Unit-IV

Types of Electrical Energy Storage Systems

And

Unit-V
Applications
Markets for EES

Figure 3-2 | CAES plant in Huntorf (Vattenfall, IEC MSB/EES Workshop 2011)

Utility use of compressed air energy storage 54 % can be achieved. Both systems use off-peak
for time shift and power quality electricity for air compression and are operated for
peak levelling on a daily basis.
Today only two diabatic compressed air energy
storage (CAES) power plants are in operation Worldwide several CAES plants are under
worldwide. In 1978 the first CAES power plant was development and construction. In Germany for
built in Huntorf, Germany (Figure 3-2). It works as a example a small adiabatic CAES plant is scheduled
diabatic CAES plant with a round-trip efficiency of for demonstration in 2016 (project ADELE), which
roughly 41 % [rad08]. It consists of a low-pressure will achieve a higher efficiency in comparison to a
and high-pressure compressor with intercooler, two diabatic CAES [rwe11].
salt caverns (2 x 155 000 m³ usable volume, 46 -
Utility’s more efficient use of the power
72 bar pressure range), a motor-generator (60 MW
network
charging, 321 MW discharging) and a high-pressure
(inlet conditions: 41 bar, 490 °C) and low-pressure As one of the examples of EES for utilities, a Li-
turbine (13 bar, 945 °C). The second CAES plant is in ion battery can provide the benefit of more efficient
McIntosh (Alabama, USA) and was commissioned use of the power network.
in 1991. It has a net electrical output of 110 MW In 2009 the US companies AES Energy Storage
and is also based on a diabatic CAES process, and A123 Systems installed a 12 MW, 3 MWh Li-
but additionally a recuperator is used to recover ion battery at AES Gener's Los Andes substation in
heat from the exhaust at the outlet of the gas the Atacama Desert, Chile (Figure 3-3). The battery
turbine. Therefore a higher round trip efficiency of helps the system operator manage fluctuations in

36
Markets for EES

Figure 3-3 | Li-ion battery supplying up to 12 MW of power at Los Andes substation in Chile
(A123, 2009)

demand, delivering frequency regulation in a less live, TEPCO uses NaS batteries with diesel
expensive and more responsive manner than generators and a wind power station to meet the
transmission line upgrades. In addition, because varying demand. For off-grid photovoltaic systems
the project replaces unpaid reserve from the power in the power range (50 W -) 1 kW - 500 kW lead
plant, AES Gener will receive payment for its full acid batteries for EES are commonly used.
output capacity by selling directly to the electric
grid.
3.1.2 Consumer use (uninterruptable
Utility’s emergency power supply
power supply for large consumers)
Important facilities, such as power stations,
1) Suppress peak demand and use cheaper
substations and telecommunication stations,
electricity during peak periods, i.e. save cost by
need power sources for their control installations
buying off-peak electricity and storing it in EES.
with high power quality and reliability, since these
The result is load leveling by time-shifting.
are the very facilities which are most needed for
power in the case of an interruption. EES systems 2) Secure a reliable and higher-quality power supply
for this application are mostly DC sources and for important factories and commercial facilities.
supported by batteries. Historically lead acid Example: consumers’ use of NaS batteries
batteries have been used for this purpose.
Figure 3-4 shows the applications of NaS batteries
Utility’s off-grid systems (isolated grids) installed in the world with their respective power
In the case where a utility company supplies capacities. The systems used exclusively for load
electricity in a small power grid, for example on levelling (LL) account for almost half the total, and
an island, the power output from small-capacity installations for load levelling with the additional
generators such as diesel and renewable energy functions of emergency power supply or stand-
must also match with the power demand. On by power supply represent another 20 % each.
Hachijo-jima (island), where about 8 000 people However, the need for storage linked to renewable
energy, as explained in section 3.2, is growing.

37
Markets for EES

Figure 3-4 | NaS battery applications and installed capacities (NGK, IEC MSB/EES Workshop, 2011)

2% 3%

Factory equipment
19 %
Water supply /
sewage systems

Schools & research

institutions

7% Office buildings

Hospital facilities

5% 64 % Substations

Figure 3-5 | Locations of NaS systems in the TEPCO service area (TEPCO)

Figure 3-5 shows the locations of NaS batteries 3.1.3 EES installed capacity worldwide
installed in the TEPCO service area; the average
Figure 3-6 shows the installed capacity of EES
capacity per location is about 2 MW. The majority
systems used in electricity grids. Pumped hydro
of batteries are installed in large factories (64 %),
storage (PHS) power plants, with over 127 GW,
but there are some in large commercial buildings
represent 99 %, and this is about 3 % of global
(19 %) as well as in water supply/sewerage systems
generation capacity. The second-largest EES in
and schools/research institutes (12 % together).

38
Markets for EES

Pumped Hydro Compressed Air Energy Storage

440 MW 3,730 MWh

Sodium Sulphur Battery

316 MW 1,900 MWh
127,000 MW Lithium Ion Battery
~1,500,000 MWh
~70 MW ~17 MWh

Lead Acid Battery

~35 MW ~70 MWh

Nickel Cadmium Battery

over 99 % of the total storage 27 MW 6,75 MWh
capacity
Flywheels
<25 M W <0,4 MWh
Redox Flow Battery
<3 MW <12 MWh

Figure 3-6 | Worldwide installed storage capacity for electrical energy [epr10] [doe07]

installed capacity is CAES, but there are only two in energy need to be balanced. One of the main
systems in operation. The third most widely-used functions of energy storage, to match the supply
EES is the NaS battery. As of the end of September and demand of energy (called time shifting), is
2010, NaS systems were installed and operational essential for large and small-scale applications. In
in 223 locations in, for example, Japan, Germany, the following, we show two cases classified by their
France, USA and UAE (total: 316 MW). However, size: kWh class and MWh class. The third class,
a large quantity of other EES is expected to be the GWh class, will be covered in section 4.2.2.
installed given the emerging market needs for
Besides time shifting with energy storage, there
different applications, as shown in the next section.
are also other ways of matching supply and
demand. With a reinforced power grid, regional
overproduction can be compensated for by energy
3.2 New trends in applications
transmission to temporarily less productive areas.
Five new trends in EES applications are described: The amount of energy storage can also be reduced
renewable energy, smart grids, smart microgrids, by overinstallation of renewable energy generators.
smart houses and electric vehicles. Current use With this approach even weakly producing periods
cases of these applications include experimental are adequate for the load expected.
equipment and plans.
A further option is so-called demand-side man-
agement (described under Smart Grid in section
3.2.1 Renewable energy generation 3.2.2), where users are encouraged to shift their
consumption of electricity towards periods when
In order to solve global environmental problems,
surplus energy from renewables is available.
renewable energies such as solar and wind will
be widely used. This means that the future energy These balancing methods not requiring EES need
supply will be influenced by fluctuating renewable to be considered for a proper forecast of the
energy sources – electricity production will follow market potential for EES.
weather conditions and the surplus and deficit

39
Markets for EES

Decentralized storage systems for increased Law) guarantees, for a period of 20 years, a feed-
self-consumption of PV energy (kWh class) in tariff for every kWh produced and a fixed tariff
for every kWh produced and self-consumed. To
With the increasing number of installed PV systems,
encourage operators of decentralized systems,
the low-voltage grid is reaching its performance
the price for self-consumed PV energy is higher.
limit. In Germany, the EEG (Renewable Energies

=
~
PV Generator Inverter Meter Bidirectional Meter Grid

=
=
Storage DC/DC Load
Changer

Figure 3-7 | PV system designed for energy self-consumption (Fraunhofer ISE)

Figure 3-8 | Consumption of a typical household with a storage system: energy consumed
from the grid and from the PV system (Fraunhofer ISE)

