Terna Energy Storage Projects

Role of storage in the network operation

Milan – 18 November 2016

Marco Pietrucci
Agenda

About Terna

Context

Terna’s Project

Terna’s Approach to ESSs

Main Lessons Learned

Plant overview - example

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Agenda

About Terna

Context

Terna’s Project

Terna’s Approach to ESSs

Main Lessons Learned

Plant overview - example

3
 About Terna – Company Profile

Terna is
 ...the owner of the Italian High Voltage National Transmission Grid
 ...responsible for the transmission and dispatching of electricity throughout the Country
 ...in charge of the development and maintenance of the HV Grid, employing a workforce of ~3,700
 ... Listed on the Stock Exchange since 2004, it is one of the leading industrial companies on the FTSE-MIB index

Numbers ... … and premises

Grid
~ 72,600 km of high- and extra-high voltage power
lines (123/150 kV, 220 kV, 380 kV)
21 Interconnections lines with neighbouring countries
852 Substations Montenegro

Assets
8 Transmission Operating Areas
8 Distribution Centers
3 Remote-Control Centers Serbi
1 Foreign Subsidiary a

Electricity Market Transmission Operating Areas

Distribution Centers
316,9 TWh of energy consumption (2015) Remote-Control Centers
Foreign Subsidiary
≈60,491 MW demand peak

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Agenda

About Terna

Context

Terna’s Project

Terna’s Approach to ESSs

Main Lessons Learned

Plant overview - example

5
 The Italian Context – Trend of Renewables
• Aggressive policy of incentives and the imminence of grid parity brought an exorbitant trend of PV and wind farm generation in
the last 10 years, achieving over 27 GW of overall capacity today
• PV generation is almost uniformly distributed over the italian territory; on the contrary, Wind generation is mainly concentrated
in Southern Italy and in Italian Main Islands

[GW]
[GWh] P max installed
17x
Ago14 max hourly
generation: 11 GWh
PV
Wind Farm

Installed generation of PV and Wind Farm Hourly Production of PV Energy – y 2014

[GWh]
P max installed

Gen14 max hourly

generation: 5,2 GWh
14%
18%

23% 41%
Distribution of PV Generation Distribution of Wind Farm Generation Hourly Production of Wind Farm Energy – y 2014

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 Impact on the Grid Congestions

• Fast penetration trend of wind generation has characterized some HV grid portions in
Southern Italy without an adequate and simultenous HV grid development Impact on Grid
Congestions
• Such condition caused an increase in local congestions of HV backbones and
congestions between Electricity Market Zones, forcing Terna to frequently curtail wind
energy generation through dispatching orders to wind power producers;
• As a result, in 2010 more than 500 GWh of potential energy from wind generation is cut
by Terna

TERMOLI

# LARINO
Congestions between
FOGGIA
Electricity Market Zones PRESENZANO #
é
#
#ANDRIA
# GARIGLIANO CANDELA BARI
# OVEST
S. SOFIA #BENEVENTO
#
#
# S. MARIA C. V. MATERA
Dir.ce 150 PATRIA # #
kV #
# MONTECORVINO TARANTO #
FOG-DEL-
ANR
150 kV Backbones with high
GA
penetration of wind farms
#
LAINO
Dir.ce 150 kV ROSSANO
BR-BAO #
ALTOMONTE

: 380 kV Grid #
#
# #
SCANDALE
: 220 kV Grid P potential
#
FEROLETO
: 150 kV Grid P actual

: 150 kV Grid Overloaded Line capacity #RIZZICONI

Dir.ce 150 kV SORGENTE

SCD-ROS
Curtailment #

# 7
PATERNO’
 Impact on Spinning Reserve and Frequency Regulation

• RES requires an increase of spinning reserve demand because of uncertainty and intermittency of
its generation. In addition, RES is excluded from the commitment of primary frequency reserve
and is not able to perform ancillary services as well as traditional thermal generation.
• Days of high solar radiation and low energy demand can result in RES generation surplus, because
of lack of the minimum amount of thermal power generation to safely cover the demand.
• As a result, the change in energy mix leads to difficulties in balancing grid and a lack of Regulating
Reserve. Therefore, RES requires higher flexibility demand of thermal power generation, as
Impact on
frequent stops and starts, capability to hold and release loads during quick ramps, etc. Spinning Reserve
and Frequency
Regulations

Demand PV (demand – PV -RES)

Minimum
Minimum thermal Not dispatching production
import
Critical zones

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 Impact on the Grid Inertia

• High penetration of renewables brought a lower inertia of the electrical system.

