International Journal of Sustainable Energy Planning and Management Vol.

11 2016 3-14

Energy Storage and Smart Energy Systems


 
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ABSTRACT Key words:

It is often highlighted how the transition to renewable energy supply calls for significant Smart energy systems
electricity storage. However, one has to move beyond the electricity-only focus and take a Energy Storage
holistic energy system view to identify optimal solutions for integrating renewable energy. In Renewable energy
this paper, an integrated cross-sector approach is used to argue the most efficient and least-cost Heating
storage options for the entire renewable energy system concluding that the best storage solutions Transportation
cannot be found through analyses focusing on the individual sub-sectors. Electricity storage is URL:
not the optimum solution to integrate large inflows of fluctuating renewable energy, since more [Link]/10.5278/ijsepm.2016.11.2
efficient and cheaper options can be found by integrating the electricity sector with other parts
of the energy system and by this creating a Smart Energy System. Nevertheless, this does not
imply that electricity storage should be disregarded but that it will be needed for other purposes
in the future.

Abbreviations
CAES Compressed air energy storage
CHP Cogeneration of heat and power
NaS Natrium Sulphur (Sodium Sulphur)
electricity storage
PHS Pumped hydro storage

1. Introduction large-scale integration of renewable energy into the

energy system calls for a new magnitude of energy
The transition from a fossil fuel- to a renewable energy- storage. Especially within the electricity supply, a smart
based energy system is a change from utilising stored grid approach has focused on the need for electricity
energy to tapping fluctuating energy sources that must storage [1–3] in combination with flexible electricity
be harvested when available, and either used demand and the expansion of transmission lines to
instantaneously, or stored until the moment of use. neighbouring areas [4]. Sometimes it is even stated that
Dealing with this basic condition of the ongoing system renewable energy is not a viable option unless electricity
change, it is often highlighted how a transition into a can be stored [5]. Similarly, Locatelli et al. state
100% renewable energy supply or even less ambitious “Electrical Energy Storage Systems (ESS) are one of the

1 Corresponding author e-mail poul@[Link]

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 Energy Storage and Smart Energy Systems

most suitable solutions to increase the flexibility and and cost of storage in the energy system followed by the
resilience of the electrical system”[6] and Tan et al. role of thermal storage in smart energy systems. The
“point out smart [..energy storage systems] is a discussion is broadened to the integration of cooling,
promising technology for [..micro grid] and smart grid transportation and biomass into the energy system,
applications” [7]. ending with findings on what can be accomplished at an
A key problem with much of the literature in relation energy systems level by utilising a smart energy systems
to storage and renewable energy systems is their approach with proper use of storage.
tendency to focus only on the generated fluctuating For optimal system configurations, all potential
electricity and its direct storage from a smart grid decision variables should be considered using some sort
approach. Even though the term smart grid can refer to of heuristics [18], however this article focuses on the
different types of grids, it has for many years been potential role of storage across the energy system as well
associated exclusively with smart electricity grids, while as the benefits from integrating traditionally separate
other potential smart grid types, gas and thermal have parts of the energy system – without locating specific
been neglected. Electricity storage is and will be an optimal system configuration.
important part of the renewable energy system puzzle
but electricity’s conversion to different storable and 3. Electric, thermal, gas and liquid energy
transportable energy carriers is crucial in order to transit storage
to 100% renewable energy supply. The overall design of
the energy system needs to be rethought as for the This section looks in to electric, thermal, gas and liquid
integration of flexible generation, different conversion storage from an investment, efficiency and sizing
technologies and grid solutions. perspective.
Therefore, in order to identify the best solutions one
has to move beyond the simple smart grid approach and 3.1 Cost and efficiency of energy storage options
take a more holistic view as suggested by some authors There is a fundamental cost difference between storing
[8–12]. Electricity storage [13], flexible electricity electricity and storing other forms of energy. Here
demand [14] and transmission capacity [15] have either electricity storage is defined as a storage in which inputs
limited integration capacity or are associated with higher and outputs are electricity even though typically
costs or actual opposition as in the case with electricity is converted to other forms of energy in the
transmission grid expansion [16]. process.
Figure 1 shows the typical cost of electricity storage
compared to thermal, gas and liquid fuel storage
2. Scope, methodology and structure
technologies. There is a variety of different technologies
This paper investigates the most efficient and least cost and sizes within each type of energy storage, which
storage options as a part of a Smart Energy Systems influences the investments and operation and
Approach, as defined in [17]. By using this approach it maintenance costs. Even though the exact costs vary, the
is explained why the best storage solutions can be found magnitude of these differences does not change
by integrating the individual sub-sectors of the energy significantly, with the costs indicating that thermal
system. One of the main reasons why a cross-sector storage is 100 times cheaper in terms of investments per
approach can identify more economically viable unit of storage capacity, compared to electricity storage.
solutions is the cheaper and more efficient storage Moreover, gas and liquid fuel storage technologies are
technologies that exist in the thermal and transport again substantially lower in investments than a thermal
sectors, compared to the electricity sector. storage per unit of storage capacity. Note that the costs
The paper is written as a synthesis of the authors’ for these latter are based on underground natural gas
previous research within the field, thus putting forward caverns and oil tanks, however in a future renewable
and integrating analyses and results into a energy system this can also be methane or methanol
comprehensive line of argument investigating first produced from biomass and hydrogen from electrolysis
storage in different parts of the energy system, then size or similar sorts of renewable energy-based fuels [19].

