Tesla Has ‘About 11,000’ Energy Storage Projects Underway in Puerto Rico, Says Elon Musk

on June 4, 2018

ElectrekTesla is apparently significantly ramping up its effort to help rebuild the power grid in Puerto Rico after it was destroyed by hurricanes last year.

After having completed hundreds of energy storage project on the islands in the last few months, Tesla CEO Elon Musk now says that they have ‘about 11,000’ energy storage projects underway in Puerto Rico, which means something big is in the work.

Last month, Tesla CEO Elon Musk said that the company installed batteries at 662 locations in Puerto Rico.

We reported that they focused on critical services. For example, Tesla deployed a series of Powerpack systems on the Puerto Rican islands of Vieques and Culebra for a sanitary sewer treatment plant, the Arcadia water pumping station, the Ciudad Dorada elderly community, the Susan Centeno hospital, and the Boys and Girls Club of Vieques.

The automaker’s energy division also deployed a solar+battery system at a hospital in Puerto Rico.

While it’s one of the biggest examples of Tesla deploying energy storage systems in a single market, it now sounds like it’s only the beginning as Musk says that there are about 20 times more projects underway in Puerto Rico:

At the very minimum, it would be one Powerwall per project, which would add up to a deployment of at least ~150 MWh of energy capacity.

But that’s just the bare minimum since as we have recently seen, most projects include more than one Powerwall.

For example, we recently reported on a homeowner in Puerto Rico who received a 3-Powerwall installation that helped keep the lights on during the last power outage:

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Fractal Energy Storage ConsultantsTesla Has ‘About 11,000’ Energy Storage Projects Underway in Puerto Rico, Says Elon Musk

Onsite Power And Microgrids May Be The Key To Global Development

on June 4, 2018

Nearly a quarter of the 1.1 billion without access to reliable electricity are located in India, which is critical to its development and which requires creative solutions. While the growth of centralized power generation and delivery is expanding there, so too is onsite rooftop solar energy with localized microgrids.

India’s government is crafting a plan to build such decentralized power and delivery mechanisms over the next five years — a $2.5 billion effort. While the focus there is on extending access to those rural areas without electricity, it could also be used in its industrial and manufacturing sectors.

India is an example of how microgrid technologies could be applied in the world’s growth regions. To have universal electrification by 2030, microgrid expansion would need to double, notes the Microgrid Investment Accelerator, which was founded by Microsoft and Facebook, along with Allotrope Partners. And that requires reduced barriers to entry to entice risk takers.

“Microgrid (and solar home system) solutions powered by renewables provide electricity to nearly 90 million people,” says the Microgrid Investment Calculator. “To achieve universal electricity access by 2030, the current pace of expansion will have to double. It is estimated that off-grid solutions will supply 50%-60% of the additional generation needed to achieve universal electricity access by 2030.”

About 95% of those without electricity are in sub-Saharan Africa or Asia and 80% of those are in rural areas. General Electric and Italy’s Enel are active in Africa while Schneider Electric and Chili’s Engie are investing in Southeast Asia.

Unlocking Capital

The good news is that the microgrid technology market is growing by 20% a year, says Bloomberg New Energy Finance. It totaled $6.8 billion globally as of 2017, adds the Advanced Energy Economy; the Pacific island nations announced 15 different projects in the last year. Even better, the costs of both renewables and energy storage technologies — two assets central to microgrids — are falling.

The bad news is that CrossBoundary told the Clean Energy Finance Forum that the payback for microgrid systems takes 10 years, which requires developers to charge more per kilowatt-hour. That is because developed nations have dense urban areas that consume much power while developing countries have sparse populations that use much less, meaning that companies must charge more.

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Fractal Energy Storage ConsultantsOnsite Power And Microgrids May Be The Key To Global Development

Hybrid Energy Storage System Gets First-of-Its-Kind Certification

on June 3, 2018

Power-Magazine

DNV GL, an Oslo, Norway-headquartered global quality assurance and risk management company that also acts as a certification body, handed the certificate to the Spanish conglomerate at WINDPOWER 2018 in Chicago this May. DNV GL’s certificate demonstrates the safety, performance, and reliability of ACCIONA’s hybrid plant for storing electricity in batteries as part of a grid-connected wind farm at Barásoain in Navarra, northern Spain.

The Barásoain plant has a storage system that consists of two batteries that are located in separate containers. One is a fast-response battery of 1 MW/0.39 MWh, which is capable of maintaining 1 MW of power for 20 minutes, and the other is a slower-response battery, though it has “greater autonomy” of 0.7 MW/0.7 MWh, maintaining 0.7 MW for 1 hour, said ACCIONA. Both employ Samsung SDI lithium-ion technology. The energy storage technology is connected to a single 3-MW AW116/300 wind turbine that uses ACCIONA Windpower (Nordex Group) technology. According to ACCIONA, the wind turbine is one of five that make up the Experimental Wind Farm at Barásoain, which it has operated since 2013. ACCIONA manages the entire system using control software it developed in-house. The system is monitored in real-time by the company’s Renewable Energies Control Center (Figure 4).

