TNC-CIGRE Webinar 2021

Electricity Energy Transition, Trends, and Technologies

OUR MISSION

Transform the way you power your

world to create a more sustainable
future.

© Fluence Energy LLC. All rights reserved. 2

Global leader in energy storage
Fluence (a Siemens & AES company) delivers complete, proven storage systems

OUR TRACK RECORD INDUSTRY RECOGNITION

13+ 150+ 24 #1 #4
YEARS PROJECTS COUNTRIES ON NAVIGANT* ENERGY IN ENERGY
AND TERRITORIES STORAGE LEADERBOARD FAST COMPANY MOST
INNOVATIVE COMPANY

2,750+ 7,600+
TOTAL MW DEPLOYED GW-HOURS OF DELIVERED
OR AWARDED SERVICE GLOBALLY
* Now Guidehouse Insights

OUR CUSTOMERS

© Fluence Energy LLC. All rights reserved. 3

 What is energy storage?
Large-scale batteries for utility and industrial applications
Intelligence
Extensible digital
Transformer intelligence and
machine learning to
improve system
performance

Controls
Fully integrated
operations platform
combines
comprehensive
Battery Cells, Battery
Power controls and asset
Modules, BMS, Racks, Leaf
Conversion Telco management
Controller, Aux Panel, Safety
Equipment Components, Cooling,
© Fluence Energy LLC. All rights reserved. 4
 We are creating the energy storage market and accelerating
grid transformation

2018 2020
Deploying largest
2008 2014 2017 project in the
Bringing market 2019
participants world, capacity
1st lithium-ion Contracted first 2015 Build largest Largest portfolio
across grid value Delivered fastest peak power,
battery to 100 MW/400 MWh energy storage contracted in the response time of 1200 MWh
2009 chain together to
connect to the energy storage First grid-scale project in the region with grid-scale battery CALIFORNIA, US
max asset value
electric grid peaker battery project in world, for the 5th 500+MW from IRELAND
VIC, AUSTRALIA
INDIANA, US 1st commercial ALAMITOS, CA, US Finland time 20+ projects
grid-scale battery HELSINKI, FINLAND ESCONDIDO, CA, US SOUTHEAST ASIA
CHILE

From 2008-2020, the Fluence team designed and delivered the

Industry Firsts
first battery-based energy storage systems in 18 markets

© Fluence Energy LLC. All rights reserved. 5

 Southeast Asia’s Largest Energy
Storage Portfolio

Supporting Ancillary Services

Fluence completes first projects in 470

MW / 470 MWh Philippines battery order
Fluence and its customer have worked
together to develop a standardised 20 MW
‘building block’ BESS solution that can be
quickly rolled out to sites ranging from 20
MW to 60 MW in size.
The entire portfolio scheduled for
commissioning by the end of 2022.
© Fluence Energy LLC. All rights reserved. 6
Frequency Regulation and
Generation Enhancement

AES Andres
Santo Domingo, Dominican Republic
10 MW / 10 MWh

SERVICES
• Frequency Regulation/Control

IMPACT
• Alternative to generators
• Supports grid resiliency during storm
conditions

© Fluence Energy LLC. All rights reserved. | 7

 Dominican Republic

BESS operating profile during typical weather BESS operating profile during severe storm
conditions (one week prior to 2017’s Hurricane Irma) conditions (during Hurricane Irma)
Frequency Regulation (150ms) Frequency Response with
Energy Storage

Cost-effective way to manage second-to-second

Kilathmoy •
fluctuations and maintain stable frequency
IRELAND BENEFITS
• Can both delivery and absorb power (bi-directional)
11 MW / 5.5 MWh • Faster response than thermal generation

© Fluence Energy LLC. All rights reserved. 9

Energy Storage as Virtual Transmission
Without Virtual Transmission

With Virtual Transmission

• Avoid or defer building new lines

• Operate existing lines closer to thermal limit
BENEFITS
with active power
• Provide additional ancillary services

© Fluence Energy LLC. All rights reserved. 10

“Grid Development Plan”– Scenario B2025 shows 3 Ad-hoc Gridbooster
systems decreasing redispatch costs by 9.3%
1.3 GW Storage Grid Booster – Germany - Saves 350,000€ / Day in redispatch costs

Storage systems as Gridbooster –

BackUp system for higher utilization of existing grid
P365-M583 2 * 100MW (tandem) TenneT
Audorf/Süd und Ottenhofen

P411-M625 2 * 300MW (tandem) Amprion

Wehrendorf und Hoheneck

P427-M646 1 * 500MW TransnetBW

Kupferzell

Total 1300MW

© Fluence Energy LLC. All Rights Reserved. 11

 T&D Enhancement

Rohini, New Delhi, India

10 MW / 10 MWh
Located at a substation owned by
Tata Power Delhi Distribution Limited
(TPDDL)

SERVICES
• Frequency control
• Distribution reliability
• DSM Mitigation

IMPACT
• Provide capability to manage
frequency and manage load
© Fluence Energy LLC. All Rights Reserved. Highly Confidential and Proprietary
growth in local area. 12
Indicative Value Comparison – Network Peak Load Relief
T&D Enhancement

Transmission project
development costs
start occurring 3-5
years before project is
put into service.
These costs are not
highlighted separately
here, but rather
considered part of
total capex.

