Team+2 energyt+storage+system final_2013 spring

• 1. Technology Integration to Business course 2013 Spring Energy Storage System (Lithium-ion Battery with Wind Power) Jaeho Jung

2. Project Management Energy Storage System NEEDS A Table of Contents 1. Project Integration Management 2. Project Scope Management 3. Project Time Management 4. Project Cost Management (Financial Scenarios included) 5. Project Quality Management 6. Project Human Resource Management 7. Project Communications Management 8. Project Risk Management 9. Project Procurement Management 10. Appendix (Market Research) 3. Project Integration Management Energy Storage System NEEDS Project Charter Project Title: Installation of Energy Storage at Wind-Farm on Jeju Island Project Start Date: June 1, 2013 Project Finish Date: December 31, 2013 Budget Information: Jeju Smart-Grid Institute allocates KRW 3500M for this project, and more funds from the government are no more available. The majority of costs will be internal labor. Vendors for battery systems will be taken domestically. Project Manager: Jay Jae Jung, (404) 862-6019, [email protected] Project Objectives: It is a crucial project for the smart grid system of Jeju Island to deliver high quality and more reliable wind power with the most efficient energy storage system. Main Project Success Criteria: A chosen energy storage system should satisfy the minimum storage capacity with a less expensive rate. Approach: Research on which ESS is suitable for the wind-farm site in Hangwon. Roles and Responsibilities: Nick/Sponsor/CEO, Susan/Team member/Chemist Sing-Off: 4. Project Integration Management Energy Storage System NEEDS Project Management Plan Section Headings Section Topics Overview Goal: To alleviate fluctuation rates of power, and then to increase the stability of the grid Objectives: To measure an appropriate battery capacity by a means of computer simulations Assumptions: The case of Hangwon wind-farm site on Jeju Island (9.8MW) Deliverables: The most efficient and suitable battery system Scope: Cost-benefit comparison of currently commercialized energy storage systems Project Organization Internal Organization: TF team at the Jeju Smart-Grid Institute External Organization: TF team at Ministry of Knowledge Economy Managerial Process Plan Top Managements Priority: To install proper battery capacities by May, 2014 Project Controls: Monthly meeting with all stakeholders, weekly meeting with teams Tools: Gantt Chart Change Control: Business Planning Div. at the government Technical Process Plans Data mining to gain information, Computer simulation to prevent risks and pursue efficiency Supporting Process Plans Verification and validation plan; Documentation plan; Quality assurance plan; reviews and audits; Problem resolution plan; Subcontractor management plan; Process improvement plan 5. Project Scope Management Energy Storage System NEEDS Project Scope Location: Hangwon wind-farm site on Jeju Island Total capacity: 9.8MW (15 wind turbines in 2003) Power system: Grid connection to the Sungsan secondary substation Power Fluctuations: 03/2009-02/2010 Data, collected from the SCADA system (Supervisory Control and Data Acquisition Korea Power Exchange) Sections 600kW-2EA 660kW-7EA 225kW-1EA 750kW-5EA Turbine size 42m 47m 27m 48.5m Tower height 45m 45m 30m 45m Noise 99dB 102dB 94dB 98.5dB Type V-42 V-47 V-27 NM750/48 Manufacturer/ Constructor VESTAS(Denmark) /Hyosung VESTAS(Denmark) /Hyosung VESTAS(Denmark) /Hyosung NEG- Micon(Denmark) /STX 6. Project Scope Management Energy Storage System Work Breakdown Structure (WBS) Initiating 1.1 Kickoff meeting 1.2 Develop project charter 1.3 Charter signed Planning 2.1 Develop project plans 2.2 Review project plans 2.3 Project plans approved Executing 3.1 Analysis 3.2 Design 3.3 Implementation 3.4 System implemented Controlling 4.1 Status reports 4.2 Report performance 4.3 Control changes Closing 5.1 Prepare final report 5.2 Present final project 5.3 Project completed 7. Project Time Management Energy Storage System NEEDS Project Lead:Jay Jae Jung Today's Date:2013-07-18 (vertical red line) Start Date:2013-07-01 (Mon) 0 WBS Tasks Task Lead Start End Duration(Days) %Complete DaysComplete DaysRemaining 7-1-13 7-8-13 7-15-13 7-22-13 7-29-13 8-5-13 8-12-13 8-19-13 8-26-13 9-2-13 9-9-13 9-16-13 9-23-13 9-30-13 10-7-13 10-14-13 10-21-13 10-28-13 11-4-13 11-11-13 11-18-13 11-25-13 12-2-13 12-9-13 12-16-13 12-23-13 12-30-13 1 Initiating Jay 7-01-13 7-11-13 10 100% 10 0 1.1 Kickoff meeting with stakegolders 7-01-13 7-02-13 1 100% 1 0 1.2 Develop project charter 7-02-13 7-09-13 7 100% 7 0 1.3 Charter signed 7-10-13 7-11-13 1 100% 1 0 2 Planning Susan 7-11-13 10-14-13 95 6% 5 90 2.1 Develop project plan 7-11-13 10-06-13 87 10% 8 79 2.1.1 Business process analysis 7-18-13 7-20-13 2 50% 1 1 2.1.2 Team formation 7-20-13 7-31-13 11 0% 0 11 2.1.3 Technology assessment 8-01-13 8-15-13 14 0% 0 14 2.1.4 Technology vendor selection 8-16-13 8-23-13 7 0% 0 7 2.1.5 Stakeholder identification 8-23-13 8-30-13 7 0% 0 7 2.1.6 Business case development 8-31-13 10-06-13 36 0% 0 36 2.1.6.1 Gap analysis 8-31-13 9-14-13 14 0% 0 14 2.1.6.2 Cost-benefit analysis 9-15-13 10-06-13 21 0% 0 21 2.2 Decide the type of ESS 10-07-13 10-14-13 7 0% 0 7 3 Executing Jan 10-15-13 11-22-13 38 0% 0 38 3.1 Collect data of fluctuations of power 10-15-13 10-22-13 7 0% 0 7 3.2 Data analysis 10-23-13 11-02-13 10 0% 0 10 3.3 Perform computer simulation 11-03-13 11-10-13 7 0% 0 7 3.4 Output comparison 11-11-13 11-18-13 7 0% 0 7 3.5 Decide the capacity of ESS 11-18-13 11-22-13 4 0% 0 4 4 Controlling Audrey 7-01-13 11-22-13 144 0% 0 144 4.1 Status reports 7-18-13 10-15-13 89 0% 0 89 4.2 Report performance 7-18-13 10-15-13 89 0% 0 89 4.3 Control changes 7-18-13 11-22-13 127 0% 0 127 4.4 Risk management 7-01-13 11-22-13 144 0% 0 144 5 Closing Jay 11-23-13 12-31-13 38 0% 0 38 5.1 Prepare final report 11-23-13 12-13-13 20 0% 0 20 5.2 Present final project 12-14-13 12-15-13 1 0% 0 1 5.3 Project completed 12-31-13 12-31-13 0 0% 0 0 Gantt Chart 8. Project Cost Management Energy Storage System NEEDS Annual Inflation Rate (1998 2011) 9. Project Cost Management Energy Storage System NEEDS Cost Estimate (1998 - 2012) Section Content (scale: KRW) Business Life History 1998: The wind-farm commercially operated (2 units) 2003: Construction finished (15 units) 2010: 1 unit disused (14 units) 2011: 2 units newly equipped (16 units) 2012: 4 units disused (12 units) Service Life 20 years for each unit (First-in, First-out), then each unit should be replaced Revenue = Sales price X Power generation Labor Cost 30,000,000/a worker/year (3 workers needed) CAPEX 1998: 2,000,000 / 2001: 700,000 / 2002: 2,000,000 (Governmental grant: 23% of total) O&M 6,000,000/unit SG&A 30,000,000/year Net Income 10,088,769,000 (from 1998 to 2012) Inflation Avg. 2.71% NPV 10,912,610,000 (from 1998 to 2012) 10. Project Cost Management Energy Storage System NEEDS Cost Estimate Excel Data (1998 - 2012) Year 1998(2EA) 1999(5EA) 2000(7EA) 2001(9EA) 2002(12EA) 2003(15EA) 2004(15EA) 2005(15EA) 2006(15EA) 2007(15EA) 2008(15EA) 2009(15EA) 2010(14EA) 2011(16EA) 2012(12EA) 2013(12EA) Power Capacity(kW) 1,200 2,745 4,245 5,565 7,815 9,795 9,795 9,795 9,795 9,795 9,795 9,795 9,795 9,795 11,550 11,550 Power Generation(MWh) 800 4,900 9,060 11,290 13,225 18,561 16,964 16,964 16,964 16,964 16,964 16,964 15,833 16,803 13,572 13,572 Sales Price (KRW/kWh) 54.84 60.93 60.23 63.51 65.36 65.97 87.41 87.41 87.41 87.41 87.41 87.41 88.94 88.94 88.94 88.94 Revenue(K) 44,013 298,500 546,600 717,014 864,400 1,224,469 1,482,823 1,482,823 1,482,823 1,482,823 1,482,823 1,482,823 1,408,187 1,494,459 1,207,094 1,207,094 CAPEX(K) 2,000,000 700,000 2,000,000 O&M(K) 12,000 30,000 42,000 54,000 72,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 SG&A(K) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 3 people - Labor Cost(K) 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 Net Income - 2,087,987 148,500 384,600 - 156,986 - 1,327,600 1,014,469 1,272,823 1,272,823 1,272,823 1,272,823 1,272,823 1,272,823 1,198,187 1,284,459 997,094 997,094 Inflation 5.00% 0.60% 1.60% 3% 2.10% 2.70% 2.90% 2.30% 1.90% 2.20% 4.30% 