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TILOS Report Summary

Project ID: 646529
Funded under: H2020-EU.3.3.

Periodic Reporting for period 1 - TILOS (Technology Innovation for the Local Scale, Optimum Integration of Battery Energy Storage)

Reporting period: 2015-02-01 to 2016-07-31

Summary of the context and overall objectives of the project

TILOS aims to demonstrate the optimal integration of local scale energy storage in a fully-operated, smart microgrid (Figs 1, 2) on the island of Tilos, located at the SE Aegean Sea, Greece. The island of Tilos is currently supplied with oil-based generated electricity via an undersea cable from the island of Kos. This allows for the investigation of the interplay between an interconnector and energy storage, and of energy trade strategies between a smart microgrid (Tilos island) and a macrogrid (the electricity system of Kos). In this context, the main objective of TILOS is the development and operation of a prototype battery storage system, based on NaNiCl2 batteries, that will be provided with a smart grid control system and that will cope with the challenge of supporting multiple tasks. These tasks range from microgrid energy management, maximization of RES penetration and grid stability, to export of guaranteed energy and provision of ancillary services to the main grid of Kos. The battery system will support both grid-forming (stand-alone microgrid) and grid-following (microgrid coupled with the main grid) operation and will also prove its interoperability with the rest of microgrid components, including centralized RES, demand side management (DSM), and distributed, residential heat storage in the form of domestic hot water. Furthermore, in an effort to create an island platform that will encourage transfer of technological experience and offer new case studies, TILOS engages the islands of Pellworm, La Graciosa and Corsica. Examination of new case studies will be enabled by the development of an advanced microgrid simulating tool, i.e. the Extended Microgrid Simulator, able to simulate different storage technologies and microgrid configurations (stand-alone, grid-connected and power market-dependent systems). Finally, by addressing social issues through public engagement and by developing novel business models and policy instruments, TILOS puts emphasis on the market diffusion of the developed battery storage system and of the integrated energy solution implemented on the island of Tilos.

Problem of Interest and Challenges
According to the Amsterdam Treaty, declaration No. 30, "…insular regions suffer from structural handicaps linked to their island status, the permanence of which impairs their economic and social development". In this context, it is important to note that even today many of the European islands suffer from the so called insularity, determining a state of remoteness and isolation that features destinations non-attractive for permanent living and business development, and implies considerable energy supply problems and reliance on oil-based power generation. On the other hand, both diversity between different island regions and their worldwide distribution, makes them excellent test-beds and vehicles for the validation and further diffusion of novel energy solutions that can effectively replace conventional methods of power generation, such as the system being developed under TILOS project.

To this end, one of the ground-breaking objectives of TILOS project is to address energy supply problems of island regions, through the implementation of optimally integrated, local scale, RES-based energy storage systems that can also confront collaboration with grid interconnectors. More specifically, based on the innovative setup of the TILOS configuration, evaluation of different modes of operation (from stand-alone to single-grid approach) will be studied, capturing in this way a variety of cases. Moreover, through the delivery of a scalable, replicable energy solution based on the prototype battery storage system, different size islands will be captured.

In parallel, TILOS seeks to respond to challenges concerning the advancement of energy storage, encompassing technical, market, and social-regulatory aspects, which call for the consideration of a holistic approach. To this end, TILOS project aspires to consider all of the above aspects, aiming also at the emergence of new applications for energy storage.
• At the technological level, TILOS will challenge the potential of a single battery storage type to support a bundle of services and interact with the rest of components in a smart microgrid energy system. Furthermore, it will designate the interoperability between centralized and distributed energy storage employing aspects of DSM. As a result, it will demonstrate the actual abilities and diverse role of such systems.
• At the market level, the study of different microgrid operation modes will provide useful information on the value that can be assigned to energy storage services in a different each time operational context, i.e. in stand-alone mode or interacting with a central grid/market. Use of the Extended Microgrid Simulator software tool will further enrich results in this regard through the investigation of different case studies and the consideration of participation in electricity markets.
• At the social-regulatory level, through the engagement of the local population and the deeper understanding of public perception towards the novel system implemented on Tilos island, TILOS will on the one hand produce recommendations for regulatory and policy support measures and on the other measure public engagement, mainly with regards to distributed heat storage and DSM.

