Generac’s generously proportioned home system
US residential back-up system provider Generac claims that the modules in its new battery energy storage devices offer the “highest storage capacity available on the market today”.

The company launched its new system PWRcell and its PWRview control and monitoring app in 2019, pitching both to the US industry at last September’s Solar Power International / Energy Storage International show.

At the beginning of this week, Generac said the products are now available to buy through the company’s installer network. It claims that users can realise “thousands of dollars of savings over the life of the product” through charging the battery with solar-generated or off-peak energy, in order to ride out peak demand times.

It comes with a 10-year limited warranty, also offers back-up power and is available in modular blocks from 8.6kWh up to 34.2kWh. The company claims that this outdoes the likes of Sonnenbatterie Eco, Tesla’s Powerwall and LG Chem RESU systems for modular capacity.

In related news, Generac acquired solar inverter manufacturer Pika in mid-2019.

EV player SERES spins out battery division
Automotive technology company SERES (SF Motors Inc), has completed the spin-out of its in-house Battery Technology Division into a new entity, TeraWatt Technology Inc.

Headquartered in Santa Clara, California, SERES currently produces two models of electric vehicle (EV) and has R&D centres in Japan and in Michigan; e-powertrain manufacturing and EV manufacturing sites at two separate locations in China; as well as a new product lab and an EV assembly plant in the US.

Established as a subsidiary in 2017, TeraWatt describes itself as a firm that engineers “ultra-high density lithium-ion batteries that work” and in August 2019 launched a 4.5Ah prototype solid-state battery design with a third-party validated energy density of 432Wh per kg, and expected to be available to “select early adopters in 2021 and full release in 2022”.

Battery storage systems increase the reliability and efficiency of renewable power resources like wind farms and solar panels by banking energy for later use. U.S. utilities are signing an increased volume of contracts for battery-based energy storage, either as part of their own sustainability goals or under the green power mandates of the states in which they operate. As of February 2019, a total of seven states had policies in place that require a certain amount of battery storage to be built.

Homeowners are also looking to battery storage to fulfill power needs, particularly in regions that have been threatened with blackouts, like California.

The AES Corporation (NYSE:AES), General Electric Company (NYSE:GE), and Vivint Solar (NYSE:VSLR) stand out in the space, even in the face of competition from big players like Tesla (NASDAQ:TSLA) and NextEra Energy (NYSE:NEE) because they are approaching the sector with an eye on contracts that will provide a steady, long-term revenue stream. Investing in one of these companies could represent an opportunity for investors looking to get in on the renewable energy boom. Here’s a look at what all three are doing to position themselves for gains.

AES: a proven partner for utilities
AES’s distributed energy unit has been developing solar and solar-plus-storage projects since 2009. The company has more than 150 MW of operating projects throughout the U.S. and more than 300 MW of additional projects in development and under construction.

The company has developed storage projects on its own and through Fluence, a partnership with the German industrial conglomerate Siemens. An example of one of the company’s contracts is its 100 MW AES Southland battery in Southern California. The project was awarded a 20-year power purchase agreement as part of a $2 billion repowering program that will replace gas-fired plants with more efficient technology.

GE: developing larger-scale projects
GE has had a few stops and starts in its development of battery storage but has seen recent success with its Reservoir systems, including a key win in Australia. After securing contracts to install batteries sized at 30 MW or less in California and Ontario, the company recently landed a deal to deliver a 100 MW project that will accompany the 200 MW Solar River plant north of Adelaide, South Australia. The battery is expected to be up and running in 2021.

Vivint Solar: a smaller player with an innovative contract
Vivint Solar is included on the list with more established players in the U.S. power generation business because it has designed something innovative that responds to a growing market need and is likely to increase revenue over the long-term.

Utilities have started asking developers to build solar energy projects and install a storage component at the same time, rather than add storage to existing projects. These solar-plus-storage projects have come online in Hawaii and California. Vivint is taking the concept to the residential solar market, having launched a contract structure that will enable homeowners to pay one rate for solar and battery storage in California. The battery can be used during power outages and during peak demand hours when utility rates are highest. Vivint typically offers installation of residential solar panels with no up-front cost to the customer in exchange for a 20-year contract to sell power to the property owner.

Ørsted has appointed REMAP as its marketing agent for its flexible generation and revenue optimisation services in the UK.

REMAP has been granted a license to use insights from Ørsted’s Balancing Mechanism algorithm to provide project development support to third party developers and asset owners.

