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Dynamic Energy System Services to Achieve Renewable Targets

Periodic Reporting for period 1 - DESSART (Dynamic Energy System Services to Achieve Renewable Targets)

Reporting period: 2015-03-01 to 2015-08-31

Schwungrad Energie Ltd (SE) having completed this DESSART feasibility study and pilot, will progress with a scale up hybridisation project of the Hybrid flywheel-battery technology. SE received substantial support in the form of national government grant aid and capital provision from technology suppliers and local enterprises. The project was officially launched at the Sustainable Energy Authority of Ireland “Energy Show” in Dublin, Ireland in March 2015 and was attended by government ministers and key industry stakeholders.

The market opportunity available for system services (SS) in Ireland is expected to be regulated to realise €300m per year by 2017 coinciding with implementation of EirGrids, the Irish Transmission System Operator (TSO) new DS3 (Delivering a Secure Sustainable electricity System) market.

This feasibility study provides clear evidence to proceed with a scale up Hybrid flywheel-battery demonstration project to validate commercial performance on the Irish national grid. Demonstration on the live transmission system will position SE strongly to bid for long term SS contracts in 2017, realising SEs first mover advantage. The Hybrid flywheel-battery pilot is one of EirGrids, demonstration projects which indicates its value to the grid.

SE staff are equipped with a knowledge and skillset gained through extensive industrial experience in the power, finance and environmental and planning sectors. The project is supported and promoted by all SE members as it is a means to achieve the company goal of delivering energy-less SS, ensuring grid stability and reliability to accommodate an increased penetration of Electricity from Renewable Energy Sources (RES-E).

The Hybrid flywheel-battery is capable of effectively delivering the necessary SS to stabilise the grid. It is a disruptive innovation as it can deliver SS without having to generate electricity, as is the current state with conventional generators. This is the primary differentiator for SEs solution compared to the conventional approach using spinning conventional fossil fuelled generators.
The market for SS is the sole component of the power market which is predicted to expand, as other components: capacity payments and energy payments are reduced. Increased RES-E penetration is the major factor driving this market shift. Renewables are zero marginal cost generators (no associated fuel costs), thus reducing the energy payments and its variable proportion. RES-E is non-synchronous with the electrical grid and therefore requires additional services to balance and stabilize the output.
Suitability of hybrid powered flywheels
1. The Global Energy Storage Database compiled by United States Department of Energy was analysed to identify suitable flywheel manufacturers. As the database is not exhaustive SE expanded the search by reaching out to other manufacturers known to the company.
2. Flywheels which met the basic criteria were then further analysed. The specifications were compared to the defined requirements for the provision of various SS under the DS3 programme.
3. A desktop study was conducted to identify typical technical and regulatory challenges in Ireland and UK. This assisted in the development of an assessment methodology which can be applied to new markets of interest.

Financial modelling
1. A financial model was developed by the SE team, based on SS rates indicated by EirGrid and the capabilities of the Hybrid flywheel-battery.
2. The international demand for SS was investigated using electricity generation and consumption, recorded and forecast data from: Eurostat, International Energy Agency, CIA World Fact book and World Bank database. The market size relative to Ireland was determined for each country and a factor based on grid type (island, interconnection, RES-E penetration, etc.) applied to estimate SS demand.
The detailed financial model can then be applied to particular markets of interest and modified using appropriate market design and compensation rates.
SE are currently investigating the UK market and gaining familiarity with the required services and methods of compensation.

Development of the business model
1. SE unique business case was quantified.
2. Partnership options were investigated and executed.
3. Current technology and their capabilities were explored.
4. A means to protect IP from the hybridisation project was investigated.
5. Project and company financing options were examined.

Socio-economic analysis
1. The benefit of the hybrid flywheel-battery demonstration project and the subsequent integration of a commercial System Service Facility on the site has been modelled by the SE team applying the environmental impact assessment methodology, considering all phases of existence of plant, considering the risks for human, flora, fauna, soil, water, air, climatic factors, landscape, material assets and cultural heritage (or any interaction of the foregoing).
The benefit of integrating the hybrid flywheel into the grid to the end user is a complex model, necessitating assumptions.
The system has potential to benefit:
a) system operator – more predictable dispatch of generation portfolio
b) government – realising RES-E and decarbonisation targets
c) market – depressing electricity costs resulting from a) and b)
2. The technology’s potential to reduce emissions was modelled using the current system data as a baseline to compare scenarios with varying capacities of hybrid flywheel integrated.

Planning further scale-up of the business
1. The application opportunities for the hybrid flywheel have been investigated.
2. A company growth path was considered
3. An analysis of competitor activity was conducted
4. International opportunities for the Hybrid flywheel-battery were explored

Detailed plan for trial facility and the first commercial plant
1. The resources required for the mid-sized Hybrid flywheel-battery plant are expected to be a scaled up version of what was required for the pilot.
2. A tendering process was carried out for detailed electrical engineering design and the successful contractors provided drawings which are filed by SE.
3. A number of flywheel manufacturers were investigated and meetings held with them. A company was selected and an agreement was negotiated and signed.
SE visited a range of battery manufacturers as part of the feasibility study, the technologies were analysed by experts at the University of Limerick – Department of Physics and Energy.
4. The Goals have been realistic defined, the target potential customers have been selected a
The Hybrid flywheel-battery will enable SE to develop a sustainable revenue if successful in its bid for SS contracts in the new I-SEM/DS3 market. The combination of a high capability flywheel supported by a low capital cost battery is expected to result in a competitive bid price for the delivery of energy-less SS in comparison to alternative solutions.
The development of a scale-up demonstrator and subsequently the roll out of commercial plants will result in significant employment opportunities within SE and indirectly for contractors. It also has a socio economic benefit to governments and consumers resulting from reduced electricity prices and the facilitation of RES-E integration.

The Hybrid flywheel-battery addresses many of the H2020 Societal Challenges regarding “Secure, Clean and Efficient Energy” with a particular emphasis on:
• “Reducing energy consumption and carbon footprint by smart and sustainable use”
The Hybrid flywheel-battery ability to provide energy-less SS mitigates the need to operate conventional plant for the purpose of providing SS. The requirement for spinning reserve where plant operate below optimum output is also removed. This will increase the efficiency of conventional plant, and reduce emissions.
• “Low-cost, low-carbon electricity supply”
The Hybrid flywheel-battery enables an increased penetration of RES-E, these are zero marginal cost generators which use an indigenous and sustainable fuel source.
• “New knowledge and technologies”
The Hybridisation project will see the implementation of two established technologies flywheel and battery to a new application. The new application will displace the less efficient and effective means for providing SS, conventional plant.
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