Appreciating the aforementioned advancements, TILOS also anticipates that positive spillover effect will be produced, channeling the potential for new applications to different sectors and capturing also society at large, as following:
• Industrial system environments can be considered as of equivalent complexity to island community level systems that feature different energy streams. Integration of high energy density and scalable battery storage solutions can offer flexibility and diversity to the industrial sector, seeking to both shield itself against rising energy prices, insecurity of supply and emission taxes, and also maximize profits through active participation in electricity markets.
• Diffusion of RES systems in the residential sector (e.g. building-integrated PVs) together with smart-metering and DSM also calls for the introduction of energy storage (electricity and heat) at the individual house and/or community level in order to achieve both maximum exploitation of on-site power generation and provision of guaranteed power to the main grid.
• Utility-scale applications considering both peak-shaving and power quality services could also be confronted by multi-tasking battery technologies that, owed to their scalability, are not limited to local level applications.

Specific objectives of TILOS, linked also to aspects of the project methodology and innovation capacity, include the following:
• To deliver a prototype battery storage system that can efficiently support stand-alone and grid-connected operation of a microgrid. The specific prototype will comprise the main project deliverable and will be the basis for the TILOS system replication in other island and potentially mainland areas.
• To value the multiple services provided by local scale battery storage, considering also social benefits produced by the system operation, as well as operation in electricity market environments by implementing different operation strategies for the Tilos macrogrid.
• To build novel business models for local scale battery storage, considering also the option of private-public partnerships and the active engagement of consumers at the community level.
• To illustrate the complementary character and optimal interplay between local scale energy storage and grid interconnectors in order to achieve efficient exploitation of RES power generation.
• To demonstrate the ability to integrate DSM for electricity storage in the required product (e.g. domestic hot water storage) and improve operation of a smart microgrid while reducing storage costs.
• To demonstrate the real-life operation of a smart microgrid comprising of centralized RES and battery energy storage, distributed, electricity grid heat storage, smart metering and DSM, RES production and demand forecasting, centralized operation and remote control through SCADA.
• To develop an advanced simulation software tool, i.e. the Extended Microgrid Simulator, for the examination of different microgrid case studies, considering among others participation of microgrids in power markets."

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

"A brief summary of the work performed since the beginning of the project along with the most significant results achieved are given in the following, first at project and then at WP level.

Work Performed at Project Level
Arguably, the most significant accomplishment of TILOS so far is the issuance of the production license for the hybrid, RES-battery power station of Tilos island, the first of its kind in Greece and among very few in Europe. The specific decision is believed to have signalled the beginning of a new era for the promotion of battery storage in both Greek and European island regions, with the licensed power station comprising of 800kW of wind power, 160kW of PV power and a battery storage system of 2.8MWh / 800kW.

The procedure for the issuance of the production license from the Greek Regulatory Authority for Energy (RAE) started in December 2014 and was completed after one and a half year, on May 13, 2016, with the support of Eunice, TEIP and HEDNO. In the meantime, and owed to the fact that the introduction of the specific battery-based energy scheme challenged the Greek regulatory framework in many ways, the necessary energy studies and related documentation were under constant development and revision, being evaluated by RAE and HEDNO on a regular basis. This caused considerable deviations from the original timeline and was the main reason for requesting the 1st project amendment, coming to also address the withdrawal of Open Energi and its replacement with Eurosol P&M GmbH. The 1st project amendment started on the 4th of August 2015 and was completed on the 20th of November 2015 (total duration of ~3.5 months).

Following the successful completion of the 1st project amendment, two more critical issues had to be confronted in the coming months; the withdrawal of SHNG and linked third party E.ON, owing to the split of E.ON and the lack of human resources, and the withdrawal of SMA, owing to its constrained capacity to deliver the appropriate grid-forming battery inverter for the TILOS project in time.

