Overcoming Intermittency in Renewable Energy through Storage Systems - Irene Fastelli ENEL Ingegneria & Innovazione

1. Overcoming Intermittency in Renewable Energy through Storage Systems Irene Fastelli ENEL Ingegneria & Innovazione

3. Renewable into the grid

4. Approaches to compensation

5. Scenario

7. 40% of SeverEnergia gas reserves (total 700 bcm)

10. 64.6% Electrica Muntenia Sud

12. Total net production of 31.4 TWh

16. Total Net Production: 96,3 TWh.

17. Enel’s customers 33.1 mln94,3 GW of installed capacity61 million customers 83,300 employees 2008 pro-forma data with Endesa, OGK-5 and Electrica Muntenia Sud consolidated respectively at 100%. Data net of assets to be disposed to Acciona Value corresponding to 50% of Eufer’s total capacity

18. Iberia and Latin America North America Italy and Europe(2) Enel Green Power Operating 788 MW Production 2.4 TWh In execution 0.3 GW Pipeline 8.3 GW Operating 2,076 MW Production 6.4 TWh In execution 0.5 GW(1) Pipeline 15.6 GW Operating 2,897 MW Production 12.0 TWh In execution 0.4 GW Pipeline 5.8 GW Operating 5,761 MW Production 20.9 TWh In execution 1.2 GW(1) Pipeline 29.9 GW Global leader in a growing industry EGP global footprint – H1 2010 EGP presence Unrivalled footprint in 16 countries across all main renewable technologies Source: Company information. Note: Presentation includes consolidated financial and operating data unless otherwise stated. Capacity as of 30 June 2010 - Production end 2009 PF - Pipeline and in execution data as of 30 June 2010. (1) Includes ENEOP (Portugal), 137 MW in execution. Equity consolidated as of 30 June 2010; full consolidation is expected in 2013. (2) Ongoing disposal process of Bulgarian assets, which are included in the figures.

19. Renewable into the grid

22. Needtobalancefluctuatingrenewabletoensure the security of the overallenergysupplyErratic, unpredictable Short term fluctuations

23. Needs for compensating capacity *Courtesy of IHS Emerging Energy Research 7

24. Approaches to compensation

26. Conventional backup capacity

27. Demand side management

28. Large scale electricity storageEach has its strength and limitations!

30. Political barriers to implementation (public resistance, permitting process)

32. Uncertainty regarding fuel prices

33. Risk of low utilization

35. Requires behavioral adaptations by customers and adequate pricing flexibility to actually drive changes

37. Technologically it is still relatively immature for large applications other than hydroelectric storage

38. Self-sufficient solution

39. Not affected by increases in renewable penetration

40. Possibility of having decentralized unitsMost promising technologies for large-scale application

42. High efficiency

43. Relatively low specific storage capacity

44. Mainlimitation: New siteshardlypossibletodevelopMore than 5,2 GWhinstalledcapacity in Italy

46. Relatively low investmentcosts

47. Low cycleefficiencyof up to 0,55

48. Mainlimitation: storagesitesMcIntosh, Alabama, 110 MW 2 CAES Projects, 450MW, in Stimulus Package Advanced CAES plants are expected to be significantly more efficient. Enel is carrying on engineering research to validate economic and technical viability of different solutions

49. Scenario

50. Smart energy management How to get there? Identify flexibility needs Identify best storage technologies and competing alternatives Analyse the trade off between storage and its competing options Allow for markets and legislation to foster the environmentally best option Analyse, suggest and implement the storage and generation mix best suited for a low carbon energy system

51. Generation portfolios with and without storage Storage can increase the share ofbase-loadpower generation Withoutstorage: 25 GW baseload Withstorage: 30 GW baseload *Source: BCG “Revisiting energy storage” Load profile based on average data for January and June 2009 in Germany.

53. Load management

54. Integration of large scale renewables

55. Ancillary services

56. Transmission& Distribution services

57. Energy management

58. Reserve/regulating power

59. Market regulations regarding ancillary services

60. Strategic planning

61. Large scale introduction of renewables

62. Emission benefits

63. Customer site applications

64. Load management & responseStorage can provide several functionalities: Different applications are best served by different technologies

65. Enel Group on-going programs and next activities

67. Time-shifting

68. Forecast hedging

69. Frequency control

70. Voltage control

71. Ancillary services

72. Revenues

73. Industrial maturity

74. Operating constraints

75. Environmental impact

76. Public acceptability

77. O&M costs

78. Key Performance Factors

79. Service life

82. Identify the key aspects for large scale implementation of storage technologies and their actual suitability to the different requirements for Enel applications

83. Define storage systems optimal management strategies to ensure renewable production programmability

84. Develop guidelines and best practices for the selection, installation and use of ESS for ENEL applications

86. Reproduction of DSO requests up to 50 kW

87. Capability to operate and characterize several systems at the same time

88. Response time ~ 1 sec

89. PLC management & PC control

90. Automatic execution of more than 400 steps

91. Measurement of AC /DC data

93. Time at rated power

94. Round trip efficiency

95. Real vs nominal capacity

96. Performances decayOperating KPIs VanadiumRedox Flow battery 10kW 100kWh Economic KPIs ZEBRA battery 20kW 20kWh Li-ionbattery 15kW 15kWh

98. Continue monitoring technological developments: performance improvements, other technologies, cost reduction

99. Refine benefit calculations with results of ongoing experimental characterization

100. Update strategic planning figures with new information20 kW PV plant Micro-windgenerators 100 kWh H2 storage on metal hydride EV quickchargepoint (<20mins) CHAdeMOcompliant Optimize the integration of distributed energy resources (stochastic renewable generation, EV and storage) connected to the distribution network.

103. Minimizing the cost of procuring flexibility

104. Testing / demonstrating the operational viability of storage in our grid

105. Developing optimal control devices and strategies

106. Refining benefit /cost valuations with new information