E.ON And RedT Trial Battery System That Could Shift Energy Consumption

A battery system that could allow businesses to reduce peak demand charges, shift energy consumption patterns and maximise the potential of renewable energy generation has been installed as part of a research project looking to tackle the challenges of commercial and industrial-scale energy storage.

E.ON has installed the Vanadium Redox Flow Battery (VRFB) technology from redT at the headquarters of warehousing and logistics company JB Wheaton in Chard, Somerset. The 5kW, 40kWh demonstration battery will work alongside the company's 3.5 MW solar panel arrays and is designed to help smooth out the peaks and troughs of the company's energy demand. The battery should allow JB Wheaton to make best use of the solar panels when they are generating more energy than can be consumed on-site and can also store power from the grid at times of cheaper prices and low demand.

E.ON is trialling the system to understand the potential for improved payback on solar PV installations in commercial customers. This will be achieved by storing a company's solar power so a greater proportion can be used on-site. In the case of JB Wheaton this may mean allowing the company's electric cars, vans and forklifts to be charged overnight using energy generated during the day. In addition, the company is looking to minimise the amount of energy it imports from the grid at periods of high prices.

Alongside the analysis of these benefits, the system will allow E.ON to examine the potential of such systems in providing ancillary services to help support the National Grid.

Eliano Russo, Head of Energy Storage Solutions, at E.ON, said: "A key issue in using renewable energy sources is that the times of peak generation don't always match the periods of high demand. We believe technologies like this could help our customers to cut their bills and reduce carbon emissions, at the same time as improving security of supply.

"Battery storage allows businesses to play a greater role in the energy system; adding an income stream as well as avoiding higher unit costs. We have recently launched a residential PV and battery storage product to our customers in Germany and as we develop our experience from this project with JB Wheaton we are interested in speaking with commercial and industrial customers in the UK who would be interested in investing in a battery storage solution."

Scott McGregor, CEO of redT, added: "This installation will showcase how energy storage can add value through "˜revenue stacking' of multiple services for a wide range of stakeholders. The theme of "˜distributed energy storage' is an area that has been embraced by leading utility companies such as E.ON and we are confident in its further development.

"Distributed energy delivers valuable local economic benefits to the customer as well as providing essential reliability grid services to the energy company. This agreement is a prime example of how E.ON and J.B. Wheaton can work together to achieve a mutually beneficial, shared goal using redT technology."

Mark Wheaton, Director of J B Wheaton & Sons Ltd., said: "Considering the cheap supply of daytime solar power from our photovoltaic cells and the need for overnight charging of our electric vehicles, we're excited to take advantage of, and better understand, the potential savings and efficiencies of installing a redT energy storage system. Provision of services by utilities, in the face of global environmental concerns, is rapidly evolving, so we, as both a consumer and green electricity supplier, want to evaluate the market opportunities that E.ON is actively anticipating."

A key challenge for renewable energy generation is that production is not necessarily well matched to consumer demand. Flexible options such as batteries could help make the electricity system more robust, greener, and cheaper to build and operate. The benefits of battery storage, currently being tested, could include:

For the customer:

"¢             Maximising on-site consumption of renewable energy generation, improving payback times for PV arrays;

"¢             Minimising the amount of electricity imported from the grid, reducing bills;

"¢             Increased energy independence, reducing reliance on the grid;

"¢             Smart charging during off-peak pricing periods can also help to reduce bills "“ the electricity in the battery can then be used at the most expensive times of day instead of importing from the grid;

"¢             Intelligent management of peak demand, reducing transmission charges, especially at peak periods; and

"¢             Potential to use the battery for back-up power in the event of power outages.

For the utility:

"¢             Storage could help support the electricity network, potentially deferring or avoiding the need to make expensive upgrades to local infrastructure;

"¢             Batteries can help to maintain local voltages within statutory limits "“ an increasing problem as more renewables connect to the network.

For the UK energy system:

"¢             Reduced demand on the national grid at peak periods, meaning greater flexibility when it comes to scheduling generating plant, helping to reduce bills, leading to carbon and cost savings;

"¢             Storage can help to integrate more renewable generation into the energy system, reducing overall carbon emissions; and

"¢             Energy storage can provide very rapid support to the National Grid in the event of grid problems in this way increasing system resiliency.

Earlier this year Chancellor George Osborne announced energy storage would receive a share of a £50 million fund as part of his Budget, with the National Infrastructure Commission adding that energy storage could contribute to innovations that could help consumers save around £8 billion a year by 2030.

For E.ON the project will provide valuable insight into the performance of a developing technology, demonstrating ways of enhancing customer engagement and complementing their exploration of future energy solutions. Such systems could also become part of a virtual power plant (VPP), allowing greater connectivity and improving the reliability and stability of our electricity networks.

redT energy plc will also monitor the system in order to optimise its performance and ensure that the product best meets the client's needs. The company has been developing a suite of modular products for energy storage based around vanadium redox flow technology. This approach offers a longer cycle life and deeper discharge depth than conventional battery systems and so can provide one of the lowest levelised costs of energy storage.