Federal Regulators Want to Try and Advance Energy Storage Resources

on October 11, 2016

Energy-Manager-TodayThe federal agency that tries to ensure equal access to the nation’s grid is holding a technical conference to see how energy storage can weave itself more efficiently into generation, transmission and distribution. It will be November 9.

“The Commission wants to explore the circumstances under which it may be appropriate for electric storage resources to provide multiple services, whether the RTO/ISO tariffs need to include provisions to accommodate these business models, and how the Commission may ensure just and reasonable compensation for these resources in the RTO/ISO markets,” says the Federal Energy Regulatory Commission, as noted inEnergyChoiceMatters.com. 

“The subject of the conference will be the utilization of electric storage resources as transmission assets compensated through transmission rates, for grid support services that are compensated in other ways, and for multiple services,” FERC said.

What’s to be discussed?

— the potential models for cost recovery for electric storage resources utilized as transmission assets, while also selling energy, capacity or ancillary services at wholesale;

— the potential models to enable an electric storage resource to provide a compensated grid support service (like a generator providing ancillary services under a reliability must-run contract) rather than being compensated for providing transmission service, and

— the practical considerations for electric storage resources providing multiple services at once (i.e., providing both wholesale service(s) and retail and/or end-use service(s)).

“A flexible grid is more efficient and reliable — for all types of generation,” says Matt Roberts, executive director of the Energy Storage Association, in a Twitter exchange with this writer. “It’s is already commercial. It’s value is to make the grid more flexible and resilient — not to be a savior for renewables.”

The common perception is that the energy storage is used to harness electrons and to release them later on when the sun is not shining or the wind is not blowing. That’s a bit further out. The reality is that energy storage is now used to smooth out fluctuations in voltage — to prevent the lights from flickering out.

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Energy Manager TodayFederal Regulators Want to Try and Advance Energy Storage Resources

Borrego Solar launches megawatt-scale energy storage division

on October 11, 2016

energy storage utility driveThe combination of battery storage and solar is beginning to take off, and project developers are working to position themselves for more installations. Borrego’s new division recalls Tesla’s acquisition of SolarCity, announced this summer, but on a smaller scale. 

Borrego will focus on long-duration energy storage, which officials say is necessary to integrate renewables into the grid. 

“We’re realizing that all across our customer base—from cities, school districts and public agencies to businesses, manufacturers and electric utilities—it is more frequently making economic sense to evaluate energy storage in conjunction with solar,” said Berwick. “We knew that this technology shift was around the corner.”

Borrego’s storage unit will spend the next year focusing on developing megawatt-scale projects with utilities across the United States. “It’s something that our customers, electricity regulators and policymakers are asking for,” said Borrego Solar CEO Mike Hall.”

While Tesla has many residential offerings, the deal with SolarCity may yield even greater value in the utility sector. Last summer, Tesla founder Elon Musk told the annual convention of the Edison Electric Institute that he anticipates the utility-scale Powerpack storage product will comprise between 90% and 95% of Tesla’s total stationary storage sales.

On the residential side, Navigant has forecasted the 2025 North American market for residential solar PV plus energy storage nanogrids to be over 1.8 GW, with 30% to 40% of those nanogrids aggregated into virtual power plants. The use of solar and storage together in nanogrids is expected to continue expanding, leading to “new organized markets for ancillary services and efforts by utilities and grid operators alike to manage increased DER portfolios in ways that capture value upstream.”

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Utility DiveBorrego Solar launches megawatt-scale energy storage division

Why should only solar and wind get the tax credits? This industry wants in

on October 11, 2016

los-angeles-timesThey may not get it this year, but boosters of energy storage technologies want their sector to get the same tax credits that the federal government extends to the wind and solar industries.

“It would be a good economic investment for us as a government and as a nation to invest in advancing these technologies,” said Matt Roberts, executive director for the industry’s trade group, the Energy Storage Assn.

Under a bill introduced by Sen. Martin Heinrich (D-N.M.), qualifying energy storage technologies such as batteries, thermal energy storage and regenerative fuel cells would get a 30% investment tax credit.

The Heinrich bill essentially runs parallel with the 30% tax credit that wind and solar receive from the federal government and, like the wind and solar credits, eventually would taper off.

Reps. Michael M. Honda (D-San Jose) and Tom Reed (R-N.Y.) have introduced a similar but more complicated bill in the House of Representatives.

The prospect of a tax credit created some buzz at the Energy Storage North America conference that wrapped up Thursday in San Diego.

