In December, the six major Independent Systems Operators (ISO’s) across the country filed their plans for creating new market rules and opportunities for energy storage. While the rules will take at least a year to go into effect and the plans are just an initial step, a recent study suggests that this effort may add up to 50,000 megawatts (MW) of storage nationwide in the next decade.

At the same time, many states – like California, Massachusetts, New Jersey and New York – are recognizing the potential value of energy storage and are starting to integrate it as a key component of their plans to meet climate and renewable energy goals.

Combined with falling capital costs, these trends suggest a lot of new energy storage in the pipeline. This presents both opportunities and challenges for states looking to reduce their greenhouse gas emissions.

Not all energy storage is “clean”

When designed and incentivized properly, energy storage can be charged using clean power, and that power can then be discharged to displace dirtier power later in the day. While this is the optimal outcome, a growing body of research suggests that energy storage could actually increase emissions if it’s not done carefully.

The environmental benefits of storage depend critically on how, and when, it is operated. Electricity rates, wholesale energy markets and the physical constraints of the electricity grid all combine to incentivize when storage owners charge and discharge their devices, and for what purpose – the “how” and “when” of storage utilization. Essentially, the effect that energy storage has on emissions depends on which power plants are used to charge the storage, which plants are offset when the storage discharges, and how efficiently the storage itself operates.

North America, western Europe and Asia Pacific are expected to account for nearly 90 percent of the new long-duration energy storage capacity installed globally over the next eight years.

A new report from Navigant Research found that most new projects being installed fall into the four-hour to eight-hour duration categories, with most of those served by lithium-ion batteries. 

“This type of storage provides the necessary flexibility to manage dynamic resources effectively,” says Alex Eller, senior research analyst with Navigant Research. “Demand for long duration storage will continue to increase around the world as prices continue to decline and more ambitious targets for greenhouse gas reduction are implemented.”

Earlier this month, AES Corp. and Hawaiian utility Kaua’I Island Utility Cooperative completed their joint solar and storage project at Lāwa’I, calling it a record-breaking effort for photovoltaic peaker capacity. The Lāwa’I Solar and Energy Storage Project combines a 28-MW solar PV and 100-MWh five-hour duration energy storage system. The system can deliver approximately 11 percent of the Kaua’i island’s power needs.

This would make Kaua’i more than 50 percent powered by renewables, according to AES. Hawaii has a mandated goal of reaching 100 percent renewable energy by 2045.

Another recent report by Global Market Insights forecast that China’s energy storage investment could grow some $700 million to more than $6 billion by 2024.

Fluence, Nidec ASI, Tesla and RES are the leading players in the increasingly competitive utility-scale energy storage market, according to a new report from Navigant Research. These leaders are “actively pushing the boundaries” of how energy storage is viewed in the industry and are working to open new markets.

But companies that are currently trailing the leaders are also well-positioned to capitalize on new markets and project opportunities, Navigant says. Dramatic growth is expected in the market, and all players covered in the report are positioned to be successful as the market grows, according to the research. However, some are more likely to thrive as they build on the strong foundation and capitalize on complementary offerings, including ESS hardware and renewable energy project development.

The report, Navigant Research Leaderboard: Utility-Scale Energy Storage Systems Integrators, compares the strategy and execution of 12 leading ESSIs focused on the utility-scale market. These companies are rated on 12 criteria, including vision, go-to-market strategy, partners, production strategy, technology, geographic reach, sales/marketing/distribution, product performance, product quality and reliability, product portfolio, pricing, and staying power. 

Moving Past Project Development to Integrated Solutions

The utility-scale energy storage market has grown increasingly competitive since 2016 as projects become economically viable for a range of new applications in new geographies. As the market matures and expands, the role of energy storage systems integrators (ESSIs) such as Fluence and others has become the most important element in the value chain when it comes to ensuring successfully built and profitable energy storage systems. 

Companies in the ESSI space are moving beyond simply providing project development services to offering integrated hardware and software solutions for a range of ESS customers. These companies are responsible for both the design and management of an energy storage project, typically using robust software and controls platforms to maximize the value of a project both to the grid and to the system owners.

