Public hearing on “USING NER 300 and THE ENERGY RECOVERY PLAN TO RENEW THE ENERGY SECTOR” The Concept of Storage Why do we need it? Bernard Delpech EASE President Deputy Executive Vice-President of EDF R&D European Parliament 27 November Altiero Spinelli - Meeting room 5G3

Outline 2EP Public Hearing – The Concept of Storage – Why do we need it? I.About EASE Top Priorities and Members II.What is Energy Storage? The concept III.Context Intermittent energy sources increase the need of flexibility IV.Energy Storage Technologies: An overview of possible applications Many new technologies, but what are the applications? V.Development of storage: The stakes Significant efforts in RD&D Open-regulation for storage VI.Conclusions

I. About EASE » Top priorities and Members 3 EP Public Hearing – The Concept of Storage – Why do we need it? The European Association for Storage of Energy (EASE) is the voice of the energy storage community, actively promoting the use of energy storage in Europe and worldwide. EASE actively supports the deployment of energy storage as an indispensable instrument within the framework of the European energy and climate policy to deliver services to, and improve the flexibility of, the European energy system. EASE seeks to build a European platform for sharing and disseminating energy storage-related information. EASE supports the transition towards a sustainable, flexible and stable energy system in Europe.

I. About EASE » Top priorities and Members 4

II. What is Energy Storage? » The concept 5 EP Public Hearing – The Concept of Storage – Why do we need it? Energy storage devices are “charged” when they absorb energy, either directly from renewable generation devices or indirectly from the electricity grid. They “discharge” when they deliver the stored energy back into the grid. Charge and discharge normally require power conversion devices, to transform electrical energy (AC or DC) into a different form of electrical, thermal, mechanical or chemical energy.

III. Context » Intermittent energy sources increase the need of flexibility 6 EP Public Hearing – The Concept of Storage – Why do we need it? Ambitious European and national energy policies present opportunities for storage Energy policies promoted by the EU policy makers design a new context for European power systems. The main trends are: Consolidation of a decarbonised generation mix Development of renewable energy sources (RES) Demand Response Adaptation of the physical infrastructure (mainly in transmission and distribution) Integration of electricity markets to improve use of the generation and transmission infrastructure and reduce price volatility both in time and location

III. Context » Intermittent energy sources increase the need of flexibility 7 EP Public Hearing – The Concept of Storage – Why do we need it? Ambitious European and national energy policies present opportunities for storage Share of intermittent RES in Europe in 2012 and targets for 2020 (GW)* On-shore Wind + off-shore Wind + Solar Sources : EUROBSERVER, EREC, GWEC, IEA, REE, GOV.UK, AGEE, RTE, RenewableEnergyWorld, Gov.cn

III. Context » Intermittent energy sources increase the need of flexibility 8 EP Public Hearing – The Concept of Storage – Why do we need it? Residual Demand (average Power by day= Energy by day /24) Residual Demand with 15% of wind + solar (2020) Residual demand with 40% of wind+solar (2030) Average Variability 30 GW 10 / 70 GW Average Load factor 5800 h Average Variability 90 GW 30 / 150 GW Average Load factor 5100 h Average Variability 200 GW per day 100/300 GW Average Load factor 3800 h Source: EDF R&D, 25 September 2013

III. Context » Intermittent energy sources increase the need of flexibility 9 EP Public Hearing – The Concept of Storage – Why do we need it? All flexibility sources will be needed: “Dispatchable” power plants; Demand-side response via a smart grid; Interconnection with adjacent markets; Energy storage.

IV. Energy Storage Technologies: An overview of possible applications » Many new technologies, but what are the applications? 10 EP Public Hearing – The Concept of Storage – Why do we need it? EASE supports all energy storage technologies and believes that storage needs to be addressed agnostically.