© Fluence Energy LLC. All Rights Reserved. 13

Generation enhancement- Capacity Release Case Study:
Storage enabled the plant to sell an additional 130 GWh per year

How Does It Make Money?

105% • Storage can be used for Reserve that was
Storage Reserve (+4%)
maintained at plant or Frequency services
Percent of Existing Plant Capacity

100%
Existing Existing Reserve (3.5%)
95% Reserve (7.5%) Additional Energy Sales (4%) • Growing demand; plant can be used at
higher CUF
90%
85%
80% Existing Energy Existing Energy
Sales (92.5%) Sales (92.5%)
75%
70%
65%
60%
Existing Plant Hybrid Plant
Notes: Restricted Axis. Based on a 550 MW plant and 20 MW/5MWh
battery © Fluence Energy LLC. All Rights Reserved. 14
Capacity Release
at a Coal Plant
AES Gener Angamos
Mejillones, Chile
20 MW / 5MWh

PROBLEM
Grid rules mandate the power plant must
withhold a portion of their capacity as
spinning reserves, lowering the total
energy output of the system, which
lowered plant revenue.

IMPACT
The speed, efficiency, and reliability of 20
MW/5 MWh battery enabled it to provide
the spinning reserves for the power plant.
This released the plant’s withheld capacity
to grow its revenues by increasing output
by 4% (~130 GWh per year).

© Fluence Energy LLC. All rights reserved. | 15

Storage projects - from Inception to Operation
To be successful, best is to work with bankable, experienced integrators who are
here to help you managing risks and creating value at each steps of your journey

Structuring, pricing and Operation,

Business case & Deployment and
contracting the BESS Maintenance &
Policy Support solution
Execution
Revenue optimization

© Fluence Energy LLC. All Rights Reserved.

 • Commissioning costs/ test
Price Expectations (Seek prices) • Safety
• HVAC
• Design
• Commercial tools/Warranties
Other
• Labor
Other = 13%
= 21%
Containers
= 12% Fluence global supply
Containers agreements/flexibility with
Inverters=
= 12%
7% different suppliers ensure
long term
Inverters= availability/support and best
13%
pricing (eg: 7GWh in 2021)

Batteries=
68%
Batteries=
54%
Battery prices are only
one component

Short Long
duration duration

No BOP included/ Fluence strong on EPC support (Providing Turnkey in many countries)
 Operation and Service (LTSA) considerations
A BESS’ operational costs are generally lower than its thermal counterparts; however like thermal
generation, a BESS also requires certain preventive and reactive services to be contracted with supplier

What happens What happens if

How will
from the supplier/ How will the
parts
Degradation? product is not in assets be
availability
How to augment the market maintained?
be ensured?
capacity? anymore
Pilot Project has had issues
IsIsyour
yourintegrator
integratorlocking
lockingyou
youininwith
with11supplier?
supplier?Whats cost over life?
您的整合商是否讓您綁定於單一供應商？
Strong bankable integrators focused on Supply solutions are important to ensure long-term operation

Supplier Supplier New

A B Tech

© Fluence Energy LLC. All Rights Reserved.

Supplier qualification by your technology supplier is critical
Through our technology agnostic approach, Fluence partners with leading suppliers and
conducts rigorous prequalification and testing to ensure the quality and safety of components

Vendors go through an extensive pre-qualification process, including battery tests, PCS

at limits of intended use, and corner cases to see how the equipment performs and if
they are operating safely. Fluence operates two labs which perform comprehensive
component and system testing.
Qualification requirements include:
• ISO9001 & 14001
• Battery cells are certified to IEC62619
• Modules and low voltage switchgear certified to UL1973
and IEC61000-6
• Low-voltage directive compliance for the EU (LVD
2014/35/EU).
• Transportation of dangerous good compliance to UN 38.3

© Fluence Energy LLC. All Rights Reserved. | 20

 Flexible Performance

• Performance warranty for available Battery Capacity over 20 years

discharge energy and efficiency for 100%

an operation period of up to 20

Battery Capacity in %
80%
years
60%

• Warranties based on the actual 40%

utilization of the storage systems

20%

• Continuous flexible adjustment of 0%

0 2 4 6 8 10 12 14 16 18 20
warranties to allow for different Years of Operation [a]
applications in the future Calender Degradation 1 cycle / day 1.5 cycles / day

21 © Fluence Energy LLC. All Rights Reserved.