This access gives REMAP the capability to provide revenue modelling for storage assets. The partnership between Ørsted and REMAP offers developers end-to-end project support, from project design through the procurement, contracting and financing stage and during ongoing operations.

The UK’s flexible generation sector has the potential for “significant growth” but is currently being held back by “lack of certainty of revenues and a mature route to market”, Kyle Worthington, head of power origination at Ørsted, said.

“We believe that projects can support unsubsidised revenue strategies, but we also recognise that assistance is needed at an early-stage in order to build a financeable business case.”

Partnerships to optimise storage assets across several revenue streams are becoming more common in the UK, including agreements between Gresham House Energy Storage Fund and EDF and Upside, as well as with KiWi Power for its 15MW Lockleaze project and Flexitricity for the Norkier Staunch project, and the 2MW battery installed by Pivot Power at the Arsenal Emirates Stadium, which is fully automated and optimised by Open Energi’s Dynamic Demand 2.0 platofrm.

As Robyn Lucas, head of data science at Open Energi, explained in a blog for sister site Current±, “getting the maximum price per hour of operation requires market insight, automated response, an understanding of the constraints of the battery and the site on which it sits, and an appreciation of the risks involved – with buy-in from all parties”.

Ørsted currently manages its own group assets, as well as third party assets, but this agreement represents an expansion of its services to include storage and other flexible generation technologies.

Ørsted completed its maiden large-scale UK battery, a 20MW system in Liverpool, in January 2019, through which its asset optimisation software has been developed and tested, which gave Ørsted “valuable insight and experience which we can now pass on to third party clients”, Worthington added.

Over the years, due to increased consumption, the availability of fossil fuels has decreased significantly. The crude oil reserves are getting declined at the rate of 4 billion tonnes a year, and at this rate, it is predicted that the oil deposits will last until 2052. Attributed to this, and the ever-surging need for energy, there is a rising requirement for alternate ways of generating energy. In addition, the increased usage of fossil fuels for power generation has resulted in a severely degraded environment. Hence, the demand for pollution free and environmentally sustainable energy resources is growing. Furthermore, due to all these factors, the need for energy storage systems is also increasing.

Energy storage systems allow the effective integration of renewable energy and provide benefits of local generation and a resilient, clean energy supply. As per a report by P&S Intelligence, in 2017, the installed capacity of global energy storage market was 6,275.4 megawatt and is predicted to attain 51,426.0 MW in 2023, advancing at a 42.5% CAGR during the forecast period (2018–2023). The different types of energy storage systems are electrochemical, chemical, mechanical, thermal, and others (which include biological and fossil fuel storage). The largest demand during 2013–2017 was created for mechanical energy storage systems, as these systems can be installed on a large-scale in the utility systems and can further be utilized in high demand scenario.

There are several applications of energy storage systems including back-up supply, arbitrage, ancillary services, and fuel savings. Some other applications include running mills and air conditioning. Out of these, the highest demand for energy storage was created for the ancillary services application and the situation is projected to remain the same in the coming years as well. The reason for this is that energy storage has the capability to make grid more reliable and efficient. The fastest growth in demand during the forecast period is expected to be witnessed by the arbitrage application.

Among all the regions, namely Asia-Pacific (APAC), North America, Europe, and Rest of the World, North America created the highest demand for energy storage during 2013–2017. In the region, the energy storage market in the U.S. was the largest during 2013–2017 and the situation is projected to remain the same during the forecast period as well. The reason for this is the low cost and favorable state policies which support the case for installing batteries in homes, power grid, and businesses. Out of all the regions, APAC is expected to witnessed the fastest growth in demand for energy storage.

The need for energy storage systems is further growing due to the increasing cost of energy. The requirement for energy is rising rapidly because of the surging population and swift urbanization, primarily in countries including India, China, and Brazil. Due to this, the power plants are running at full capacity, which, in turn, is resulting in the gradual rise in the power prices. Furthermore, the unavailability of fuel is leading in the volatility of prices. Ascribed to these factors, the adoption of energy conservation is increasing, thereby resulting in the growing utilization of energy storage systems.

The Energy Department is launching a comprehensive program to accelerate the development and use of next-generation energy storage technologies across the United States and advance the nation’s global leadership in the space.

Through its new Energy Storage Grand Challenge, the agency will coordinate a range of research and development funding opportunities, prizes, partnerships and other activities to meet a variety of power-storage-focused goals over the next decade. Energy also anticipates that the program will support its ultimate vision of maintaining a secure domestic supply chain independent of critical materials from foreign sources by 2030.