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Henrik Lund, Poul Østergaard, David Connolly, Iva Ridjan, Brian Mathiesen, Frede Hvelplund, Jakob Thellufsen, Peter Sorknæs

Cost per cycle (€/MWh storage capacity)

Price Cycle efficiency 40
1,000,000 100 35
Price (e/MWh storage capacity)

90
100,000 30
80
70 25
10,000

Efficiency
60 20
1,000 50
15
40
100 30 10
20 5
10
10
0
1 1 0 50 100 150 200 250 300 350 400
Electricity - PHS Thermal Gas cavern Liquid Fuel
Number of cycles per year

Gas Liquid RES production Electricity Thermal

Figure 2: Annualized investment cost per use-cycle vs annual numbers

Figure 1: Investment cost and cycle efficiency comparison of of use-cycles. In the diagram the cost is also benchmarked against the
electricity, thermal, gas and liquid fuel storage technologies. cost of producing renewable energy, here shown for a wide cost span
See assumptions, details and references in Appendix 1. by grey (extension along horizontal axis is for presentation only; there
is no cyclic dependence for renewable energy production). See
assumptions, details and references in Appendix 1.

In addition to the investment issue, electricity storage is producing renewable energy it should be noted that even
prone to significantly higher losses than any of the other though the electricity storage investment costs at e.g.
types of energy storage, particularly in conversion losses. 400 cycles per year are below the upper cost range of
Gas caverns and oil tanks have practically nil loses; producing renewable energy, these storage costs include
thermal storage has losses of maybe 5 percent depending the purchasing of power to fill the storage and the
heavily on size and retention time – however as electricity operation and maintenance of the storage – nor the
in almost all instances include conversion to and from the storage or conversion losses involved. Thus even
storage, losses are much more significant here. without losses and if there is a freely available electricity
As a consequence of investment costs and losses, the source, initial investment costs in electricity storage are
economic feasibility of electricity storage technologies so high that power from the storage will only be on par
depends highly on the variation in electricity prices, with renewable electricity production if used nearly
typically on a daily basis. However, the nature of daily.
fluctuating renewable electricity sources, such as wind On the other hand, thermal storage investments and
power, does not typically generate such price variations. especially gas and liquid fuel storage are also feasible
Therefore even in a system with a high share of wind when storing energy with significantly fewer annual
power, such as the Danish case, studies show that cycles. Here energy can be stored for weeks, months and
investments in electricity storage are not feasible for the even years due to investment costs which are even
simple reason that the storage will not be used often enough smaller. Thus, the feasibility of these other energy
to justify the relatively high initial investments [20]. storage technologies is much better, especially when the
Figure 2 shows how the per-use-cycle annualized energy system is rearranged to connect renewable energy
investment costs of storing different forms of energy to thermal, gas and/or liquid storage technologies.
vary with the number of use cycles per year. The Clearly, electricity storage has a more direct effect on
diagram is based on large storage technologies and the ability of the energy system to integrate fluctuating
shows how investment in electricity storage capacity in renewable electricity sources such as wind power [21], so
general requires annual cycles of at least 300-350 (equal a comparison cannot be made simply based on investment
to nearly once a day) to be able to match the cost of costs, cycle efficiencies and investment costs per cycle as
producing renewable energy as indicated by the hatched shown in Figures 1 and 2. The electricity system needs to
area. When comparing the cost of storing to the cost of be balanced at all times but to the extent possible other

