1. Energy Storage Paths To Market
David Surplus
Chairman
B9 Energy Group

2. Paths to market
This presentation covers the following paths to market...
• Onshore wind farm re-powering
• Onshore wind farm extensions
• Offshore wind curtailment
• Integration with Anaerobic Digestion
• Integration with large scale biomass
• Sub-station support and Microgrids
• Independent Peak Lopping plant
• Industrial site energy cost management
• Solar power station development
• Innovative wind farm O&M – Revenue Guarantees

3. Paths to market
• Onshore wind farm re-powering

4. Re-powering of 20+ year old wind farms
•
•
•
•
•
•
Repowering market is growing
Modern wind turbines are more productive for a given land area
Grid connection equipment has much longer life than wind turbines
Increasing the export capacity is likely to require high cost re-enforcement
Storage allows existing grid to be used
Storage is easier to finance as an integral part of a new build site

5. Paths to market
• Onshore wind farm extensions

6. Slieve Divena II
• “Slieve Divena II (20MW) wind farm extension was consented in October
2007. The eight turbine site is currently on hold pending grid connection
infrastructure availability. Subject to the grid connection becoming available
in 2015, we expect to begin construction in late 2015.”
• Energy storage could allow the existing grid connection to be used.
• Saving time, increasing revenue, reducing intermittency
• Cost of storage plant is offset against grid connection cost savings

7. Paths to market
• Offshore wind curtailment

8. Offshore wind project location
600 MW wind

9. 404 + 595 + 636 + 600 = 2235MW
Curtailment of 3% to 9% in 2020
600 MW
Offshore wind

10. NI Electricity Demand 2011
2235 max wind generation
2000
1800
Export through interconnectors?
ROI and Scotland are windy too!
1600
1400
Max
1000
Min
800
600
400
200
0
1
13
25
37
49
61
73
85
97
109
121
133
145
157
169
181
193
205
217
229
241
253
265
277
289
301
313
325
337
349
361
MW
1200

11. German offshore wind constraint

12. Curtailment projections
• Scenarios for increasing installed capacity of wind
• Predictions of future wind speeds
• Predictions of future electricity demand
• Grid capacity constraints tempered by program of re-enforcement
• Projection of extent and duration of curtailment
• Projection of consequential loss of revenue for First Flight Wind

13. Minimum System Marginal Price
• Storage projects provide load to avoid curtailment
• The SMP is very low at times of curtailment – see chart below
• This helps maximise the arbitrage opportunity
2p to 3p /kWhr

14. “Load on demand” for offshore wind
14
12
Offshore wind farm
Income stream with
curtailment p/kWhr
10
8
Series2
Double ROCs /
6
Series1
Electricity sales
4
2
0
EMR strike price
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Time
If we provide “load on
demand” to keep the
turbines running then.....
14
offshore wind farm
income stream could
be restored at a
reduced rate and...
12
storage could be paid at
the rate of 5p/kWhr....
10
8
6
4
2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Which makes arbitrage
energy costs become
negative overall
Time
NB: This is less attractive to onshore wind with 0.9 x ROCs / lower EMR strike price.

15. Paths to market
• Integration with Anaerobic Digestion

16. B9 Energy’s 60 kTPA AD plant at
Dungannon
Could sell waste heat to make
ICAES more efficient

17. German retrofit market –
7000 AD
Plants

18. Paths to market
• Integration with large scale biomass

19. • Former Power station West
• 16.2 acres controlled by NIE
• Additional 4.07 acres from BHC
• 240MW former coal fired plant
• 110kV grid connection
• No competing heat customers

20. Proposed biomass plants in the UK

21. Paths to market
• Sub-station support and Micro-grids

22. 11kV Network (3-phase)

23. Lecale DSU
“Lecale”
Aggregated DSU for
11kV circuits
33kV sub-station (Community Sub-station)
Farm scale AD
NB: Ammonia can power...
• Tractors
• Fishing boats
• Ferries
• Standby gen-sets upsold as...
• Peak lopping gen-sets
ICAES (N I Energy Storage Demonstration Park)
250kW wind turbines
Solar PV
Additional AD
2nd life traction battery
charging
Ammonia production
300 houses + EVs as a captive
customer base
“Seagen” Tidal test site
• Aiming to be self-sufficient in electricity
• Aiming to be a net exporter of electricity
• More than 70 x rural 33kV sub-stations in NI

24. Small wind planning applications

25. Thermal constraint management

26. Microgrid revenue streams...
• Arbitrage –
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•
•
•
Buy at £20 to £30 / MWhr
Sell at £80 to £250 / MWhr
“Load on Demand” services to avoid external curtailment
(30% of wind strike price?)
Direct sales on long term fixed price (+RPI) basis
Consideration for avoided cost of grid upgrade
Ancillary services:
Reactive power management
Voltage regulation
Possible provision of inertia
• Capacity market payments

27. Other microgrid benefits...
• Additional microgrid revenues allow voluntary
reduction of ROC revenues on single generator
projects – easing price rise pressure
• Security of supply to load customers is improved
• Autonomous operation possible - to ride through
central system blackouts if necessary

28. Paths to market
• Independent Peak Lopping plant

29. Winter day - 1/2 hourly demand
1800
1600
300MW Peak
“Load following”
generation mode
1400
1200
1000
800
600
4 hour duration
Peak lopping services from...
•Batteries
•Salt cavern CAES
•ICAES Expanders
•NH3 powered gen-sets
400
200
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
08/11/2011

30. Paths to market
• Industrial site energy cost management

31. Industrial site energy cost management
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NI has 2nd highest industrial energy costs in the EU. Higher than both GB and ROI
Many industrial facilities have fitted gen-sets to run at peak times of day
ICAES is projected to provide a cheaper solution for such peaker plant applications
LightSail have focussed strongly on this route to market

32. Paths to market
• Solar PV management

33. Solar PV management
Shift export from
lunch time to tea
time
Smooth out the cloud variations
and reduce ramp rates

34. Paths to market
• Innovative wind farm O&M –
Revenue Guarantees

35. Guaranteed Revenue Post Warranty
• As wind turbines get larger, O&M KPI’s are shifting focus from “availability” to “Yield”
• Deployment of an energy storage facility allows aggregation of the wind farms output
• This output can be sold at higher prices to compensate for a turbine being off for
planned maintenance or a fault condition
• Revenue can then be guaranteed in the O&M agreement
• Higher yields can be achieved by doing planned maintenance on calm days
• Wind farm technicians can service ICAES systems on windy days

36. THANKYOU!