On the road to grid stability - Using batteries in heavy vehicles and charging infrastructure as frequency reserves

Sammanfattning: Background: Climate change and increasing threats that come with it fosters a need for changing from fossil sources of energy to renewable ones. Sweden aims to have net zero greenhouse gas emissions by the year of 2045. One of the sectors that need to take part in this shift towards fossil free energy is the transport industry. Electrification of vehicles is an important part of this shift. As a result, a large number of big batteries will be allocated within this industry. Apart from fuelling vehicles, batteries have a potential to be used for other purposes as well. Among others, batteries can be used as a frequency reserve, providing support services to the power grid. Purpose: The purpose of this master thesis is to investigate possibilities for using batteries in heavy vehicles and charging infrastructure at sites as frequency reserves, to support the power grid, and to investigate what value that can be created and obtained by these sites. Research questions: The research questions that this thesis aims to answer are the following: ● What actors within the transport industry have potential in delivering frequency regulation services? ○ What is the potential in different segments of the market? ○ What are the obstacles and enablers for electrification of the transport industry, and its possibility to provide support services with batteries? ○ What is the maturity level of the technology and the market, in particular in the relevant cases? ○ Which types of frequency regulation are most suitable for above mentioned actors and their prerequisites? ● How can the market for frequency regulation services be identified and characterised, and how can it be expected to develop during the coming years? ● What gaps are there to fill for actors interested in engaging in the market for support services? Method: The thesis was conducted as a case study in two steps, combining secondary data and statistics with expert- and stakeholder interviews. The method of the thesis takes on a descriptive and exploratory approach. First, the context in which the study takes place is described. Thereafter, a brief exploration and evaluation of a selection of potential cases was done. The evaluation led to a choice of three user cases, overnight depot, logistics hub and solar park, that were then further investigated, and analysed based on the research questions and the theoretical framework. Delimitations: The investigation of the thesis is limited to Sweden, and the Swedish energy system. The thesis only focuses on possibilities of providing frequency regulation with energy reserves. A selection of cases is chosen for the investigation, even though there might be potential in others as well. Conclusion: The thesis concludes that there is some potential in using batteries in heavy vehicles and charging infrastructure at sites as frequency reserves, to support the power grid. The most suitable types of frequency regulation that can be provided by a battery was found to be FCR-D, FFR, and to some extent FCR-N. Sites providing frequency regulation creates value in terms of stability of the power grid, and additional revenues for the sites. The three investigated cases all had both potential and some limitations to their ability to provide frequency regulation. The overnight depot, with either buses or trucks, has good potential with regard to both aggregated capacity at the site, as well as available hours. With electrification of the vehicle fleet, some transport companies have found a need for increasing the utilisation rate of their electric trucks. Increased operation hours lead to a loss of potential for providing frequency regulation. For a logistics hub, the biggest potential for frequency regulation was found in supporting infrastructure, and buffer batteries in particular. The third case investigated a more holistic energy system, with a site that combines solar power, with energy and charging for vehicles. Together, these components give synergy effects, and the case shows a good potential in providing frequency regulation and renewable energy to the grid, as well as other values in terms of increased electrification. The thesis further concludes that the changing frequency regulation market and energy system creates opportunities for new value creation and capture.