40
Markets for EES

Therefore self-consumption of power will become integrated storage system is designed to cover
an important option for private households with 100 % of the demand with the energy generated
PV facilities, especially as the price of electricity by the PV system during the summer. During the
increases. rest of the year a little additional energy has to be
purchased from the grid.
Figure 3-7 shows an example of system design.
To measure the amount of energy consumed or To provide a consumer-friendly system at low
fed into the grid two meters are needed. One cost, maintenance cost in particular needs to be
meter measures the energy generated by the PV low and the most important factor for stationary
system. The other meter works bidirectionally and batteries is still the price per kWh. Currently for
measures the energy obtained from or supplied this application lead acid batteries are the most
to the grid. The generated energy that is not common technology because of the low investment
immediately consumed is stored in the battery. costs. Lithium ion batteries are generally better
in efficiency and in the number of cycles, but
In order to examine how much electricity can be
they have much higher investment costs. NaNiCl
self-supplied from PV, the results from a simulation
batteries are also an option for this application, but
for a typical household in Madrid may be of interest
they need daily cycling to avoid additional heating.
[sch11]. The total consumption of the household
over one year is about 3 400 kWh. The aim is to Smoothing out for wind (and PV) energy
use as much energy internally as possible, with (MWh class)
a 10.7 kW PV generator and a 6 kWh lithium ion The Japan Wind Development Co. Ltd. has
storage system. Figure 3-8 shows the electricity constructed a wind power generation facility
consumption of the household over a year. equipped with a battery in Aomori, Japan (Futamata
Regardless of the time of energy production, the wind power plant, shown in Figures 3-9 and 3-10).
storage provides the energy generated by the This facility consists of 51 MW of wind turbines
PV generator to electrical appliances. Supply (1 500 kW x 34 units) and 34 MW of NaS batteries
and demand can be adjusted to each other. The (2 000 kW x 17 units). By using the NaS battery,

Wind turbines

Interconnected power transformation unit

NaS battery units PCS building Administration/control building

Figure 3-9 | General view of the Futamata wind power plant (Japan Wind Development Co.)

41
Markets for EES

the total power output of this facility is smoothed predetermined one day before. In order to achieve
and peak output is controlled to be no greater than this plan, the NaS battery system controls charging
40 MW. Operation started in June 2008. or discharging in accordance with the output of
wind power generation. This facility meets the
Figure 3-11 shows an example of output from
technical requirements of the local utility company
this facility. The electric power sales plan is
to connect to the grid.

Figure 3-10 | NaS battery units – 34 MW (Japan Wind Development Co.)

Data Interval: 1 sec

50,000
Wind Power
40,000

30,000

20,000
Power (kW)

10,000

0
Total Power

-10,000

-20,000 NAS Power

-30,000
(23-Oct) 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Figure 3-11 | Example operational results of constant output control over 8 hours (NGK)

42
Markets for EES

3.2.2 Smart Grid systems must be transformed in the framework of

a market model in which generation is dispatched
Today’s grids are generally based on large
according to market forces and the grid control
central power plants connected to high-voltage
centre undertakes an overall supervisory role
transmission systems that supply power to
(active power balancing and ancillary services
medium and low-voltage distribution systems. The
such as voltage control).
power flow is in one direction only: from the power
stations, via the transmission and distribution The Smart Grid concept (Figure 3-12) is proposed
grid, to the final consumers. Dispatching of as one of the measures to solve problems in such
power and network control is typically conducted a system. The Smart Grid is expected to control
by centralized facilities and there is little or no the demand side as well as the generation side,
consumer participation. so that the overall power system can be more
efficiently and rationally operated. The Smart
For the future distribution system, grids will
Grid includes many technologies such as IT and
become more active and will have to accommodate
communications, control technologies and EES.
bi-directional power flows and an increasing
Examples of EES-relevant applications in the
transmission of information. Some of the electricity
Smart Grid are given below.
generated by large conventional plants will be
displaced by the integration of renewable energy 1) Penetration of renewable energy requires more
sources. An increasing number of PV, biomass and frequency control capability in the power system.
on-shore wind generators will feed into the medium EES can be used to enhance the capability
and low-voltage grid. Conventional electricity through the control of charging and discharging

Figure 3-12 | The Smart Grid (Fraunhofer ISE)

43
Markets for EES

from network operators, so that the imbalance Electrochemical storage types used in smart
between power consumption and generation is grids are basically lead acid and NaS batteries,
lessened. and in some cases also Li-ion batteries. For this
application redox flow batteries also have potential
2) In some cases, EES can reduce investment
because of their independent ratio of power and
in power system infrastructure such as
energy, leading to cost-efficient storage solutions.
transformers, transmission lines and distribution
lines through load levelling in certain areas at
times of peak demand. EES for this purpose
3.2.3 Smart Microgrid
may also be used to enhance frequency control
capability. A smart factory, smart building, smart hospital,
smart store or another intermediate-level grid with
3) A further option is so-called demand-side
EES may be treated as a “Smart Microgrid” 8. For
management, involving smart grids and
flexibility in resisting outages caused by disasters it is
residential users. With intelligent consumption
very important to deploy Smart Microgrids, that is,
management and economic incentives
distributed smart power sources, as an element in
consumers can be encouraged to shift their
constructing smart grids.
energy buying towards periods when surplus
power is available. Users may accomplish this EES is an essential component of a Smart Micro-
shift by changing when they need electricity, by grid, which should be scalable, autonomous and
buying and storing electricity for later use when
they do not need it, or both.
8
Note that the term “microgrid” has been the subject of
various specific definitions, none of which is assumed
here.

Figure 3-13 | Scalable architecture for EES applications in a Smart Microgrid

(Sanyo, IEC MSB/EES Workshop, 2011)

44
Markets for EES

ready to cooperate with other grids. The architec- output status of batteries, and controlling power
ture for the Smart Microgrid should have a single smoothly in an emergency (including isolating the
controller and should be scalable with respect to microgrid from the main grid if needed). These are
EES, i.e. it should adjust smoothly to the expansion the characteristics needed in Smart Microgrids,
and shrinkage of EES (battery) capacities according regardless of EES scale or applications.
to the application in for example a factory, a building,
a hospital or a store. The microgrid and EES should
in general be connected to the network; even if a 3.2.4 Smart House
particular Smart Microgrid is not connected to a The concept of the Smart House is proposed in
grid, for example in the case of an isolated island, order to use energy more efficiently, economically
it should still have similar possibilities of intelligent and reliably in residential areas. EES technologies
adjustment, because an isolated Smart Microgrid are expected to play an important role.
can also expand or shrink. Figure 3-13 shows a
1) The consumer cost of electricity consists of
schematic of a scalable architecture.
a demand charge (kW) and an energy charge
In Annex B two examples are given, a factory (kWh). Load levelling by EES can suppress
and a store, which have fairly different sizes the peak demand; however, charge/discharge
of batteries, but with controllers in common. loss will simultaneously increase the amount of
Microgrids controlled in this way have the features electricity consumed. Consumers may be able
of connecting and adjusting to the main grid to reduce electricity costs by optimizing EES
intelligently, showing and using the input and operation.

Figure 3-14 | The Smart House (Fraunhofer ISE)

45
Markets for EES

AC 50/60 Hz Air
AC 100 - 200 V Air conditioner
conditioner Refrigerator
Refrigator Washing
Washingmachine
machine

Power
Power station
station Transformer
Transformer Heat
Heat pump
pump

Microwave
Microwaweoven
oven

Induction
Induction heater
heater

Secondary
Secondary TV DVD/BD Audio
Cell TV DVD/BD Audioset
set
Cell
Photovoltaic
Photovoltaic LVDC PC
PC Printer
Printer Game
Game machine
machine
24~48 V
Fax
Fax
Hybrid
Control DC PLC LED
LED lighting
lighting Sensor
Sensor Ventilation
Ventilation

Wireless
Wireless charger
charger Electric
Electric toothbrush
toothbrush
Hydrogen
Hydrogen FFC
C

Electric shaver
Electric shaver

Bath

Heat pump Kitchen

Kitchen

Waste heated water Wash basin

Wash

Figure 3-15 | Future home energy network in a smart house (IEC White Paper 2010)

2) Some consumers prefer to use their own 3.2.5 Electric vehicles

renewable energy sources. EES can reduce the
Electric vehicles (EVs) were first developed in the
mismatch between their power demand and
19th century but, since vehicles with conventional
their own power generation.
combustion engines are much cheaper and have
3) In specific situations such as interruption other advantages such as an adequate driving
of power supply, most on-site renewable range of around 500 km, electric vehicles have not
generators have problems in isolated operation been introduced in large quantities to the market.
because of the uncontrollable generation The main obstacle for building electricity-driven
output. EES may be a solution. vehicles has been the storage of energy in batteries.
Due to their low capacity it has not been possible
Figure 3-14 schematically represents the smart
to achieve driving ranges that would be accepted
house, and Figure 3-15 maps a possible energy
by the consumer. The emerging development of
architecture for it. In smart houses mainly lead acid
battery technology in recent years presents new
systems are used currently, but in the future Li-ion
possibilities, with batteries displaying increased
or NaNiCl batteries in particular may be installed
energy densities.
because of their high cycle lifetime and their ability
to deliver high peak power.