While there are several competing utility-scale energy storage technologies with differing characteristics matched for certain applications, battery ESSs are emerging as the leading technology globally for new projects.

In addition to the leading players in the market, the Navigant Report looks at “contenders” – including Powin Energy, Greensmith, LG CNS, NEC Energy Solutions, and NextEra Energy Resources – “challengers,” and “followers.”

As part of its nascent plans to begin expanding into other clean energy technologies, Danish wind energy giant Ørsted announced earlier this month that it completed its first standalone battery storage project, the 20 megawatt (MW) Carnegie Road battery project located in Liverpool, England.

The Carnegie Road battery storage project was announced in April of 2018 to be built in Liverpool, England, and which will provide services to the UK’s National Grid to support grid stability during shifts in power generation. While it would not be the company’s first foray into energy storage itself, it is the company’s first standalone, large-scale project.

The company had previously announced small demonstration projects in Denmark, the UK, and Taiwan, and currently boasts a behind-the-meter 2 MW battery at its Burbo Bank offshore wind farm which supports the 90 MW offshore wind farm’s production scheduling.

The newly completed 20 MW Carnegie Road battery project consists of three battery containers and associated power conversion systems, both provided by NEC Energy Solutions. Its primary function is to provide grid balancing services to National Grid, the company which operates the UK’s national electricity grid. Ørsted does not release megawatt-hour capacity figures for its battery storage announcements for “commercial reasons,” according to a company press representative.

“Climate change is a real and pressing threat to our planet and, in order to minimise its effects, we urgently need to decarbonise our electricity system,” explained Matthew Wright, UK Managing Director at Ørsted. “The good news is, we’re on the right path, especially in the UK, where we lead the world in deploying renewable technologies, such as offshore wind.

“We have a vision to create a world that runs entirely on green energy, and that means we will need more than just clean energy generation. That’s why we’re investing in energy storage systems like Carnegie Road, to accelerate the transition to a smarter, low carbon grid. Batteries, and other innovative storage technologies will form a critical part of an integrated green energy system required to ensure we keep the lights on without harming our planet.”

Anesco and Shell’s New Energies division are to partner on a utility-scale battery storage project in Norfolk, England.

The battery project, which is expected to have a capacity of 1.25MW/1.25MWh, is to be located adjacent to the Bacton gas terminal site, one of the company’s most significant energy facilities in the UK.

Anesco is to provide design, procurement, installation, commissioning and maintenance of the utility-scale system. While a specific timeframe for the project has not been disclosed, Solar Power Portal understands it is expected that the project be launched this summer.

Steve Shine, executive chairman at Anesco, said the news was an “exciting new” development for the storage sector. 

“It marks another significant milestone for us at Anesco. We have fully complied with Shell’s high standards of quality and safety and that is a massive compliment to the Anesco team,” he added.

The news follows recent reports that Shell is to double down on its focus on renewables and associated technologies, placing greater significance on its New Energies division which is dedicated to low carbon technologies crucial to the energy transition.

Last year Shell invested in domestic battery storage manufacturer sonnen in a bid to bolster its consumer offering, but the energy giant had yet to make any kind of move into the UK’s utility-scale storage market until today’s partnership. 

But the country’s utility-scale battery storage market is already home to many of the globe’s energy giants. The likes of Vattenfall, EDF and Centrica have all completed large-scale battery projects in recent years and, just last month, Orsted completed a 20MW battery near Liverpool. 

Earlier this week National Grid, within a wider Capacity Market consultation, outlined its expectation for the UK’s battery storage capacity to swell to as much as 1.7GW by the 2021/2022 winter period.

LONDON & NEW YORK–(BUSINESS WIRE)–Highview Power, the global leader in long-duration energy storage solutions, announced today that it has partnered with Finland-based Citec, a global engineering firm specializing in industrial plants and projects, to modularize its gigawatt-scale cryogenic energy storage system. With a simplified design and streamlined engineering from Citec, a standard plant configuration of 50 MW/500 MWh can be easily and cost-effectively scaled up to multiple gigawatt hours, or down, without limitation.