“Energy storage is key to capturing the full value of our diverse energy resources,” the agency’s Secretary Dan Brouillette said in a statement. “Through this Grand Challenge, we will deploy the department’s extensive resources and expertise to address the technology development, commercialization, manufacturing, valuation, and workforce challenges to position the U.S. for global leadership in the energy storage technologies of the future.”

Energy’s range of cross-cutting activities will be managed by the agency’s Research and Technology Investment Committee, which was mandated by 2018 legislation and established in 2019 to identify and support a variety of science- and technology-focused research and development opportunities. Through the grand challenge, the department aims to coordinate numerous funding opportunities, prizes, partnerships, and other programs to meet a strategic set of targets over the course of the next decade. According to the agency, those objectives include:

• Establish ambitious, achievable performance goals, and a comprehensive R&D portfolio to achieve them.
• Accelerate the technology pipeline from research to system design to private sector adoption through rigorous system evaluation, performance validation, siting tools, and targeted collaborations.
• Develop best-in-class models, data, and analysis to inform the most effective value proposition and use cases for storage technologies.
• Design new technologies to strengthen U.S. manufacturing and recyclability, and to reduce dependence on foreign sources of critical materials.
• Train the next generation of American workers to meet the needs of the 21st-century electric grid and energy storage value chain.

U.S. entrepreneurs have led the world in creating new technologies for storing grid power, but they largely rely on other countries for their core ingredients.

Tesla’s famous car and grid batteries use cells from Japanese manufacturer Panasonic. When companies like Fluence or NextEra integrate large battery enclosures, they source cells from the likes of South Korea’s LG Chem or Samsung SDI.

And when a global supply crunch constrained those top-tier suppliers, integrators turned to a growing roster of Chinese producers and found that they measured up.

But the Trump administration’s Department of Energy last week proposed a different vision, one in which the U.S. establishes a domestic supply chain for energy storage by 2030. It’s calling this a “Grand Challenge” — and promising millions of dollars and considerable institutional resources to achieve it.

Increased funding for basic research, technology transfer and workforce training has been on the storage industry’s wishlist for years. An explicit focus on the industrial planning needed to onshore the storage supply chain, however, adds a new flavor to the mix.

Specifically, the DOE wants “a secure domestic manufacturing supply chain that is independent of foreign sources of critical materials” by 2030, which would require a marked departure from today’s import-dependent industry.

Global trade enables countries to obtain things they don’t produce locally, or which can be produced more cheaply elsewhere, something that has traditionally been deemed beneficial. But reliance on foreign supply can cause problems.

A generous storage deployment subsidy in South Korea contributed to a global battery supply crunch in 2018, squeezing projects in the U.S. Sometimes domestic decisions make it hard to rely on other countries, as when the Trump administration chose to levy tariffs against batteries and inverters produced in China, driving up prices for American companies.

President Donald Trump might believe that wind turbines cause cancer and that people can’t watch TV when the wind isn’t blowing, but that is not preventing his government from announcing plans to achieve global leadership in the energy storage technologies that will improve America’s ability to store its variable wind and solar power.

The US Department of Energy (DOE) has announced the launch of the “Energy Storage Grand Challenge”, which it describes as “a comprehensive program to accelerate the development, commercialization, and utilization of next-generation energy storage technologies and sustain American global leadership in energy storage”.

The vision, the DOE explained, “is to create and sustain global leadership in energy storage utilization and exports, with a secure domestic manufacturing supply chain that is independent of foreign sources of critical materials, by 2030”.

Lithium-ion batteries — which account for around 90% of the world’s battery industry — require raw materials such as cobalt and nickel that are not produced at scale in the US. Some lithium is mined in the US, but at a far smaller scale than the main lithium-producing nations of Australia, Chile, Argentina and China.

According to BloombergNEF, China was producing 73% of the world’s lithium-ion batteries in early 2019, with the US in second place on 12%.

“Through this Grand Challenge, we will deploy the Department’s extensive resources and expertise to address the technology development, commercialization, manufacturing, valuation, and workforce challenges to position the US for global leadership in the energy storage technologies of the future,” said Energy Secretary Dan Brouilette.

The DOE explained the forthcoming process as follows: “As a first step in the Challenge, DOE will soon release requests for information (RFI) soliciting stakeholder feedback on the key questions and issues the Challenge seeks to address.

“Over the coming weeks, DOE will host a series of workshops with key stakeholders to share information about various storage technologies, share about current barriers to deployment, and help shape the work that will bring those technologies to market. This work [will] inform the development [of] a coordinated R&D roadmap to 2030 for a broad suite of storage and flexibility technologies.