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 Energy Storage and Smart Energy Systems

storage types are more favourable as discussed as 1,000,000

discussed later in this paper later in this paper. 100,000

Price (e/MWh)
10,000
3.2. Community vs individual domestic storage 1,000
Figures 3 and 4 illustrate another important factor,
100
namely that there is a large element of economy of
10
scale in energy storage. Figure 3 shows this point for
thermal storage technologies by comparing a domestic 1
160 litre 4 m3 6200 m3 200.000 m3
160 litre hot water tank with a 6000 m3 thermal
storage used by a local cogeneration of heat and power
(CHP)-based district heating company [22]. Again
there is a factor of 100 difference between the
investments, but this time due to scale rather than Figure 3: Investment cost comparison of different sizes of thermal
type. Moreover one should note that the local CHP energy storage technologies. The sizes correspond to storages for a
plant in this case has a storage capacity equal to 4 m3 dwelling, a larger building, a CHP plant and a solar DH system
for each dwelling, whereas the maximum thermal (see Footnote 2). See assumptions, details and references in
storage installed with individual heating solutions is Appendix 1.
usually less than 1 m3. These individual solutions are
typically restricted to 1 m3 due to the space required
900,000
for the tanks. If even larger thermal storage capacity is 800,000
considered, such as the seasonal thermal storage 700,000
installed in recent district heating-connected solar
Price (e/MWh)

600,000

thermal plants in Denmark2, then the unit cost of 500,000

400,000
thermal storage is reduced by an additional factor of 300,000
approximately five compared to the unit cost of 200,000
100,000
storage for a local CHP plant.
0
For the communal heat storages, this of course Tesla PowerWall Sodium-sulphur CAES Pumped Hydro
fully Installed Battery
requires the presence of district heating systems which
3.3kW 50 MW 350MW 1000MW
introduces additional heat losses in the system. In
Denmark, heat losses in district heating networks vary
considerably from system to system depending mainly
on geographic heat demand intensity, but losses are on Figure 4: Investment cost comparison of different sizes of
average approximately 20%. Efficiency improvements electricity energy storage technologies. See assumptions, details
in the system outweigh these losses [23,24] and in the and references in Appendix 1.
future, losses may be decreased by lowering the forward
temperature of district heating grids [25].
Figure 4 illustrates how this in principle is the same storage altogether and instead utilizes energy that can be
for electricity storage technologies, even though the stored in the form of thermal, gaseous or liquid fuels,
economy-of-scale influence is not as substantial as for and if this can be implemented at community level
thermal storage. In addition, for gas and liquid fuel rather than in individual dwellings, then it will be more
storage technologies, there is an element of economy of feasible to develop the storage capacity needed to
scale but it is not as important since the costs of these integrate a high share of fluctuating electricity
types of energy storage are already low compared to the production such as wind, wave, and solar power.
other costs in the energy supply. Furthermore, where Of course, this may come with a cost in terms of losses
charging and discharging facility costs for other types of in energy conversion, however, these are inevitable, not
energy storage are insignificant, these are costly for only in wind or solar power integration, but in general to
electricity storage. meet heating, cooling and transport needs in a 100%
The important point is that, if the renewable energy renewable energy supply [26–32]. If it is accepted that
system can be designed so that it avoids electricity these losses are inevitable when covering heating, cooling
2 Marstal with 2306 inhabitants on the island of Ærø has two pit stores of 10,000 m3 and 75,000 m3 respectively [80]. Vojens (7655 inhabitants) has
recently inaugurated a 203,000 m3 pit storage [81]. Dronninglund (3328 inhabitants) has a 60,000 m3 pit storage[82]. All population sizes from 2014
according to [83].

