Clean Horizon Consulting - Opening global cleantech horizons for business

admin — Tue, 31 Jan 2012 00:41:30 +0000

Understanding ancillary services as a necessary step to develop a European energy storage business case

While it is commonly agreed upon that drivers for energy storage are strong and clearly point to a huge growth of the industry by 2020 and beyond, the path to market still appears unclear, especially for utility-scale storage. However with today’s compensation levels and the evolution of rules, ancillary services represent an interesting early business opportunity for storage in Europe.

Ancillary services are energy and power products managed by the grid operator in order to resolve the imbalances between real time load and generation. In this article, we mostly deal with “energy centric” ancillary services, meaning we do not consider compensations for available capacity in MW. Rather, our focus is on energy in MWh effectively activated (“generated” for upward balancing or “consumed”, for downward balancing); as we are in the field of real time and ancillary services, the decision for “activation” is taken after the gate closure of the intra-day market, usually 1 hour to 15 minutes before real time.

On the figure below, we reported the relative market depth of ancillary services, i.e. the ratio between the activated energy upward/downward and the total energy produced over the year 2010 in 5 Western European countries. The relative ancillary services market depth of each country can be qualitatively explained by the evolution of the national generation portfolio of each country.
In Italy, which has the highest proportion of energy activated both upwards and downwards, renewable energy sources, especially PV, have mushroomed in the past few years and months and are geographically concentrated. This strengthens the already existing congestions between North and South.
Spain and Great Britain rank respectively second and third according to the same metric. The share of wind and solar power, that already composed 18% of the energy generation mix in 2010, can explain the situation in Spain. Great Britain is an island, and thus can only be supported marginally by neighboring countries for grid balancing. This fact can be interpreted as one likely cause for the high level of energy activated for ancillary services.
In the case of Germany, it is likely that the growing penetration of renewables and the nuclear phase out will have a strong influence on the amount of energy effectively activated to provide ancillary services. Consequently, it is likely that the depth of the German ancillary services market will increase from its 2010 value.

This short development shows that Western European ancillary services market constitute a relatively large volume (in MWh) for the early developments of the storage industry to address. This first approach needs to be enhanced by financial regulatory, as well as competitive considerations, in order to build a business case for storage assets.

On the financial side, compensation levels need to be added to this analysis: compensations both for the energy activation mentioned above, and for capacity which is also paid for in most countries, need to be coupled with the volume accessible on the markets to assess their real attractiveness. Compensation levels and structure are different across European countries: the local compensation schemes of each country need to be assessed in order to build appropriate business model for storage assets providing ancillary services. But the markets could evolve with the emergence of cross-border markets: the Association for the Cooperation of European Regulators (ACER), created in March 2011, aims, among other ambitious goals, at creating a cross border balancing market. This long-term evolution will have a strong impact on the market rules for ancillary services in Europe.

Ancillary services could represent an interesting initial market for storage assets in Europe. Granted, the regulatory framework needs to be clarified first in order to investigate how storage assets could take part in such markets. Indeed, ancillary services are usually provided by conventional generation, and the potential participation of storage assets depends strongly on local regulations.
Positive regulatory advances have, nevertheless, been observed: for example, the reduction of the minimal bidding size requirements decided in some countries will have a direct impact on facilitating the participation of storage in these ancillary services markets.

For more information on Clean Horizon’s work applied to energy storage and business cases relying on ancillary services, please visit us at www.cleanhorizon.com/reports and login for more content.

Update from the Field report: energy storage in the USA and in Europe

admin — Fri, 11 Nov 2011 17:47:05 +0000

Download sample file (75.42 kB, pdf) (login required)

With the growing penetration of intermittent renewables and the rise of electric vehicles, the electric grid will keep undergoing huge stresses.These uncertainties at the generation and load side of the electricity value chain call for innovative solutions to ensure long-term grid stability. Along with demand response, grid reinforcement and leveraging the flexibility of the gas grid, energy storage is one of the solutions that will change the face of the electric grid in the coming decade.
Clean Horizon is thus proud to apply its detailed, “field-based” methodology to deliver clear and exhaustive understanding directly through its Update from the Field report.

Our Update from the Field report serves three purposes:
1) Bring transparency and understanding on energy storage regulation: the Update from the Field report gives an accurate and detailed account of regulations affecting energy storage in Europe and in the USA

2) Show some hard numbers and unique analyzes on Western European ancillary services: Clean Horizon has been studying ancillary services markets in Western Europe in depth and delivers unique content on how they could be best leveraged for storage in the immediate future

3) Provide an update on key storage players: Part II of the report is designed to be a handbook of selected key players of the energy storage industry on both sides of the Atlantic. “Flashcards” are given on each company, giving a precise update of their corporate identity and of their projects.