46
Markets for EES

In the transitional period of the next few years, increases with additional integrated functions. The
mainly hybrid cars will come onto the market. more functions are integrated in the vehicle, the
They combine an internal combustion engine with higher the potential of fuel savings and therefore
an electric motor, so that one system is able to the reduction of carbon dioxide emissions. While
compensate for the disadvantages of the other. An vehicles up to the full hybrid level have already
example is the low efficiency in partial-load states entered the market, plug-in hybrids and pure
of an internal combustion engine, which can be electric vehicles are not yet established in larger
compensated for by the electric motor. Electric quantities.
drive-trains are particularly well suited to road
Regarding energy storage for vehicles, today lead
vehicles due to their precise response behaviour,
acid batteries are commonly used in micro-hybrids.
their high efficiency and the relatively simple
In combination with a double-layer capacitor there
handling of the energy storage. In spite of the
might also be options for their use in mild or full
advantages of electric motors, the combination of
hybrids, but since technically better solutions are
an electric drive-train with an internal combustion
available and economically feasible they will not
engine is reasonable. That is because electricity
play any role in the future.
storage for driving ranges of up to 500 km, which
are achieved by conventional drive-trains (and NiMH batteries are mainly used in hybrid vehicles
petrol tanks), are not feasible today. because their system is well-engineered and,
compared to Li-ion batteries, they are actually
Hybrid classes and vehicle batteries more favourable especially due to safety issues.
Generally the different hybrid vehicles are Good cycle stability in low states of charge which
classified by their integrated functions, as shown often appear in hybrid cars is characteristic for
in Figure 3-16. The power demand on the battery these batteries. All Toyota hybrid vehicles use a

Electric vehicle
Increasing electric power & electric driving range

Pure electric driving

Plug-In Hybrid
Charging at sockets

Full Hybrid
Integrated motor assist
Limited electric driving

Mild Hybrid
Recuperation of braking energy
Acceleration assistance (boost)

Micro Hybrid
Start-Stop System

improvement of the conventional combustion engine

Increasing electrification of the drive train

Figure 3-16 | Hybrid classes sorted by electrical power and functional range, against stage
of development (Fraunhofer ISE)

47
Markets for EES

Table 3-1 | Differences between hybrid and electric vehicles’ power trains [smo09]

Plug-In Electric
Specifications Micro Hybrid Mild Hybrid Full Hybrid
Hybrid vehicle
Power electric motor 2 – 8 kW 10 – 20 kW 20 – 100 kW 20 – 100 kW < 100 kW
Capacity Batteries < 1 kWh < 2 kWh < 5 kWh 5 – 15 kWh 15 – 40 kWh

DC voltage 12 V 36 – 150 V 150 – 200 V 150 – 200 V 150 – 400 V

Potential -8% - 15 % - 20 % - 20 % --
in saving fuel
Range for
-- < 3 km 20 – 60 km < 100 km 100 – 250 km
electrical driving
Lead Acid,
EES type NiMH, Li-Ion NiMH, Li-Ion Li-Ion Li-Ion, NaNiCl
NiMH, Li-Ion

NiMH battery with 1.3 kWh and 40 kW. Toyota has at a high temperature. Therefore these NaNiCl
sold in total about 3 million hybrid vehicles with this batteries are preferred for fleet vehicles such as
battery; this means the total storage volume sold is buses, where they are in permanent operation and
about 4 GWh and 120 GW. no additional battery heating is usually necessary.

A major problem of this technology is the limited

potential for further technical or economic
3.3 Management and control
improvements. With lithium ion batteries becoming
hierarchy of storage systems
technically more favorable and having significant
potential for cost reduction there does not seem to In this section the concepts of the management and
be a medium-term future for NiMH batteries. control of storage systems are introduced. While it
is essential to have local management for the safe
Lithium batteries are ideally suited for automotive
and reliable operation of the storage facilities, it is
use, for both electric vehicles and hybrid electric
equally important to have a coordinated control
vehicles. For the hybrid vehicles a good choice
with other components in the grid when grid-
might be the lithium-titanate battery because of its
wide applications are desired. The purpose of this
high cycle stability and power density. With rising
section is to help readers visualize the components
battery capacities for more advanced hybrid types,
and their interactions for some of the applications
the relatively low energy density of the lithium-
described in this paper.
titanate batteries has a bigger effect on the total
car weight that results in a higher energy demand. Many storage systems are connected to the grid
Therefore lithium-iron-phosphate and especially via power electronics components, including the
lithium-NMC batteries with high energy densities converter which modulates the waveforms of current
are preferred for plug-in-hybrids and pure electric and voltage to a level that can be fed into or taken
cars – for the latter the driving range is the most from the grid directly. Sometimes the converter
important criterion. is connected to a transformer before the grid
An alternative battery technology for pure electric connection in order to provide the required voltage.
cars is the high-temperature sodium-nickel- The converter is managed by a controller which
chloride battery (also called ZEBRA battery). It has defines the set-points of the storage system. These
a huge self-discharge rate of about 10 % per day set-points can be expressed as the magnitude of
in stand-by status from having to keep the battery active and reactive power, P and Q. Such a controller

48
Markets for EES

may also be called control electronics – a controller depending on the control scheme implemented.
in this context is simply a representation of the place The control scheme should in turn be determined
where intelligence for decision-making is applied. by the application. More precisely, the application
determines the algorithmic and input/output
requirements for the EES system. For instance,
3.3.1 Internal configuration of battery an application which requires simple logic using
storage systems only local measurements can have the set-points
Complex storage systems consisting of batteries determined locally through the storage controller.
are equipped with a Battery Management System An example of such an application is load levelling,
(BMS) which monitors and controls the charge and which only needs to know the loading conditions of
discharge processes of the cells or modules of the the local equipment (e.g. lines, transformers) next
batteries. This is necessary in order to safeguard the to which the EES is installed. The same applies for
lifetime and ensure safe operation of the batteries. applications which have pre-determined set-points
The diagram in Figure 3-17 shows a possible that do not change during operation. However, set-
realization of the internal control architecture for points for applications which require dynamic
a battery storage system. It should be noted that adaptation to the network operational environment
for bulk energy storage it is very likely that there and much remote data or measurements might
is a more refined hierarchy for the BMS, which be better determined by a remote controller which
involves a master control module coordinating can gather these remote inputs more efficiently.
the charging and discharging of the slave control One example of such an application is wind power
modules. It is possible that the batteries and smoothing, which uses wind output forecasts as
converters are from two different manufacturers, well as measurements from the wind farm as inputs.
and therefore compatibility and interoperability of Another example is energy time-shifting, making
the two systems regarding both communication use of dynamic market prices. A generalized setup
and electrical connections is imperative. with remotely determined set-points is shown in
Figure 3-18. Batteries and the BMS are replaced
by the “Energy Storage Medium”, to represent
3.3.2 External connection of EES systems any storage technologies including the necessary
energy conversion subsystem.
The P and Q set-points for an EES for a certain
application can be set locally or remotely,