As a result, the 2nd project amendment had to be triggered, five months after completion of the first one. Both issues were addressed effectively, with the scope of work of SHNG and E.ON allocated internally to project partners, and with effort of SMA covered by Eunice and Younicos, also partly subcontracted to Indrivetec A.G. (IDT), i.e. a Swiss battery inverter manufacturer. The 2nd project amendment started on the 5th of May 2016, almost coinciding with the issuance of the system production license, and was completed on the 27th of June 2016 (total duration of ~2 months).

Currently, the first stage of the TILOS system commissioning is about to start on the island of Tilos, in mid-September 2016, encompassing installation of the SCADA control room, establishment of communication between the former and the existing measuring equipment (weather stations and grid load meters) and test-installation of the smart-meter & DSM prototype in selected households of the island. In the meantime, development of the integrated battery system (FIAMM battery and IDT grid-forming inverter) is ongoing, with the final prototype planned for testing in late November 2016, at the test-facilities of Younicos in Berlin.

The second system commissioning stage, planned to start in the first months of 2017, encompasses completion of the smart meter and DSM devices' rollout and integration with the SCADA installation, followed by the commissioning and installation of the two integrated battery systems and the PV park. Last but not least, the wind turbine of 800kW is planned to be installed and integrated with the rest of the TILOS system components by early summer 2017 and before the end of the 2nd reporting period (M30), enabling in this way the integrated system operation and the implementation of the different energy management strategies with the beginning of the 3rd reporting period.

To reach the point of operation for the integrated TILOS system, other parallel work streams are ongoing or have already been completed, these featuring the necessary energy and grid studies (WP2), the development of RES simulation models (WP3), the design of DSM strategies (WP4), the development of the integrated forecasting system and algorithms (WP6), the development of the Energy Management System (EMS) and algorithms (WP7) and the training and engagement of the local population with regards to smart metering and DSM (WP8).

All of these parallel work streams progress in accordance with the project timeline, with those not yet complete expected to be either finalized, or be close to finalization, by the end of the project 2nd reporting period. On top of that, dissemination actions under WP12 have been constant, increasing the visibility of TILOS through participation in conferences, the TILOS web-page, press releases, articles, interviews, etc, and most prominently through the representation of TILOS in the historic United Nations Climate Change Conference, COP21, and its participation in the Bridge initiative (collaboration between H2020 LCE projects) where TILOS currently chairs two out of four WGs (Regulation and Customer Engagement).

Work Performed at WP Level

WP1: General Coordination
General coordination tasks including project management, project meetings, project activities, EC communication, external communication, the Project Coordination Committee (PCC), the Advisory Board (AB) and the management of the knowledge portfolio and research data, have all been performed in an effective manner. Among the most significant outputs are:
• The organization of four project meetings, including the kick-off meeting, held in February 2015 (Athens, GR), in September 2015 (Tilos island, GR), in February 2016 (Gran Canaria island, ES) and in June 2016 (Chambery, FR) (Fig. 3).
• The successful management and completion of two project amendments (total duration of 5.5 months).
• The creation of the PCC and the AB.
• The submission of all WP1 deliverables and milestones for the 1st reporting period.

WP2: Final System Layout
The second WP ended together with the 1st reporting period, successfully dealing with all three tasks, including the completion of a preliminary energy study, the completion of a comprehensive grid study and the determination of the final system layout. Among the most significant outputs are:
• The RES share that can be reached for the entire Tilos island ranges between 62% and 85%, depending on the levels of exploitation of RES exports.
• The RES share that can be reached for the Livadia area ranges between 82% and 125%, depending again on the levels of exploitation of RES exports.
• The TILOS hybrid system is capable of autonomously operating a high power RES penetration island system within acceptable -by international standards- limits, while additionally increasing the reliability of the Tilos network.
• The TILOS hybrid station can successfully utilize high amounts of locally available RES power while drastically increasing the security of supply and the reliability of the Tilos power system.
• The final system layout has been determined in detail, at component level, with the introduction of an advanced battery inverter that enables grid-forming operation for Tilos. At the same time, due to the RES potential quality and local grid limitations issues, both the microgrid boundaries and the original installation site for the majority of components had to be revised.
• The submission of all WP2 deliverables and milestones for the 1st reporting period.

