Commercial exploration of narada energy storage

An Expert of Energy Storage Solutions.

Commercial exploration of Narada energy storage

By Walter. Jin

[email protected]

+86-18917365151

Stored Energy Solutions for a Demanding World!

Catalogue

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3 Storage commercialization in Narada

Status of energy commercialization

Value and chance of energy storage


Storage is key link of energy internet

The fact of energy internet is a coordination of web, load and storage as well as a complement of

multiple energies. Further definition: data management can be realized everywhere; terminal energy

will be expanded continuously; renewable replacement are widely applied.

clean energy+ storage+ intelligence is the future of energy internet development, while energy

storage is the key link to realize the grid flexibility, bidirectional flow and energy interconnection.

Information flow

Energy flow

Business flow

Capital flow


3 sections connected

To realize 13 functions

The value of energy storage is well spread

into electrical system, in sections of power

generation, power transmission, power

distribution, and power consumption, applied

in fields of micro-grid, distributed generation,

peak & frequency adjustment, auxiliary

service for grid, distributed storage at

customers side as well as backup power

for important departments and facilities.

Storage function in grid system


Growth rate (%) Installation (MW)

USA

426WM

45%

57WM

6%

313WM

33% 106WM

11%

50WM

5% Japan

China

Europe

Others

Source: CNESA statistics

By end of 2015, the projects of energy storage is 327 all around world, total capacity 946.8MW,

including storage by heat, storage by compressed air as well as pumped storage.

The accumulative installations of storage has been compoundly increased 18% from 2010 to 2015;

while the accumulative projects of storage has been compoundly increased 40%

Storage function in grid system


Current status of international storage

Storage projects distribution 2015 Storage distribution in country 2015

USA (45%)

Japan (33%)

China (11%)

Europe

(5%) Others

(6%)

Distributed

generation &

micro grid (42%)

On-grid renewable

energy (29%)

Power transmission

& distribution (10%)

Auxiliary

service (19%)

Source: CNESA statistics

In the projects distribution, the most popular application is distributed generation and micro grid, which occupies

42% of total projects and the following are: on-grid renewable energy, auxiliary service, power transmission.

In the country distribution, USA is the NO.1 in projects under planning and constructions, who plays a leading role

in global storage application, and the second one is Japan, while China didn’t have many projects in 2015.


Growth rate (%) Installation (MW) Source: CNESA statistics

Distributed

generation &

micro grid (56%)

On-grid renewable

energy (35%)

Power transmission

& distribution (7%)

Auxiliary

service (2%)

Current status of storage in China

The total storage installation in China: 58.2MW in 2013, 93.7MW in 2014，105.5MW in 2015.

In the application distribution, the major one is Distributed generation and micro grid either in installation scale

(56%) or in project numbers (77%) , and the second one is on-grid renewable energy.


State policies Publisher Date Concentration on

Strategic plan for energy development 2014-2020

State council

2014.11 To solve abandon of PV and wind energy by well arrangement of energy storage

Opinions on further reformation of gird system

State council

2015.03 Active development in micro- and smart grid with advanced storage technology

Opinions on construction of micro-grid projects

Energy bureau

2015.07 Storage is the key technology in micro-grid, which has been mentioned a lot

Framework of the 13th Five-year Plan

State council

2016.03 Improvement of large-scale storage and R&D in related technology

Information on energy consumption for North region

Energy bureau

2016.02 Encouragement in auxiliary works of distributed storage and peak shaving

Guidelines for smart energy & internet+ development

NDRC 2016.02 Coordination of distributed and centralized energy storage with on-line management

Information on storage service for North region

Energy bureau

2016.03 Encouragement in facility construction of energy storage, operation and dispatch

Industrial policy of storage in China


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Reflection of the commercialization

Challenge1: High cost of storage system

• The popularization of commercialization for energy storage is restricted by its high cost and low rate of return

• It is not perfect enough for price system of energy storage station, either for related supportive policies from government, such as: promotion of peak-valley electric bill and service market for voltage, frequency regulation, subsidies for energy storage, balanced account for storage as well as sound system for return of investment in storage tech.



Challenge2: Industry chain not complete

• Every section of storage industry should be reformed, form BMS, PCS to EMS or any other storage technologies.

• The entire industry chain of energy storage has not been fully formed and the industrialization process is relatively slow, not at the stage of big scale application. So the new industry chain needs to be cultivated and new market mechanism should be built up.



Challenge3: Unsound power trading market

• There is no service charge by clear quantization for storage auxiliary services, such as: regulation for peak, voltage, frequency; black start….etc. No profit by clear quantization for connection with renewable energy application for improvement.

