Project Summary
LDES NODE will develop a methodology to inform the optimal locations of Long Duration Energy Storage (LDES) technologies when deployed on electricity distribution network. With optimal deployment on the electricity distribution network, LDES technologies, can assist with alleviating local constraints and maximising the output of renewable generation as well as performing valuable stability and resilience grid services The LDES NODE methodology and corresponding mapping tool will provide regional stakeholders with data-driven insights into key locations for LDES installation, allowing co-ordination with broader net-zero energy plans.
Innovation Justification
The core innovation that will be developed in LDES NODE is an analysis methodology and associated tool to map optimal LDES deployment across an electricity distribution network.
The tool will create a geospatial representation of the network to:
- determine optimal deployment locations for LDES,
- identify network areas with a need for LDES connection and the appropriate node at which to connect, and
- allocate the most appropriate technology and its required capacity to connect based on:
- network node characteristics (e.g., generation headroom, connection cost, existing and planned renewable generation, etc.),
- expected network benefit, and
- lifetime costs of the storage technology.
There are no existing, directly equivalent products used across business-as-usual operation within DNOs and relevant stakeholders, such as LDES developers and manufacturers. This is because the backbone of the modelling, a techno-economic appraisal of LDES technologies, is in and of itself a novel piece of work. Although similar investigation has occurred at transmission level, as part of the National Grid ESO NIA project, (Impact of Long-duration Energy Storage Systems on GB Transmission Planning) our analysis will be focused on identifying impacts and benefits of LDES at distribution level, comparing counterfactuals such as hydrogen and electrochemical storage with novel alternatives such as adiabatic compressed air energy storage (A-CAES).
The current technological readiness of the software tool is a formulated concept (TRL 2). Following Discovery Phase the tool will be a proof-of-concept (TRL 3), and successful completion of the Alpha and Beta phases would result in the tool informing an LDES demonstration project (TRL 7).
Whilst the UK already has multiple gigawatts of installed long-duration storage capacity, it is almost completely from pumped hydro, and novel technologies must be explored to meet local needs and constraints whilst progressing to Net Zero. The scope of LDES NODE is, through the development of an LDES mapping tool, to facilitate future deployment of LDES onto the distribution network.
Whilst the Discovery phase will produce a proof-of-concept tool with application to ENWL, the expectation is to progress development to produce a product usable across any GB distribution network.
Furthermore, the project will benefit from collaboration with an LDES technology developer to progress potential LDES solutions to the deployment stage. As a result of the innovative scope and multi-phase approach, SIF funding is the ideal mechanism through which to develop LDES NODE.
Impacts and Benefits
The LDES NODE Discovery phase will deliver a novel techno-economic analysis of LDES technologies at a distribution network level. The optimal siting of LDES on local networks is key to achieving Net Zero, and providing this analysis to regional stakeholders will promote their use in local area energy planning allow the unlocking of whole system benefits such as:
- alleviating distribution and grid network constraints thereby avoiding expensive, carbon intensive reinforcement,
- reducing CO2 emissions directly from a reduction in curtailment,
- reducing CO2 emissions indirectly by displacing carbon intensive generation,
- providing cost savings for users of network services including balancing and flexibility services.
Until now, the primary focus of investigation into LDES impacts and benefits has been undertaken at the transmission level and has shown that LDES integration can reduce system costs, deliver greater and cheaper storage capacity than shorter-duration solutions, and reduce renewable deployment risk. In the UK, it has been modelled that LDES can reduce the cost of system by £13bn - £24bn (3.1% - 5.1%) by 2030, from addressing seasonal storage needs and the displacement of a greater capacity of shorter-duration storage.
A preliminary cost-benefit analysis indicates pursuing LDES NODE has significant potential value to network operators. Annuitised reinforcement costs can range from £50,000/MVA to £300,000/MVA, and thus even the prevention of a single transformer upgrade of 10 MVA (a conservative estimate) would produce a project ROI of between 3.33 and 20.0.
Optimising LDES integration into the network, such as through co-location with renewable generation sources or reutilisation of land from stranded fossil fuel assets, can provide significant value to network operators by leveraging existing grid connections and assets. The prevention of a single generation connection would produce a project ROI of 3.33.
Many LDES technologies also have inherent benefits with further potential to lower system costs, such as relatively short lead times (compared to new generation connections), the lack of deployment restrictions and a modular architecture that can be scaled with evolving needs.
Impacts and benefits
The LDES NODE Discovery phase developed and demonstrated a novel techno-economic analysis of LDES technologies at a distribution network level. The optimal siting of LDES on local networks is key to achieving Net Zero, and providing LDES NODE analysis to regional stakeholders will promote their use in local area energy planning allow the unlocking of whole system benefits such as:
- alleviating distribution and grid network constraints thereby avoiding expensive, carbon intensive reinforcement,
- reducing CO2 emissions directly from a reduction in curtailment,
- reducing CO2 emissions indirectly by displacing carbon intensive generation,
- providing cost savings for users of network services including balancing and flexibility services.
Previously, the primary focus of investigation into LDES impacts and benefits has been undertaken at the transmission level and has shown that LDES integration can reduce system costs, deliver greater and cheaper storage capacity than shorter-duration solutions, and reduce renewable deployment risk. In the UK, it has been modelled that LDES can reduce the cost of system by £13bn - £24bn (3.1% - 5.1%) by 2030, from addressing seasonal storage needs and the displacement of a greater capacity of shorter-duration storage.
A preliminary cost-benefit analysis indicated pursuing LDES NODE has significant potential value to network operators. Annual reinforcement costs can range from £50,000/MVA to £300,000/MVA, and thus even the prevention of a single transformer upgrade of 10 MVA (a conservative estimate) would produce a project ROI of between 3.33 and 20.0.
Optimising LDES integration into the network, such as through co-location with renewable generation sources or reutilisation of land from stranded fossil fuel assets, can provide significant value to network operators by leveraging existing grid connections and assets. The prevention of a single generation connection would produce a project ROI of 3.33.
Many LDES technologies also have inherent benefits with further potential to lower system costs, such as relatively short lead times (compared to new generation connections), the lack of deployment restrictions and a modular architecture that can be scaled with evolving needs.
Further network benefits including flexible services are discussed below.