WP3: SCADA Implementation and RES Monitoring
The third WP has covered significant part of its overall duration in the context of the 1st reporting period, presenting progress in all three tasks, including SCADA implementation, RES monitoring and RES production simulation. Among the most significant outputs are:
• The installation of fully-equipped weather stations on the island of Tilos and the detailed monitoring of weather data since March 2015 (PV site) and since July 2015 (wind turbine site) (Fig. 4).
• The determination of all SCADA components and the development of the SCADA control room including auxiliary and communication equipment (to be installed onsite in mid-September 2016).
• The development of preliminary RES simulation models, to be further advanced on the basis of actual RES production data.
• The submission of all WP3 deliverables for the 1st reporting period.

WP4: Demand Side Management
The fourth WP has covered significant part of its overall duration in the context of the 1st reporting period, presenting progress in all four tasks, including DSM panels and energy monitors, load demand monitoring, integration of DSM loads and DSM strategies. Among the most significant outputs, one can include:
• Successful replacement of Open Energi that withdrew from the project, with Eurosol P&M GmbH.
• Installation of two grid load meters (M1 and M2), monitoring the local electricity demand of the entire island and of the Livadia area respectively, since April 2015 (Fig. 5).
• Development and lab-testing of the smart meter-DSM prototype (Fig. 6).
• Completion, in collaboration with WP8, of a campaign for granting consent with regards to the installation of smart meter & DSM devices in local households. High acceptance levels achieved, reaching ~95% (sample of 128 questionnaires).
• Mapping of the Tilos demand side special characteristics and installation requirements, along with preliminary identification of DSM load types and classes.
• Preliminary design of DSM strategies based on the identification of DSM load classes and system black-start requirements.

WP5: Battery Storage System Development
The fifth WP has covered the biggest part of its overall duration in the context of the 1st reporting period, presenting considerable progress in all ongoing tasks, including battery system specification, optimized thermal management of battery packs, precise indicators for available energy, global battery model, optimized multipack management, inverter prototype and adaption, and battery-life and maintenance/fault prognostic tools. Among the most significant outputs are:
• Finalization and detailed description of the FIAMM battery specification for TILOS.
• Full-testing of the NaNiCl2 battery pack and multi-pack (Fig. 7), mapping the FIAMM battery performance.
• Construction of the first battery container (Fig. 8), equipped with batteries, bus-bar and electrical distribution.
• The development of a state of energy algorithm.
• The development of a global battery model (battery, inverter and transformer) to be used in the EMS.
• The development of an optimization multipack battery management algorithm.
• The introduction of an advanced grid-forming inverter in order to develop the battery system prototype.
• The submission of all WP5 deliverables for the 1st reporting period.

WP6: Forecasting Models
The sixth WP has covered significant part of its overall duration in the context of the 1st reporting period, presenting progress in all six tasks, including state of the art forecasting tools and methods, data collection, demand, solar and wind forecasting models and assessment of their general performance. Among the most significant outputs are:
• An internal study for the state of the art of forecasting tools and methods close to completion.
• Development of preliminary forecasting algorithms for wind speed, load demand and solar radiation, using more than one models and methodologies so as to produce an optimum forecasting tool.
• Development of the Forecasting Integration Service platform (FIS) (Fig. 9), which will communicate with the TILOS SCADA to collect data for the training of the forecasting models and to deliver forecasting results, useful for the EMS and DSM algorithms. At the same time, the FIS will also receive NWP data from external sources, also used for the training of forecasting models. With the help of the FIS, different forecasting models will be evaluated simultaneously and the opportunity to build more efficient ensemble models will be provided.
• Development of a data management tool incorporated in the FIS, necessary for the coordination of the different input data reaching and leaving the FIS. The respective database is available at: (Fig. 9).
• Four paper conferences accepted for presentation on the development of wind and load forecasting models and two journal papers submitted for publication.