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Henrik Lund, Poul Østergaard, David Connolly, Iva Ridjan, Brian Mathiesen, Frede Hvelplund, Jakob Thellufsen, Peter Sorknæs

and transportation demands with wind and solar power, Resources Conversion Demands

then the losses are not occurring due to the storage of the Combustion
energy, but due to the conversion of energy from Engines

electricity to heat, cooling or transportation. However, in Fuel Storage

order to identify the best and the least-cost solutions, a Power

Mobility

holistic smart energy systems approach has to be adopted. Exchange

Fossil Fuel Power Plants Electricity

Electricity
4. Smart energy systems Storage
Cooling
Smart Energy Systems may be defined as “an approach
in which smart electricity, thermal and gas grids are
combined and coordinated to identify synergies between Boilers Heating

them in order to achieve an optimal solution for each

Figure 5: Today’s energy systems characterised by linear paths
individual sector as well as for the overall energy system”
from fuel to energy demands
[17]. Such systems encompass new technologies and
infrastructures, which create new forms of flexibility,
primarily in the conversion stage of the energy system. Resources Conversion Demands
The flexibility is achieved by transforming from a simple
Bioenergy Combustion
linear approach in today’s energy systems (i.e. fuel to Fuels Engines
conversion to end-use), to a more interconnected Fuel
Mobility
Storage
approach as shown in Figures 5 and 6. In simple terms, Wind etc. Fluctuating Electro
Electricity fuels Power Electric
this means combining the electricity, thermal, and Exchange Vehicles
(Partly) flexible
transport sectors so that the flexibility across these Electricity
different areas can compensate for the lack of flexibility Electricity
Storage
Combined
from renewable resources such as wind and solar. Heat & Power
Heat Pump Cooling

Heat pumps in the system provides a key conversion Thermal

Storage
technology between electricity and the heating sector Heating
[33–35], which combined with heat storage and the Solar etc. Fluctuating
Heat
thermal mass of buildings provides flexibility for the
integration of fluctuating RES-based electricity sources. Figure 6: The integrated smart energy systems
Similarly, electric vehicles provides the possibility of not
only a dispatchable demand but also actual electricity
storage that may be fed back to the grid [36,37].
Electrofuels create a link between the electric system and to eliminating the need for space heating is both
transportation, so intermittent electricity production can technically challenging and very costly, especially as the
be connected to large-scale fuel storage. Additionally, the heat demand nears zero. Therefore an essential question
production cycle generates heat for the heating sector thus in the design of holistic least-cost solutions in the
integrating across three traditionally separate sectors. heating sector is to identify to which extent energy
Note that Figure 6 does not fully portray the complexity should be saved and to which extent renewable energy
of smart energy systems to the fullest extent possible as the should be supplied as well as to which extent individual
smart energy system is about integrating all sectors of the solutions should be used and to which extent communal
energy system and exploiting synergies across these. systems like district heating should be used. In this
The following sections probe further into heating, context, not only do heat savings need to be
cooling and transportation, and options for adding implemented in the future, it is also important to
flexibility to the smart energy system. consider how the heat supply should be provided for
buildings.
4.1. Smart heating and cooling Many recent research and demonstration projects have
Although it is widely accepted that the heat demand will also focused on the concept of a zero energy buildings
be reduced in the future, the steps of going all the way [38,39], however in order to reach these objectives one

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 Energy Storage and Smart Energy Systems