~
Converter
Storage Controller

Communication
BMS Batteries Connection
Electrical
Battery Energy Storage System Connection

Figure 3-17 | A possible realization of internal control architecture for a battery storage system
(ABB)

49
Markets for EES

3.3.3 Aggregating EES systems and 3.3.4 “Battery SCADA” – aggregation of

distributed generation (Virtual Power many dispersed batteries
Plant)
As progress is realized in battery capabilities and
The control hierarchy can be further generalized costs, many batteries will be installed both by
to include other storage systems or devices consumers and in the grid, with large cumulative
connected to the grid, illustrated in Figure 3-19. capacity and correspondingly large effects. Most
This diagram represents an aggregation of EES will be small battery storage systems, dispersed
systems and DGs (Distributed Generators) which in location and used locally. However, if they are
can behave like one entity, a so-called “VPP with gathered into a virtual assembly and controlled
EES” in this example. VPP stands for Virtual Power centrally, they may also be used for many utility
Plant which, according to one definition, is the applications, such as load frequency control,
technology to aggregate power production from load levelling and control of transmission power
a cluster of grid-connected distributed generation flow. To implement such uses, a group of battery
sources via smart grid technology, by a centralized manufacturers and electric utilities in Japan is
controller which can be hosted in a network control developing technologies for central control of
centre or a major substation. The integration of dispersed batteries, named “Battery SCADA”.
distributed energy storage systems at different Using Battery SCADA distributed batteries can
locations of the grid will further enhance the be assembled and managed like a virtual large-
capabilities of the VPP. It should be noted that capacity battery, and batteries with different
in the figure the communication and electrical specifications made by different manufacturers
infrastructures are highly simplified in order to can be controlled and used by grid operators
show the general concept but not the details. in an integrated way. Battery SCADA is shown
A concrete example of an implementation based schematically in Figure 3-20. Information from
on aggregated energy storage systems using batteries on both the grid side and the customer
batteries is given in the following section on side is collected by Battery SCADA, processed,
“battery SCADA”. and transmitted to the control centre. Based

Remote Data/Measurements

Control Center/Substation

P, Q Set-points
to grid
Storage Status

~
Storage Controller

Energy Storage Medium Communication

Connection

Electrical

EES System Connection

Figure 3-18 | A Control hierarchy involving remote data/measurements (ABB)

50
Markets for EES

on this information and the situation of the

network, the control centre sends commands to
Battery SCADA, which distributes corresponding
commands to each battery system.

Demonstration of this technology will start in 2012

in Yokohama City, Japan, with various types of Li-
ion batteries installed on the grid side and in
consumer premises, to be controlled by the Battery
SCADA.

Communication
Connection

Remote Data/Measurements Electrical

Connection

Control Center/Substation
to grid

EES System DG
EES System DG
EES System DG
EES System DG
VPP with EES

Figure 3-19 | A generalized control concept for aggregated EES systems and DGs (ABB)

Figure 3-20 | Schematic diagram of Battery SCADA (TEPCO)

51
Section 4
Forecast of EES market potential by 2030

As mentioned in section 3, there are many 4.1.1 EES market estimation by Sandia
applications for EES. For some applications EES National Laboratory (SNL)
has already been commercially deployed and it will
Figure 4-1 shows EES market potential by
continue to be used for these applications in the
application type in the USA, as estimated by Sandia
future. Furthermore, some new applications for EES
National Laboratory. Market size and benefits
are emerging, such as support for the expansion of
corresponding to the break-even cost of EES per
renewable energy generation and the smart grid.
kW are estimated for each application separately.
The importance of EES in the society of the future
While this study only treats present market potential
is widely recognized, and some studies on the
and only for one (large) market, it provides useful
future market potential for EES have already been
suggestions for considering the future EES market.
carried out. While these studies vary in target time
The results indicate that no market exists for any
range, target area, applications considered and
application at present which is both high-value and
so on, they can be classified into two categories:
large. For example, the application “Substation On-
estimates of the future market covering almost all
site”, which means an emergency power source
the applications of EES, and estimates of the future
installed at a substation, presents a relatively high
market focusing on specific new EES applications.
value, but its market is small. On the other hand,
In this section some studies’ results are shown for
for the application “Time-of-use Energy”, meaning
these two categories.
time shifting at a customer site, a large market size
is expected but its value is not high.

4.1 EES market potential for overall The study indicates that value and market size for
applications each application can vary with circumstances in
the future, and that one EES installation may be
In this section two examples of studies and one
used for multiple applications simultaneously,
specialized simulation are presented: a study from
which increases the benefits. One factor affecting
Sandia National Laboratory (USA) which evaluates
the future market is the scale of new installation of
EES benefits and maximum market potential
renewable energies.
for almost all applications in the USA; a study
prepared by the Boston Consulting Group which
forecasts the cost reductions in EES technologies
4.1.2 EES market estimation by the
and estimates the profitability of investments
Boston Consulting Group (BCG)
in EES by application, so as to judge the world
market potential; and a simulation of the future Li- In this study, a price reduction in EES technologies
ion market by Panasonic. is forecast for 2030 and the investment profitability
by EES application is evaluated. Eight groups of

53
Forecast of EES market potential by 2030

Figure 4-1 | EES benefit (break-even cost) and market size by application in the US [eye11]

Figure 4-2 | EES market forecast by application for 2030 [bcg11]

54
Forecast of EES market potential by 2030

applications are defined. To help determine the estimation was made by a simulation, with the
future EES market potential by application this study following assumptions:
also evaluates the feasibility of implementation,
1) assuming that the trend of battery purchase
which is made up of the existence of conventional
prices will continue as determined by a market
technologies, technological difficulty of the EES
survey, and comparing with the future price of
technology development concerned, compatibility
the Li-ion battery;
with the related existing business and the
social circumstances. The results are shown in 2) for utility use, assuming community energy
Figure 4-2. storage and partial substitution of investment
for transmission and distribution;
The most promising market, where a large
market and high profitability can be expected, is 3) for UPS, assuming the probability of replacement
“Conventional Stabilization”, where pumped hydro of a lead acid battery by Li-ion to save space,
storage and CAES are applicable. Conventional for easy maintenance and considering the price
stabilization includes time shift, smoothing of gap;
output fluctuations and efficiency improvement 4) assuming that growth in EV stations will be
of conventional generators. The reason why this comparable to that in EVs themselves;
application is promising is that the need for time
5) assuming no lithium shortage.
shift and smoothing output fluctuations will grow
dramatically in accordance with the expected The result of the simulation, shown in Figure 4-3,
broad introduction of renewable energies. indicates that the Li-ion battery market will grow
steadily, and the residential market in particular will
Another attractive market is “Balancing Energy”,
increase rapidly starting in 2017. There are, and will
which corresponds to adjusting power supply
be, a wide variety of Li-ion battery applications,
to meet demand that fluctuates within short
from small to large in battery size.
periods. Large storage technologies such as PHS
and CAES are already economically feasible in
this application, and other EES technologies will 4.2 EES market potential estimation
have great opportunities in the future. The need for broad introduction of
for balancing energy is likely to rise as renewable renewable energies
energy generation causes fluctuations on the
supply side to increase, and more and more The integration of renewable energies into the
power markets will introduce sophisticated market electric power grid can cause problems of output
mechanisms for the procurement of balancing fluctuation and unpredictability. When the total
volume of renewable energies connected to the
energy. The study concludes that total market
potential for the eight groups of applications is grid exceeds a certain level such problems will
appear and countermeasures will be needed.
330 GW.
Ambitious plans with significant incentives for the
introduction of renewable energies exist in certain
4.1.3 EES market estimation for Li-ion markets (notably in the EU), and it is expected that
batteries by the Panasonic Group EES will be a key factor in achieving the targets.
For this reason some studies have been done to
Panasonic Group (Sanyo) has estimated the
determine the amount of EES needed to match the
EES market potential of the Li-ion battery. This
planned introduction of renewable energy.

