Europe’s energy storage boom stalled last year due to a slowdown in large-scale schemes designed to store clean electricity from major renewable energy projects, according to the European Association for Storage of Energy (Ease).

A new study by consultants Delta-EE for Ease found that the European market grew by a total of 1 gigawatt-hours in 2019, a significant slowdown compared with 2018, when the energy storage market exceeded expectations to grow by 1.47GWh.

The slowdown in 2019 has emerged amid rising concern that the outbreak of the coronavirus may stall the rollout of clean energy technologies in 2020, dealing a double blow to the clean energy industry.

The 2019 downturn was particularly marked for large-scale energy storage projects which connect directly to energy grids, and can help make better use of renewable energy by storing the clean electricity to use when wind and solar power is not available.

These large, utility-scale projects often require planning permission, government financial support or procurement tenders to move ahead. Meanwhile, the rollout of home battery kits, which relies far less on policy support, remained a fast-growing market.

Patrick Clerens, the Ease secretary general , said: “The message is clear: even if energy storage is a key enabler of the energy transition and clearly seen as a major tool to achieve the emissions targets linked to the Paris agreement, more support is needed.”

The report expects the EU’s clean energy package, which has legislated support for clean energy technologies, to be key to creating a framework for investing in energy storage.

Clerens said the package was “an important step” which should allow energy storage “to reach its full potential fast”.

Robin Adey-Johnson, the author of the Delta-EE report, added: “Storage remains a young market and the regulatory landscape is trying to catch up. So, year-on-year fluctuations in market growth are not unexpected. But we see strong underlying drivers and we expect further market expansion in the early 2020s as regulation stabilises and revenue streams mature.”

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The International Renewable Energy Agency (IRENA) has attempted to define the value of energy storage in a bid to nudge policymakers into introducing financial rewards which drive deployment of the technology and hence accelerate the energy transition.

The multilateral body’s Electricity Storage Valuation Framework (ESVF) attempts to address the issue of “missing money”, which occurs when the value of energy storage is not recognized sufficiently for investors to get projects off the ground.

The high cost of large scale energy storage facilities, notwithstanding advances made with lithium-ion systems, makes the need to recognize the value such installations can offer more urgent, although IRENA predicts total installed costs could fall 50-60% by 2030 if manufacturing can be optimized and the volume of raw materials required reduced.

IRENA says offering multiple services from energy storage is key to unlocking the technology’s value. The value to be gained by offering energy arbitrage – buying when the wholesale power price is low, storing it and releasing it to satisfy high demand – can be significantly boosted by also offering grid ancillary services such as frequency regulation, voltage control and black start support – rapid energy supply after black-outs – especially if such services are financially rewarded.

For example, a portion of a facility’s energy storage capacity could be withheld from arbitrage and kept for operational grid reserves, provided payment for the latter was persuasive enough.

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March 20 (Renewables Now) – Gresham House Energy Storage Fund Plc (LON:GRID) said today it has entered a conditional agreement to buy a 50-MW battery storage project in South Yorkshire, England.

The project, located near Thurcroft, will be Gresham House’s largest utility-scale battery storage scheme once commissioned in the second quarter of 2020. The fund bought the asset from developers Gresham House DevCo Ltd and Noriker Power Ltd for an undisclosed sum.

The Thurcroft project is one of the identified assets in an exclusivity pipeline listed in Gresham House Energy Storage Fund’s initial public offering (IPO) prospectus from October 2018. The battery-only site will bring revenues mainly from asset optimisation, earning income from the wholesale market and the National Grid’s balancing mechanism, the buyer said.

Once the latest purchase is completed, Gresham House will expand the utility-scale battery storage projects in its investment portfolio to 224 MW. The fund also plans to further grow this portfolio by acquiring a 50-MW battery storage project at Wickham Market and switching on a 10-MW extension of its 40-MW Glassenbury facility in Kent. It also said it is conducting due diligence on expanding an existing project to over 50 MW.

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Two years ago, when New York state announced the first round of winners in its annual renewable energy procurements, upstate wind farms were the star of the show — including one of the largest wind projects ever put forward east of the Mississippi River.

Jump to today, and solar utterly dominated New York’s latest onshore renewables round, reflecting the general direction in which the U.S. power market is expected to move over the next few years.

In its third annual land-based renewables round, the New York State Energy Research and Development Authority, or NYSERDA, selected 21 large-scale projects totaling 1.3 gigawatts to receive around $1 billion of state support. The projects will be built over the next few years.