“Storage is too expensive,” said Keith Martin, an attorney at the Washington, D.C., law firm of Chadbourne & Parke, one of the panelists at the conference. “If the government can help with the cost-sharing, it will then get more people into the market.” 

Under current rules, energy storage can receive a federal tax credit only if it is paired with wind and solar electricity production, most often seen when a storage component is matched with a rooftop solar system.

The proposed legislation would establish tax credits for standalone storage systems.

Extending the tax credit “would encourage deployment of storage throughout our electric power sector,” said Janice Lin, executive director of the California Energy Storage Alliance, an advocacy group. “The consequences of that are dramatic for ratepayers.”

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Los Angeles TimesWhy should only solar and wind get the tax credits? This industry wants in

Large Customer-Sited Energy Storage System Activated In Hawaii

on October 10, 2016

energy storage cleantechnicaWet’n’Wild Hawaii and Stem Inc have activated a large customer-sited energy storage system in Hawaii, connecting mutiple sites. According to a press release, the system has been supported by Hawaii’s Energy Excelerator, the Hawaiian Electric Company, and the US Department of Energy’s SunShot Initiative.

As for specifics, the storage system, equaling 108 kilowatts / 216 kilowatt-hours, represents an important stage in the deployment of storage solutions, stated  Tad Glauthier, vice president of Hawaii Operations at Stem last January:

“By providing increased visibility and control of customer-sited resources, Stem is adding a new arrow to utilities’ quivers and turning a challenge into a solution. This project not only supports Hawaii’s goal of 100% renewable energy by 2045, but also serves as a replicable model for global energy companies of how today’s distributed resources can truly compete with traditional, fossil fuel-based alternatives.”

This storage endeavor is part of a three-year pilot to deploy electric storage systems at about 30 local businesses on O‘ahu, Maui, Hawaii Island, using Stem’s storage solution.

The platform goal is to help improve reliable electric service for customers of utilities with high levels of rooftop solar and other distributed energy resources. The project will be part of the U.S. DOE SunShot Initiative’s “Sustainable and Holistic Integration of Energy Storage and Solar PV (SHINES)” to demonstrate visibility and control of edge-of-network resources.

“Hawaii’s renewable energy growth and isolated location present unique and significant challenges for local grid operators,” said John Carrington, CEO of Stem. “Utilities and regulators are watching Hawaii to determine the viability of storage-enabled grid services. We are proud to be working with Hawaiian Electric to address those grid challenges with our technology.”

Deploying its software platform, supported by real-time data and predictive analytics, Stem will work to better integrate energy storage at customer sites to help customers manage their loads and provide the Hawaiian Electric Companies with grid responsive resources. For the first time, grid operators will be able to see and manage customer-sited resources, including energy storage, alongside conventional generation resources from their existing control platforms.

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CleanTechnicaLarge Customer-Sited Energy Storage System Activated In Hawaii

Molten silicon offers tenfold improvement to solar energy storage

on October 10, 2016

engineering-and-technologySpanish researchers have developed a system based on molten silicon that can store solar energy ten times more efficiently than existing storage systems.

According to the team from the Solar Energy Institute of the Universidad Politécnica de Madrid (UPM), up to 1MWh of energy can be stored in just one cubic metre of molten silicon. Combined with the fact that silicon is the most abundant element in the Earth’s crust, the technology holds a promise for solving the problem of intermittency of renewable power generation.

The system, described in an article in the Energy journal, stores energy from solar rays at very high temperatures of up to 1400°C. The energy can be recovered when needed through a thermal generator.

“At such high temperatures, silicon intensely shines in the same way that the sun does; thus photovoltaic cells, thermophotovoltaic cells in this case, can be used to convert this incandescent radiation into electricity,” explained Alejandro Datas, who led the research. “The use of thermophotovoltaic cells is key in this system, since any other type of generator would hardly work at extreme temperatures.”

With conversion efficiency of up to 50 per cent, these thermophotovoltaic cells can produce 100 times more electric power per unit area than conventional solar cells.

The technology is quite similar to the existing concepts of storing solar power in molten salts. However, the salts are not only ten times less efficient, they are also more expensive and harder to obtain.

The team is currently awaiting a US patent and has started building a laboratory scale prototype that would pave the way for a commercial product.

In addition to thermal solar power plants, the researchers envisage that the system could be used in the housing sector to provide electricity and heating to residential and office buildings.