55
Forecast of EES market potential by 2030

Figure 4-3 | Global market for Li-ion batteries (Sanyo, 2011)

4.2.1 EES market potential estimation for renewable energies in the past and future [ste11].
Germany by Fraunhofer For both short-term and long-term needs a very
large amount of EES will be needed to deliver
Germany is well known as a leading country for
peak power. In 2030 the following capacities are
the introduction of renewable energies, so a
necessary (peak power multiplied by time):
large market for EES is expected. As shown in
Figure 4-4, Germany has set a target to increase  Hourly: 16 GWh
the share of renewable energy from less than 20 %  Daily: 170 GWh
to around 60 % to 80 % by 2030.  Weekly: 3.2 TWh
To achieve the German target more EES capacity  Monthly: 5 TWh
is necessary: Figure 4-5 shows a scenario for wind  Total: ~8.4 TWh
production in the Vattenfall grid in 2030 which
is estimated to be four times higher than today. The present installed storage capacity of 40 GWh
The blue curve, representing wind power, shows PHS can cover only the hourly demand and a part
a massive fluctuation resulting in huge amounts of the daily demand. To cover the additional hourly
of energy which will need to be charged and and daily demand electrochemical EES such as
discharged, while the red curve displays the actual batteries can be used. For the weekly and monthly
load. The light blue field indicates the storage demand, CAES, H2 and SNG storage technologies
capacity in Germany in pumped hydro (40 GWh, are expected.
7 GW), which represents 95 % of total energy
storage today [den10], and is totally inadequate for
4.2.2 Storage of large amounts of energy
the quantity of energy which will need to be stored
in gas grids
(area under the purple curve).
For the storage of large amounts of energy
Figure 4-6 shows the estimation of required EES
electrochemical EES would be too expensive
capacity by time range to handle the integration of

56
Forecast of EES market potential by 2030

Figure 4-4 | Expected penetration of renewable energy in Germany [ste11]

Figure 4-5 | Load curve (red) and wind power (blue) in the Vattenfall grid (north-east Germany):
charge and discharge volume in 2030 in comparison with pumped hydro storage capacity [alb10]

57
Forecast of EES market potential by 2030

Figure 4-6 | Distribution of required peak power for integration of renewables by time [ste11]

and require too much space. An alternative is high-pressure vessels (which normally presents no
the transformation of electricity into hydrogen or difficulties) or caverns.
synthetic methane gas for storage and distribution
within the existing natural gas grid (see sections 2.4.1
and 2.4.2). The efficiency of full-cycle conversion of 4.2.3 EES market potential estimation for
electric power to hydrogen is about 55 % - 75 %, Europe by Siemens
and to SNG about 50 % - 70 %. In Germany the Another study on the EES market potential to
storage capacity of the existing natural gas grid manage the issues caused by large amounts
is very large, at about 200 TWh (about 400 TWh of renewable energies has been carried out
including the distribution grid). From a technical point by Siemens [wol11] [hof10]. This study covers
of view it is possible to inject up to 10 % hydrogen the whole of Europe and adopts an extreme
into natural gas without any negative effects on the assumption, that all of the electricity is supplied by
gas quality. Because hydrogen has one-third the renewables (65 % wind, 35 % solar).
energy of natural gas it is possible to inject hydrogen
Since renewable energies are by nature uncontrol-
containing 7 TWh of energy into the natural gas grid.
lable, a mismatch between demand and supply
At any point of the gas grid it is possible to convert
can happen both in the geographic domain and
the gas back into electricity with a high-efficiency
the time domain. When there is a mismatch be-
gas power plant (~60 %). In Germany in 2030 the
tween supply and demand, shortage of supply is
weekly and monthly EES demand will be about
conventionally backed up by a reliable power sup-
8.2 TWh (see section 4.2.1), which can nearly be
ply such as fossil fuel generators. To avoid this,
covered by such an injection of hydrogen into the
geographic mismatch in an area can be decreased
gas grid. This solution is only possible in countries
by reinforcement of interconnections with neigh-
where a gas grid exists; otherwise, the hydrogen
bouring areas, and time mismatch can be solved
or synthetic methane must be stored in additional

58
Forecast of EES market potential by 2030

by the EES time shift function. A simulation was inforcement of grid connections and over-dimen-
carried out in order to determine how much EES sioning of renewables takes place. For hourly and
would be needed if it alone, without any reinforce- daily storage the study suggests using PHS and
ment of interconnections, were used to eliminate electrochemical EES (NaS, Li-ion, LA or RFB). For
backup capacity (see Figure 4-7). Europe was di- the weekly and monthly demand CAES and H 2 are
vided into 83 areas, each with a different mix of recommended. As an alternative for the weekly
renewable energy – in the figure, “EMix 1 % PV” for and monthly demand, large, new PHS in the TWh
example means 1 % PV and 99 % wind. For the range in the Scandinavian countries (Sweden,
whole of Europe 65 % is generated by wind and Norway) is discussed. However, connecting these
35 % by PV. The results show that 30 % - 50 % would need transmission lines over long distances.
of the load needs to be backed up by fossil fuel The financing and acquisition of such transmission
generators if there is no EES (“0h” in Figure 4-7). lines seem to be difficult from today’s viewpoint.
The backup needed decreases to 10 % - 20 % of
demand if EES equivalent to one week’s load is
available (“7d” in Figure 4-7), which corresponds to 4.2.4 EES market potential estimation by
EES of 60 TWh or about 2 % of the annual demand the IEA
(3 200 TWh). Another study on the potential EES market to cope
In practice, for 100 % renewables, both reinforce- with massive renewable energy introduction in
ment of interconnection lines and EES capacity of the world has been done by the IEA (International
between 2 % and 8 % of the annual total demand Energy Agency) [iea09]. In this study the
is necessary. The value depends on how much re- necessary amount of EES is calculated in relation

Figure 4-7 | Necessary backup energy related to EES capacity [wol11]

59
Forecast of EES market potential by 2030

to variation of output from renewable energies. variation rate of renewable energies of 15 % or

As shown in Figure 4-8, the required amount of 30 % respectively.
EES increases with renewable energy penetration
Total current EES capacity (mainly PHS) being
and the assumed output variation from renewable
100 GW, a doubling or tripling of available EES
energies. For example, if the net variation in wind
will be needed (assuming perfect geographical
power is assumed to be 30 % of its rated output,
distribution – otherwise even more).
the amount of EES needed in Western Europe will
increase from 3 GW in 2010 to 90 GW in 2050
to keep pace with the forecast increase in wind 4.3 Vehicle to grid concept
power generation. The necessary amount of EES
Depending on the probable development and
in 2050 can vary from 50 GW to 90 GW according
spread of electric vehicles, there will be a great
to the assumed rate of net output variation in wind
potential for power to be fed back from car batteries
power between 15 % and 30 %.
into the grid. The federal government of Germany
In Figure 4-9, the necessary amount of EES has forecast up to one million EVs by 2020 [bmw10].
by region is estimated based on the forecast Including hybrid and pure EVs the average capacity
of renewable energy introduction. Since high is about 20 kWh per vehicle. In a scenario in which
renewable energy penetration is expected in about 30 % of these capacities are used, we would
Western Europe and China, EES potential markets have about 6 GWh available for energy storage.
in both regions are relatively large. The necessary Compared to pumped hydro storage in Germany
amount of EES in the world in 2050 is estimated at with capacities of about 40 GWh in 2011 this would
189 GW or 305 GW, corresponding to an output represent about 15 % extra.

