20240111 BESS BCG Webinar - Industrial design - copia.pptx

BESS

1. sous-titre du chapitre Is maxim nis alignatur, unt ium quodi disi officaectiam voloren delesti oreperi tiorae ant Titre de la présentation sur deux à trois lignes INDUSTRIAL DESIGN AND SAFETY BESS BUSINESS CASE GUIDELINES François-Xavier Olivieri Executive Office Global BESS Business Team Key links: BESS Business Case Guidelines Sharepoint : Battery Energy Storage System Viva Engage: Global BESS Business

2. Scope and Usage of the Guidelines 2 SCOPE Apply to utility-scale Lithium-ion LFP Battery Energy Storage System (BESS) projects submitted for investment approval to the F-GBU, R-GBU, ES-GBU or Group Investment Committee. This first version is mainly applicable to Front-of-the-Meter BESS . Some chapters are also relevant for BESS Behind-of-the-Meter (BTM) but it will be tackled more in-depth in an V2 of the document. These guidelines cover five main items : 1. Industrial design & Safety 2. Procurement Strategy 3. Commercialization & Valuation 4. Digital by design 5. Corporate Social Responsibility M eant to be used by anyone involved in a BESS project development . In this document, there are two types of information to consider: Requirements that must be handled with a “comply or explain” approach during project development. Recommendations and best practices. USAGE

3. BESS BCG – Industrial design & Safety content 3 PROJECT MAIN CONSTRAINTS Regulatory framework, project site specificities, environmental impact What are the main BESS OEM / Integrator equipment and BoP equipment KEY COMPONENTS Identification of design parameters that influence technical characteristics TECHNICAL CONFIGURATION Safety risk identification, assessment and mitigation SAFETY BY DESIGN Operation and maintenance strategies OPERATION & MAINTENANCE

4. Key Focus 4 4 Financial model OPEX CAPEX TECHNOLOGY SPECIFIC METRICS PROJECT CONSTRAINTS TECHNICAL REQUIREMENTS LAND ACQUISTION/ LEASE PERMITTING LAND AVAILABILITY/ FOOTPRINT ELECTRICAL GRID CONNECTION ENVIRONMENTAL CONDITIONS CAPACITY DEGRADATION POWER CAPACITY, ENERGY CAPACITY AUXILIARY CONSUMPTION ROUND TRIP EFFICIENCY AVAILABILITY TECHNICAL LIFETIME / END OF LIFE LIFE TIME EXTENSION STRATEGIES

5. - - WHAT are the bess KEY components DO YOU HAVE IN MIND? Answer directly in the chat

6. 6 Monitoring & control Cell Module BMS Temperature control Site controller Power Conversion Controller Battery system DC switch AC breaker AC transformer Grid Power Conversion System Electrochemical Data collection & processing Electrotechnical ICT BESS INTEGRATOR BOP EQUIPMENT LV/MV transformer = Electrical Substation Identify the scope split and interfaces of various equipment composing your BESS project and type of provider (BESS OEM / Integrator or BOP) RECOMMENDATION Key components

7. BESS Project main constraints 7 7 Legal framework is set by local authorities to ensure that industrial activities are conducted in a manner that is safe, environmentally sound, and beneficial to the community Land use permit, Environmental permit, Construction permit to mention some Permitting Site selection should offer secured grid connection and construction readiness Preference should be given to sites already owned over acquisition of rights of new land, as the history is often known Early involvement from legal team to ensure proper due diligence of the legal conditions and to discard beforehand any possible legal impediments Land acquisition / lease Development teams to assure compliance issues and grid connection constraints are fully understood Battery limits and interfaces to be clearly established between concerned stakeholders Electrical grid connection Trade-off between having the densest possible system and having a system that is safe and easy to maintain Land availability / footprint Following site specific aspects needs to be validated as it influences the overall layout of a BESS project