The certification milestone is important because while energy storage technologies are increasingly being deployed along with renewable projects at a grid-scale, a comprehensive standard that guarantees their safety and reliability is rare. The certification is designed to provide more certainty to industry, including technology designers and manufacturers, as well as auxiliary backers like investors, insurers, and government authorities, which often seek information about risk mitigation and cost controls, particularly for fledgling energy storage projects.

“Certifying new systems like ACCIONA’s grid-scale storage plant demonstrates that pioneering projects like this are meeting the required safety, performance and reliability standards and providing the industry with confidence in the quality of emerging new technologies,” said Kim Mørk, executive vice president, Renewables Certification at DNV GL.

According to Carlos Albero, global finance segment leader of DNV GL’s energy division, as well as providing a quality benchmark, the certification verifies ways a hybrid renewables-storage project can make money. “We’re not speaking about the batteries themselves,” he explained to POWER. “You are integrating the wind turbines with the storage platform, and at the end of the day, they have to work together.” Hybrid projects have the benefit of providing revenue streams from grid-related services, such as from frequency and voltage regulation. “So, these are the kinds of revenue considerations that will need to support storage projects in the future,” he said.

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Fractal Energy Storage ConsultantsHybrid Energy Storage System Gets First-of-Its-Kind Certification

Energy Storage Could Be Residential Solar’s Next Growth Product

on June 3, 2018

the-motley-foolResidential solar Tesla‘s (NASDAQ:TSLAPowerwall is the best-known energy storage device, but Sunrun (NASDAQ:RUN)SunPower(NASDAQ:SPWR), and Vivint Solar (NYSE:VSLR) are entering the market as well, and they’re seeing some signs of success early in 2018.

What’s great about energy storage for solar installers is that it’s incremental revenue that leverages existing marketing and sales expenses. And it could help make solar more attractive to customers in states that have made it more difficult to justify solar economically.

The solar industry’s next growth product

Sunrun has given the most information about how many energy storage systems it’s selling with residential solar systems in the U.S., and the early numbers are impressive. During the company’s first-quarter 2018 conference call, CEO Lynn Jurich said, “We launched Brightbox in Massachusetts less than three months ago, and already nearly 10% of the time customers we sell to directly are opting to add a battery.”

She added, “In California, over 20% of the time our direct customers are choosing to add a Brightbox. In certain markets in Southern California, this rate is now above 50%”

Sunrun doesn’t disclose the revenue or margin per energy storage system, but according to EnergySage, there’s at least $5,000 of incremental revenue per energy storage system and sometimes over $10,000 of added revenue.

Since Sunrun built solar systems for 45,000 customers in past year, that’s a potential for $225 million of additional revenue each year. It’s unlikely the solar industry will ever reach 100% energy storage penetration, but even 10% to 50% of the market adopting energy storage could have a big impact on financials.

Sunrun isn’t alone in energy storage

Tesla was once the leader in solar energy storage, but its solar business is shrinking, and storage projects have been shifted to the utility-scale market. If you want to invest in a stock with residential energy storage growth, it sounds crazy to say it, but Tesla isn’t the right pick.

SunPower says it is now including energy storage with about 30% of commercial solar installations and expects to use the same strategy in residential energy storage products as they roll out later this year. The hope is that being a leader in commercial storage will give the company a leg up in residential energy storage, although it’s only in early stages of launching the product right now.

Vivint Solar is at least a few months behind Sunrun and SunPower after losing its battery partner Mercedes-Benz, which dropped out of residential energy storage earlier this year. The company is now selling the same LG Chem batteries that Sunrun installs, but isn’t yet selling in most markets and doesn’t have the same experience in energy storage controllers, which is ultimately what creates value for customers. Vivint has upside in residential energy storage, but Sunrun and SunPower are the two leaders right now.

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Fractal Energy Storage ConsultantsEnergy Storage Could Be Residential Solar’s Next Growth Product

NV Energy Contracts to Build More Than 1,000MW of New Solar, 100MW of Battery Storage

on June 1, 2018

Greentech-MediaNV Energy announced Thursday it has contracted for more than 1 gigawatt of new solar energy and 100 megawatts of battery energy capacity, in a resource plan that’s still subject to regulatory approval and hinges on the outcome of a high-profile ballot measure.

The utility signed power purchase agreements for six new solar energy projects and three related battery storage projects, selected through a competitive solicitation initiated in January of this year. All projects are expected to be complete and serving customers by the end of 2021 – if the Public Utilities Commission of Nevada approves the plan.

“The six new projects position NV Energy to keep its commitment to double renewable energy by 2023 and, importantly, by diversifying our state’s electricity generation portfolio, will reduce the costs to serve customers,” said CEO Paul Caudill, in a statement.