Table of Contents

PART I

A. Energy storage regulatory environment in the USA

1. Political level
1.1 Federal level
1.1.1 Strategic orientation: Clean Energy Standard (CES)
1.1.2 Congress
1.1.3 Department of Energy (DOE)
1.2 State level
1.2.1 Measures supporting the development of renewable energy
1.2.1.1 Renewable Energy Standards (RPS)
1.2.1.2 California Self Generation Incentive Program (SGIP)
1.1.2.2 Measures supporting storage asset procurement

2. Regulatory level
2.1 Federal level
2.1.1 Federal Energy Regulatory Commission (FERC)
2.1.1.1 RFC regarding rates, accounting and financial reporting or new electric storage technologies
2.1.1.2 NOPR on “Variable Energy Resources
2.1.1.3 NOI on Promoting Transmission Investment Through Pricing Reform
2.1.1.4 NOI, Third-party provision of ancillary Services; Accounting and financial reporting for new electric storage technologies
2.1.1.5 Order 755: Frequency regulation compensation in the organized wholesale power markets
2.1.2 NERC
2.1.3 Environmental Public Agency (EPA)
2.2 State level
2.2.1 Presentation of the state regulation entities
2.2.2 Relevant regulations of PUCs on storage
2.2.2.1 In California
2.2.2.2 In Texas

3. System Operator level
3.1 Independent System Operator (ISO) and Regional Transmission Operator (RTO)
3.2 Presentation of the U.S. Independent System Operators (ISOs)
3.3 Examples of ISO-level regulations involving storage
3.3.1 New York Independent System Operator (NYISO)
3.3.2 CAISO
3.3.3 PJM
3.3.5 ISO-New England
3.3.6 ERCOT

4. List of commonly used acronyms

B. Energy storage regulatory environment in Europe

1. European Union level
1.1 Political level
1.1.1 Introduction to EU executive and legislative bodies
1.1.1.1 European Commission (EC)
1.1.1.2 European Parliament
1.1.1.3 Council
1.1.2 EU supply-push policies for energy storage
1.1.2.1 Framework Programs (FP)
1.1.2.3 European Energy Program for Recovery (EEPR)
1.1.2.4 SET-Plan and European Industrial Initiatives (EII)
1.1.2.5 From 2013 onwards: Horizon 2020
1.1.3 EU demand-pull policies for energy storage
1.1.3.1 Objectives related to clean energy45
1.1.3.1.1 Energy Climate Package
1.1.3.1.2 Renewable Energy Source (RES) Directive
1.1.3.1.3 European Union Emission Trading Scheme (EU-ETS)
1.1.3.2 Adapting the electricity market design
1.1.3.3 Storage as a component of the network infrastructure
1.2 Electricity regulation and System Operators
1.2.1 Agency for the Cooperation of Energy Regulators (ACER)
1.2.2 European Network of Transmission System Operator for Electricity (ENTSO-E)

2. Member state level
2.1 France
2.1.1.1 Supply-push policies
2.1.1.1.1 ADEME
2.1.1.1.2 Investments for the future
2.1.1.1.3 Overview of the past calls related to energy storage
2.1.1.1.3 ADEME call for tender (“AMI”) on energy storage
2.1.1.2 Research Institutes
2.2.2 Demand pull policies
2.2.2.1 Renewable objectives
2.2.1.2 Regulator level
3. Conclusion
2.2 Italy
2.2.1 Political level
2.2.1.1 Supply-push policies
2.2.1.1.1 Agencies supporting innovation
2.2.1.1.2 The POI Project
2.2.1.1.3 The 130 MW project
2.2.1.2 Demand-pull policies
2.2.2 Regulatory level
2.2.2.1 Presentation of the Italian regulator
2.2.2.2 AEEG to prepare a new regulation regarding energy storage
2.2 Germany
2.3.1 Political level
2.3.1.1 Supply-push policies
2.3.1.2 Demand-pull policies
2.3.1.2.1 The German energy turnaround
2.3.1.2.2 Strong penetration of renewables
2.3.1.2.3 Grid Expansion Acceleration Act (NABEG)
2.2.3.2 Regulator level

3. List of commonly used acronyms

C. Ancillary services in Europe

1. Ancillary services and balancing market definitions

2. Markets typology
2.1 Qualitative characteristics
2.2 Quantitative characteristics
2.2.1 Relative size of selected European ancillary services markets
2.2.2 Compensation of ancillary services in five Western European countries