The list of winners includes just one large wind project — a 145-megawatt development backed by Terra-Gen — alongside a handful of refurbishments of existing wind farms, known as repowerings, that will add a fairly small amount of new generating capacity.

The rest of the projects are all large-scale solar arrays, from a series of 20-megawatt projects to the massive 270-megawatt South Ripley solar development in western New York that will be built with 20 megawatt-hours of storage by developer ConnectGen.

Other big winners include NextEra Energy Resources, which went home with 380 megawatts of solar capacity spread across two projects, and SunEast Development, whose haul includes eight projects totaling 220 megawatts. The round also saw the launch of veteran Canadian developer Boralex into the U.S. solar market, with four projects totaling 180 megawatts.

Wind fighting the tide of solar
2020 is expected to be the biggest year in history for American wind farm construction, as developers take advantage of the final year to complete projects qualified for the 100 percent federal Production Tax Credit (PTC).

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Lead-acid batteries are already a multi-billion-dollar industry and are widely-used in automotive and industrial applications. But for the power sector, they are a small player relative to lithium-ion batteries, which make up over 90% of the global grid battery storage market. One reason for their fast growth is cost — lithium-ion batteries have an estimated project cost of $469 per kWh, compared to $549 per kWh for lead-acid, according to the U.S. Department of Energy’s 2019 Energy Storage Technology and Cost Characterization Report.

But at $260 per kWh, lead batteries themselves already have lower capital costs than lithium-ion, which is at $271 per kWh, the DOE report found. If further research can get lead batteries to hit the goal of an average of 5,000 cycles over their lives by 2022, then the technology could be able to reach the DOE’s target of operational costs of 3 cents per cycle per kWh, Raiford said, a milestone that no battery chemistry has consistently reached.

The requests for proposals from the consortium are aimed at finding advancements that will increase a lead battery’s service life by allowing it to charge and discharge more times throughout its lifespan without degrading its efficiency significantly. Some of the research topics the consortium is seeking work on include studies of the degradation of lead batteries when used for demand response and renewable energy arbitrage.

If the cost issue can be tackled, then other features of lead batteries may make them more appealing in some markets. The electrolyte used is water-based, so the batteries have very little risk of catching fire. “They can take a bullet and still operate safely,” Raiford said, which is why the military commonly uses lead batteries.

The safety feature could be a selling point in places like California and Germany where there is growing demand for residential battery storage systems, Raiford said.

Another advantage is that lead batteries are mostly lead, a common material, and thus do not run into the difficulties of obtaining lithium from China and elsewhere, that has concerned the battery storage industry. In addition, while China is a major producer of lithium-ion batteries, there is a $27 billion industry manufacturing lead batteries in the U.S., “while the footprint of lithium-ion is not even close to that,” according to Raiford.

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Just over one in 10 US states now has a deployment target in place for energy storage, with Nevada now aiming for 1,000MW by 2030.

With Virginia now also teetering on the edge of adopting an ambitious target, US national Energy Storage Association (ESA) Kelly Speakes-Backman said Nevada, in becoming the sixth state to adopt a target, had “distinguished itself as an energy storage leader”.

A docket from the Public Utilities Commission of Nevada (PUC) adopted as a permanent regulation the biennial targets, which begin as 100MW by the end of this year, increasing up to the 1GW figure in 10 years.

It has been adopted after lengthy deliberation over more than two years since the Investigation and Rulemaking Docket was first opened by the Commission in August 2017, including a study on the benefits of energy storage for Nevada by consultancy The Brattle Group and comments from numerous stakeholders from utility NV Energy to manufacturers and providers including Tesla.

Described as “goals and not mandates,” the adopted regulation nonetheless gives targets to electric utilities with gross annual operating revenue of US$250 million or more in the state and requires them to include energy storage in their integrated resource plans (IRPs).

IRPs are a cornerstone of the utility planning process and have been cited by analysts as a likely continuing driver of energy storage adoption in the US this year and in the future, including in this recent blog for Energy-Storage.news by Ricardo Rodriguez at Navigant Research.

The process and attainment of targets remain flexible, with the PUC given authority to “waive or defer compliance…under certain circumstances,” while the Commission can also modify targets.

“Together, Nevada, Massachusetts, California, New York, New Jersey and Oregon have laid out a cumulative target of at least 7,575 MW across the nation by 2030,” ESA CEO Kelly Speakes-Backman said.