“Last year, we launched the world’s first grid-scale liquid air energy storage plant, and in 2019 we will be commercializing our long-duration energy storage solutions globally,” said Javier Cavada, President and CEO of Highview Power. “Modularizing our liquid air technology will help us deploy our systems more efficiently and cost-effectively, providing an attractive advantage for project developers and investors.”

The company is working on multiple projects in both Europe and the U.S., with construction expected to begin this year.

Highview Power selected Citec as its engineering partner because of the company’s proven track record of modularizing industrial plant products, as well as the global resources and a strong understanding of delivering engineering projects around the globe. The first modular solution will be designed with a standard configuration of 50 MW/500 MWh and can then be customized to the individual needs for varying storage capacities.

“This first project is to develop a modular solution for one storage capacity, and from this basis, repeated projects with localization and for varying storage capacities will be developed,” said Johan Westermarck, CEO, Citec. “We are very excited to begin work on this first project – both parties’ ambition is to create and establish a long-term partnership. The business cooperation with Highview Power is strategically important as it brings Citec to the frontline of new energy solutions that are eagerly needed to balance the increasing solar and wind production capacity.”

Replacing Fossil Fuels

As momentum builds toward adding more renewable energy sources to the power grid, giga-scale energy storage is the necessary foundation to make these intermittent sources of power reliable enough to become the baseload and reach a target of 100 percent renewable power. “Our cryogenic energy storage systems are equivalent in performance to – and could replace – a fossil fuel power station,” said Cavada. Highview Power’s system can also support electricity and distribution systems while providing additional security of supply.

Energy efficiency and sustainability firm Ameresco announced that Jacqueline DeRosa has joined the company as vice president for energy storage. 

DeRosa’s career spans more than 25-years in energy policy and regulatory reform, energy storage consulting, and commercial project development.

“We are thrilled that Jacquie has joined the Ameresco team,” Michael T. Bakas, Executive Vice President, Ameresco said. “Her market and industry expertise will prove invaluable in assisting Ameresco to continue to lead in shaping the transforming Distributed Energy Resource space, and providing long-term value for our existing and new customers.”

Prior to joining Ameresco, DeRosa was the Vice President for Emerging Technologies at Customized Energy Solutions (CES), where she advised clients on how to value energy storage resources and interpret the changing market rules. Prior to CES, DeRosa worked for the California ISO in the areas of policy and market design. She has also worked on international energy sector restructuring matters for United States Agency for International Development (USAID), and in power project development for an independent power producer. She began her career at the Federal Energy Regulatory Commission (FERC).

“I have been working to accelerate the integration of new technologies into competitive power markets and I’m eager to focus my expertise and passion to develop clean and sustainable energy projects at Ameresco,” she said. “Energy storage and distributed resources are thrusting the electric power industry into a new paradigm, and it is a tremendous opportunity for me to join such an accomplished organization at this dynamic time in the industry.”

DeRosa serves on the Board of Directors for the national Energy Storage Association (ESA) and has been involved in ESA’s efforts to educate stakeholders about new technologies and promote fair rules for energy storage. She is frequently invited to speak at industry conferences worldwide and has contributed to publications and podcasts concerning the benefits of energy storage technology.   

Companies in search of more renewable energy to power their growth can take heart from the example of Texas. The Lone Star State relies most heavily on natural gas and coal to generate electricity. It also has a fairly healthy nuclear sector. However, wind power has already leapfrogged past nuclear in Texas, and coal could be the next domino to fall. A new study indicates that the right balance of wind and solar power could provide for a reliable grid, without having to depend on expensive energy storage systems.

The New Texas Renewable Energy Study

The new study comes from Rice University under the title, “Assessing solar and wind complementarity in Texas.” The study was performed by undergraduate student Joanna Slusarewicz and Rice professor Daniel Cohan, an environmental engineer.

In a press release, Slusarewicz explained the goal of the project:

 . . . batteries remain too expensive to store Texas-sized amounts of energy for later use. “I did this project to see if there is a way, before we even start building more wind and solar farms, to distribute their current output to take advantage of differences in climate throughout the state,” Slusarewicz said.