• Case study – HV grid managed with high amount of Distributed Generation and low level of grid
interconnection (real event in Sicily, 2011): loss of generation group coupled with the system’s
modest inertia caused a very fast frequency drop and the activation of Emergency Load
Shedding. The net increase in Distributed Generation makes this approach alone ineffective so
new methods are necessary.
• New grid code standards and innovative mechanisms for a faster frequency restoration are
Impact on
the grid
needed to contain frequency deviation in case of imbalance between generation and demand. inertia

Real case Simulations and analysis of scenarios Inertia: the physical resistance of
Loss of generation in Sicily grid (2011) Frequency deviationprofile
Frequency in Sicily grid the system against frequency
change due to an imbalance.
Past
Frequency [Hz]

Average derivative 0,5 Hz/s

Average derivative 0,8 Hz/s

Future

Time [s]
Reference Change of 600 MW of conventional
scenario generation with 600 MW of RES

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 The Italian Context
Causes Effects Mitigating actions
•Economic crisis and subsequent loss of
many big consumers (i.e. national • Fast and massive growth of RES:
demand decreased 12% from 340 Rise in congestion -related
TWh to 300 TWh) curtailments (i.e. 2010 500 GWh lost) Optimize integration of RES
•Aggressive policy of incentives • Traditional power plants running at and increase flexibility of
promoting RES + imminence of grid minimum load: national grid (i.e. smarter grid)
parity  Loss of inertia in smaller insular
•No time to fortify and develop the systems (i.e. Sicily and Sardinia)
grid to support new scenarios  Loss of available frequency reserves

Power Problem Optimize RES

Integration and
Energy Problem
increase
system’s
reserves Energy
Congestion

Compensate
for low
inertia

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 Tool Box delle possibili soluzioni
Investment required Deployment time
Solutions M€/ MW Years Benefits Critical points
New generation and
repowering of Thermic High impact
▪ Investment ▪ Changing of Grid Code
Power Plant to increase on Electricity N/A
limited compared ▪ High investment
flexibility for providing of
System
to other ▪ Long deployment time
ancillary services
technologies ▪ Several stakeholders involved
Demand & Highly
Generation Virtual Power Plant
variable: ▪ High investment
measures depends on ▪ The Business model must be defined
number of N/A N/A ▪ Several stakeholders involved
players and
Distributed Demand
Virtual Aggregator complexity of
aggregation ▪ Market yet to be developed

▪ Emerging market
Batteries
▪ Very fast ▪ High costs/additional incentives
1.0-3.3 <1 deployment time needed to break even Best Short
Term Bet!

Storage Pumped ▪ Mature ▪ Very long deployment time

options hydro 2.0-2.5 5-10 technology ▪ Capital expenses site-dependent
▪ Few available sites

▪ Investment ▪ Difficulties in finding adequate sites

CAES
(traditional limited compared ▪ Long & complicated approval process
underground) 0.5-1.0 5-10 to other ▪ Limited Applications (site-dependant)
technologies ▪ Low round-trip efficiencies
Infrastructure ▪ Cheaper ▪ Very long deployment time
Development:
Supply new HV 0.20-0.31 (*) >10
investment ▪ Not effective for increasing grid
Backbones & ▪ Terna core regulation capacity and inertia
Substations business

(*): unit costs per MW related to an investment for ~100 km of 150 kV HV Grid

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Agenda

About Terna

Context

Terna’s Project

Terna’s Approach to ESSs

Main Lessons Learned

Plant overview - example

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 Terna’s Storage Projects
Power Intensive Energy Intensive
• Mission : reduce grid congestions
• Mission: increase safety of grid • Total Power: ≈35 MW
• Total Power: ≈ 16 MW + 24 MW • Solution: NaS Sodium Sulfur
• Solutions: Li-Ion, Zebra, Flow, Supercap • Number of sites: 3
• Number of sites: 2 • Investment Size: 160 €mln;
• Investment Size: 93 €mln;
Site 1: Ginestra
• Total Capacity: ≈ 12 MW
PHASE I: 16 MW Storage Lab • Status: operational

Site 1) Sardinia - Codrongianos Site 2 Flumeri

• Total Power: ≈ 9,15 MW • Total Capacity: ≈ 12 MW
• Status: operational ≈ 7,5 MW • Status: operational
under construction ≈ 0,4 MW
procurement initiated ≈ 1,25 MW
Site 3 Scampitella
• Total Capacity: ≈ 10.8 MW
Site 2) Sicily - Ciminna
• Status: operational
• Total Power: ≈ 6,8 MW
• Status: operational ≈ 5,1 MW
under construction ≈ 0,45 MW
procurement initiated ≈ 1,25 MW

