Presentation

Question 1

Introduction (1)

Answer 1

Hello everyone, I hope you are all doing well. My name is James Brown, and today, I will be presenting how batteries are essential to energy flexibility.

Question 2

Contents (2)

Answer 2

In my presentation, I will cover: What energy flexibility is, what merit order is, The importance of batteries in energy flexibility, The types of battery solutions available, The benefits of battery solutions, The challenges of battery adoption, The opportunities for E.ON And finally, the future of batteries.

Question 3

What is Energy Flexibility? (3)

Answer 3

So firstly, what is energy flexibility:
Energy flexibility refers to the ability of network operators to adjust energy supply and demand dynamically, ensuring that the energy systems remain balanced at all times. This balance is crucial for avoiding power outages and making the most of renewable energy sources like wind and solar.

Question 4

How does Energy Flexibility Work? (3)

Answer 4

In the UK, this is managed by the National Grid, the country’s network operator, which achieves balance through the Balancing Mechanism. This mechanism allows operators to respond to real-time changes in demand and supply, often within seconds.

Question 5

Why is flexibility needed now? (3)

Answer 5

Flexibility is needed now more than ever due to The energy landscape rapidly changing. As renewable energy sources like wind and solar grow, their variability introduces challenges for the grid. Energy flexibility helps us overcome these challenges, ensuring renewable energy is fully utilized while maintaining reliability.

Question 6

What is Merit Order? (4)

Answer 6

The Merit Order is a ranking system used to determine the sequence in which energy sources are utilized to meet demand, based on cost and environmental impact. So, the cheapest and cleanest sources, such as wind and solar, are prioritized, followed by nuclear, gas, and finally the most expensive and polluting options like peaking plants.

Question 7

Order of Energy Sources? (4)

Answer 7

This Merit Order curve illustrates this concept by showing energy sources arranged by their marginal costs of production. Wind energy, represented in yellow, is the cheapest, followed by nuclear in green, gas in purple, and peaking plants in red. The price per megawatt-hour increases as demand rises emphasizing the importance of utilizing low-cost, clean energy first.

Question 8

How Batteries fit in (4)

Answer 8

Batteries fit in as they enhance the Merit Order by storing cheap, renewable energy during periods of low demand, such as when wind or solar power generation exceeds consumption. This stored energy can then be released during peak demand to avoid reliance on expensive and polluting backup sources, like gas or coal. By doing so, batteries not only reduce energy costs but also support decarbonization and grid stability.

Question 9

Importance of Batteries in Energy Flexibility (5)

Answer 9

Now, let’s explore the importance of batteries in enabling energy flexibility.

Question 10

Energy Storage (5)

Answer 10

Regarding energy storage batteries act as reservoirs, storing excess energy from renewable sources during low-demand periods. Which is critical because solar panels generate the most electricity during midday, but demand usually peaks in the evening. We can see this in California, where large-scale battery systems store surplus solar energy and release it during evening peaks, reducing strain on the grid.

Question 11

Grid Stability (5)

Answer 11

Batteries help with grid stability as they maintain grid frequency and voltage by responding to fluctuations in supply and demand. Where advanced systems can react within milliseconds, preventing blackouts. This is demonstrated with Australia’s Hornsdale Power Reserve which is a large-scale battery that stabilizes the grid by providing instant backup during system imbalances.

Question 12

Peak Shaving (5)

Answer 12

Batteries can help with peak shaving by reducing the need for carbon-intensive power plants during peak demand, ultimately lowering costs and emissions. We can see this with time-of-use pricing programs which encourage consumers to charge their batteries during off-peak hours and then use stored energy during expensive peak periods.

Question 13

Types of Battery Solutions (6)

Answer 13

Now let’s dive into the types of battery solutions available today:

Question 14

Battery Energy Storage Systems (BESS) (6)

Answer 14

Battery Energy Storage Systems known as BESS are large installations designed to store energy for the entire grid and then pump this energy back onto the grid at peak times. Big advancements have been made into these systems like Tesla’s Megapack systems which are deployed worldwide to store renewable energy at large scales.

Question 15

Residential Batteries (6)

Answer 15

Residential batteries are designed for homes, these systems pair with rooftop solar panels to maximize self-consumption and provide backup power. Examples of these are The Tesla Powerwall and The LG Residential Energy Storage Unit.

Question 16

Mobile Batteries (6)

Answer 16

Mobile batteries come in the form of Electric vehicles with Vehicle to Grid technology allowing cars to act as an energy storage unit. Various cars like the Nissan LEAF which has vehicle to grid capability can store energy at night and then provide it to the grid during peak hours.

Question 17

Benefits of Battery Solutions (7)

Answer 17

Let’s now discuss the benefits of battery solutions:

Question 18

Environmental (7)

Answer 18

The environmental benefits of Batteries are that they reduce greenhouse gas emissions by enabling greater use of renewable energy sources, storing surplus energy during periods of high generation, thus replacing fossil-fuel-based sources. They also mitigate air pollution and reduce the need for large-scale infrastructure, preserving natural habitats.

