Storage technologies –

European TSO perspective

System relevance of storages

Hanoi, November 2018

Agenda

1. EGI – Company introduction

2. vRES Integration – Opportunities and Challenges

3. Flexibility Options – Energy Storage from TSO

perspective

• Different Technologies (and their economic

challenges)

4. Q&As

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Elia/EGI - Introduction
Elia Grid International: Backed by two major grid operators

EGI embodies the

international ambitions of
50% 50% the Elia Group:

 Offer consultancy and

engineering services to
the international energy
market
Brussels  Develop and manage
power system projects
for third parties
Berlin

Dubai

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Elia and 50Hertz – Fully unbundled Transmission System
Operators play key role in the power sector

Owner of the
transmission grid In charge of operation, maintenance and
the development of extra-high-voltage
lines and power junctions (substations)
as well as for the connection of large-
scale generators and consumers
(including offshore)

Responsible for system stability of the

System operator transmission system around the clock:
frequency control and voltage regulation,
congestion management.

Market Catalyst for the development of the energy market, especially in Northern and Central-Eastern
development and Europe.
Trustee for EEG Responsible for managing cash flows resulting from the Renewable Energy Law (EEG).

Source: 50Hertz
* German Renewable Energy Law; only applicable for Germany
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Unique experience of the Elia Group in the transformation of
the power sector

 Leading position in integrating volatile renewable energy

sources onshore and offshore into the power system, while
ensuring high level of security of supply

 High expertise in managing complex grid development

projects to connect offshore wind farms and increase
transport capacity in north – south direction

 Leading role in development of interconnectivity and power

markets in Europe (e.g. first mover on power exchange,
ENTSO-E network codes, flow-based capacity allocation)

 High expertise in managing complex maintenance

programs for a medium to high voltage grid

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Decades of proven experience at your service

EGI builds on Elia Group’s experience to provide

state-of-the-art solutions for its worldwide clients

1 2
Sector, grid System &
and market market
development Support of operations
sustainable
TRANSITION of
power sectors in
Asset
the world Owner’s
management &
engineering
TOTEX
and advice
optimisation
3 4

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 A frontrunner going global
Capacity building TSO for Entso-e
membership (2016-2017)
RES integration (2016)
Flow-based market coupling Balancing market/
ENTSO-E (2010-2016) regulation (2016)

Reorganization of TSO
towards EU target model(2016)
MoU for future
Harmonization of Grid collaboration (2017)
Code (2014-2015)

TSO assessment
(2017)
Review WAPP operational
Strategic asset management
manual (2012-2013)
implementation (2014-
2017);
Grid development and Grid code review
Gap analysis on maintenance network studies (2015-2017) (2016)
RES integration study & practices (2016)
training course (2017)

Grid code and RES forecasting Workshop on energy markets

projects (2015-2016) and congestion management
for the SAPP (2016) Technical due diligence (2015)

RES: Renewable Energy Systems; WAPP: West African Power Pool; SAPP: South African Power Pool

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vRES Integration
Opportunities and Challenges
The EU and German energy industry is subject to profound
transformation process with an uncertain outcome
Overview of key changes in the DE energy landscape already visible today

Accelerated exit from nuclear generation

 Decommissioning of the 8 oldest German nuclear power plants in 2011 (- 9 GW)
 Planned stepwise phase-out of the remaining 13 GW of nuclear capacities until 20221

Steady increase of renewable and decentralised generation

 New political RES2 goal for DE: 60% renewables in energy consumption by 20303
 Currently strong feed-in tariff/premium support for renewables and decentralised gen.