Assumed Variation
120
Storage Capacity (GW)

2050(Wind:25%)

80

Existing 2015(Wind:18%)
40 33GW

2010(Wind:10%)
0
0 5 10 15 20 25 30 35
Net Variation of Wind Power (%)

Figure 4-8 | Necessary storage capacity in Western Europe againts wind variability [shi11]

60
Forecast of EES market potential by 2030

Figure 4-9 | Necessary storage capacity estimation by region (wind variation rate: 15 %) [shi11]

The IEA has also carried out a worldwide study vehicles and grid operators an intelligent system
on using EV batteries for mitigation of renewable will also be needed, one acceptable to the
energy output variations. If EV batteries are used consumer. Consumer acceptance will play a major
for time shift and smoothing of short-term fluctu- role in the success of the V2G concept. Different
ations by using vehicle-to-grid (V2G) technology, business models are under discussion, e.g. one
the EES needed can be decreased from 189 GW where the car owner is not the owner of the battery
to 122 GW or from 305 GW to 280 GW in the two but rents or leases it, or pays for the electricity at a
scenarios (see section 4.2.4). If these capacities rate which covers the battery cost.
are used in the future, grid operators will have
more scope for short-term time shift and a higher
level of security of supply can be guaranteed. 4.4 EES market potential in the
future
A field where development is needed is the
reinforcement of the low-voltage power grid, Several studies on market potential have been
whose infrastructure is not yet ready for the power mentioned in this section; they have suggested the
feed-in of a large number of electric vehicles – following conclusions.
the grid’s limited transmission capacity would be 1) The potential market for EES in the future is
overstretched. For the communication between much larger than the existing market, mainly

61
Forecast of EES market potential by 2030

driven by the extended use of renewable energy as Europe can be (partly) used for H2 and SNG
sources and the transformation of the energy storage.
sector, including new applications such as
7) Smart Grid technology using many small,
electric mobility. The market volume is related
dispersed batteries, such as EV batteries, is
to the (future) renewable energy ratio and varies
attractive for many applications. But even if all EV
among regions.
batteries are used for this purpose they will be
2) If further cost reductions and technology insufficient to cover future demand for EES.
improvement can be achieved, EES systems
Given these studies, Table 4-1 shows which EES
will be widely deployed, for example, to shift
technology is or will become feasible for what
the demand, smooth renewable energy output
applications, and where further research and
and improve the efficiency of existing power
development are necessary.
generation.
In addition to the conclusions above, Table 4-1
3) European studies indicate huge expectations
shows that Li-ion has great potential for
for EES technologies to compensate for the
many applications, but needs further careful
fluctuation of renewable energy power output.
development and introduction of mass production
Large installations of wind turbines and PVs
to achieve cost effectiveness. CAES, RFB and
may require numerous EES systems, capable
H2 applicable to utility use for time shifting also
of discharging electricity for periods from two
need further development and mass production
hours up to one day. Hence the market for
to achieve cost effectiveness. HFB and SNG, also
conventional large-scale EES, such as PHS
potentially applicable to this application, need
and adiabatic CAES, is attractive. But in many
further fundamental research and development to
countries such as Germany and Japan the future
achieve reliable and cost-effective products.
potential of PHS and CAES is very limited due
to the lack of suitable locations or underground
formations.

4) The extensive introduction of electrochemical

EES such as NaS, Li-ion and RFB in the MW -
MWh range is expected, for discharge times of
hours to days.

5) Long-term energy storage is essential to

achieving very high renewable energy ratios.
The IEA report shows that further installation of
renewable energy will lead to an insufficiency
of thermal power generators for power control,
and cause short-time output fluctuations. This
scenario may be expected in Western Europe
and China which have both set high renewable-
energy-penetration targets.

6) To cover longer discharge times of days to

months hydrogen and SNG technology have to
be developed. The well-established natural gas
grid and underground storage in regions such

62
Forecast of EES market potential by 2030

Table 4-1 | EES present feasibility, future potential, need for further research and development
(Fraunhofer ISE)

63
Conclusions and recommendations

5.1 Drivers, markets, technologies areas of policy (including regulation), research

& development, and standardization. This is
From the first four sections of the present paper
summarized in Figure 5-1.
– the substantive, factual, objective part – the
present section seeks to derive conclusions In the electricity market, global and continuing
in the form of a coherent picture. From these in goals are CO2 reduction and more efficient and
turn recommendations may be formulated in the reliable electricity supply and use.

Objectives
• CO2 reduction
• More efficient and reliable electricity

Drivers
• Renewable energies
• Smart Grid
• Dispersed generation/Microgrid

Market forecasts
• Total EES market
• Conventional large-scale
• Long-term storage
• Dispersed storage

Technological and practical implications

• Batteries
• H2 /SNG (synthetic natural gas)
• Lifetime costs
• Control / interoperability

Recommendations
a) Policy recommendations
b) R&D recommendations
c) Standards recommendations

Figure 5-1 | Conclusions in the form of a logical progression

65
Conclusions and recommendations

This, finally, leads to the actions themselves, i.e.

The IEC is convinced that electrical energy to recommendations. It will be seen below that
storage will be indispensable to reaching these recommendations fall into groups addressed to
public policy goals. It is therefore essential that three different audiences: policy-makers including
deployment of storage should receive long- regulators, companies and laboratories deciding
term and robust support from policy-makers what research and product development to
and regulators. pursue, and the IEC itself for what standards will
be needed by all EES market players.

Corresponding to these goals, three major

drivers determining the future of EES have been 5.2 Conclusions regarding
identified (see section 3): the foreseeable increase renewables and future grids
in renewable energy generation, the design and
Many studies have shown that EES is indispen-
rollout of Smart Grids, and the future spread of
sable for the introduction of large amounts of
dispersed generation and dispersed management
renewable energy. Therefore the necessary volume
of electrical energy – referred to here for simplicity
and timing of EES is strongly dependent on the
as “microgrids”. These drivers are only partly
pace of renewable energy development.
independent of each other: renewables clearly
encourage, and simultaneously need, microgrids, The Smart Grid integrates facilities on both the
and the increase in both renewables and dispersed utility (grid) side and the customer side by using
sources demands a smarter grid. However, this advanced information technologies; the benefits
paper has shown that the three drivers usefully from this can only be achieved if storage is
illuminate different aspects of what will condition available. EES is therefore considered to be a key
the future of electrical energy storage systems. component of the Smart Grid, among other things
as a basic requirement for coping with electrical
The results of these drivers on future demand for
outages caused by disasters. In addition the
EES may be conveniently divided into four market
Smart Grid is likely to use, and possibly to require,
segments, the total EES market, conventional large-
dispersed storage (e.g. batteries installed for local
scale systems (e.g. pumped hydro storage, PHS),
purposes). This in turn implies overall control of
long-term storage (e.g. H2), and dispersed storage.
many dispersed small storage installations together
How these markets are expected to develop has
in the grid 9. The implication is that autonomous
direct implications for which technologies will be
operation, easy extension and coordination with
most needed, which technology will need what
grids are important characteristics of future EES.
type of further development, what considerations
will influence rollout and penetration, and what Microgrids will be a key to the “smart” energy use
implementation problems may be expected. A of communities, factories, buildings etc. Small-
serious analysis of these complex factors, going scale EES is absolutely imperative for microgrids
beyond what has already been attempted in to achieve fair and economic consumption of
previous sections, is not the purpose here; the four electrical energy. In order to optimize cost efficiency,
aspects listed, two technology families (batteries microgrids also require that their EES should be
and H2/SNG) and two constraints (lifetime costs connected to the grid (as does the grid – see
and control/interoperability), seem merely to be the above) and be able to adjust smoothly to increases
most important areas for future actions. and decreases in the amount of electrical energy

