GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET

BLOOMBERG NEW ENERGY FINANCE SUMMIT 2011

SHU SUN
4 APRIL 2011

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GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET, 4 APRIL 2011

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4 APRIL 2011 2 .ENERGY STORAGE: TECHNOLOGIES AND APPLICATIONS ENERGY STORAGE APPLICATIONS Stationary storage Grid Industrial Distributed Transport Mobile storage Consumer ENERGY STORAGE TECHNOLOGIES Pumped hydro CAES Batteries Flywheels Supercapacitors NaS batteries Flow batteries Li-ion batteries NiMH batteries Pb-A batteries / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.

BENEFITS OF STORAGE IN GRID APPLICATIONS Lifetime benefits of energy storage at different stages of value chain ($/kWh of storage capacity) Price arbitrage 67 80 1. Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET. Source: EPRI. 4 APRIL 2011 3 . with 15-year life-time and a 10% discount rate. 2MWh.152 Markets Spinning reserves Regulation System Transmission Renewable energy integration 104 414 134 157 Def er transmission investment Transmission access charges Def er distribution investment Distribution Voltage support 9 377 66 Retail TOU energy charges End user Power quality and reliability Note: Benefits are modeled using a battery configuration of 1MW.

4 APRIL 2011 4 .500 1.000 750 500 250 0 Sodium sulphur batteries Compressed Lithium-ion Lead-based Flywheels air batteries batteries Flow batteries Nickel cadmium batteries Announced / planning begun Financing secured / under construction Permitted Commissioned Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.250 1.750 1.000 1.ENERGY STORAGE PROJECTS WORLDWIDE (MW) 2.250 2.

1995-2010 (MW) 90 80 70 60 50 40 30 20 10 United Arab Emirates France US Japan 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Note: ‘Future storage capacity’ includes projects under the status of ‘announced / planning begun’. 4 APRIL 2011 5 . ‘financing secured / under construction’ and ‘permitted’. Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.SODIUM SULPHUR BATTERIES 45% of total commissioned storage capacity outside pumped hydro 55% of total future storage capacity outside pumped hydro Series6 Germany Historical annual new NaS installations by location.

200 1.000 1.200 1.000 800 800 600 600 400 400 55% of total future storage capacity outside pumped hydro NGK Insulators the only company producing NaS batteries Series6 Series6 Malaysia Malaysia Mexico Mexico France France Current manufacturing capacity stands at 150 MW/yr 200 200 0 0 Financing secured / Financing secured / under construction under construction Announced / Announced / planning begun planning begun United Arab United Arab Emirates Emirates Japan Japan Potential for future cost reduction questionable Note: ‘Future installations’ include projects under the status of ‘announced / planning begun’. ‘financing secured / under construction’ and ‘permitted’.SODIUM SULPHUR BATTERIES 45% of total commissioned storage capacity outside pumped hydro Future installations by status and location (MW) 1. 4 APRIL 2011 6 . Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.

4 APRIL 2011 7 .COMPRESSED AIR ENERGY STORAGE 41% of total commissioned storage capacity outside pumped hydro CAES technology 37% of total future storage capacity outside pumped hydro Fuel input Efficiency Maturity Technological uncertainty Diabatic Isothermal Adiabatic Yes No No 40-70% 70-90% 70% Mature Developing Developing Note: Future projects include projects under the status of ‘announced / planning begun’. ‘financing secured / under construction’ and ‘permitted’. Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.

4 APRIL 2011 8 .1GW >$1. ‘financing secured / under construction’ and ‘permitted’.3bn ? Secured 8% Financing of future projects questionable Note: Future projects include projects under the status of ‘announced / planning begun’. Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.COMPRESSED AIR ENERGY STORAGE 41% of total commissioned storage capacity outside pumped hydro Future CAES projects 37% of total future storage capacity outside pumped hydro 7 projects 1.

Bloomberg New Energy Finance Source: US Department of Energy. Bloomberg New Energy Finance Note: GRIDS stands for Grid-scale Rampable Intermittent Dispatchable Storage / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.8m Total = $27.zinc manganese oxide 11% SMES 15% Flow batteries 31% Total = $184. 4 APRIL 2011 9 .Liion 20% Battery metal air 16% Flywheel 16% Source: US Department of Energy.DISTRIBUTION OF US DOE FUNDS TO ENERGY STORAGE DOE SMART GRID DEMONSTRATION GRANTS – ENERGY STORAGE Battery Sodium-ion 3% Battery Other 12% Flywheel 15% Battery .Lead carbon 1% DOE ARPA-E GRANTS: GRIDS CAES 3% Fuel cell regenerative 8% CAES 32% Battery .7m Flow batteries 17% Battery .

000 60.200 1.000 120. 4 APRIL 2011 10 .LITHIUM-ION BATTERY PACK COST.000 300.000 800 600 400 200 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 360. 2010–30 Total pack cost ($/kWh) Annual production (MWh) 1. TRACTION BATTERY PRODUCTION.000 180.000 240.000 0 Total size of batteries manufactured per year (MWh) Note: Total pack cost includes the battery management system Total cost of pack ($/kWh) Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET.

200 1.COST OF LITHIUM-ION BATTERIES VS. OTHER STORAGE TECHNOLOGIES System cost ($/kWh) 1.000 800 600 400 200 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Sodium sulphur battery Flow battery Pumped hydro Compressed air Li-ion battery Total cost of pack ($/kWh) Note: System cost includes the cost of power control electronics and other components required to build a complete storage system. Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET. 4 APRIL 2011 11 .

ACTIVITIES OF WORLD’S LARGEST BATTERY COMPANIES Consumer electronics Automotive battery (SLI) Automotive battery (traction) Industrial / back-up Grid-scale storage                                                   12 Source: Bloomberg New Energy Finance / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET. 4 APRIL 2011 .

We do not guarantee its accuracy or completeness and nothing in this document shall be construed to be a representation of such a guarantee. Any opinions expressed reflect the current judgment of the author of the relevant article or features. reproduced. / / / / GRID-SCALE ENERGY STORAGE: STATE OF THE MARKET. The information contained in this publication is derived from carefully selected public sources we believe are reasonable. Bloomberg New Energy Finance does not consider itself to undertake Regulated Activities as defined in Section 22 of the Financial Services and Markets Act 2000 and is not registered with the Financial Services Authority of the UK. 4 APRIL 2011 13 . No portion of this document may be photocopied. scanned into an electronic system or transmitted. and does not necessarily reflect the opinion of Bloomberg New Energy Finance. The opinions presented are subject to change without notice. forwarded or distributed in any way without prior consent of Bloomberg New Energy Finance. Bloomberg New Energy Finance accepts no responsibility for any liability arising from use of this document or its contents.COPYRIGHT AND DISCLAIMER This publication is the copyright of Bloomberg New Energy Finance.

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