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Engineering and TechnologyMolten silicon offers tenfold improvement to solar energy storage

A Peace Treaty: How Utilities Can Benefit From Residential Energy Storage

on October 8, 2016

Solar Industry energy storageThe war between solar homeowners and utility companies has been an ongoing, fierce fight. Homeowners with rooftop solar want to be compensated at retail rates for the energy they feed back into the grid. Meanwhile, utilities want to maintain lower rates and keep control over the centralized grid. Residential energy storage could help solve these issues.

Through a collaborative and cooperative effort, utilities and residential solar storage owners could build a stronger, more reliable distributed electrical grid. To move forward, it’s necessary to take advantage of new technology, open up communication and give up control. The technology is here, and costs are down, making a battery-based distributed grid more possible now than ever. With a distributed grid, everyone wins.

Using advanced tech and communication

The growth and advancement of technology, especially in the solar and energy storage sector, has been on an upswing in the last decade. The electrical grid infrastructure, however, remains largely unchanged. Systemic change on the utility side will inevitably be slow, but it’s time for utilities to catch up with the growth of energy technology. The companies that do this will be able to do their jobs better – namely, continue to reliably meet energy demand.

Solar photovoltaic installations are on the rise, and more and more solar homeowners are looking for a way to store the energy generated by their panels. As a result, the battery business is booming, with many big brands unable to meet the growing demand. This means that residential energy storage capacity, especially in locations like Southern California, is rising, even though that storage capacity isn’t owned by utilities.

But just because utilities don’t own it, that doesn’t mean they can’t or shouldn’t use it. Another area of major technological advancement is the progress of communication. It’s time for utilities to start using that, too.

In a world of lightning-fast information exchange, it’s surprising how little utilities and customers are communicating. There have been many compromises proposed to wage peace between solar homeowners and power companies, but there hasn’t been a lot of talk of the free-flowing information. Communication, itself, could be the compromise everyone is looking for.

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Solar IndustryA Peace Treaty: How Utilities Can Benefit From Residential Energy Storage

Tesla Set To Ride Worldwide Wave Of Energy Storage Business

on October 8, 2016

Seeking AlphaElon Musk has had a good couple of weeks as the Tesla (NASDAQ:TSLA) stock price has shown recently. Very strong Q3 auto sales are expected to continue into Q4. Musk’s talk about his Mars colonization plans, though typically highly ambitious, were well-received by all but the usual Tesla Musk bears. Recent commercial storage orders have been less emphasized but represent further strong gains for the company.

Those writers who criticize Musk’s vertical integration model for new energy products are either hooked up with the fossil fuel industry or fail to understand the way the world is going. Chinese manufacturer BYD Company (OTCPK:BYDDY) have already gone a long way down that road, and have been very successful accordingly. They have just launched a new energy storage system in Europe using lithium iron-phosphate batteries.

Tesla is now consolidating its vertically integrated new energy systems. This will tie in their interests in electric vehicles (EV’s), rooftop solar and energy storage systems. Success is coming remarkably quickly now in their energy storage business. This is happening as the Gigafactory production ramps up and approvals are received. There is a huge market appearing rapidly for cost-effective energy storage which can overcome the mismatch between renewable energy supply and energy demand.

Commercial Gains.

In September the California Public Utilities Commission awarded the world’s largest lithium ion battery storage project to Tesla. The company will provide a 20 MW/80 MWh Powerpack system at the Southern California Edison Mira Loma substation. This was necessitated by a huge and polluting rupture in the Aliso Canyon natural gas reservoir. 15 million residents were potentially affected.

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Seeking AlphaTesla Set To Ride Worldwide Wave Of Energy Storage Business

Borrego Solar Launches Energy Storage Division

on October 7, 2016

Solar Industry energy storageBorrego Solar Systems Inc., a provider of large-scale solar development, design, financing, construction, and operations and maintenance, has announced its entry into energy storage solutions with the launch of a new division. This marks the company’s first-ever formal expansion into energy services beyond solar PV. The company will be offering both stand-alone energy storage solutions and storage integrated with solar PV.

“We’re excited to launch this new chapter, as a way to further our mission of accelerating the adoption of renewable energy,” said Borrego Solar CEO Mike Hall. “Energy storage – and, in particular, the long-duration energy storage on which we’ll be focusing our efforts – is an important piece of what we need to effectively integrate more and more renewable energy into our electricity system, and it’s something that our customers, electricity regulators and policymakers are asking for.”

The energy storage division will be based in Massachusetts and will serve customers nationally. Borrego Solar’s executive vice president of strategy and business development, Dan Berwick, will lead the new division.