The clean energy expansion plan also represents a step forward in the company’s long-term goal of serving Nevada customers with 100 percent renewable energy, he said. NV Energy claims the direct investment in Nevada’s economy will be greater than $2 billion, and will create 1,7000 construction jobs and 80 permanent, long-term jobs.

Work on the resource planning effort began shortly after Nevada’s 2017 state legislative session ended, “and demonstrates that we are navigating the uncertainties in the current market, given Question 3 on the statewide ballot,” Caudill added.

Question 3, also known as the Energy Choice Initiative, would require the Nevada State Legislature to establish “an open, competitive retail electric energy market that prohibits the granting of monopolies and exclusive franchises for the generation of electricity.”

The Energy Choice Initiative first appeared on the November 2016 ballot as an initiated constitutional amendment, and was approved. In Nevada, constitutional amendments must be approved in two even-numbered election years in order to take effect. Mounting support for clean energy in the state has put enormous pressure on NV Energy to take action.

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Fractal Energy Storage ConsultantsNV Energy Contracts to Build More Than 1,000MW of New Solar, 100MW of Battery Storage

A New Energy Storage Solution For A Massive Railway System

on June 1, 2018

CleantechnicaThe third longest railway system in the world could be on the verge of an energy storage makeover. That would be Russian Railways, which sprawls over 85.5 thousand kilometers. A little over half that length is electrified, and if all goes well with a new R&D project, the little could turn into a lot.

That’s not necessarily a gigantic win for climate action, considering that Russia hasn’t exactly been leading the vanguard on renewable energy. However, more and better railway electrification at least opens the door for more renewables, so let’s take a closer look and see what’s going on.

The new energy storage project is a joint venture between Russian Railways (RZhD) and the aggressively renewable energy company Enel Group.

As described by Enel, the partnership will focus on a first-of-its-kind use for energy storage in railway systems. The aim is to develop a relatively low cost strategy for improving system operations without getting into more expensive grid upgrades.

So, what does this mean? Something exotic, like flow batteriesPower-to-gas (aka hydrogen)? How about the concentrating solar + hydrogen combo?

What Kind Of Energy Storage?

So many questions! For an answer CleanTechnica reached out to Enel, which provided this backgrounder (breaks added for readability):

The partnership will start off with a testing phase, which will run for up to three months and is expected to begin by the end of the year, involving the installation of a single battery in RZhD’s laboratory where the technology can perform in a controlled environment.

The lithium batteries, with a minimum capacity of 10 MWh, can be activated automatically through Enel X’s software during times of peak demand with the aim to help respond to the growing energy demand of railway systems whose faster, more powerful and larger trains could be slowed in some instances to avoid putting strain on power grids.

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Fractal Energy Storage ConsultantsA New Energy Storage Solution For A Massive Railway System

Developments in Energy Storage Could Spell the End of the Duck Curve

on June 1, 2018

Power-MagazineThe duck curve is named for its resemblance to a duck, with its peaks and valleys highlighting the effect solar production has on the power demanded from thermal generators and hydropower resources throughout the day. Advancements in energy storage technology are providing a new method for narrowing the timing imbalance.

Since 2006, solar energy production has grown at an annual rate of 59%, according to the Solar Energy Industry Association. Solar energy’s share of total U.S. energy generation skyrocketed from just 0.1% in 2010 to almost 2% in 2017. In the past three years, it has comprised an average of about one-third of all new energy capacity additions.

This rapid growth has resulted in a fundamental challenge for system operators by creating an imbalance in the supply and demand of energy on the grid known as the “duck curve.” The duck curve (Figure 1), which derives its name based on a chart published by the California Independent System Operator (CAISO) in 2013 resembling a duck, highlights the sharp midday drop in energy demand resulting from peak solar energy production followed by a short, steep ramp-up in the early evening hours as demand for energy increases and solar energy production falls.

In its report, CAISO noted three major problematic conditions affecting grid management that are exemplified by the duck curve. They are:

    ■ The creation of short, steep ramps caused by system operators being forced to quickly bring on or shut down energy generation to meet demand over a short period of time. To address this condition, CAISO stated that a flexible energy resource is necessary to quickly react to adjust energy production to meet sharp changes in demand.
    ■ The fact that peak midday solar production exceeding demand results in the risk of oversupply, which must be managed to avoid the costly consequences associated with overgeneration, including increased costs from curtailing energy production and reduced environmental benefits as a result of such curtailment.
    ■ The management of such oversupply during the midday hours results in decreased frequency response capabilities, which are caused by fewer energy resources being available to automatically adjust energy generation to maintain grid reliability. That is, as renewable generation resources (which typically do not have automated frequency response capability) deliver energy, conventional generation resources (which can typically provide automated frequency responses) are displaced. As a result, the grid becomes less reliable and is increasingly subject to disruptions. To avoid this risk, the grid needs access to automated frequency response systems that can quickly and automatically ramp up or down in the event of sudden interruptions.
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Fractal Energy Storage ConsultantsDevelopments in Energy Storage Could Spell the End of the Duck Curve