Wind & Storage Project Duqm| 19/05/2015| Page 1 RAPϞ/P/2A003/BRE/15/035 – Rev0 Wind to power the city of Duqm: the need and opportunities for storage for

Wind & Storage Project Duqm| 19/05/2015| Page 1RAPϞ/P/2A003/BRE/15/035 – Rev0

Wind to power the city of Duqm: the need and opportunities for storage for enjoying the full

benefits of an energy transition

In cooperation with


Who are we? Combining wind and sea-water pumped storage in Duqm? What an idea…Renewable, unaffordable source of energy?Storage, why is this necessary?Why in Duqm?Why not a combined wind and storage project on the MIS?What conclusions?

Content


RAP Energy : Project investor and developer in the field of renewable energy generation, transmission and storage, providing

Technical/design solutionsFinancing solutionsConstruction and operation

Projects Offshore wind farmsInnovative storage solutionsOffshore grids

Rent-A-Port Energy


OTARY : participations in 3 offshore wind farms (based on experience from C-Power/Thornton Bank)

Rentel Seastar ~ 780MW RAPϞ : ~ 80 MWMermaid

Plug at Sea : participation in the structure aimed to develop the project of a common infrastructure connecting 4 future OWF as a first step of Belgian Offshore Grid, together with Belgian TSO Elia

Storage Luxembourg : participation in a project to develop a PHS plant in Belgium based on project financing

Storage Zeebrugge: participation in a project of offshore energy island

Storage Duqm : participation in a project of combined renewable + sea water pumped storage for Off-grid application

Rent-A-Port Energy - participations


What an idea…


What an idea…

Wind to Power a new city in OmanHigh wind potential - capacity factors of about 40% in Duqm (Spain: 20-25%, Germany: 15-20%)Feed-in tariff of 115USD/MWh enough to cover cost of debts of 8% and cost of equity of 14%Good match with MIS demand seasonal pattern


What an idea…

Okinawa – Japan Island of El Hiero - Spain

Sea Water Pumped Hydro Energy StorageBalancing on the grid.

Fresh Water Pumped Hydro Energy Storagecombined with on-shore wind farm to power an isolated grid.

Pumped Hydro Storage possible with cliffs along the sea


What an idea…



What an idea…



Is it affordable?

Is renewable affordable?Generation costs Diesel (CAPEX 300USD/kW) Vs. Wind Power & Solar PV power (CAPEX prices 2013)


Is it affordable?

Is renewable affordable, even after being stored?Additional costs for storage, energy losses (efficiency 73%)


Is storage necessary?

But why is storage necessary then, if making renewable more expensive?

Because renewable cannot be controlled (ramped up/dimmed) on demand...

Because above certain shares in the mix, Renewable sources need to be curtailed during low demand situations and high productionSignificant back-up capacity needed in case no renewable source would be available (no or few wind)Frequency regulation becomes challenging



Above a certain share in the mix? Which share?Solar: +/- 15% || Wind: +/- 10%



Above a certain share in the mix? Which share?Solar: +/- 15% || Wind: +/- 10%



To what extent can storage help?From intermittent RES to RES “on demand”



To what extent can storage help?Storage can also provide other services

Peak shaving and thermal generation stabilization



To what extent can storage help?Storage can also provide other services

Peak shaving and thermal generation stabilizationReserve and balancing services


Sharply increasing demand and high peaks: low plant factors and cost-efficiency for diesel

Starting from “green field”. Low demand at early stages, even with low installed capacity, wind can quickly represent significant share in the mix. Integration as full alternative from the first stages of development.

Why in Duqm?


Few social-environmental constraints

Possible modular growth

Why in Duqm?


Why not on the MIS?

Because a huge renewable shares potential already exists without needing storage?

10% max share is 700MW today (1.2 bnUSD CAPEX) growing with 250MW (425 mUSD) every 5 years...


Because stored renewables are less competitive on the MIS, as MIS is not an “off-grid” context.

On grid environments are rather conducive for grid services for storage plants, not for combination with renewables.

Why not on the MIS?


Purpose of storage on the MIS would be: Peak shaving and thermal generation stabilizationReserve and balancing services

Why not on the MIS?


A storage facility of 20MW would allow to produce about 50% of the energy needs for Duqm for the 10 next years with a gradually growing wind farm (from about 50MW in first phases to 150MW after 10 years).

Wind up to a share of 50%, facilitated with storage, heads towards cost-optimal mix with diesel. Generation costs decrease with 15% compared to 100% diesel. 6 mio barrels saved (ecologic footprint halved!).

Without that storage facility, potential share in the mix for wind power is restricted to 15%.

On the longer term, a 20MW storage can also provide balancing services on a much larger grid (Cf. Okinawa 30 MW)

Conclusions of Feasibility Study?


Thank You - شكرا

[email protected]

[email protected]@squ.edu.om

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Wind & Storage Project Duqm| 19/05/2015| Page 1 RAPϞ/P/2A003/BRE/15/035 – Rev0 Wind to power the city of Duqm: the need and opportunities for storage for