“By setting a target of 1,000 MW by 2030 for Nevada, along with interim targets over the coming decade, Nevada officials are sending long-term signals for industry investment and a credible pathway for achievement. ESA applauds Nevada for its leadership and looks forward to supporting the efforts of officials and stakeholders to make the state’s electric system more resilient, efficient, sustainable and affordable”.

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French energy firm Total has confirmed it will be developing France’s largest energy storage system, while UK-based redT energy has announced plans to merge with a US battery company to drive global demand for heavy-duty battery technology.

Total has announced the launch of an energy storage project in Mardyck, at the Flandres Center, in Dunkirk’s port district. The 25MW project will be the largest lithium-ion energy storage system installed in the country.

“This project is part of Total’s strategy to develop the stationary energy storage solutions that are critical to the expansion of renewable energy, which is intermittent by nature. It will contribute toward the goal of increasing the share of renewables in France’s energy mix, while helping to stabilize the domestic power grid,” Total’s chief executive Patrick Pouyanné said.

“Total’s involvement in the electricity segment continues to expand. With more than 40% of the storage capacities allocated, Total was the leading winner of the first call for tenders organised by RTE (France’s Electricity Transmission Network). This success was made possible thanks to the competencies of Total Flex, renewable energy aggregation expert, and Saft, the European leader in batteries for energy storage”.

The project will come online in late 2020 at a cost of around €15m and will comprise of 11 2.3 MWh containers designed at Saft’s production site in Bordeaux.

Total is aiming to decarbonise its electricity portfolio and has pledged to ensure that low-carbon technology accounts for 15 to 20% of its sales mix by 2040. Total’s current gross low-carbon power generation capacity is close to 7GW, of which more than 3GW from renewable energy sources.

Invinity in-bound

In related news, UK-based redT energy, which has worked with the likes of Pivot Power on grid-connected battery hybrids in the UK, has announced its intention to merge with US-based Avalon Battery Corporation.

The merger, subject to shareholder approval, will lead to the creation of Invinity Energy Systems to scale the market for vanadium flow batteries. Vanadium flow batteries are a heavy-duty, stationary form of energy storage that is best used when coupled with industrial-scale solar generation projects. The market is expected to be worth £3.5bn by 2028, while the wider energy storage market is set to generate well over £55bn in new investment by that time.

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In 2017, the World Bank estimated that energy storage technology would drive a 1,000% increase in material demand for cobalt, lithium, manganese and nickel by 2050 under a 2°C climate scenario. Batteries for electric vehicles are currently driving significant demand for these minerals, but growth in large-scale energy storage technology will also play an important role in this equation.

Similarly, solar PV was estimated to drive a 300% increase in material demand for copper, nickel and zinc under that same 2°C climate scenario. Implementing truly sustainable solutions to meet our energy needs means considering human rights risks linked to mineral extraction to ensure that the energy transition is not only fast but also fair.

Human rights in the mineral supply chains of low-carbon technologies

In response to growing concerns over the impacts of the transition to a low-carbon economy, the Business & Human Rights Resource Centre (BHRRC) developed the Transition Minerals Tracker, an online platform that tracks the human rights policies and practice of companies extracting minerals key to this energy transition. The tracker currently holds data on the main companies producing copper, cobalt, lithium, manganese, nickel and zinc – minerals that feature prominently in the supply chains of energy storage technologies and solar panels.

Analysis of allegations of human rights abuse we collected from 2010 to 2019 reveals that access to water, indigenous peoples’ rights, and labour rights are the most frequent human rights issues linked to these minerals. Allegations were recorded across all minerals, reflecting the fact that reducing or eliminating the need for one specific mineral in the supply chain – for example cobalt or lithium – will not result in a sustainable supply chain. Human rights risks must instead be assessed across all mineral supply chains and all regions. Companies at each link in the supply chain must have rigorous human rights due diligence mechanisms for addressing those risks in accordance with OECD Guidelines.

Impacts of lithium mining on indigenous rights

One rising area of concern is how lithium mining is affecting indigenous people in the Lithium Triangle, an area spanning Argentina, Bolivia and Chile, which currently holds over 60% of known global lithium reserves. This region also stands out because of its unique method of extracting lithium from salt-water brines – a technique that has not yet been fully studied for its potential environmental impacts.

Allegations collected by the Business & Human Rights Resource Centre reveal that access to water has become a critical issue for the mostly indigenous communities living near these lithium mines. Depleting water resources directly impacts traditional agriculture, threatening local livelihoods and ultimately the survival of indigenous groups in the region.

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