8. 8 8 High and low temperature environment Dusty environment High humid and salty environment Environmental conditions Li-ion products have an energy density of 40-60kWh/m 2 (excluding BOP). Next gen BESS products are transitioning to higher cell energy densities >300Ah. Wide range of energy densities, containerized, modular forms, typical OEM arrangements to be adapted. BESS capacity & configuration Comply with relevant regulations, codes & standards and ENGIE safety guidelines. Deviation on safety clearances from ENGIE safety guidelines: large scale fire test at installation level required. Safety by design Geotech, topography, hydrology, environmental aspects, former land use, local regulatory requirements reg, structure & foundations. Allow adequate access & evacuation in emergency situations. Access road should be capable of handling heaviest equipment. Land conditions, access , evacuation Collect storm water as well as discharge from fire water runoff. If applicable , extinguishing water line, fire hydrants. Site services align with engineering standards and comply with local requirement / regulation. E ffluent drainage, fire water network, site services BESS Project main constraints

9. 9 9 It is recommended to consult the legal framework applicable to your project to launch all the required permit applications on time RECOMMENDATION The selection of site is strategic (close to grid connection point or congestion nodes, accessible, no site impediments etc.) and should be secured early enough Make sure there is an agreed contractual allocation of responsibility to obtain each and every permit right from the start and if deemed possible before the Investment Decision Site environmental conditions must be considered in the design of the project REQUIREMENTS BESS Project main constraints

10. - - what comes to mind when you hear about bESS sizing ? Answer directly in the chat (a few key words)

11. Technical configuration 11 11 Metrics – MW power output required and MWh capacity (nameplate capacity and usable capacity) Power to energy ratio of the BESS is project specific and depends on application Factors influencing BESS sizing are C-rate, DOD, EOL, usage profile, response time, RTE, augmentation BESS sizing output feeds in as technical input to the revenue model (GEMS) and the financial model (AIFA), it is an iterative process Sizing Li-ion batteries age naturally due to internal cell degradation affecting performance and safety The degradation can be accelerated or slowed down through operational usage 3 zones, 1 st zone is rapid degradation, 2 nd zone is long plateau and 3 rd zone is rapid degradation and difficult to predict The reduction in power happens at extreme SOC, to extract all the energy from the battery Different charge / discharge control modes such as Constant Power, Constant Current, Constant Voltage exist and shall be chosen based on project use case Capacity degradation Following are the main factors affecting the capacity degradation of Li-ion batteries

12. 12 12 High cell temperatures decreases battery lifetime and faster degradation is expected at low temperatures Cell temperature High charge and discharge rates cause resistive losses leading to increased cell temperature thereby lifetime and accelerates cell degradation Charge and discharge rate High SOC causes the higher operating voltage thereby causing electrolyte to degrade Average state of charge Deep charge / discharge ages the battery more compared to shallow cycles Depth of discharge Round trip efficiency Ratio between the energy released during a discharge and the energy absorbed during a charge Losses occur in BESS and BOP components, AC losses (PCS losses) and DC losses (cell coulombic efficient, cell heating) Different components constitute RTE i.e. rack losses, DC/AC cable losses, transformer efficiency, HV connection losses RTE point of measurement guaranteed is project specific Consider RTE excluding auxiliaries Technical configuration

13. 13 13 Auxiliary power supply is always required even when the BESS is in standby Safety function – HVAC, liquid cooling, heating, fire security, UPS, emergency lights, siren Performance – BMS, site controller, aux controller Cooling system adequately sized for EOL. As the battery ages there will be increased losses due to increased resistances, cooling needs will increase Auxiliaries Planned unavailability Internal unplanned unavailability External unplanned unavailability Availability Battery no longer satisfies criteria such as residual capacity, RTE, internal resistance, safety Typically, EOL at system level 60% or 65% of the initial capacity Lifetime can be prolonged by proper thermal management, changing the use case or oversizing/ adding storage Technical lifetime Technical configuration

14. - - WHAT bess KEY performance guarantees DO YOU HAVE IN MIND? Answer directly in the chat

15. 15 15 Optimum operating temperature range Design of thermal management critical from performance and operational safety point of view Air based cooling, Liquid based cooling Thermal management Oversizing the battery plant Battery augmentation Full battery replacement of a plant AC side augmentation is most simple and efficient for implementation Lifetime extension strategies Performance guarantees for the first 2 years in the supply agreement Energy capacity guarantee, power capacity guarantee, availability guarantee, RTE and auxiliary consumption guarantee Standard product warranty & spare parts Execution strategy Technical configuration