Cohan added:

…Only in the past couple of years has solar become competitive with wind. Now Texas has two strong renewable options. That’s why this is the time to look at integrating these sources so they can do better than either can do on its own.

The point about energy storage is a critical one. The market for small scale, on-site energy storage is growing rapidly, but utility scale systems are still a long way from commercial viability due to their expense.

Currently, pumped hydro is the only large scale, low cost storage system available in the U.S., and appropriate sites for those facilities are few and far between.

Complementarity and grid stability

“Complementarity” refers to balancing the output of solar and wind power facilities.

Because wind and solar rely on natural conditions, the peak performance of wind turbines and solar panels varies considerably over time. The output can be optimal at different times of day, in different seasons, and in different regions of the same state.

Following a report on Friday that Hawaiian Electric has contracted PPAs with 75MW of solar projects including battery storage with developer Clearway, the utility has put before regulators proposals for five other grid-scale projects.

Energy-Storage.news reported last week that Clearway has been awarded two grid-scale solar-plus-storage projects on the island of Oahu, one of 39MW PV generation capacity linked to 156MWh of energy storage (the Mililani 1 Solar plant) and another of 36MW PV and 144MWh energy storage (Waiawa Solar project).

In total, Hawaiian Electric Company group companies have submitted to the regulator, Hawaiian Public Utilities Commission, seven projects of this type. There will be one more project on Oahu, two on the main Hawaii Island and two on the island of Maui. If all approved the projects will add 262MW of PV capacity to the islands’ networks, as well as 1,048MWh of energy storage.

Each project will have four hours of energy storage duration, currently thought to be the upper limit which can be effectively provided by lithium-ion batteries. The battery systems will help reduce the usage of fossil fuels in Hawaii, particularly at times of peak demand and other times when solar production is low.

As has often been stated on this site, as a series of islands within a modern economy, energy use in Hawaii has historically been linked with the expensive import of polluting diesel fuel. This has led to some of the highest rates of rooftop solar deployment, as well as supplying a solid business case for using batteries to create dispatchable solar power plants.

While fossil fuel generation in the state comes in at a price of around US$0.15 per kilowatt-hour, two of the proposed projects hit prices of US$0.08 per kilowatt-hour, with even the most expensive, Paeahu Solar on Maui by Canadian developer Innergex coming in at an expected US$0.12 per kWh. It is also worth noting that Paeahu Solar is the smallest project on the list by some way at 15MW / 60MWh, implying that scale plays some part in setting prices.

Premier Inn, a chain of budget and competitively priced hotels in the UK, has installed a 100kW lithium ion battery at its Gyle at Edinburgh Park hotel in the Scottish capital, claiming it to be the first ‘battery-powered hotel’ in Britain.

The battery itself was supplied and installed by Premier Inn’s project partner in energy giant E.On, which will also take care of the battery’s operation via the company’s remote energy management centre in Glasgow. 

While precise technical details of the battery have not been disclosed, the 3m3 battery will take two hours to fully charge and will be used for between two to three hours per day by the site, depending on the needs of the national grid. 

Details pertaining to project financing have also not been disclosed. As well as aiding the hotel to shift its peak-time energy demand, E.On is to also use the battery to provide grid services, allowing the hotel to benefit from additional revenue streams. 

Premier Inn said the Edinburgh hotel had been chosen as the site of the trial due in part to Scotland’s high penetration of variable wind power.

Should the project be deemed a success, Premier Inn has stated it would consider extending the trial to further hotels, with 169 of the brand’s hotel’s currently benefitting from on-site solar installations. 

Richard Oakley, customer accounts director at E.On, said that adding the “flexibility of battery storage” to the site, the utility would be able to help parent company Whitbread upgrade to a “full-board option” of energy management benefits. 

“Premier Inn is showing how hotel chains and large power users can further save money, reduce their carbon footprint and support the development of a lower-carbon, smarter energy grid in the UK,” he said.