WP7: Microgrid Energy Management System & Simulator
The seventh WP has covered a small part of its overall duration in the context of the 1st reporting period, presenting preliminary progress in all five tasks, including the Microgrid Simulator, development and validation of MEMS algorithms, Pellworm testing, implementation and test of the MEMS and the Extended Microgrid Simulator. Among the most significant outputs, one can include:
• Development of a preliminary Microgrid Simulator capturing the main system components, integrating also an advanced NaNiCl2 model comprising a thermo-electrical model and an aging model considering calendar aging and cyclic aging of the batteries.
• Development of basic EMS architecture, of the simulation testbed for the testing of the microgrid EMS algorithms and of algorithms for the stand-alone operation of the island (with an aim to maximize the RES share) and for the TILOS hybrid power station operation under the Greek regulatory framework in force (Figs 10,11).
• Processing of a first dataset from Pellworm island, providing operation data on Li-ion and VRB batteries.
• Preliminary design of the Extended Microgrid Simulator and development of draft simulation algorithms for different energy storage technologies.

WP8: Population Engagement
The eighth WP has covered a small part of its overall duration in the context of the 1st reporting period, presenting however significant progress in the two ongoing tasks, out of four in total, with these including smart metering and DSM training and temporal studies. Among the most significant outputs are:
• Completion of a first round of training seminars for the local population of Tilos with regards to issues of energy saving, smart metering and DSM aspects, including three visits on the island of Tilos (Fig. 12).
• Completion of a first round of questionnaires for the local population of Tilos with regards to energy awareness and the determination of the base-case scenario for the consumers of Tilos (Fig. 13).
• Completion, in collaboration with WP4, of a campaign for granting consent with regards to the installation of smart-meters and DSM devices in local households. High acceptance levels achieved, reaching ~95% (sample of 128 questionnaires).
• In addition, and as already seen, TILOS also chairs -through the beneficiary UEA- the "Customer Engagement" WG of Bridge, enabling in this way the further and deeper elaboration of population engagement issues for the local habitants of Tilos.
• The submission of all WP8 deliverables for the 1st reporting period.

WP12: Dissemination
The twelfth WP has covered a small part of its overall duration in the context of the 1st reporting period, presenting however considerable progress in all ongoing tasks. These include project web-page & social media, workshops and project conference, cooperation with consortia from LCE6/7/8/9/10, networking with stakeholders, publications and standardization committee. Among the most significant outputs (Fig.14), are:
• TILOS has been among a few flagship projects for the EU Representation in COP21 and the project poster decorated the EU Pavilion which was visited by thousands of attendees.
• The project web-page was launched in February 2015, regularly updated with ne
ws and activities ever since.
• TILOS project has been listed in the DOE Global Energy Storage Database, featuring 1588 projects worldwide, 41.000 visitors, 161 countries, 635.000 page views (
• TILOS accounts have been created in Facebook, LinkedIn, Twitter, Instagram and Flickr, increasing the project visibility by reaching out to the wider audience.
• The first TILOS workshop was held in Tilos, attracting representatives of the local authorities and habitants.
• TILOS participates in the Bridge initiative for LCE H2020 projects, chairing two out of four WGs, i.e. the Regulation and the Customer Engagement WGs.
• Three TILOS newsletters have been released, reaching out to numerous stakeholders.
• Several conference papers, presentations, press releases, articles in magazines, newspapers, have been prepared from members of the TILOS team during the 1st reporting period (see also Part A2 for analytics).
• The submission of all WP12 deliverables for the 1st reporting period.