has to include building-integrated energy supply, One might say, that power-to-heat technology
typically solar thermal and photo voltaic. The best combined with dedicated heat storage or the thermal
solution will not be found if one considers these supplies mass of buildings provide a virtual electricity storage; it
as a part of the building; the least-cost design can only be can be charged when there is a high availability of
found from a holistic smart energy approach [40]. renewable electricity and while it cannot be discharged
The integration of the heating and cooling sector with back onto the grid, loads can be deferred when there is a
electricity enables a higher fuel efficiency and increasing low availability of renewable electricity.
the share of fluctuating resources resulting in more This means that to a large extent there is the option to
efficient system and least-cost solutions. This becomes store renewable electricity as thermal energy at a low
of even higher importance as the share of fluctuating cost rather than at a relatively high cost in dedicated
electricity is increased towards 100% renewable energy electricity storage. It will not involve any further
systems. conversion losses other than the inevitable ones that
Studies for several individual countries in Europe [41] have to be accepted in any case to provide for our
as well as the study Heat Roadmap Europe [23,42] at the heating and cooling needs in the least-cost way.
European Union level, have reached the conclusion that Furthermore, this also provides the option of increasing
the least-cost way to supply heating is to combine heat the integration of renewable electricity such as wind by
savings with district heating in urban areas and individual investing in additional heat pump capacity - or to some
heat pumps in rural areas. These studies also indicate that extent also in less efficient but cheaper electric boiler
an optimal solution is to be found if savings are capacity.
implemented to the level of decreasing current average
heating demands by approximately 50%, although the 4.2. Smart biomass and transportation
exact number differs a bit from country to country. In order to satisfy our transport needs in a future 100%
The reason for applying district heating in the urban renewable energy system with restricted biomass
areas is that it enables obtaining the benefits of using resources due to their high demand for various
waste heat from electricity production (CHP) and purposes [46–48], different power-to- transport options
industrial waste heat [43]. Studies show that in the will play an important role [49,50]. In fact,
current system in Europe, the waste heat from electricity electrification of the transport sector will form one of
generation and industry is almost the same as the total the most viable ways of ensuring balance between
heat demand of Europe [23]. As a result, by using production and demand in the electricity system [51].
district heating, Europe could replace half of its heating However not all transport demands can be satisfied by
demand with waste heat and thereby save a similar share direct use of electricity and parts of the sector such as
of the natural gas and oil which is currently consumed in long-distance transportation, marine and aviation will
domestic boilers. continue to rely on gaseous and/or liquid fuel that will
In the future as more and more wind and similar sources have be produced from available renewable energy
replace fossil-fuel based electricity production, parts of the resources. In order to solve this challenge creating an
waste heat will come from other sources such as industry, additional link between the electricity sector and
biomass conversion and electrolysis. Moreover some heat transport is needed. Electrofuels [52] can store
will come from waste incineration, geothermal and large- electricity in the form of liquid or gaseous fuels and
scale solar thermal plants. However studies illustrate how hereby create flexibility in the system while meeting
the integration of wind and other fluctuating renewable the demands of heavy-duty transport. In the process,
electricity sources using large-scale heat pumps and fluctuating electricity is converted into hydrogen by
thermal storage will play an important role [35,44]. the use of electrolysis and subsequently the hydrogen
The important conclusion is that power-to-heat will reacts with a carbon source from biomass (biogas or
form an important part of the heating sector in a future synthetic gas) or even from CO2 emissions [53] to
renewable energy system. This applies to individual heat produce methane, methanol or other preferable fuels.
pumps in houses outside urban areas as well as heat This enables renewable electricity storage as a gas or
pumps in district heating networks in urban areas. liquid fuel, which represents a relatively low-cost option
Similar conclusions have been made with regard to in comparison to complex electricity storage and at the
cooling [45]. same time it provides the option of increasing the

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Henrik Lund, Poul Østergaard, David Connolly, Iva Ridjan, Brian Mathiesen, Frede Hvelplund, Jakob Thellufsen, Peter Sorknæs