PHASE II: 24 MW

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 Terna’s Technology Portfolio

Storage time
30 – 60 seconds 0,5 – 1 hour 2 – 4 hours P & E are decoupled 8 hours

Energy Intensive
Power Intensive

• Procurement
on going

9,2 MW 3,4 MW 0,85 MW 35 MW

installed installed in commissioning installed

Grid support and ancillary services (e.g. frequency regulation)

Grid Defense System Congestion management

Power Quality & Back-up Load Shifting

Main applications

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Agenda

About Terna

Context

Terna’s Project

Terna’s Approach to ESSs

Main Lessons Learned

Plant overview - example

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 Key factors affect “Battery Value”…
Capex
Optimal use ▪ Overall investments, including:
– Upfront system costs (battery, control systems,
civil works, services)
▪ C-rate: Ratio between nominal – Replacement of investments over time (if/ when
power exchanged with grid for needed, depending on the life cycle)
discharging/charging and
battery energy capacity

▪ There is no value if the energy O&M costs

storage system doesn’t work Evaluating
continuously! the best ▪ Operations and maintenance
solution costs:
– Yearly fixed component
– Variable components
based on energy
exchanged
Efficiency Life Cycle
▪ Rate of energy dissipated
every cycle ▪ Degrading
▪ Depends on capacity/efficiency curve
technology/usage, in the over number of cycles run
range of 80% AC/AC ▪ Depending on batteries, in
the range of 80% of
capacity at the 3.000-6.000
cycle mark

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 Optimal use (1/2)

Applications
Description Example of superposition

Signal 1 Signal 2 Total signal

Battery follows a power signal
equal to combination of different
Signal applications
Power bandwidth is allocated
Super- among signals to maximize
Position profitability.
Bandwidth can be allocated
either statically or dynamically

Signal 1 (Priority) Signal 2 Total signal

Battery is dedicated preferentially

Time to an application, but its utilization
Allocation is integrated with a secondary
application when the first one is not
requested

Technologies Original signal Signal serviced by technology 1 Signal serviced by technology 2

Original signal is separated in two

Technology components (one more “energy-
intensive” and one more “power
Integration intensive”), which are serviced by
different technologies (each most
suitable for the specific signal)

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 Optimal use (2/2)

• Each Energy Storage Unit exchanges active power with HV Grid to

provide mainly the following grid services: Primary Frequency
Regulation, Secondary Frequency Regulation, System Balancing.
• In addition, ESS can exchange reactive power with HV grid in order to
provide voltage regulation.
• The ancillary services can be provided: a) exclusively or b)
simultaneously. In case of a), only one function is active (ON) while
the others are kept on (OFF) state. In case of b), more than one Dispatching Functions Status Priority Index
function is kept active Primary frequency Reg ON 1

• In order to manage the ESS Unit Capability for the operational active Balancing (P set-point or schedule) ON 2

Secondary frequency Reg OFF 3

and reactive power range among the functions simultaneously
Voltage regulation OFF 4
activated, the operator can set a “priority index” (from “1” to “4”,
“1” being highest priority) for each one of four functions, defining the Legenda

merit order to deliver simultaneously more ancillary services Battery Limitation Band

• Minimum and maximum active power contribution for primary and Active Power required by Primary Reg.

secondary frequency regulation can be manually set by the Grid Power limits of Primary Reg.

Operator fixing an operational range of active power variation Active Power scheduled (or P set-point)

Pact - Actual power profile

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 Round trip efficiency (1/2)

Purpose of testing

Validate the performances of each EESS in terms of:

Targets Nominal Energy
Efficiency of the system

Standard cycle: the cycle used consists in a

discharging phase followed by a charging phase;
during the test it is admitted the interposition of
Definition and
Standard cycle
stand-by phases
validation of
procedures
Each technology supplier is requested to
propose the profile of the cycle to be used
during the test session (*)
Test Execution
Active Power (MV) Discharging Phase
Charging Phase
Active Power absorbed by auxiliaries (LV)

Acceptance criteria

•Correct execution of the cycle proposed without any interruption or abnormal behavior
Validation •Discharge energy and efficiency of system (including auxiliaries consumption) should be compliant
with the Technical Specifications requests

Results

Analysis and
Comparison Round trip efficiency measured: within the range 80-86 %

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Energy Storage Efficiencies – It pays to know (2/2)

Module/Cell Grid Scale Impact of BoS Impact of Aux

Round trip h Round trip h

Round trip efficiency (no AUX) (with AUX)