IV. Energy Storage Technologies: An overview of possible applications » Many new technologies, but what are the applications? 11 EP Public Hearing – The Concept of Storage – Why do we need it? Some technologies such as pumped hydro storage, compressed air energy storage, hydrogen and thermal storage are characterised by their ability to store energy over time (several hours) Others, e.g. batteries and flywheels, are characterised by their ability to deliver power very fast Storage duration Several hours to several days or weeks Several seconds to several minutes PHS, CAES, H 2 and thermal storage Batteries and flywheels

IV. Energy Storage Technologies: An overview of possible applications » Many new technologies, but what are the applications? 12 EP Public Hearing – The Concept of Storage – Why do we need it? EASE has identified and described a comprehensive set of energy storage applications and organised them by segment of the energy system. Generation TransmissionDistributionCustomer Services ConventionalRenewable Black start Distributed Generation flexibility Participation to the primary frequency control Capacity support End-user peak shaving ArbitrageCapacity firming Participation to the secondary frequency control Dynamic, local voltage control Time-of-use energy cost management Support to conventional generation Limitation of upstream perturbations Participation to the tertiary frequency control Contingency grid support Particular requirements in power quality Curtailment minimisation Improvement of the frequency stability of weak grids Intentional islanding Continuity of energy supply Investment deferral Reactive power compensation Limitation of upstream disturbances Participation to angular stability Distribution power quality Compensation of the reactive power Limitation of upstream perturbations

IV. Energy Storage Technologies: An overview of possible applications » Many new technologies, but what are the applications? 13 EP Public Hearing – The Concept of Storage – Why do we need it? For Renewable Energy Sources generation in specific, energy storage is well suited to: Generation Renewable Distributed Generation flexibility Capacity firming Limitation of upstream perturbations Curtailment minimisation

V. Development of storage: the stakes » Significant efforts in RD&D 14 EP Public Hearing – The Concept of Storage – Why do we need it? Innovation in storage technologies (performance, cost, materials) is necessary but demonstration of the technical feasibility of storage solutions is also crucial. We need this to have the best cost for European Electricity. RD&D of energy storage is identified in several existing European technology platforms. The EU and Member States need to further support R,D&D of energy storage if this technology should become a success story.

V. Development of storage: the stakes » Significant efforts in RD&D (short term) 15 EP Public Hearing – The Concept of Storage – Why do we need it? In a time frame of 2 years, EASE and EERA recommend the following RD&D priorities : RD&D on storage has to be strong Starting small to medium scale European demonstration and pilot programs focusing on grid integration of energy storage technologies Activating small scale grid-connected battery experiments at different voltage levels Initiating pilot projects for thermal management and industrial waste heat storage Encouraging modeling efforts Joint EASE / EERA main recommendations for European Energy storage technology development roadmap towards 2030

V. Development of storage: the stakes » Open-regulation for storage (short term) 16 EP Public Hearing – The Concept of Storage – Why do we need it? Regulation: Even if storage seems able to provide services efficiently to the system (validation in progress in the demonstrators), some regulation barriers or cross-border differences prevent its development. An homogeneous treatment could help. Define a fair market design for all services provided by energy storage is necessary More market integration is needed (cf. graph) Storage can provide applications to both regulated and non-regulated part of the system - market solutions should be preferred European benchmark on primary frequency regulation

V. Development of storage: the stakes » For the midterm 17 EP Public Hearing – The Concept of Storage – Why do we need it? In a time frame of 2-5 years, EASE and EERA recommend changes on Regulation/ Market Design aspects: Designing of market terms for integrating energy storage in the electricity market Initiating heat storage experiments (including underground technology) to obtain practical experience for different storage configurations Initiating medium to large scale underground heat storage experiments to obtain practical experience with storage properties in different geological formations Joint EASE / EERA main recommendations for European Energy storage technology development roadmap towards 2030

VI. Conclusions 18 EP Public Hearing – The Concept of Storage – Why do we need it? Energy Storage will provide essential services along the whole energy chain: Balancing demand & supply Managing Transmission & Distribution grids Promoting demand side management Contributing to competitive & secure electricity supply... thereby supporting in numerous aspects the transition towards a secure, competitive and decarbonised energy system in Europe! European RD&D for energy storage is at the heart of the energy system decarbonisation. EASE believes that the NER300, conceived as a catalyst for the demonstration of innovative renewable energy (RES) technologies on a commercial scale within the European Union, should look into energy storage as a fundamental instrument for RES integration.

Contacts 19 EP Public Hearing – The Concept of Storage – Why do we need it? Secretary General: Patrick Clerens Policy Officer: Maria João Duarte Communications Officer: Tom De Latte Technical Advisor: Jean-Michel Durand EASE – European Association for Storage of Energy Avenue Adolphe Lacomblé 59/8 | B Brussels Tel: | Fax: Thank you for the attention

Members