2.60% 2.90% 4% 2.50% 2.71% Discount Rate (from 2013) - 2,192,386 149,391 390,754 - 161,696 - 1,355,480 1,041,860 1,309,735 1,302,098 1,297,007 1,300,825 1,327,555 1,305,917 1,232,934 1,335,837 1,022,021 Modified Net Income (from 1998 to 2012) - 2,205,541 151,781 402,476 - 165,091 - 1,392,078 1,072,074 1,339,859 1,326,838 1,325,541 1,356,761 1,362,071 1,343,788 1,282,252 1,369,233 - 2,240,829 156,335 410,928 - 169,549 - 1,432,448 1,096,731 1,365,316 1,356,028 1,382,539 1,392,037 1,401,571 1,397,540 1,314,308 - 2,308,054 159,618 422,023 - 174,466 - 1,465,394 1,117,569 1,395,353 1,414,338 1,418,485 1,432,406 1,457,634 1,432,478 - 2,356,523 163,927 434,262 - 178,478 - 1,493,237 1,142,156 1,455,353 1,451,110 1,459,621 1,489,702 1,494,075 - 2,420,149 168,681 444,250 - 181,869 - 1,526,088 1,191,269 1,493,193 1,493,193 1,518,006 1,526,944 - 2,490,334 172,561 452,691 - 185,870 - 1,591,710 1,222,242 1,536,495 1,552,920 1,555,956 - 2,547,611 175,840 462,650 - 193,863 - 1,633,094 1,257,687 1,597,955 1,591,743 - 2,596,016 179,708 482,544 - 198,903 - 1,680,454 1,307,994 1,637,904 - 2,653,128 187,436 495,090 - 204,672 - 1,747,672 1,340,694 - 2,767,213 192,309 509,448 - 212,858 - 1,791,364 - 2,839,161 197,886 529,826 - 218,180 - 2,921,496 205,801 543,071 - 3,038,356 210,946 - 3,114,315 Sum - 2,087,987 - 2,043,886 - 1,671,550 - 1,855,280 - 3,238,539 - 2,292,079 - 1,081,142 160,328 1,436,839 2736962 4,069,999 5,517,832 6,859,482 8,342,866 9,673,675 10,912,610 11. Project Cost Management Energy Storage System NEEDS Cost Estimate (2013 - 2023) Scenario 1 Section Content (scale: KRW) Business Life Cycle 2013-2023: Forecast with Lithium-ion battery (1,333$/kWh -> 1,466,300 KRW/kWh) * 20% of total capacity for battery capacity is needed: 2,310kW -> KRW 3,387,153,000 Service Life 20 years for each unit (First-in, First-out), then each unit should be replaced * From 2018, 2 units will be replaced with new units Revenue = Sales price X Power generation Labor Cost 30,000,000/a worker/year (3 workers needed) * Avg. 2.71% inflation rate considered annually CAPEX 1998 -> 2018: 2,000,000,000(23%) -> 8,695,652,000(100%) 2001 -> 2021: 700,000,000(23%) -> 3,043,478,000(100%) 2002 -> 2022: 2,000,000,000(23%) -> 8,695,652,000(100%) O&M 6,000,000/unit SG&A 30,000,000/year Discount Factor 7.0% DCF -7,715,201,000 (from 2013 to 2023) > -5,889,087,000 (Add ESS) 12. Project Cost Management Energy Storage System NEEDS Capital Cost of Lithium-ion Battery (2013 2023) 13. Project Cost Management Energy Storage System NEEDS Cost Estimate Excel Data (2013 - 2023) Scenario 1 Year 2013(12EA) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Power Capacity(kW) 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 Power Generation(MWh) 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 Add Power Generation(MWh) 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 Sales Price (KRW/kWh) 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 Revenue(K) 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 Add Revenue(K) 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 CAPEX(K) - Replacement 8,695,652 3,043,478 8,695,652 O&M(K) 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 SG&A(K) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 3 people - Labor Cost(K) 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 Lithium-ion Battery(K) 3,387,153 Net Income -2,148,641 1,238,512 1,238,512 1,238,512 1,238,512 -7,457,140 1,238,512 1,238,512 -1,804,966 -7,457,140 1,238,512 Inflation 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% Discount Rate (from 2013) 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% DCF(K) -5,889,087 1,081,765 1,010,995 944,855 883,042 -4,969,007 771,283 720,826 -981,782 -3,790,832 588,408 14. Project Cost Management Energy Storage System NEEDS Cost Estimate (2013 - 2023) Scenario 2 Section Content (scale: KRW) Business Life Cycle 2013-2023: Forecast with Lithium-ion battery (1,333$/kWh -> 1,466,300 KRW/kWh) * 20% of total capacity for battery capacity is needed: 2,310kW -> KRW 3,387,153,000 Service Life 20 years for each unit (First-in, First-out), then