Lithium 1&3 95,7% 89,0% 85,5% -6,7% -3,5%

Lithium 2 96% Data not yet Data not yet Data not yet Data not yet
available available available available
Lithium Ion

Lithium 4 94,5% 87% 83% -7,5% -4%

Lithium 5 > 97% 90,5% 85,5% -6,5% -5%

Lithium 6 96% 89,2% 86,4% -6,8% -2,8%

Zebra A 90% 82,3% 80,1% -7,7% -2,2%

Zebra

Data not yet Data not yet Data not yet Data not yet
Zebra B 89,9% available available available available

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 Life cycle (1/2)

During the tender phase it became necessary to create a standard cycle in order to effectively compare and rank
the different technologies

• Discharge @ Pn, DOD 80%;

Test Procedure
• Complete Charge @ Pn;

• No resting time (idle) between the cycles (*)

* This procedure adapted for each supplier in order to account

for the specifications and limitations of each technology

Furthermore, comparing each technology against the frequency regulation service, another cycle profile was
identified: it was obtained by taking a real continental 24h frequency signal, filtered and compressed in order to
attain a meaningful and challenging power profile (average value 50 Hz, max frequency deviation > 100 mHz)

Service parameters:
•Frequency droop 0.075%;
•Deadband 0 mHz.

Test Procedure
•Starting SOC: 100%;
•SOC max :100% (no over-charge);
•SOC min: 0% (no over-discharge);

•If SOC min is reached: recharge the battery and nominal

power and continue with the power profile

•Every10 days the reference cycle will be performed in order

to determine the electrochemical parameters of the battery

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 Life cycle (2/2)

E%: energy capacity measured after a reference cycle divided by the rated capacity

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Agenda

About Terna

Context

Terna’s Project

Terna’s Approach to ESSs

Main Lessons Learned

Plant overview - example

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 Main Lesson Learned
To date Terna has commissioned more than 47 MW / 270 MWh of storage systems.
Thanks to this experience, Terna has achieved a significant amount of learning and expertise.
Today

Learned Still learning…

Procurement

Design
Construction &
Installation
Operations

How to better specify what we need

Lessons learned

How to improve the control of the system

How to calculate the real cost of the different technologies

Know-how in maintenace and management

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Agenda

About Terna

Context

Terna’s Project

Terna’s Approach to ESSs

Main Lessons Learned

Plant overview - example

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 Codrongianos – Layout
Tecnologie installate
Litio Ferro
1 MW 1.231 MWh
Fosfato
Litio Nichel
1.2 MW 0.928 MWh
Cobalto Alluminio

1 MW 0.916 MWh Litio Manganese

Litio Nichel
1.08 MW 0.540 MWh Manganese
Cobalto

1 MW 1.016 MWh Litio titanato

Nichel-Cloruro
1,2 MW 4,15 MWh
di Sodio
Nichel-Cloruro
1 MW 2 MWh
di Sodio
Flusso -
0,4 MW 1,1 MWh
Vanadio

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 Overview of Terna’s Testing Activities

•Frequency Regulation Purpose of testing is to collect

Focus om EESS’s
•Voltage Regulation enough knowhow to be able to
•Grid •Power Quality
select the best technology

testing
according to the desired
Scale(>1MW) •Increase in Reliability application
•Grid Stabilization The Storage Lab project has
•Efficiency analysis been designed to analyze the
performances of selected
technologies when used to
START

solve Network issues

?
Focus on Modules’

• Aging Test Technologies:

• Performance Test •Lithium-Ion
•Module scale
•Zebra
Testing

(<100kW) • Thermal Test

•Supercaps
• Overcharge/discharge Test •Flow
• Overload Test
• Short Circuit Test

Module Tests executed by:

Lab

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 Grid Scale – First islanding on HV Grid
4 EESS installed at the Codrongianos substation were successfully tested in an islanding procedure involving one
Synchronous Compensator (250 MVA), one ATR 380/150 kV (250 MVA), one 150/15 kV transformer and two
busbar assemblies (380 and 150 kV)

System in Islanding
Batteries start giving power

Island at steady-state
50,2 Hz
Island’s
50,1 Hz
frequency
50,0 Hz

49,9 Hz

49,8 Hz

Synchronous
ATR Storage Lab
Compensator
4 MW

380 kV
2 MW P From Storage
Lab
0 MW
150 kV

0,5 s
220 kV
3s

Scope of the test was to demonstrate the effective use Energy Storage Systems as a means to increase grid reliability

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Thanks for your attention

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