16. 16 16 Auxiliary system design should consider increased auxiliary consumption at EOL Dedicated metering with high accuracy class considered for auxiliary consumption Good practise is to provide representative performance profile and ask suppliers to provide the estimated auxiliary power consumption for that profile and environment Get flexible degradation guarantee to cover the uncertainity on future markets and operating regime If choice exists between different cells , make sure guarantees are the same irrespective of the choice RECOMMENDATION S Provision for future accommodation – cable routing , conduits, MV switchgear expansion or spare feeders Easy access for the extenstion zone without disrupting existing plant operation Define optimal design considering available space and technical , regulatory and financial aspects Technical configuration

17. Sufficient space for future system expansion Foresee configurable PCS controller and site controller to accept addtional datapoint Check for compatibility of the Product foreseen for the augmentation Obtain augmentation proposal from current BESS integrator , but keep alternative options open Execution strategy to be validated based on contracting, supplier capabilities, CAPEX and project schedule All equipment within a BESS facility has a lifespan to cover the project lifetime To be constantly monitored as it approaches EOL, as the system will not stop automatically Availability guarantee at year 0, as well as for the technical lifetime under LTSA Auxiliary power requirement should be guaranteed by the Integrator and validated during site performance test Request for RTE guarantee at year 0 as well as for technical lifetime Point of Common Coupling or Interconnection measurement point to be clearly defined Flexible degradation not offered , as minimum degradation guarantee to cover project life time Adopt appropriate charge / discharge control mode for specific project use case REQUIREMENTS 17 17 Technical configuration

18. - - At what stage o&m expert should be involved? Answer directly in the chat

19. 19 19 O&M strategy should be defined based on industry principles such as synergies with industrial projects in the area, tools, expertise, access to spare parts etc., Describe project staffing and sourcing strategy (services, support and parts) Operational model Remote/ unmanned operation aspects Emergency response concept and implementation Conditioning and performance monitoring Operations strategy Define vision for long-term maintenance/ replacement provisions and be reflected in OPEX calculations LTSA for major equipment be negotiated same time as the equipment supply agreement, if not other alternatives to be looked at Maintenance strategy LTSA with BESS OEM / Integrator for 0 - 2 -10 - 15 .. years, option to either partially descope or step-out Preventive maintenance, corrective maintenance, parts and repair, safety performances, extended product warranty, additional performance guarantees, software license agreement Scope of works Maintenance for BoP can be either outsourced to service partner, LTSA contractor or partially insourced Operation and maintenance

20. 20 20 Early mobilization of O&M staff O&M team should have prepared plant management system (CMMS, document management system, operational excellence framework etc.,) prior to handover RECOMMENDATIONS Early involvement of the O&M and H&S team is mandatory as per IMS of ENGIE GBUs. O&M review is necessary to assess the layout and design of the site with regards to access, safety, security, maintainability, chosen operational strategy REQUIREMENTS Operation and maintenance

21. 21 Safety by Design What is the most important safety topic to consider when developing BESS projects? 1. Battery Management System Development 2. Layout and Safety Distances discussion 3. Fire & Explosion Mitigation Strategies 4. Emergency Response Planning 5. All the above topics (and more) as safety need to be considered as a Holistic Approach McMicken accident – USA [2019] Moorabool accident - Australia [2021]

22. Safety by Design Safety by Design is about protecting: People Environment Assets & Business continuity Company Reputation Purpose Main elements covered in BCG Guidelines are: Thermal Runaway Design Safety Studies Fire Fighting Strategy BESS Safety Checklist Key Focus Safety by Design is: a holistic approach to be considered from earliest design stages a way to i de ntify , assess, and mitigate risks to an ALARP level Methodology 22 © ENGIE 2024

