Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - STORELIO (AN EFFICIENT RENEWABLE ENERGY STORAGE SYSTEM FOR A SUSTAINABLE RESIDENTIAL USE)

Teaser

Currently, worldwide societies demand more efficient, green and cost effective energy systems, as well as flexible operation alternatives. Thus, grid connected or off-grid electricity supply from renewable energy sources open up new opportunities and business models for...

Summary

Currently, worldwide societies demand more efficient, green and cost effective energy systems, as well as flexible operation alternatives. Thus, grid connected or off-grid electricity supply from renewable energy sources open up new opportunities and business models for coupling renewable generation (i.e. solar) with energy storage systems (batteries).
The global PV installed capacity is growing and the revenue is forecasted to move from an annual € 65,700 million in 2013 up to a forecast of € 105,850 million by 2020 at an average CAGR 8.7%. In parallel, the forecasted value of the energy storage (ES) market will reach $ 8 billion globally by 2026.The expected growth will be driven by the ES cost reduction, better definition of the value of storage applications, and the enhancing project development standardization and efficiencies.
From EasyLi, a France based company experts in battery systems and solutions with over 5 years of experience in several European countries, we believe it is possible to achieve a successful business case while contributing to the sustainable development. Because of this, we have invested € 412,500 in these years in STORELIO system: a highly innovative system based on the electronic integration of various existing subsystem (inverter, solar regulator, overall energy management, lithium-ion battery)
within a standalone device capable: 1) to operate grid connected or off-grid and to interact with “smart home” and “smart grid” environments through dedicated communication and multi-protocol systems, 2) to match design criteria and features: a) scalable battery, b) affordable and short ROI, c) multi power source, d) real time management, among others and 3) to become a highly attractive and competitive solution able to penetrate selected market niches.
The objectives of the Feasibility Study were to assess the viability of STORELIO project through a technical, commercial and financial evaluation, where key issues related to IP, technical challenges, market opportunity, business strategy, risks assessment, financial simulations were approached.

Work performed

As a result of the Feasibility Study prepared, several conclusions can be extracted. Regarding the technical aspects of the project, its feasibility can be confirmed. Several risks were identified and evaluated, bringing back the conclusion that the implementation of the proposed mitigation and contingency actions will be enough to fully develop STORELIO up to TRL=9. Main risks are related to the integration of the different STORELIO subsystem (Energy Storage System, Solar generation system, etc) within an optimized Energy Management System and with an easy and attractive user’s interface. Nonetheless, the experience of EasyLi delivering highly efficient systems together with a friendly interface makes STORELIO approach affordable.
Meanwhile, the commercial assessment revels the market opportunity is huge. There are many niches where STORELIO could be the best solution. We will get focused on the residential sector en Europe and in Africa at the same time, but with different penetration strategies. It directly translates into different business models approach. STORELIO project will be ruled by the concept of the Energy Storage as a Service (ESaaS), however, main commercialization in Europe will be through the retail model (direct sales). In Africa different alternatives (under an affordability and bottom up approach) will be put in place depending on the specific country/region/village/community to be targeted.
Finally, in terms of the financial evaluation we can expect a highly profitable project, as shown by the main indicators calculated in the FS. Sales projections can be much larger than estimated, if agreements, as expected, are closed along phase 2 development On the other hand, in order to gain further insight about Africa region, we prospected diverse bilateral or multilateral funding programs. The aim of these programs is support companies with additional funding schemes and information in order to support their penetration in Africa.

Final results

On one side, STORELIO is an advantage from the following points of view: 1) Supply 100% energy from the sun, reducing a part of EU 5,500 million tonnes CO2 emissions if STORELIO spreads in the EU. 2) The user will recover the investment in 4 years. Also EasyLi offers Energy storage as a Service (ESaaS), a real advantage for users that will pay a monthly fee instead of pay the total amount at the beginning. 3) STORELIO can work off-grid being an advantage in developing countries or in areas far from the electric grid. 4) Is a green energy system. 5) It works at 48 V and therefore is fully safe (Tesla works at 385 V). 6) STORELIO has a lifecycle of 20 years and does not require O&M expenditures. 7) Can be controlled and managed remotely. 8) European families can save a 95% compared to the current electric system bills. 9) Can be adapted to the regulations of every country.
With a moderate sales forecast, the base scenario corresponds with 20% IRR. Thanks to EasyLi’s experience, commercial network and the interest shown by some of the company distributors and end users in STORELIO solution, it will be possible to reach even higher sales volumes.
Nonetheless, STORELIO project is not just about EasyLi growth, but also about contributing to build a “smart, sustainable and inclusive” EU for the 21st century as well as a sustainable energy matrix in developing countries.
Nearly 1.3 billion people did not have access to electricity in 2015, mostly in Africa. By 2050, although population growth will concentrate in cities, hundreds of millions of people will still live in sparsely populated rural areas where off-grid solar systems would likely be the most suitable solution for minimum electrification. In this sense, solar PV coupled with Energy Storage has considerable merits. It can improve life considerably for those who earn USD 1 to USD 2 per day and spend as much as USD 0.4 per day on energy products (IEA, 2011). Thus, the roadmap proposed by the International Energy Agency assumes by 2030 a PV capacity of 200 W per capita for 500 million people lacking other access to electricity. Mini-grids and off-grid PV capacity would thus total 100 GW, representing about 5% of total capacity by 2030 (2% by 2050), a significant increase from current situation.

Website & more info

More info: http://www.storelio.com/.