integration of wind or other fluctuating resources by this paper argues that this will lead to the most expensive
investing in additional electrolysis capacity [19]. As with form of energy storage, electricity storage, which is
heating, the intention is not to supply back to the grid, but approximately 100 times more expensive than thermal
to create a deferrable load, and the conversion losses are storage and even more expensive than storage for gases
inevitable as the energy demands for transportation needs and liquids. It is therefore a cheaper and also a more
to be meet using renewable energy sources either way. efficient solution to utilise thermal and fuel storage
Nastasi and Basso go as far as stating “The Power- technologies to integrate more fluctuating renewable
To-Gas option by Renewable Hydrogen production energy, such as wind and solar power, than to rely on
could solve the dispatch issues related to a wide electricity storage. This however, requires a strong
deployment of RES storage devices and their priority on integration across traditionally separate energy sectors.
the energy market”[54] Thus, this paper has indicated how this cross-sector
smart energy systems approach can lead to the
4.3. The overall system identification of better and much cheaper options in
Studies of complete regional, national or European terms of thermal, gas and liquid fuel storage in
energy transitions following the principles of a smart combination with cross-sector energy conversion
energy systems approach have demonstrated that it is technologies. Heat pumps, which can be in each building
possible to design 100% renewable energy systems where in the rural areas or in district heating system in the urban
production and demand of renewable energy is balanced areas, can connect the electricity sector to thermal
not only on a yearly basis but also on an hourly basis storage, while electric vehicles and electrofuels can
[28,30,55]. Such high-temporal resolution energy systems connect the electricity sector to storage in the transport
analyses have been conducted using the EnergyPLAN sector. Using these more efficient and cheaper options, it
model [56,57] taking into account all types of energy is unlikely that the other options in the electricity sector
(electricity, heating, cooling, electrofuels and other will be required solely for the integration of renewable
renewable energy fuels), conversion technologies energy. In fact, studies show that large electricity storage
between the sectors and hourly balance has been capacity is not economically viable for this sole purpose
established using thermal, gaseous and liquid fuel storage. within any of the steps between now and a future 100%
A smart energy systems approach is also required to renewable energy supply.
ensure the economic viability of future renewable In conclusion, for the large-scale integration of
energy-based energy systems. As noted in [58], wind fluctuating renewable electricity sources, electricity
power has the tendency to drive down spot market prices storage should be avoided to the extent possibleis and
of electricity, thus undermining the very feasibility of other storage types provide an option for system
wind power. Photo voltaics have the same effect, though balancing and flexibility while having lower costs.
the current implementation is not comparable to that of Direct electricity storage may be needed for other
wind power in Denmark yet. A smart energy system reasons but should not be prioritized if the aim is to put
with many deferrable loads across heating, cooling and the electricity back to the grid.
transportation will thus increase the value of fluctuating
renewable power generation. Acknowledgements
The work presented here has been supported by 4DH –
5. Conclusion
an international research centre that develops 4th
The issue of energy storage is essential when discussing generation district heating technologies and systems
how to implement the large-scale integration of ([Link]) with the support of the Danish Council
renewable energy both into the current system and in a for Strategic Research, grant number 11-116797.
future transition to a 100% renewable energy supply. A
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Henrik Lund, Poul Østergaard, David Connolly, Iva Ridjan, Brian Mathiesen, Frede Hvelplund, Jakob Thellufsen, Peter Sorknæs

Appendix 1: Assumptions for Figures Costs of the 160 litre and the 4 m3 tanks are based on
actual bids from a supplier including installation costs.
All data shown in Figures 1-4 are shown in Tables 1 and
The Danish Energy Agency lists small tanks (150-500 l)
2 below along with references for the data. Columns 3-
at around 4€/ l - though this cost does not include
6 in Table 1 are only relevant for Figure 2 and the
installation costs [71]. This corresponds to
technologies included there.
57,000€/MWh
Comment on annual costs
Comment on gas storage
All annual costs are calculated as an annuity of the
The costs are based on a gas cavern. For comparison, a
investment based on a discount rate of 3 percent per year
five-cavern plant in Denmark with 5*100 million Nm3 -
and the given lifetime plus fixed annual operation and
equivalent to a total of 5.5 TWh - costs 254 M€ or
maintenance (O&M) costs.
46€/MWh [71]
Comments on electrical storage
Comment on fuel storage
NaS storage is based on a ratio between installed
Storage costs vary according to local conditions including
discharge capacity and storage capacity of 6h in line
e.g. size and number of tanks, potential jetty construction,
with [60, 67].
tank foundation details based on soil conditions. Based on
Compressed Air Energy Storage (CAES) is based on
actual tanks of Oiltanking Copenhagen, prices are in the
a 360 MW / 1478 MWh plant.
200-250 €/m3 range.
PHS costs vary considerably from site to site. A German
plant is priced at about 100,000 €/MWh [68], Electric
Power research Institute lists a range from 4,40,000 to Comment on production costs for renewable
6,00,000 US$/MWh or 3,30,000-4,60,000 €/MWh [60] at energy
the average exchange rate of 0.755 US$/€ in 2010 [69]. As As noted by [73], “cost projections [of wind, solar] are
with NaS, this is based on a ratio between installed abundant [..] although with high uncertainties
discharge capacity and storage capacity of 6h. It should be attached”. Investigating data from the Danish Energy
noted that PHS is by far the most used grid-connected Authority and the Danish transmission system operator
electricity storage technology with 153 GW out of 154 GW [Link] on renewable energy technologies reveals
globally [70]. Only two CAES plants are in operation – a wide span of technology costs and thus production
albeit both in the >100MW size range [70]. NaS costs. The same technology costs are included from a
experienced a ten-fold increased from on 2,000 to 2,006 2012 assessment and a 2016 assessment to show how
thus a technology with significant development [70]. price expectations have changed with decreasing costs
Efficiencies given in [71] for PHS are 70-80%, [60] from on-shore wind - but increasing costs off-shore.
list cycle efficiencies as 80-82% and [72] list Photo voltaics on the other hand have experienced a
efficiencies from 76 to 85% depending on design. significant decrease over the same period of time.
For comparison, median scenarios for biomass prices
Comments on thermal storage in Denmark show costs of 6.2 €/GJ in 2015 and 7.1 €/GJ
All thermal storages are calculated based on a ΔT=60K in 2030 [74] CIF3 Danish harbour - giving a marginal
corresponding to a specific contents of 70 kWh/m3. The fuel cost of 50-57€/MWh for a biomass condensing
Danish Energy Agency[71] list specific contents for power plant with an efficiency of 45%. Coal - with a
large steel storage tanks and seasonal pit storages as 60- September 2016 price of approximately 72 US$/t [75]
80 kWh/m3. (64€/t) - has a fuel cost of approximately 18€/MWh
The 6200 m3 tank is an actual storage of Skagen based on a condensing mode power plant with an
district heating company in Denmark. The Danish efficiency of 45%. Average CIF prices for industry in
Energy Agency lists costs for large steel tanks for Denmark in 2015 were 382 DKK/t [76] or 50€/t - thus a
district heating at 160-260€/m3 [71] corresponding to fuel cost of electricity of 14€/MWh if coal prices for
2,300-3,700 €/ MWh. power plant are equal to coal prices for industrial coal
users.
In Figure 6, renewable electricity production is
3 Cost, insurance and freight. shown as a band from 30 to 50 €/MWh.