23. Safety by Design The main safety event that can occur with lithium-ion batteries is thermal runaway,  which is an accelerated, self-sustaining rapid rise in temperature . Once thermal runaway has started, it will produce flammable and toxic gases and may lead to a fire or explosion. Thermal runaway alone can generate enough heat to damage adjacent cells and propagate the reaction Thermal Runaway Simplified Bow Tie diagram for Thermal Runaway of Lithium-Ion Batteries 23 © ENGIE 2024

24. Safety by Design Fire Risk Analysis HAZID Review HAZOP Review Safety Concept Noise and Vibration Study Safety Critical Elements Register Ergonomics Study Layout Review Safety Studies Thermal Runaway Prevention Fire Mitigation Strategy Explosion Mitigation Strategy Applicable codes & Standards SCE Performance Standards Emergency Response Method Statment Risk Analysis F&G Detection System Initiate Define Basic Design Detailed Engineering Environnement Effect Register Wastewater management Noise Level Mapping Thermal Radiations Effects Explosion Overpressure Effects Electrical Hazard study Explosion Risk Analysis Safety studies shall be performed timely over the project phase as design progresses Safety Study Output 24 © ENGIE 2024

25. Safety by Design Fire Rating (partition) Fire rated escape door BMS / PCS separation Safety Access Explosion prevention HVAC air intake Container Status Sign Explosion protection Humidity Management Label and warning signs Safety Distances Other Battery (UPS) E-Stop / LOTO DC Breaker (vs. PCS) Preventative Safety at System level Required measurement (Cell/ Module) Requirement measurement (Rack Level) Smoke and Fire Detection Gas detection Temperature Sensors Alarms hardwiring Alarm attendance Humidity sensors Visual audible Alarms Coolant leakage detection Insulation Monitoring Thermal Management Emergency procedure External fire brigade contact Safety information available for Emergency services Water supply (agreement with fire brigade) Ala rm routing Water reserve Operation & Maintenance Voltage Sensor (cell) Fuse (module) Disconnection (rack) Safety vent (cell) Electrical safety (module) Safety Data Sheet IP rating (liquid cooling)       Preventative Safety at component level  Monitoring BESS Safety Checklist shall be considered in the design and implementation of BESS projects 25 © ENGIE 2024

26. Safety by Design . BESS Fire Mitigation Strategy Effective for non-battery fire Production of toxic and explosives gases Potential fire propagation and cascading effect Total Burn of the installation Potential fire propagation and cascading effect Production of toxic gases / smoke System Design Activation means Water Supply Interaction with external firefighting strategy Used Water Management Destructive process inside BESS Fire propagation limitation (inside and for adjacent unit) Heat / Gas Emission Reduction Dilution of toxic gases System Design Sealing Strategy Activation means, logic & timing Active system with potential downtime induced by spurious trip Fire Propagation / Higher impacted area (e.g. Smoke) Stakeholders' acceptance (Community, AHJ, Insurance) Risk for company reputation Sprinkler system inside Let it Burn Water Curtain Outside Fire Suppression with Aerosol Fire Suppression with Water No intervention Strategy Means Consequences Challenges Aerosol protection 26 © ENGIE 2024

27. Safety by Design Layout Review Large Scale Fire Testing required if not compliant with Guidelines Fire Modelling to support layout discussion Layout is a key safety Element Prevent escalation potential to adjacent from/to BESS or other hazardous equipment Prevent escalation potential from/to environment (e.g. dense urban aera / industrial area) Consider adverse environmental effects (flooding, weather, traffic impact, etc.) ENGI E’s Laborelec Guidelines included in BCG are in line with NFPA 855 and Insurance perspective 27

28. 28 Safety by Design Understand and challenge the Fire & Explosion mitigation strategies suggested by integrator when developing BESS projects. Understand and carefully evaluate the Thermal Runaway risk potential when developing BESS projects. Recommendations Standardization of safety studies for BESS projects are on-going, key input and output data will be provided to project teams. What’s next? Safety studies:  Safety Concept, HAZID, HAZOP, FERA, Noise and Vibration, MSRA, SCE, env. effects register, ergonomics and electrical hazard studies shall be performed at appropriate moment over the project phase . BESS safety Check list shall be viewed as complementary to ENGIE’s Laborelec Safety Guidelines and shall be considered in the design and implementation of the BESS. Requirements