9
A single virtual energy storage installation.

66
Conclusions and recommendations

consumed. Dispersed facilities, whether generation 5.4 Conclusions regarding

or storage (for example the EES in a smart house technologies and deployment
or an electric vehicle), are normally owned by end
As the renewable energy (RE) market grows, the
users, who have in principle the right to decide how
market for EES systems, especially for small and
to use the facilities. This implies a differentiated
dispersed ones, will also expand and require
policy and regulatory regime, with conditions
technical specifications and regulation frameworks
applying to centralized facilities distinguished from
for grid interconnection of EES. The aspects of
those applying to dispersed ones.
interconnecting dispersed generation including
RE have been investigated. However, issues such
5.3 Conclusions regarding markets as power quality and safety in connecting large
numbers of EES intallations, mostly together with
The total EES market is expected to be large, but RE, have not yet been thoroughly researched.
will remain very sensitive to cost (see section 5.4 Thus, in order to assure the smooth connection
below). This has very specific implications on what of EES to grids, additional technical requirements
R&D and policy goals are recommended. It also and the necessary regulatory frameworks need to
means that whether the relevant standards (e.g. to be investigated.
reduce costs by creating or enlarging homogeneous
Given the cost sensitivity, cost reduction is vital to
markets) are available at the right moment will have
implementation. For this, lifetime cost should be
a great influence.
considered, not simply installation cost but also
Some of the total market will be for conventional cost of operation and disposal. Low raw material
large-scale EES such as PHS to enable the cost, a part of total installation cost, may become
introduction of renewable energies. The need for a specific selection criterion for EES technology.
extremely large (GWh and TWh-scale) facilities will In addition, as explained in sections 3.2 and 3.3,
increase; in some applications they will need to be interoperability among the various very different
operated like conventional generators (in spite of parts of the whole grid must be ensured, and
being limited in total energy). sophisticated control intelligence is also essential
When a very high renewable energy ratio is achieved, for availability and overall efficiency 10. Successful
long-term energy storage will be needed which, deployment in any one country may further
since the storage period is up to several months, depend on the size and health of an indigenous
implies very large storage amounts. A possible “EES supply industry” which can help to control
solution is the new EES technologies hydrogen and costs and ensure availability.
synthetic natural gas (see sections 2.4 and 4.2.2). Three storage technologies seem to emerge
Development of these involves chemical research from the study as the most significant. In order
and engineering, which are beyond the traditional of decreasing technological maturity, they are
scope of work of the IEC; this gives rise to certain pumped hydroelectricity (PHS), electrochemical
recommendations. batteries, and hydrogen/synthetic natural gas.
With rollout of the Smart Grid and microgrids, In Figure 5-1 only the last two are mentioned
implying storage installed at customer sites, the because they both – in different ways – need
market for small and dispersed EES is also expected more development than PHS. Batteries require
to be quite large. EES will be used not only for single development primarily to decrease cost, and for
applications but simultaneously for several, made 10
These aspects of implementation will be particularly
possible by integrating multiple dispersed storage dependent on the existence of the relevant international
sites. standards.

67
Conclusions and recommendations

some technologies to increase energy density as markets in electricity and gas, including use of
well; hydrogen/SNG must be further researched infrastructure.
and developed across a broad front, including
physical facilities, interactions with existing uses of Recommendation 5.5.4 – Incentives for
gas, optimal chemical processes, safety, reliability development and operation of storage
and efficiency.
The IEC recommends policy-makers to make the
encouragement of storage deployment a public
5.5 Recommendations addressed policy goal. The long-term storage of surplus energy
to policy-makers and from renewables is sometimes more expensive
regulators than additional generation from existing fossil-fuel
plants. However, the storage necessary for future
grids will only become available if private actors
Recommendation 5.5.1 – Public support for
development of conventional storage see an advantage in acquiring and operating it, and
for this regulations including financial incentives
Given their intentions to increase greatly the will frequently be needed. The regulatory regime
proportion of renewable energies, the IEC may also need to differentiate between private
recommends policy-makers to consider seriously consumer-owned storage and storage directly
the further development of conventional storage, connected to the regulated grid.
such as pumped hydroelectricity, notwithstanding
the difficulties of siting and construction.
Recommendation 5.5.5 – Public policy for
and investment in storage research
Recommendation 5.5.2 – Long-term storage,
on the order of months Several areas are described in the IEC’s study
where concentrated research and development
The IEC’s study has shown that many governments’ are needed. The IEC recommends governments
current plans for how electricity will be generated and public authorities with a role in research to
and managed in the future cannot be implemented adjust their research policies and investments to
without long-term storage with capacities in the the desired targets for storage development.
multi-TWh range. It therefore recommends policy-
makers, whose actions are essential to the creation
Recommendation 5.5.6 – Potential barriers
of long-term, very-large-capacity storage, to work to the introduction of microgrids
actively on the public aspects, and to create
the incentives to encourage private actors to play Some existing regulatory regimes hinder the
their part. introduction or operation of microgrids or their
storage components. The IEC recommends these
Recommendation 5.5.3 – Cooperation to be revised, since microgrids will be essential
between energy sectors; coherent to future electricity distribution and should be
regulations encouraged.

Hydrogen and synthetic natural gas added to

Recommendation 5.5.7 – Regulations for the
natural gas are likely to be essential elements safety of new storage technologies
of future electric grids because of their energy
storage duration and capacity. The IEC therefore The IEC expects to keep pace, as in other
recommends regulators to achieve the conditions areas in the past, with the need for international
for all necessary cooperation between the energy consensus standards for the safety of new

68
Conclusions and recommendations

storage technologies. It recommends regulators to are relatively new technologies; improvements

anticipate the requirement to guarantee this safety, particularly in reliability and cost are needed. In
and to contribute to shaping suitable International addition, in order to use existing gas supply and
Standards upon which harmonized regulations distribution networks, technical and procurement
may be based. issues will arise in infrastructure, system operation
and safety. The IEC recommends the electric power
Recommendation 5.5.8 – Environmental sector, the gas sector and research laboratories to
regulations for new storage technologies pursue collaborative research and development in
these areas.
New storage technologies may present new
challenges in protecting the natural and human
Recommendation 5.6.4 – Development of
environment, challenges involving the materials,
versatile storage management systems
conditions and land use required to implement
them. The IEC recommends regulators to help The IEC recommends industry to develop storage
ensure that standards are in place to allow an management systems which will allow use of
internationally agreed technical basis for any a single storage system for not just one but
new regulations, so that unnecessary differences many of the applications described in the IEC
among countries and regions may be avoided. study. Controllers and management systems
are required which function independently of the
types of the batteries being controlled 11. Also, the
5.6 Recommendations addressed control technology should function even when
to research institutions and the applications belong to different actors (grid
companies carrying out R&D operator, end-use supplier, consumer).

Recommendation 5.6.1 – R&D targeted to

Recommendation 5.6.5 – Development of
low-cost materials and manufacturing
local storage for grid use
The IEC recommends targeting research and
The IEC recommends industry and utilities to
development to EES technologies with a potential
develop the technology to use storage rationally
for low raw-material cost and low-cost mass
and efficiently for both local purposes and grid
production techniques.
purposes 12, allowing many dispersed storage
installations to be used as a single, large facility.
Recommendation 5.6.2 – Research on
renewables’ interactions with storage
Recommendation 5.6.6 – Development of
Since the specifications and volume of the storage vehicle-to-grid and vehicle-to-home
needed are largely influenced by renewable
Since electric vehicle batteries are a potential
energies, the IEC recommends further study of
source of storage for grid regulation and electricity
the influence of renewable energies on the power
use outside the vehicle, the IEC recommends
system and the functions that storage should fulfil
research and development of vehicle-to-grid and
in consequence.
vehicle-to-home technologies.

Recommendation 5.6.3 – R&D on hydrogen

and synthetic natural gas used for EES
11
See also Rec. 5.7.4 which mentions standardization of
Storage and use of hydrogen, and generation and control for batteries with different technologies.
use of synthetic natural gas for storing electricity, 12
E.g. “Battery SCADA” – see section 3.3.4.