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 Energy Storage and Smart Energy Systems

Table 1: Characteristics for storage technologies.

Storage type Investment

cost Annual costs
[€/MWh Fixed O&M [€/MWh
storage [% of Lifetime storage Cycle
capapcity] investment] [Years] capacity] efficiency
Electricity – PHS [59] 175000 0.5 50 4387 0.80
Electricity – NaS [60] 600000 0.5 30 33612 0.85
Electricity – CAES [20] 125000 – – – –
Electricity – Tesla [61] 660000 – – – –
Thermal – pit [62] 500 0.5 30 28.0 0.85
Thermal – large tank [63] 2500 0.5 25 156 0.95
Thermal – 4000 l [64] 24000 – – – –
Thermal – 160 l [64] 180000 – – – –
Gas [65] 60 0.5 50 2.6 0.98
Liquid [66] 20 0.5 30 1.1 1.00

Table 2: Wind and photo voltaic technology costs and production assumptions. Total production costs are calculated based on the
other columns (and are thus not calculated by the stated references). Investment costs are calculated as an annuity using a discount
rate of 3 percent. Years (2015 and 2030) refer to prognoses for the two years.

Investment Technical Fixed Variable Total production cost Source

cost lifetime Capacity O&M O&M ____________________
[€/MW] [Years] factor [€/MW] [€/MWh] [€/MWh] [DKK/MWh]
Wind – Large on-shore 2015 1400000 20 0.337 n.a. 14 40 298 [77]
Wind – Large on-shore 2030 1290000 20 0.365 n.a. 12 34 254 [77]
Wind – Large off-shore 2015 3100000 20 0.457 n.a. 19 61 457 [77]
Wind – Large off-shore 2030 2300000 25 0.502 n.a. 16 49 366 [77]
Grid-connected PV 2015 2000000 30 0.091 n.a. 34 216 1620 [77]

Wind – Large on-shore 2015 1070000 25 0.37 25600 2.8 31 236 [78]
Wind – Large on-shore 2030 910000 30 0.38 22300 2.3 29 217 [78]
Wind – Large off-shore 2015 3500000 25 0.5 72600 5.5 72 542 [78]
Wind – Large off-shore 2030 2700000 30 0.53 55000 3.9 58 436 [78]

Large grid-connected PV 2015 1200000 30 0.122 12000 0 93 697 [79]

Large grid-connected PV 2030 820000 40 0.140 8160 0 72 539 [79]

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