each unit should be replaced * From 2018, 2 units started to replace with new units Revenue = Sales price X Power generation Labor Cost 30,000,000/a worker/year (3 workers needed) * Avg. 2.71% inflation rate considered annually CAPEX 1998 -> 2018: 2,000,000,000(23%) -> 8,695,652,000(100%) 2001 -> 2021: 700,000,000(23%) -> 3,043,478,000(100%) 2002 -> 2022: 2,000,000,000(23%) -> 8,695,652,000(100%) O&M 6,000,000/unit SG&A 30,000,000/year Discount Factor 7.0% DCF 1,424,822,000 (from 2013 to 2023) -> 3,205,936,000 (Add ESS) 15. Project Cost Management Energy Storage System NEEDS Cost Estimate Excel Data (2013 - 2023) Scenario 2 Year 2013(12EA) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Power Capacity(kW) 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 11,550 Power Generation(MWh) 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 13,572 Add Power Generation(MWh) 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 Sales Price (KRW/kWh) 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 88.94 Revenue(K) 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 1,207,094 Add Revenue(K) 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 241,419 CAPEX(K) - Replacement 2,000,000 700,000 2,000,000 O&M(K) 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 SG&A(K) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 3 people - Labor Cost(K) 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 Lithium-ion Battery(K) 3,387,153 Net Income -2,148,641 1,238,512 1,238,512 1,238,512 1,238,512 -761,488 1,238,512 1,238,512 538,512 -761,488 1,238,512 Inflation 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% 2.71% Discount Rate (from 2013) 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% DCF(K) 3,250,936 1,081,765 1,010,995 944,855 883,042 -507,411 771,283 720,826 292,915 -387,102 588,408 16. Project Quality Management Energy Storage System NEEDS Quality Assurance 1. Regulations: Work, materials and equipment shall comply with the latest rules and regulations specified in National Fire Protection Association (NFPA). 2. Discrepancies: The Drawings and Specifications are intended to comply with listed codes, ordinances, regulations and standards. Where discrepancies occur, immediately notify the Owners Project Manager in writing and ask for an interpretation. Should installed materials or workmanship fail to comply, the Contractor is responsible for correcting the improper installation at no additional cost to the Owner. Additionally, where sizes, capacities, or other such features are required in excess of minimum code or standards requirements, provide those specified or shown. 3. Contractor Qualifications: An acceptable Contractor for the Work under this Division must have personnel with experience, training and skill to provide a practical working system. The Contractor shall furnish acceptable evidence of having installed not less than three systems of size and type comparable to this Project. All personnel installing equipment under this Division shall possess valid City of Houston and State of Texas licenses for their skill level. Each Journeyman shall supervise no more than two apprentice helpers. Refer also to Owners Special Conditions. 17. Project Quality Management Energy Storage System NEEDS Delivery, Storage, and Handling 1. All equipment and materials shall be delivered to the Project Site clean and sealed for protection. 2. Moisture: During construction, protect switchgear, transformers, motors, control equipment, and other items from insulation moisture absorption and metallic component corrosion by appropriate use of strip heaters, lamps or other suitable means. Apply protection immediately upon receiving the products and maintain continually. 3. Damage: Take such precautions as are necessary to protect apparatus and materials from damage. Failure to protect materials is sufficient cause for rejection of the apparatus or material in question. 4. Finish: Protect factory finish from damage during construction operations until acceptance of the Project. Restore any finishes that become stained or damaged to Owners satisfaction. 