• The marketization for power trading is not active enough because: the mechanism of power price is not flexible; the trading is based on planned electric quantity; the actual demand and supply of power is not reflected on the market; the actual power consumption is not related with power generation; the real-time balance in power system is not cared by end-user and power plant.



By policy Challenge4: No incentives for storage price

• There is no concrete incentive policies for prices in energy storage, only some guiding policies.

• There should be some clear incentive policies of technology support for energy storage, in order to complement the current power system and improve the development of renewable energy.

• The popular international incentives are: tax abatement; tariff subsidies; one-time subsidy for all investment; competition with commercial electrical bills…etc. In USA, Germany, Canada, Japan…there are a lot of supports in R&D and commercialization of storage application.


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Why we choose lead-carbon technology

Five key indicators of energy storage

Cycle life Safety

Economics

Scalability Efficiency


Leading position in Market of lead-carbon Storage roadmap

No undeveloped industry, only undeveloped technology!

Lead-carbon has a bright future in storage application,

as long as the its development and popularization

Lead-carbon

technology

High rate

of recovery

High cost

performance

High

reliability

Long

cycle life

Applicants Subsidy

Exide Technologies with Axion Power International

34.3M$

East Penn Manufacturing Co.

32.5M$

8700M$ has been invested for lead-carbon

development by US ARRA proposed law

The application trend of lead-acid battery in storage

VRLA

battery

Lead-

carbon

battery

Flooded

battery


Narada lead-carbon development Storage roadmap

2010 co-develop with

Harbin institute of

technology and MCPS

2011 in list of the

most important

project of innovation

8 invention patents

(total 12 patents) in

institute of carbon

Trial application in

wind energy storage

with excellent result

2013, May, certificated

by China energy bureau:

Advanced in the world

2013, listed in ALABC

financed projects, which

is the only one in China


Projects in operation

45

Capacity in operation

150MWh

Projects in planning

7

Capacity in planning

109MWh

The earliest project in

2011

Storage projects of lead-carbon in China


Dongfushan island Narada storage projects

Project PV-wind-diesel & storage project

Overview • This is the first power station with energy storage for practical application in China, and the second largest project of micro-grid at that time

• Four systems of 210KW wind power, 100KW PV system, 1MWh storage, 200KW diesel energy, totally operated in isolated network

• To improve utilization of renewable energy and to smooth power output of PV & wind energy

Location ZhouShan city, Zhejiang province

Scale 500kW/1MWh

Date Operation in 2011

Function • Connection with renewable energy • To smooth power output of PV & wind energy


Northern China Narada storage projects

Project Storage and transmission project

Overview • This is the first project for Narada as the EPC main contractor of micro-grid, that signifies the integrated solution has been approved by market

• Including 100MW wind power, 50MW PV system, 20MWh chemical storage, which is the largest platform of new energy in the world

• It shows that the lead-carbon technology has been fully regarded by the National Grid

Location Zhangbei county, Hebei province

Scale 1MW/6MWh


Function • To smooth power output • To shave peak & fill valley • To track planned power generation • To regulate frequency of grid


Luxi island Narada storage projects

Project National 863 micro-grid project

Overview • This is the demonstrative project of national 863 program with them of Research on key technology of distributed power in micro-grid

•Three systems of wind power, PV system and storage(lead-carbon and ultra-capacitor) to switch between on-grid and off-grid mode

• Multiple functions to improve utilization of renewable energy as well as transient voltage support and active power response in emergency

Location Wenzhou city, Zhejiang province

Scale 2MW/4MWh


Function • To smooth power output • To improve utilization of renewable energy • Transient voltage support in emergency • Transient active power response


Singapore Narada storage projects

Project PV & storage project for smart house

Overview • This is a cooperation project for smart buildings between A-star and Narada

• The first PV+Storage project for smart building in Singapore with intelligent power management by storage, high reliability in consumption and energy dispatch as well as generation prediction

• The principal is self-consumption goes first, while the rest power shall be sent into grid

Location Singapore

Scale 30kW/250kWh


Function • To smooth power output • To shave peak & fill valley • Planned generation by load tracking


Expectation for new policy of storage

The year 2016 would be the first year of an era for storage commercialization. More incentive policies are expected from government because of storage in developing, such as: incentive subsidies (tax abatement, loan discount, subsidy for initial installation and electric bill…etc.); schematization for medium- and long term development of storage industry; accessional regulation of management and technical standards…etc. Meanwhile, allocation mechanism for industrial profit should be clearly defined, in order to encourage co-investment in storage industry from power generation, grid corporation, end-user side and the third party of storage enterprises.

Thanks!

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Commercial exploration of narada energy storage