WP13: RES Installation & Grid Connection
The thirteenth WP, not funded by the EU, has covered significant part of its overall duration in the context of the 1st reporting period, presenting considerable progress in all tasks. These include liaison with local authorities and population of Tilos, determination of the RES power station layout, completion of the RES installation study, successful completion of licensing procedures, supply of the RES and necessary BOP components and RES-installation and grid connection. Among the most significant outputs are:
• The issuance of the first ever production license for a battery-based hybrid power station in Greece, and among very few in Europe (Fig. 15).
• The definition of the two installation sites for the main supply side components of the TILOS system, encountering the issue of poor wind potential for the initial wind turbine site and enabling smooth recovery of the Tilos grid after a fault in the supply line of Kos (black start requirements).
• The completion of environmental impact studies, including a special ornithological study to safeguard that the installation of the wind turbine will not affect the local rare Eagle species (Fig. 15).
• The definition of the final RES and BOP components, informing also WP2."

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Aiming to deliver a novel, integrated energy solution, i.e. the TILOS system, TILOS project addresses different innovation aspects and goes beyond the state of the art at several levels. To this end, during the 1st reporting period, significant progress was achieved with regards to the development of two prototypes, i.e. the integrated battery-inverter system and the smart meter & DSM device, both featuring innovative characteristics and comprising key elements of the integrated TILOS solution.

Furthermore, according to the energy and grid studies, TILOS system is expected to achieve high RES shares, in the order of 70% for the entire island of Tilos (equivalent to ~1.7kt of CO2 emission savings otherwise produced by the oil-based power station of Kos island), which is beyond the state of art, while also increasing the reliability of the Tilos network and offering ancillary services to the host grid of Kos and Kalymnos.

This is in line with the goal to develop a multifunctional, local-scale battery system with value-adding attributes and builds upon the development of the battery system prototype mentioned earlier.

In parallel, the design and execution of training seminars for the local population has gradually achieved a high degree of engagement together with mapping of the local demand side and identification of DSM loads, critical for the realization of the overall project and for the implementation of DSM. Adoption of this interactive process with the local population of Tilos introduces societal implications and challenges the norms of communication with consumers. In doing so, it aspires to accomplish high levels of willingness to participate in DSM, making local consumers important actors of the system operation. In the same context, it is important to note that this interactive communication process was also a source of information for the design of the smart-meter & DSM prototype, considering among other design parameters, the requirements and special needs of the local consumers.

This is in line with the goal to evolve microgrid-level DSM by bringing innovation both from the DSM device and the DSM strategies point of view.

Next, issuance of the first ever production license for a battery-based hybrid power station in Greece, in the context of TILOS project, disrupted the local energy market and challenged the regulatory framework in force by introducing the special technological characteristics of battery storage, disregarded at large until that point. Implications of this decision from the Greek Regulatory Authority for Energy (RAE) extend to many different levels, paving also the way for the commercial exploitation and replication of the TILOS system along with the establishment of a new energy model for the currently oil-dependent island regions. At this point it should be mentioned that the Greek islands alone already represent a market potential of ~1GW of fuel generators to be replaced on the basis of TILOS system (this was recently raised during the visit of the German Vice Chancellor S. Gabriel in Athens in July 2016, making special reference to TILOS as the blueprint for similar systems in the rest of Aegean islands:

This is in line with the goal of TILOS to develop an integrated system offer, with certain partners of the consortium already encouraged towards this direction. Furthermore, this is also in line with the aim to overcome the subsidy barrier, i.e. the subsidy scheme applying to all non-interconnected European islands in order to cover the expensive production costs of oil-based power generation, which reflects upon the socio-economic impact of the project.

To this end, after being established as the blueprint for local-scale battery-based hybrid stations, TILOS also influenced the making of the New Development Law of Greece (4399/2016) that offers capital subsidies for local scale energy storage in hybrid power stations of less than 5MW. In this way, promotion of alternative, community-level energy schemes that foster energy storage becomes a legislated reality, challenging the status quo of oil-based power generation. This is arguably the strongest message of TILOS project during the 1st reporting period, reaching out to various stakeholders and the wider society. Before that, TILOS gave another strong message through its participation in the historic United Nations Climate Change Conference, COP21 that was held in Paris. It did so by standing as an exemplary small island case that evidently fights against climate change and its consequences for island regions worldwide.

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