“We’re realizing that all across our customer base – from cities, school districts and public agencies to businesses, manufacturers and electric utilities – it is more frequently making economic sense to evaluate energy storage in conjunction with solar,” said Berwick. “We knew that this technology shift was around the corner given the changes happening to the grid as we add more wind and solar power to it. As climate change becomes an increasingly present danger, and the need to decarbonize our electricity system more immediate, the distributed energy marketplace will demand greater amounts of flexible energy storage. We’re now prepared to meet that need.”

Over the coming year, Borrego Solar’s energy storage division will focus on supporting utilities across the U.S. in the development and installation of megawatt-scale energy storage systems for integration with renewables and peak-load management. The team will also offer energy storage solutions to its existing solar PV portfolio, totaling more than 400 MW, and to new solar customers, which are primarily large-scale electricity users in its core state markets of California, New York and Massachusetts.

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Solar IndustryBorrego Solar Launches Energy Storage Division

Wet’n’Wild Hawaii, DOE, Stem activate energy storage system

on October 7, 2016

Electric-Light-and-PowerWet’n’Wild Hawaii and energy storage firm Stem Inc., flipped the switch to activate a customer-sited energy storage system in Hawaii, supported by Hawaii’s Energy Excelerator, the Hawaiian Electric Co. and the U.S. Department of Energy’s SunShot Initiative.

The Wet’N’Wild system—108 kW / 216 kWh—is part of a three-year pilot to deploy electric storage systems at about 30 local businesses on O‘ahu, Maui and Hawai‘i Island, using Stem’s storage solution to help improve reliable electric service for customers of utilities with high levels of rooftop solar and other distributed energy resources. The project will be part of the U.S. DOE SunShot Initiative’s “Sustainable and Holistic Integration of Energy Storage and Solar PV (SHINES) to demonstrate visibility and control of edge-of-network resources.

With its robust software platform, supported by real-time data and predictive analytics, Stem will work to better integrate energy storage at customer sites to help customers manage their loads and provide the Hawaiian ElectricCompanies with grid responsive resources. For the first time, grid operators will be able to see and manage customer-sited resources, including energy storage, alongside conventional generation resources from their existing control platforms.

“We follow the sun. Our hours of operation are specifically during peak times for sunlight, so this project is very attractive for us,” said Jerry Pupillo, Wet’n’Wild Hawaii general manager. “The batteries will kick in to decrease that peak usage spike we have always battled. This makes dollars and sense for us as a business as our peak use determines the rate we pay.  Big picture: this could help the utility avoid building another power plant because with battery storage our electricity use can be more precise and controlled to help manage the grid.”

“Hawaiian Electric is very happy to partner with Wet’n’Wild in our distributed energy storage pilot with Stem,” said Shelee Kimura, Hawaiian Electric vice president for corporate planning and business development. “With this ‘behind-the-meter’ storage at our customers’ sites, we can help them manage how they use energy with technologies that have dual value, saving participating customers money and improving grid reliability and efficiency for all our customers.”

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Electric Light and PowerWet’n’Wild Hawaii, DOE, Stem activate energy storage system

Energy Storage Inverter Market Slated For Solid Growth

on October 7, 2016

Solar Industry energy storageAs the energy storage market rose and as prices for storage continued to fall, more than 900 MW of energy storage grid-tied inverters were shipped globally in 2015, according to IHS Markit. The research firm forecasts global energy storage inverter shipments will surge at a compound annual growth rate of 38% to 4.5 GW in 2020. Furthermore, prices for energy storage inverters will continue to fall an average of 13% per year from 2016 to 2020.

“The energy storage market hinges on cost-efficient and flexible inverters,” said Isabella Ni, senior analyst at IHS Markit. “Recent inverter launches have the ability to distribute power flows between the network, the batteries, the load centers and generation assets.”

According to IHS Markit, products with a power rating less than 1 MW will capture 70% of cumulative grid-tied energy storage inverter shipments between 2016 and 2020. In particular, nearly 40% of inverter shipments during the forecast period will have a power rating between 100 kW and 999 kW, as these products are utilized extensively in the utility-scale market, as well as playing a growing role in the commercial segment where average system sizes are quickly increasing.

According to IHS, Parker Hannifin and BYD led the market, supported by shipments to utility-scale projects. SMA topped the providers of the sub-100 kW energy storage inverters segment.

“The sub-100 kW inverters segment is highly competitive; about half of the shipments came from companies with a global market share of less than 5 percent,” Ni said. “The large-scale energy storage inverter market, by comparison, is much more concentrated, with three manufacturers – BYD, Parker Hannifin and Woojin Industrials – representing half of the market.”

More information on the report is available here.

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Solar IndustryEnergy Storage Inverter Market Slated For Solid Growth