Operation and Service: example of a long-term service agreement
To have a dependable BESS asset, a range of maintenance and optimization services are critical for long life
and strong performance. A good long-term service agreement with a responsive partner is the answer.
Small capacity addition to
compensate for degradation

Augmentation

Availability of parts and services for

To cover any defect
complete asset lifecycle
Long term Reactive
partnership maintenance

Operation
and Service

Liquidated
Risk hedging/mitigation with LD Preventive To improve/maintain asset
Damages (LD)
coverage maintenance availability
Coverage

Self Diagnosis

Detection and Failure Root cause

analysis
It is important to ensure you look for “one common solution”
In your bids, ensure you ask for the right integrated system and quality
There is a lot of risks with other integrator approaches

Critical Risk Factors

to consider from
integrators:
Battery System
Is technical expertise
properly aligned?

MV/HV Integration
Which party’s component
is responsible for a
system failure?

Protection/Operation
Simulation Is the OEM likely to honor
a warranty claim?

Warranty / Service Who is backing

integrator’s credit?

23
© Fluence Energy LLC. All Rights Reserved Confidential and Proprietary.
Thank You
ACHAL SONDHI
A C H A L . S O N D H I @ F L U E N C E E N E R G Y.C O M
© Fluence Energy LLC. All rights reserved.
24
Appendix
© Fluence Energy LLC. All rights reserved.
25
 Ducks, kangaroos, condors, and elephants – strong peaking capacity
needs showing up globally

California Chile

Australia India

Is this happening in ASEAN? Your Country? A particular part of your Grid?

Peak requirement to remain; Ramp to increase
Select Right Technology for a job done only a few times a year
RE deployment will push the required
flexibility and increase the need for peak
power at short duration

Need for flexibility and transmission will

push procurement of high capex assets
More that will be under-utilized in the future;
flexible
ramp- short
Further down duration Curtailment
with more RE
Potential learnings and technology
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 transfer will occur very slowly due to slow
Total Demand Hour Net Demand adoption; Not pushing fast enough
Capacity Peak Power Reducing Peak Demand
with Energy Storage

Potential storage impact of 4-hour dispatch on net load on the peak demand day in CAISO

Provides flexible peaking capacity with 24/7

SDG&E Escondido •
availability and no start up / shut down costs
CALIFORNIA BENEFITS
• Fast ramp rate compared to traditional resources
30 MW / 120 MWh • Can provide additional ancillary services to the grid

© Fluence Energy LLC. All rights reserved. | 28

We bring experience to deployment and execution
Different Altitudes Seismic Zones Brownfield

Switzerland
20MW/20MWh Philippines portfolio:
13 sites across nation
on different islands
470MW/470MWh

Chile (Solar + Storage)

112MW/560 MWh

San Diego
(30MW/120MWh) &
Alamitos
(100MW/400MWh)
Cloud-based tools can put operational data at your fingertips with full asset lifecycle data
Like a modern power plant, your BESS needs to be monitored and supported

Data Access Advanced Drilldowns Customizable Metrics

Immediate access to system Full asset lifetime data repository with Ability to add new metrics, features, or
performance data and metrics time-period drilldowns and CSV users on an ongoing basis
exports

Performance Indicators Maintenance Updates

Asset-specific performance Review past and upcoming scheduled
indicators and contractual limits maintenance activities

© Fluence Energy LLC. All rights reserved. | 30

Waste Handling and Disposal Management

Supervisory services at the customer’s site during battery system de-energizing, rack system
dismantling including withdrawal of battery modules, and packaging of modules for shipment
Arrange for disposal and material recycling of EOL battery cells in accordance with applicable
government laws via approved Recycling Partners
Shipment of EOL battery modules to Battery Manufacturers designated location.

31 © Fluence Energy LLC. All Rights Reserved.

Safety: Does your bid ask for an approach on safety engineering ?

Systems need to be designed to

meet UL and IEC standards at
the cell, module, rack, container,
and system levels, including
UL1973, UL9540a, IEC62619,
Integrated Safety IEC61508, NFPA 855 and more.
from Cell to System We partner with leading
suppliers and conducts rigorous
qualifications and certifications
on all hardware components and
subsystems.© Fluence Energy LLC. All rights reserved. 32
 Support Transmission Congestion

Deploying BESS across a Grid to support changing Load and Generation

BESS to support BESS to support New
Load centre Generation flows &
security stability needs

Increasing RE
Generation

Increasing Demand at
Load Centres
Including a BESS to expand
existing line capacity to evacuate
RE power to load centre