Over the last few weeks, the state of Puerto Rico’s electrical grid has been on everyone’s mind in the power industry. Getting Puerto Rico back online has been the Puerto Rico Electric Power Authority’s (PREPA) top priority, and rightfully so. The devastated country’s grid was knocked almost entirely offline.

Efforts now are focused on getting everyone’s lights back on as soon as possible – not necessarily building out an impressive, ground-breaking new electrical system in the process. Utilities and suppliers across the United States have come together to help rebuild Puerto Rico, but rebuilding should just be the first step. We also need to look to solve Puerto Rico’s long-term power needs.

Once Puerto Rico is back on solid ground, with power running across the country, then the time will come to discuss what to do next.

This U.S. island commonwealth is at great risk for similar destruction the next time a large tropical storm or hurricane rolls through. There is no simple solution to harden the island’s grid, but recent events prove that change needs to happen to address future events.

Even before Hurricane Maria hit, Puerto Rico did not have the most reliable grid. While it is difficult to think about long-term solutions when so much needs to be rebuilt, improving grid reliability and resiliency should be a priority. With that in mind, what if the utility moved to an underground distribution system (at least in part) instead of an entirely overhead distribution system?

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Powin Energy, the Oregon-based energy storage developer, is expecting to see an uptick in non-recourse financing following a landmark project this month.

The company secured construction financing for an 8.8-megawatt/40.8-megawatt-hour battery plant in Stratford, Ontario, from Brookfield Renewable Partners, one of the largest independent renewable energy businesses in the world. 

“Securing non-recourse financing is a critical step for energy storage assets themselves, as well as the broader market,” said Geoffrey Brown, Powin Energy president, in a press release. “We believe that closing a deal of this nature with a well-respected group like Brookfield is indicative of market maturation and Powin’s future prospects.”

While the non-recourse funding model is commonplace in most renewable energy markets, the track record is more limited in energy storage. Only a handful of deals have made headlines.

Last year, for example, another Ontario project based on flywheels and lithium-ion batteries and built by Convergent Energy and Power was funded through a non-recourse finance package from CJF Capital and SUSI Partners’ Energy Storage Fund I.

“The facility reflects a non-recourse, third-party project financing structure for energy storage assets in a sector dominated by on-balance-sheet financing,” noted Convergent in a press statement.

Previously, non-recourse finance had helped fund Australia’s first utility-scale integrated solar and battery project, built by Conergy with backing from Norddeutsche Landesbank Girozentrale.

And in 2015, half the money for the Jake and Elwood battery storage projects developed by Renewable Energy Systems Americas came from non-recourse senior secured project financing debt.

Brown said he thought many energy storage projects since had been difficult to fund through non-recourse debt because of the nature of their contracts.

Following the Stratford deal, though, Brown told GTM he expected non-recourse funding to become the norm for energy storage projects with clear, fixed revenue streams.

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Historically, the vast majority of the world’s power has been consumed as quickly as it is made, or it’s wasted. But climate change has made governments interested in renewable energy, and renewable energy is variable—it can’t be dispatched on demand. Or can it? As research into utility-sized batteries receives more attention, the economics of adding storage to a grid or wind farm are starting to make more sense.

But grid-tied energy storage is not new; it has just always been limited to whatever resources a local power producer had at the time. Much like electricity production itself, storage schemes differ regionally. Power companies will invest in batteries that make sense on a local level, whether it is pumped storage, compressed air, or lithium-ion cells.

Looking at the kinds of storage that already exist is instructive in helping us see where storage is going to go, too. Lots of the latest battery projects merely build on engineering that has been in service for decades. To better see our way forward, we collected a number of images and diagrams of the world’s biggest energy storage schemes.

Pumped storage

Pumped storage is possibly one of the oldest forms of modern grid-tied energy storage, and it certainly packs the most punch as far as megawatt-hours delivered.

The way it traditionally works is simple: the system has a bottom reservoir of water to draw from and a top reservoir that’s topographically higher than the bottom reservoir. When there’s not a lot of demand for electricity, you use that power to “charge” the battery by pumping water up to the top reservoir. When demand for electricity is high, that reservoir can be drained via a hydroelectric generator, back down to the bottom reservoir.

In the future, Germany is looking at using old coal mines for pumped storage, and some German researchers have been working on building giant concrete spheres that can function as pumped storage containers after they’re placed on the ocean floor.

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