69
Conclusions and recommendations

Recommendation 5.6.7 – Architecture using each specific technology (type of product)

for a specific application. In addition to data on
A precondition to many of the standards
storage technology behaviour and characteristics
recommended in the IEC study is a robust
(speed, power, energy), it will probably also need to
architecture and management/control scheme
contain information on full lifecycle cost, disposal
for storage, which today is not available. The
cost, regulatory considerations, and environmental
IEC recommends laboratories and industry to
advantages and disadvantages.
collaborate with the IEC to develop rapidly an
architecture and management scheme, to serve
Recommendation 5.7.4 – Interface, control
as the basis for standards.
and data element standards

Several elements of the IEC study show a pressing

5.7 Recommendations addressed need for the control and interconnection of EES
to the IEC and its committees installations: small-scale storage in microgrids
and its connection to the grid, integration of
Recommendation 5.7.1 – Cooperation storage systems with different technologies into
needed for hydrogen and SNG standards a single virtual store, systems used jointly by
The MSB recommends the IEC to work out different organizations (generation plant owner,
future standardization solutions in the domain of grid operator, electricity seller) and for different
hydrogen and synthetic natural gas (SNG) storage applications, etc. Insofar as the relevant standards
in close collaboration with ISO and with industries, do not yet exist, the MSB therefore recommends
such as hydrogen, natural gas and petroleum, with the IEC to standardize rapidly the interfaces
which it has historically had few contacts. between storage and other grid elements,
protocols for data exchange and control rules, and
Recommendation 5.7.2 – Architecture and the data elements for the input, output and control
structure of EES systems information supplied by or to storage systems.

The IEC study shows that a thorough, shared com-

Recommendation 5.7.5 – Standards for
prehension of the roles and functions of storage systems to relieve transmission congestion
in all grid-related circumstances is currently not
available. The MSB therefore recommends the The introduction of large quantities of renewable
IEC to develop an EES architecture and a funda- energies will cause transmission system conges-
mental standard on the structure of EES systems, tion, to which storage can be a solution. Some of
upon which all the other standards needed may the resulting integrated systems, for example a hy-
be based. brid system consisting of storage combined with a
wind farm, will require standards in order to func-
Recommendation 5.7.3 – Users’ guide on tion correctly. The MSB recommends the SMB to
planning and installing storage initiate the standards needed.

One of the determining factors in successful rollout

Recommendation 5.7.6 – Standards for unit
of storage solutions will be the players’ level of size and other factors affecting costs
understanding of the cost and functionality of the
different technologies. The MSB recommends Reducing lifetime costs of storage requires, among
the IEC to develop a users’ guide containing many other things, a range of standards, such as
suggested criteria to apply when planning and standardized EES unit sizes and technical features

70
Conclusions and recommendations

to allow mass production of associated equipment.

The MSB therefore recommends the SMB to
launch such projects.

Recommendation 5.7.7 – Safety of new

storage technologies

The rapid growth and the new technologies

involved in electrical energy storage in the near
future, as well as their installation by consumers,
will impose particular requirements for safety. At
the same time, society and governments will need
assurance of safety before the much-needed
systems can be deployed. The MSB therefore
recommends the SMB to set in motion rapidly the
development of storage safety standards.

Recommendation 5.7.8 – Compatibility of

EES with the environment

The scale, the impact and the materials of EES all

represent potential challenges to the environment,
especially when new technologies are involved.
Without International Standards in place the
regulatory requirements may be different in
different regions, which would be an unnecessary
burden on manufacturers and owners. The MSB
consequently recommends that standards for EES
compatible with the environment be developed as
soon as possible.

71
Annex A
Technical overview of electrical energy storage
technologies

Table A-1 | Overview technical data for EES (Fraunhofer)

Energy
Battery Nominal Capacity per Response Energy Density Power
Density
Technology Voltage [V] cell [Ah] Time [Wh/l] Density W/l
[Wh/kg]

PHS - - min 0.2 – 2 0.2 – 2 0.1 – 0.2

CAES - - min - 2–6 0.2 – 0.6

Flywheel - 0.7 – 1.7 MW < sec 5 – 30 20 – 80 5 000

Lead acid 2.0 1 – 4 000 < sec 30 – 45 50 – 80 90 – 700

NiCd Vented 2 – 1 300 15 – 40 15 – 80 75 – 700

1.2 < sec
sealed 0.05 – 25 30 – 45 80 – 110 (vented)

NiMH sealed 1.2 0.05 – 110 < sec 40 – 80 80 – 200 500 – 3 000
1 300 –
Li-ion 3.7 0.05 – 100 < sec 60 – 200 200 – 400
10 000
Zinc air 1.0 1 – 100 < sec 130 – 200 130 – 200 50 – 100

NaS 2.1 4 – 30 < sec 100 – 250 150 – 300 120 – 160

NaNiCl 2.6 38 < sec 100 – 200 150 – 200 250 – 270
VRFB 1.6 - sec 15 – 50 20 – 70 0.5 – 2

HFB 1.8 - sec 75 – 85 65 1 – 25

Hydrogen
0.2 – 2
central - - sec – min 33 330 600 (200 bar)
2.0 – 20
decentral
SNG - - min 10 000 1 800 (200 bar) 0.2 – 2
40 000 –
DLC 2.5 0.1 – 1 500 F < sec 1 – 15 10 – 20
120 000
SMES - - < sec - 6 2 600

*) insufficient experience in applications

72
Technical overview of electrical energy storage technologies

Typical Energy-
Lifetime Typ. Cycle
Discharge Efficiency Typical applications
[a] Lifetime [cycles]
time ηWh [%]

Time shifting, Power quality,

hours 70 – 80 > 50 > 15 000
Emergency supply

hours 41 – 75 > 25 > 10 000 Time shifting

seconds 80 – 90 15 – 20 2*104 – 107 Power quality

Off-Grid, Emergency supply,

hours 75 – 90 3 – 15 250 – 1 500
Time shifting, Power quality

60 – 80 5 – 20 1 500 – 3 000 Off-Grid, Emergency supply,

hours
60 – 70 5 – 10 500 – 800 Time shifting, Power quality

hours 65 – 75 5 – 10 600 – 1 200 Electric vehicle

Power Quality, Network efficiency,
hours 85 – 98 5 – 15 500 – 104
Off-Grid, Time shifting, Electric vehicle
hours 50 – 70 >1 > 1 000 Off-Grid, Electric Vehicle
2 500 –
hours 70 – 85 10 – 15 Time shifting, Network efficiency, Off-Grid
4 500
hours 80 – 90 10 – 15 ~ 1 000 Time shifting, Electric vehicles
hours 60 – 75 5 – 20 > 10 000 Time shifting, Network efficiency, Off-Grid
1 000 –
hours 65 – 75 5 – 10 Time shifting, Network efficiency, Off-Grid
3 650

hours – weeks 34 – 44 10 – 30 103 – 104 Time Shifting

hours – weeks 30 – 38 10 – 30 103 – 104 Time Shifting

seconds 85 – 98 4 – 12 104 – 105 Power Quality, Effective Connection

seconds 75 – 80 *) *) Time Shifting, Power Quality

73
Annex B
EES in Smart Microgrids

Two examples of Smart Microgrid scalable

architectures for EES applications are given. The
first is for a factory (Figure B-1). Panasonic Group
(Sanyo) has developed a Smart Microgrid with a
large-scale storage battery system using lithium
ion batteries at the Kasai factory in Japan. The
system was installed in October 2010. The system
charges the batteries with late-night electricity
and surplus solar electricity and uses it during the
day. The EES system has more than 1 000 battery
boxes, each box consisting of 31 218 650cell
batteries. Therefore, the system consists of
more than 300 000 18 650cells. With the battery
management system, the whole EES can be used
as if it were just one battery. The capacity of the
EES is approximately 1 500 kWh; the PV system
can distribute 174060 kW DC power. The system
can cut off power over 15 % at peak time, through
total energy management by controllers.

The other example is a Smart Microgrid system

(EES application) for a convenience store, a next-
generation store in Japan (Figure B-2). Even at
a time of electrical outage caused by a disaster,
the system can support the point-of-sale (POS)
system, LED lighting and other functions which are
critical for the business, with renewable energy 24
hours a day, every day. The system is located in
Kyoto, and started operation in December 2010. It
uses lithium ion batteries and 10 kW PV.

74
EES in Smart Microgrids

PCS Batteries
consist of
18650cells

18650Cell

Figure B-1 | The battery management system of a factory (Sanyo, IEC MSB/EES Workshop, 2011)

Battery Management System

Lighting
PV
POS

Outlets

Showcase

Figure B-2 | Next generation convenience store (Sanyo, IEC MSB/EES Workshop, 2011)

75
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