18. Project Human Resource Management Energy Storage System NEEDS Recruiting talented people for the project Project manager is fully responsible for the task External experts (Electricity, ICT, Statistics, Chemistry) CEO(Nick), Project manager(JAY) Internal members (procurement, manufacturing, logistics) Jeju City Smart Grid officer 19. Project Human Resource Management Energy Storage System Developing the project team 20. Project Communication Management Energy Storage System Stakeholder Communications Analysis Stakeholders Document Name Document Format Contact Person Due Jeju City Smart Grid Center Monthly status report Hard copy and meeting John First of month Wind-Farm site manager Cost-benefit raw data Hard copy and E-mail Terry June 20 Jeju Utilities officer Monthly status report Hard copy and E-mail Kim First of month Jeju governor Monthly status report Hard copy and meeting Ahn First of month Jeju civic group Weekly status report Hard copy and meeting Son First of week Supplier of batteries Weekly status report Hard copy and E-mail Audrey First of week Internal R&D team Weekly status report Intranet Susan First of week Private equity firms Cost-benefit analysis report Hard copy and E-mail David Oct 1 21. Project Risk Management Energy Storage System NEEDS Understanding the uncertainty associated with operating variable generation systems helps manage the level of risk associated with delivering services. Figure 1 shows a schematic of energy flow considered in the optimisation framework. The optimization problem is then to determine not only the charge/discharge profile of the energy storage device over a period of time, but also to determine the most appropriate energy mix at any given time for charging the energy storage device and supplying energy to the grid. 22. Project Risk Management Energy Storage System NEEDS Objective Alleviate fluctuations of energy provided from the wind-farm in Jeju Island Estimate the optimum capacity of lithium-ion batteries Prove the feasibility of the Lithium-ion battery system through a simulation Simulation Method Simulation is the imitation of the operation of a real-world process or system over time. The act of simulating something first requires that a model be developed; this model represents the key characteristics or behaviors/functions of the selected physical or abstract system or process. 23. Project Risk Management Energy Storage System NEEDS Business Case Secondary Substation Primary Substation Haenam Substation 24. Project Risk Management Energy Storage System NEEDS Business Case Hangwon wind-farm Total capacity: 10.55MW (12 wind turbine units, 04/12) Grid connection to the Sungsan secondary substation 09-10 Data collected from the SCADA (Supervisory Control and Data Acquisition Korea Power Exchange) to analyze fluctuations of energy per one minute CapacityInstalled VariationCapacityGenerated RatesnFluctuatio 25. Project Risk Management Energy Storage System NEEDS 26. Project Risk Management Energy Storage System NEEDS Energy fluctuation rates per one minute Preparation for the max. fluctuation rate (66%) to install Lithium-ion batteries Data Generated (MW) Fluctuation Rate (MW) Ratio (%) Data Generated (MW) Fluctuation Rate (MW) Ratio (%) 01/21/2010 6.7 -6.7 -66.6 01/12/2010 3.2 3.9 38.8 06/02/2009 5.5 -3.7 -37.4 01/21/2010 2.5 3.3 32.6 12/15/2009 5.4 -3.2 -32 02/13/2010 3.8 3.2 31.6 02/25/2010 5.6 -2.7 -27 02/18/2010 2.1 3.2 31.4 02/13/2010 6.9 -2.6 -26.4 02/19/2010 4.1 3.1 30.6 07/07/2009 5.6 -2.6 -26 06/02/2009 2.5 3.0 30.3 05/20/2009 5.4 -2.6 -26 02/25/2010 3.9 3.0 30 11/30/2009 6.8 -2.6 -26 01/08/2010 3.8 2.9 29.1 02/04/2010 6.2 -2.9 -25.9 02/12/2010 4.3 2.8 28.3 02/03/2010 6.4 -2.6 -25.7 02/03/2010 4.1 2.8 27.7 27. Project Risk Management Energy Storage System NEEDS Estimate capacities of the Lithium-ion battery system Considering generating capacity rate of the Southern Juju coal power plant - Responsible for the frequency-stability of the Juju grid system (Criteria) MWh hMW MWh h time MWcapacityinstalled capacityBattery 083.0 2 60 1 10 ][ 2 ][ 60 ][ .min 28. Project Risk Management Energy Storage System NEEDS Estimate capacities of the Lithium-ion battery system However, battery capacities are dependent on a type of batteries and a condition of controls. Lithium-ion battery is capable of performing 5C-rate (20 min. discharging). C-Rate : The C rate is often used to describe battery loads or battery charging. 