3. Energy storage case studies
3.1 Scenario based on power support: frequency regulation
3.2 Scenario based on energy provision: load balancing
3.3 Conclusions of the case study

4. Conclusion

Conclusion

PART II

A. Equipment manufacturers

1 Compressed Air Energy Storage (CAES)
1.1 Dresser Rand
1.2 SustainX
1.3 General Compression

2 Batteries
2.1 Lithium-Ion
2.1.1 Saft
2.1.2 A123 Systems
2.1.3 CODA
2.2 Red Ox
2.2.1 Cellstrom GmbH
2.2.2 Enervault
2.2.3 Redflow Limited
2.2.4 ZBB
2.2.5 Primus Power
2.3 Zinc Air
2.3.1 Eos Energy Storage
2.4 Lead Acid
2.4.1 Xtreme Power

3 Flywheels
3.1 Beacon Power Corp
3.2 Velkess

4. Other players
4.1 Isentropic
4.2 Sunverge
4.3 Highview Power Storage
4.4 Ice Energy

B. Utilities

1 EDF

2 PG&E

3 Austin Energy

Concluding Interview: Emerald Technology Ventures

A123 Systems

admin — Mon, 10 Oct 2011 17:59:20 +0000

A123 Systems delivers advanced batteries and complete energy storage systems that enable its customers to develop and commercialize next-generation applications.

Storengy

admin — Mon, 10 Oct 2011 17:53:22 +0000

Clean Horizon has realized numerous consulting studies on energy storage technologies and markets for Storengy, the gas storage subsidiary of GDF SUEZ.

Beacon Power Corporation

admin — Mon, 10 Oct 2011 17:46:30 +0000

Beacon Power Corporation, a global leader in the development and commercialization of flywheel-based energy storage solutions for the grid.

Clean Horizon has been helping Beacon Power Corporation with specific energy storage studies.

Clean Horizon co-organise le colloque du Club Stockage d’Energie ATEE à Paris, le 20 octobre 2011

admin — Thu, 06 Oct 2011 19:15:02 +0000

Clean Horizon, co-organise avec l’ATEE (www.atee.fr) le colloque annuel du Club Stockage d’Energies de l’ATEE, qui se réunira au Pullman Paris Montparnasse le 20 octobre 2011 de 9h à 18h, sous la présidence de Marc Hiegel, président de l’ATEE.

Les deux problématiques suivantes seront abordées :

Où en sont les programmes lancés par les pouvoirs publics en 2010 ?
Quelles suites et perspectives pour 2011 ?
Quelles sont les technologies les plus prometteuses ?

Michaël Salomon, CEO de Clean Horizon, décrira les enjeux et les grandes tendances actuelles du stockage en Europe et aux Etats-Unis.
Le colloque, animé par Patrick Canal (ATEE), fera intervenir les acteurs suivants :

Marc Hiegel (ATEE),
Bruno Le Boullenger (DGCIS),
François Perfezou (DGEC),
Stéphane Biscaglia (ADEME),
Bernard Delpech (EASE),
Olivier Huet (ERDF),
Laurent Schmitt (ALSTOM GRID),
Nathalie Collignon (AREVA),
Pierre Potier (ALSTOM POWER),
Emmanuel Puchala (GDF-SUEZ),
Adamo Screnci (McPhy),
Sten Peeters (A123 SYSTEMS),
Romain Vernier (BRGM),
Pierre Poeuf (Climespace),
Patrick de Metz (SAFT),

et un représentant de EDF R&D, François Moisan (ADEME)

Clean Horizon will be attending IRES 2011 in Berlin, on November 28, 2011.

admin — Wed, 05 Oct 2011 19:16:05 +0000

The International Renewable Energy Storage Conference (IRES) is the largest conference on stationary electricity storage in Europe. IRES has meanwhile developed into the central platform for sharing knowledge and exchanging ideas on one of the key issues of future energy supply.

IRES 2010 (November 2010) attracted attendance from 41 countries with 600 attendees. The Conference is organized by EUROSOLAR (European Association for Renewable Energy)

Clean Horizon will be attending the Energy Storage Forum in Paris on May16-18th

admin — Mon, 09 May 2011 18:37:51 +0000

Clean Horizon will be attending the Energy Storage Forum in Paris on May16-18th.