Question 19

Economic (7)

Answer 19

For utilities, batteries lower operational costs by replacing expensive fossil-fuel plants during peak demand and optimizing existing grid infrastructure. Consumers benefit from lower energy bills by storing energy during off-peak hours and using it during peak times. Batteries also drive job creation and economic growth, as the market for battery technology continues to expand.

Question 20

Reliability (7)

Answer 20

Batteries also provide instant backup power during outages, ensuring reliability for homes, businesses, and critical infrastructure. They stabilize the grid by managing frequency and voltage fluctuations, acting as a buffer to absorb excess energy and release it during shortages. Decentralized battery systems also enhance energy security by reducing reliance on centralized grids.

Question 21

Social (7)

Answer 21

Social benefits come as Batteries promote energy equity by supporting microgrids and bringing affordable, reliable energy to underserved communities. They empower consumers by enabling greater control over their energy use and contribute to cleaner air and better public health by reducing reliance on fossil fuels.

Question 22

Challenges of Battery Adoption (8)

Answer 22

However, there are challenges of battery adoption:

Question 23

High Costs (8)

Answer 23

Batteries require significant upfront investment costs for both residential and BESS. While prices of lithium-ion batteries have dropped by over 85% since 2010, affordability remains a barrier, especially in developing regions. Additionally, Consumers often face challenges in accessing financing or incentives for battery installations.

Question 24

Material Sourcing (8)

Answer 24

Battery production depends on finite resources like lithium, cobalt, and nickel. Extracting these materials poses environmental and social challenges, including habitat destruction and unethical labour practices. As well, Geopolitical concerns arise from supply chain dependencies, as many raw materials are concentrated in a few countries.

Question 25

Recycling and Sustainability (8)

Answer 25

Batteries also have limited lifespans, typically 8–15 years. Without effective recycling systems, used batteries contribute to electronic waste and potential environmental contamination.
Current recycling methods are inefficient and costly, leading to a lack of infrastructure to handle the growing volume of used batteries.

Question 26

Grid Integration (8)

Answer 26

Finally, Scaling battery storage to match the demands of a national grid requires significant upgrades to existing infrastructure and costs. The variability in local regulations and grid compatibility can also hinder adoption.

Question 27

Opportunities for E.ON (9)

Answer 27

On the other hand, batteries do offer many opportunities for EON

Question 28

Customer Solutions (9)

Answer 28

Opportunities for EON to expand into customer focused battery solutions, by Developing accessible and tailored battery packages for residential and commercial customers.
Combining battery systems with renewable energy offerings like rooftop solar and EV charging stations.

Question 29

Grid Optimisation (9)

Answer 29

Investments into BESS to stabilize the grid and maximize the use of renewable energy.
By deploying batteries in regions with high renewable penetration to manage variability and reduce curtailment of excess energy. As well as increasing profits due to BESS’ having lower running costs.

Question 30

Next-Generation Technologies (9)

Answer 30

Explore next-generation battery technologies like Solid-state batteries which offer higher energy density, longer lifespans, and improved safety compared to lithium-ion batteries.
Also Flow batteries, with their ability to store energy for extended periods, can provide long-duration storage for grid-scale applications.

Question 31

Sustainability Leadership (9)

Answer 31

Eon can become sustainability leaders in the energy transition, by promoting battery technologies as a key component of decarbonization strategies. Partnering with innovators to develop efficient recycling systems that recover valuable materials like lithium, cobalt, and nickel. Which ensures long-term sustainability and minimizes the environmental impact of battery disposal

Question 32

Empowering Communities (9)

Answer 32

Eon can empower communities by Utilizing battery technologies to develop microgrids in rural or underserved areas, ensuring access to reliable and clean energy. By Partnering with local governments and non-profits to fund and implement these projects.

Question 33

Future of Batteries (10)

Answer 33

Looking forward, the future of batteries is incredibly promising.

Question 34

Technological advancements (10)

Answer 34

Next-generation technologies like Solid-state batteries are emerging as a transformative innovation, offering higher energy density, faster charging times, and improved safety compared to traditional lithium-ion batteries. These features make them ideal for both electric vehicles and grid-scale applications. On other hand, Flow batteries, are designed for long-duration storage, making them perfect for stabilizing grids powered by renewables. They can store large amounts of energy for extended periods, addressing the intermittency of wind and solar power.

Question 35

Lower Costs (10)

Answer 35

Lower costs can be achieved by continuous advancements in materials and manufacturing processes. This trend makes batteries more accessible for residential, commercial, and BESS use, accelerating their adoption globally.

Question 36

Policy Support (10)

Answer 36

Governments worldwide are investing heavily in battery research and development, recognizing their role in achieving climate goals. Incentives for adoption, such as subsidies and tax credits, are creating a robust ecosystem that fosters innovation and large-scale deployment.
Partnerships between private companies and public institutions are paving the way for breakthroughs in battery recycling, sustainability, and supply chain efficiency.

Question 37

Thank you (11)

Answer 37

Thank you very much for listening to my presentation, I will now open the floor to any questions that you may have.