1C is the capacity rating (Amp-hour) of the battery. C-Rate C-Rate Hours of Discharge 1C (1 hour rate) 1C 1 hour C/4 (4 hour rate) 0.25C 4 hours C/10 (10 hour rate) 0.1C 10 hours C/20 (20 hour rate) 0.05C 20 hours 29. Project Risk Management Energy Storage System NEEDS Lithium-ion battery capacity based on installed capacity Installed capacity [MW] ESS capacity [MWh] 10MW/min applied C-rate [MWh} Installed capacity Based on C-rate 1C (100%) 2C (50%) 5C (20%) 10C (10%) 10 0.08 120 10 5 2 1 20 0.33 60 20 10 4 2 30 0.75 40 30 15 6 3 40 1.33 30 40 20 8 4 50 2.08 24 50 25 10 5 60 3.00 20 60 30 12 6 70 4.08 17.1 70 35 14 7 80 5.33 15 80 40 16 8 90 6.75 13.3 90 45 18 9 100 8.33 12 100 50 20 10 MWhincreasetimesappledrateCcapacityBattery 2240833.024 5 120 5120 0833.0 10 30. Project Risk Management Energy Storage System NEEDS Outcome (Juju islands case) The total installed capacity of wind-farm x 20% = Battery capacity - Smoothing Energy fluctuations generated from wind-farms - Preparing for the transient energy drop (covering up 10MW/min) 31. Project Risk Management Energy Storage System NEEDS Simulation result To prove the suggestion, we compare real generating data and simulation data. As a result, we can expect very stable generating capacity of wind-farms by installing 20% of battery capacities. Also, we expect cost efficiencies. 32. Project Procurement Management Energy Storage System NEEDS Vendor Selection Through the government bidding process (competitive bid), select the vendor. Name Price (30%) Technicality (20%) Supportability (30%) Flexibility (10%) Maintenance Support(5%) Sustainability (5%) Samsung SDI LG Chemical 33. Conclusion Energy Storage System NEEDS Suggestion for the application of Lithium-ion batteries Section Scenario 1 Scenario 2 Scenario 3 Governmental Funds 0% 77% Funded from Private equity ESS costs (20% of generation capacity) 3,400M 3,400M 3,400M Net Profit (DCF) -5,889M +3,251M ? 77% of costs for the installation of the Wind-Farm site was supported by the government from 1998 to 2003. Today, many stakeholders doubt about whether financial execution for the Wind-Farm site was proper or not. At the beginning, the site was designed to install 15 wind power units, but only 12 units are working now. The issue is replacement costs for all units, durability life of which is 20 years. If so, who will be in charge? Under the current economic situation of Korea, we can no longer expect funds from the government. Consequently, except for funds from private equities, Raising electricity prices or Reducing ESS costs can be a solution. 34. Appendix Market Research Data Energy Storage System To choose which ESS technology and application is the most feasible 35. More research on markets Energy Storage System 36. More research on markets Energy Storage System 37. More research on U.S. markets Energy Storage System 38. More research on U.S. markets Energy Storage System 39. More research on markets Energy Storage System (Mega Watts) Technology Now Estimated 5 yrs Gap Growth % Portion Pumped Hydro 500 500 0 0% 20.7% Thermal 1000 1221 221 22% 50.6% Li-ion 55 310 255 464% 12.9% CAES 115 112 -3 -3% 4.6% Lead Acid 45 118 73 162% 4.9% Nickel 25 26 1 4% 1.1% Sodium 18 18 0 0% 0.7% Flywheels 28 105 77 275% 4.4% Flow 0 2 2 200% 0.1% Sum 1786 2412 626 35% 100% 40. More research on markets Energy Storage System (Mega Watts) Application Now Estimated 5 yrs Gap Growth % Portion Ancillary Services 48 256 208 433% 10.6% CES 2 7 5 250% 0.3% Transmission 44 47 3 7% 1.9% Renewables 685 820 135 20% 33.8% Other Distributed 1010 1294 284 28% 53.4% Sum 1789 2424 635 35% 100% 41. Revenue forecast Energy Storage System 42. Demand forecast Energy Storage System