Clean Horizon’s CEO to speak at RES Grid Integration & Investment Forum, Amsterdam (January 2011)

admin — Mon, 02 May 2011 22:39:58 +0000

Michael Salomon, Clean Horizon’s CEO, and Rodica Sandu, Joint Research Center – European Commission, Institute for Energy, made a joint talk on energy storage and RES integration with a focus on market examples from Europe and the USA at Amsterdam’s RES Grid Integration & Investment Forum in January 2011.

16 Mai -18h Table Ronde: “Le stockage d’énergie en France : une nouvelle révolution ?

admin — Thu, 14 Apr 2011 18:19:46 +0000

Lundi 16 Mai à 18h, Hotel Mariott Rive Gauche, 17 bd St Jacques Paris 14ème.

L’UE est en bonne marche pour atteindre son objectif de 20% d’énergies renouvelables en 2020. Comme c’est déjà le cas dans les DOM TOM ou de nombreuses autres îles, une telle proportion de renouvelables menace l’équilibre du réseau électrique : face à cette menace, le stockage d’énergie apparaît comme une contribution inévitable à l’équilibre du réseau de demain.

Jean Paul Reich (GDF Suez)

François Bouchon (Saft)

Rajshekar DasGupta (Electrovaya)

Karl Axel Dtrang (DGEC)

Daniel Clément (ADEME)

interviendront autour d’une table ronde sur ce sujet d’avenir.
Cette table ronde est organisée dans le cadre de l’Energy Storage Forum, événement international sur le stockage d’énergie, ayant lieu cette année à Paris.
L’événement sera suivi d’un cocktail afin de permettre de prolonger la discussion.

Merci de confirmer votre participation à l’adresse : conference@cleanhorizon.com.

Une participation de 50 €HT sera demandée. Merci d’adresser un chèque à l’ordre de Clean Horizon Consulting:

Clean Horizon Consulting, Centre Régus, 72 rue du Faubourg St Honoré, 75008 Paris

Corporate presentation

admin — Thu, 07 Apr 2011 18:02:18 +0000

Click the link below to download Clean Horizon’s corporate brochure in pdf format.

Clean Horizon attended EVS 25 in Shenzhen, China, in November 2010.

admin — Tue, 09 Nov 2010 18:42:23 +0000

EVS is the world’s yearly rendez-vous for electric and hybird vehicles, held each year on a different continent.

Clean Horizon attended Batteries 2010 in Cannes in October 2010

admin — Sat, 09 Oct 2010 18:50:03 +0000

Clean Horizon attended Batteries 2010 in Cannes in October 2010

Clean Horizon attended the 3rd Energy Storage Summit in Chicago, October 2010

admin — Sat, 09 Oct 2010 18:48:25 +0000

Clean Horizon attended the 3rd Energy Storage Summit (IQPC) in Chicago, October 2010

Clean Horizon attended the Energy Storage Forum in Barcelona in October 2010

admin — Sat, 09 Oct 2010 18:45:08 +0000

Clean Horizon attended the Energy Storage Forum in Barcelona in October 2010

Clean Horizon’ CEO chairman of the EV Recharging Infrastructure Day at Barcelona’s EV Battery Forum (April 2011)

admin — Sat, 02 Oct 2010 13:09:55 +0000

Michael Salomon, Clean Horizon’s CEO, chaired the Recharging Infrastructure day at the EV Battery Forum in Barcelona in April 2011.

Clean Horizon’s work on second life of EV batteries mentioned on BFM radio (in French)

admin — Fri, 01 Oct 2010 17:05:43 +0000

Entretien enregistré au sein de BFM Radio, avec Michaël Salomon, fondateur de Clean Horizon Consulting,sur les thématiques du Green Business.

An interview of Michael Salomon, CEO of Clean Horizon Consulting (in French)

admin — Sun, 12 Sep 2010 14:45:18 +0000

Entretien avec Michaël Salomon, fondateur de Clean Horizon Consulting, une société de conseil et de veille reposant sur un réseau de correspondants internationaux.

Ses domaines d’expertise sont le véhicule électrique et le stockage d’énergie.

Clean Horizon is currently putting together its Monitoring Report on stationary storage in North America and Europe – stay tuned for incoming document release

admin — Mon, 06 Sep 2010 19:48:20 +0000

Clean Horizon is currently putting together its Monitoring Report on stationary storage in North America and Europe – stayy tuned for incoming document release.

GDF Suez

admin — Thu, 12 Aug 2010 19:45:17 +0000

Gdf Suez, the world’s largest Independent Power Producer, has given Clean Horizon a global mandate on energy storage.

Clean Horizon identifies and assesses suppliers of technological solutions as well as thought partners to help Gdf Suez develop its approach to energy storage.