPS / Reliability

Self-consumption

Multiple applications and revenue streams, few can be fully monetized today

Viable today


Drivers of Viability

Typically

Multiple Drivers

Required

However, One

Driver May

Dominate and

Be Sufficient


Global Energy Storage Markets Today

Australia/NZ

RSC – Self Consumption

DG – Demand Charge

Reduction

California

1.3GW Mandate by 2020

DG - Demand Charge

Reduction, SGIP $1.90/W

Canada

UTL – Ancillary

Service Pilots

Chile

UTL – Ancillary

Services, Spinning

Reserve

India

Rural Electrification

Microgrids

Resiliency

Japan

RSC – DG & Self

Consumption

Europe

RSC – Self

Consumption in FIT

Markets

UTL - Pilots

Korea

UTL – 250MW

Frequency Regulation

PJM

DG – Backup Power

UTL – Freq Reg

Energy Storage Market opportunities emerging globally across multiple markets and applications



Topics

Who is SunEdison?


Where from here?




US Storage Market Activity (BTM)

4.2 3.7

Source: Greentech Media, May 2015


Select BTM Storage Applications Today

Application Policy Incentive

Host Customer

Benefit

PJM Frequency Regulation ✓ FERC 755 ✓ ITC ✓ Backup power

California Demand Charge

Reduction

✓ Tariff structure ✓SGIP ✓Significant

energy savings

California Residential

Storage

Net Metering

disincentives self-

consumption

✓SGIP ? Value of

backup power

Australian Residential

Storage

✓Export tariff

incentives self-

consumption

? Savings time

to payback

SCE Capacity ✓✓ AB2514 ? Potentially

DCR, backup

power


PJM BTM Business Model Overview

Storage only (BTM & IFM) Solar + Storage (BTM )

• Battery provides PJM ISO with fast

responding frequency regulation

• In some configurations, battery is

also used to reduce peak demand

charges

Solar canopy Host

Storage

system

When grid is up:

• Solar production contracted via typical PPA

• Storage provides PJM ISO fast responding

frequency regulation (Reg-D)

When grid is down:

• Solar charges battery to provide Host with

power for critical loads Solar production

included in PPA

• BTM only applications


FERC 755 FR Revenue + ITC Enable BTM FR

• Battery storage delivers multiple benefits to multiple stakeholders:

• Customer (site host), developer, owner, operator, grid operator (ISO), utility

• Stacking and capturing multiple value streams improves economics

• Not all value streams can be monetized today. Some represent future potential revenues.

• Regulatory change is required to capture additional value streams

• Example: DG Solar + backup power in New Jersey, with frequency regulation services sold to PJM

SystemCost

Returns Back-upPower

PVInverter

ITC &MACRS

Freq.Regulation

SpinningReserve

EnergyTime-Shift(Arbitrage)

SystemCapacity

T&DUpgradeDeferral

UPS PV

ITC

Reg

Spin

ETS

Cap

T&D

OPEX

CAPEX

Real Value Today Potential Value

Initial Value

Potential

Value


Tariffs + Incentives Drive DCR in California

Demand charge increases + SGIP lead to large market for DCM in CA

Demand vs Consumption

charge over time

• Demand charges have risen significantly

for commercial customers 2008 to 2013

• As more renewables added, demand

charges are expected to rise

Illustrative Customer Electric Bill


Tesla Home Storage – iPhone Moment?

What payback does an iPhone require?

2 Models Available: • Daily 7kWh for self consumption • Backup at 10kWh for emergency power

Power supply: 2kW continuous output power Warranty: 2500 cycles Payback: Varies greatly

Tesla

Powerwall

Energy

(kWh)

Power

(kW)

life

(years)

usage

(days/yr)

total

cycles

unit cost

(USD)

installed cost

lease (USD)

installed cost

own (USD)

installed cost

post-SGIP chemistry use case

Daily 6.4 2 10 365 2500 3000 NA NMCself-

consumption

Backup 9.2 2 10 50 500 3500 5000 7140 2920 NCAemergency

power

TBD - 1H16



Topics

Who is SunEdison?


Where from here?




$14B for Grid Storage through 2020

Storage Opportunity is Not Going Away

4.2 3.7

Source: Bloomberg New Energy Finance Energy Storage Forecast 2013 - 2020

2013-2017: 26% CAGR with inflection point in 2018

2018-2020: 47% CAGR

31 GWh cumulative installations by 2020

35% CAGR

0.7 0.5 0.6 0.7 0.91.30.1 0.3

0.5 0.2

0.5

0.9

0.3

0.5

0.9

0.2 0.2

0.2 0.3

0.4

0.6

0.1

0.3

0.2

0.1

0.2

0.4

0.3

0.1

0.1

0.1

0.2

0.5

0.3

0.8

1.2 1.2

1.61.8

3.0

5.1

2013 2014 2015 2016 2017 2018 2019 2020

RoW

Canada

China

Italy

UK

Japan

Germany

Korea

US


Source: ESMAP, WorldBank

Grid 1.0: (1920-1990)

Grid evolved with centralized control and one-way flow of power and information

Key Features

• Large scale central

generation

• RSC and C&I loads

served from grid only,

no self-generation

• Surplus generation

capacity required to

serve variable loads

• Grid operator

balances generation

with loads

• Centralized command

and control

mailto:http://www.worldbank.org/en/news/feature/2015/03/18/infographic-bringing-variable-renewable-energy-up-to-scale


Grid 2.0 (1990-present)

Source: ESMAP,

WorldBank

Storage enables high levels of DG and 2-way power flows

Key Features

• Many central

generating plants

being retired

• Renewable generation

added, including DG/

self-generation

• 2-way power flows

• Some storage added

to address load

variability

• Grid operators adopt

market mechanisms/

merchant services to

balance loads with

generation




But Where is it Going?

Source: Rocky Mountain Institute

Unknowns

• Policy

FERC 745 Supreme Court

ruling, FERC 755

implementation, PUC

rulings and tariffs

• Technology

Dozens of potential game-

changing storage

technologies in R&D

• Market Prices Electricity prices, peak/

off-peak spreads, prices

of oil and natural gas

• Business Models Ability to monetize value

of customer and grid

services


Source: NIST

Grid 3.0 Possibility – circa 2020?

DER, aggregation and storage can enable a decentralized Grid 3.0

Key Features

• Central generation and

grid provide baseline

infrastructure

• Renewables, DG,

Storage, and DR (DER)

play key role, provide

flexible matching of

load and demand

• Aggregators of loads

and variable

generation become

energy services

providers

• Marketplace of BTM

energy transactions

Thank You!

Sanjeev Choudhary| [email protected]

Documents

Sanjeev Choudhary SunEdison Advanced Solutions€¦ · P. 6 | SunEdison Confidential Significant Australian Presence Energy Matters was acquired in 2014 and is now SunEdison Australia