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INDUSTRIAL & COMMERCIAL ENERGY STORAGE “Ofgem is also consulting on Access and Forward Looking Charges and this is being conducted out of step with the TCR. As yet, we do not know what the outcome will be and what market drivers will be or what revenue streams will be accessible. This leaves something of a void as it becomes difficult for an investor to make a strong business case when there is limited visibility of future cost savings and revenues.” As the UK is more price-sensitive, compared to some other markets, Molloy says sometimes incentives are needed to improve the business case. “This doesn’t necessarily have to take the form of a direct subsidy. It could, for example, be from reducing VAT to 5%, or delivering other tax advantages, or by recognizing the carbon reduction benefit of some of the applications. “There are many creative ways the market could be incentivized to grow more rapidly to deliver the required levels of system flexibility.”

UPS drives storage to optimize EV charging

Global delivery services provider UPS International has progressed in terms of demonstrating and learning from how behind-the-meter batteries can enable better visibility and control over costs in relation to fleet electrification. Working in partnership with distributed network operator UK Power Networks, the group has defined a blueprint for rolling out smart grid systems at its sites. Between 2017 and 2019, UPS hosted the Smart Electric Urban Logistics (SEUL) pilot, designed to support the wider transition to electric vehicles for larger commercial fleets, funded by the Office for Low Emission Vehicles (OLEV), in partnership with Innovate UK. As part of the SEUL project, UPS increased the number of electric vans at its central London depot in Kentish Town above the maximum the charging infrastructure would allow before hitting capacity constraints. SEUL comprised a smart charging

system designed, developed and implemented by subcontractor UK Power Networks Services, which includes an active network management system coupled with an energy storage system that can dynamically control local demand. Peter Harris, sustainability director at UPS International, says: “SEUL was an exercise in showing how UPS can use technology to eliminate the CapEx required in upgrading the local grid to support multiple EVs charging. “We did rough calculations during SEUL and found that deploying the technology demonstrated in the project can eliminate about 70% of external CapEx in terms of the upgrades required on the grid side to ensure enough capacity to support up to 170 electric vans charging at the depot. “However, these are multi-faceted systems and require adaptation building to building.”

EV supply and a smart grid

UPS has invested in UK company Arrival, which is initially supplying it

Case study

Oxford City Council goes with the flow Energy Superhub Oxford (ESO) is a £41 million ($54 million) demonstration project between Oxford City Council and Pivot Power. It also includes Habitat Energy and Invinity Energy Systems (previously RedT energy) and the University of Oxford. The project will trial the world’s largest hybrid battery system (50MW) to help accelerate the city’s implementation of EV charging and use of heat pumps. The delivery phase will start in the fourth quarter of 2020 and the

project is planned to go live next year. Invinity is supplying a 2MW/5MWh flow battery, making it the UK’s largest VRFB installation to date, as part of a system that also uses lithium-ion technology.

Energy Superhub Oxford’s project with Pivot Power

22 • Energy Storage Journal • Autumn 2020

The system will enable load shifting for charging fleet vehicles overnight, and will also provide services to National Grid ESO as well as trade energy via an energy management system. The VFB will complement the lithium ion battery storage in delivering grid services as the system can be used to front-end lithium-ion, acting as a first responder for any proportional use of the system. Using non-degrading flow battery technology in this way preserves the lithium-ion cycling, which is used to provide additional charge or discharge power when required. Invinity business development director Edward Porter says: “We’ll also be able to use the results to demonstrate the technology’s performance at scale and develop future projects. This project could be suitable across the UK with particular value in constrained networks or alongside renewable generation.”

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Energy Storage Journal, Issue 30 — Autumn 2020  

Welcome to the latest issue of Energy Storage Journal. Our cover story is a detailed look at how the energy storage industry is preparing t...

Energy Storage Journal, Issue 30 — Autumn 2020  

Welcome to the latest issue of Energy Storage Journal. Our cover story is a detailed look at how the energy storage industry is preparing t...

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