Huge grid investments necessary

 Increasing consensus that “Energiewende” success will depend on grid extension
 Total investment programme requires ~ 6.8 bn € over the next 10 years from 50Hertz
 Planned transmission investments in 2018: ~225 m€ onshore + ~ 288 m€ offshore6

Low profitability of conventional generation and storage

 Declining load hours due to priority feed-in of renewables4
 Security of supply concerns trigger capacity market discussions
 Declining load hours and profit margins due to renewables feed-in priority5
 Storage decommissioning concerns trigger political discussion on storage support

Sources: 1Amendment of the Nuclear Energy Act, 2011; 2RES – renewable energy sources; 3 New coalition agreement (2018); 4EWI study Investigation
into a sustainable electricity market design for Germany, 2012; 5Dow Jones, 2012; 650Hertz Business plan 2018-2022

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 Challenges in the power system raised by vRES integration
must be managed carefully without minimizing the
competitiveness of RES
1 Transmission 2 Distribution
 Connection and integration of RES require more grid
capacity to transmit RES (reverse) flows to consumption
centers (avoiding grid congestions)
 Development of interconnections for cross-border
exchanges and balancing
3 Existing fleet
 Decreasing running hours jeopardizes the profitability of
the fleet within the power market
 Need for a support mechanism to keep (back-up) plants
available (e.g. CRM) and cover demand when RES is not
available
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 Grid reinforcements to accommodate increasing flows
 From lower voltages to higher voltages when local
generation excesses local demand
 Impact on secondary systems
 Voltage control and power quality issues
4 Consumer supply
Effect driven by RES impacting the system
 Increasing volatility of generation and flows
 Less running hours of conventionals and therefore less
availability to provide system adequacy
 Need for balancing reserves to cope with RES
variability and keep the supply secure
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 Integrating RES in the power system - System operations
challenged by RES
1 2
Intermittency Coordination Complex system operations
1. Intermittency
• Volatility and poor predictability challenges forecasting
• Lack of conventional regulating units changed structure
of control power and participation
2. Coordination
• Operational challenges with scattered generation
3 Voltage control resources: complex real time data management
• Lack of observability at lower voltage levels
3. Voltage control
• Lack of Voltage regulating units and
• voltage control during low demand and high RES infeed
4. Non-synchronous injection

4 5 • Lack of rotational inertia and higher RoCoF

Non-synchronous Grid congestion
• Lower short-circuit level and angular stability issues
5. Grid congestion
• Congestion impact – due to distance between
generation and load as well as in the distribution level

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Flexibility Options
Energy Storage from TSO perspective
Storage is an option to ensure flexibility in ancillary services
& fluctuation compensation
Future development Hypothesis

Grid extension is the most

efficient solution

Storage technologies are one

option, but must be seen in
competition to other solutions
(e.g. compensation system)

Storage technologies are

needed but still other
solutions remain (e.g. DSM)

Storage is an option to ensure flexibility in ancillary services &

fluctuation compensation but relevance only in the long-term

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 Different technologies satisfying different needs

P2H

Maturity
 Different storage types will
Round trip be technically suitable to
80% 40% 95% 90% 70% 40%
efficiency satisfy the coming
Current

flexibility needs
need

HV
Cong. >150kV
Mgmt LV/MV  For long-term fluctuation
<150kV compensation, there are
Short/medium-term

Control
only two options:
power  Large hydro storage
need

Other already installed in

AS Scandinavia/Alp region
Short-  Power-to-gas, but only
term
economically viable in
Long-term

Fluct.
need

Comp. Long- the long-term

term

Special case: Interconnections

to large storage capacities in technically suitable but not yet
Scandinavia / Alp region suitable not suitable mature in time horizon of need
Elia Grid International Note: Power-to-Gas and Power-to-Heat 15
considered incl. reconversion into electricity
Many thanks for your attention

Questions?
Josephine Sindermann
Omar Huarcaya
Elia Grid International

www.eliagrid-int.com
info@eliagrid-int.com

Elia Grid International SA/NV, Belgium Elia Grid International GmbH, Germany Elia Grid International (Branch) Dubai Elia Grid International LLC, Qatar
Rue Joseph Stevens 7 Heidestraße. 2 Building A5 – Office 513 Office 905, 9th Floor
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Tel. +32 2 204 38 11 Tel. +49 30 5150 37 11 PO Box 643831 PO Box 31316
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Fax +974 44101 500

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