As energy storage plays an increasingly important role in the power sector’s transition to cleaner and more distributed resources, DOE wants to make sure the U.S. remains at the forefront of the technology.

“The Energy Storage Grand Challenge leverages the unique, extensive expertise and capabilities of the Department of Energy and our National Labs to really push the envelope when it comes to developing next-generation energy storage,” Energy Secretary Dan Brouillette said in a press release.

According to DOE, during Fiscal Years 2017-2019, it has invested over $1.2 billion in energy storage research and development, “establishing an agency-wide, long-term strategy.”

The House wants to accelerate such spending and on Monday the Appropriations Committee passed the Fiscal Year 2021 energy and water spending bill, which directs $1.3 billion for energy storage, including $500 million for “energy storage demonstration projects across a portfolio of technologies and approaches” and at least $770.5 million “for the manufacturing of advanced batteries and components.”

The focus of the Energy Storage Grand Challenge, DOE said, is “to create and sustain U.S. global leadership in energy storage utilization and exports, with a secure domestic manufacturing base and supply chain that is independent of foreign sources of critical materials.” All by 2030.

“The roadmap attempts to paint a comprehensive view of the energy storage landscape, opportunities, and challenges, and presents itself as taking an ecosystem approach, which RMI called for in last year’s Breakthrough Batteries report,” Rocky Mountain Institute Principal Charlie Bloch told Utility Dive via email, praising DOE’s overall effort.

“I appreciate that it does so with an eye toward being storage technology agnostic, as a key threat in the fast-moving space is that policies or regulations are drafted in such a way so as to lock-in Li-ion as the predominant technology when so many other options are still being explored and developed.” he continued.

“On the other hand, a key issue somewhat sidestepped by the roadmap is the fact that in order to develop a robust domestic market for innovation and manufacturing, the U.S. must also provide policy and regulatory demand-support signals … As written, the roadmap seems to strike more of a precautionary tone as it relates to policy, despite acknowledging the requirement for local demand,” he added.

The value of energy storage increases with growing shares of renewable energy on the grid, but the availability and cost of storage will determine how successful decarbonisation with renewables can be.

That’s one of the key takeaways of a new study from the Massachusetts Institute of Technology (MIT) and Princeton University’s Andlinger Center for Energy and the Environment (ACEE), supported by General Electric (GE). Researchers examined battery storage to determine the key drivers behind its present economic value, as well as the likely dynamics of what happens when deployment increases and what that implies for the long-term cost-effectiveness of energy storage.

As generation from variable renewable energy sources such as solar and wind increases its share of electricity supply, the economic value of storage rises, the study, published in the journal Applied Energy, found. However, as storage penetration increases, energy storage resources begin competing to provide the same set of grid services, resulting in a decline in the economic value of that storage.

According to the study’s Abstract, increasing the penetration of variable renewable energy “from 40% to 60% increases the value of storage, but only enough to make storage capacity up to 4% of peak demand cost-effective at current lithium-ion capital costs”. If capital costs of Li-ion batteries fall to US$150 per kWh for four-hour duration storage in future, that “cost-effective storage penetration range” increases to between 4% and 16%.

Value of storage still difficult to monetise, cost-effective long-duration remains overall goal

Co-author Jesse Jenkins tweeted out yesterday that a detailed electricity system planning model was used by the team. It looked at load and renewable energy profiles consistent to the US Northeast and southern regions, according to the Abstract. Jenkins, the report’s lead author Dharik Mallapragada and MIT postdoctoral associate Nestor Sepulveda, together found that at present, “the substitution of batteries for generation or transmission capacity is the primary source of storage value”.

Energy storage, or the use of batteries to absorb electricity from the grid when it is plentiful and discharge it when it is scarce, is ready for the big leagues.

That was the implication of a ruling on Friday from the U.S. Court of Appeals for the D.C. Circuit that has been celebrated by renewable energy enthusiasts. A three-judge panel upheld a rule by the Federal Energy Regulatory Commission (FERC) that requires energy storage and distributed energy sources to be able to fully participate in the nation’s major electricity markets, freeing them from rules by state regulators and utility companies that energy storage advocates say limited the technology’s potential revenue.

It wasn’t the only sign in recent days that energy storage is maturing as a power source. Yesterday California regulators announced they had connected to the grid a battery storage system of 62.5 megawatts — enough to power more than 10,000 homes and the largest such device in the country. And earlier today the U.K. government said it would allow battery storage projects to bypass a lengthy planning rules at the national level, easing the way for more development.

Analysts believe that the D.C. Circuit Court ruling could clear the way for the development of up to 50 gigawatts of energy storage, which would equal a third of the country’s current total wind and solar capacity. FERC’s chairman, Neil Chatterjee, hailed the ruling and said that the rule change FERC first published in February 2018 — known as Order 841 — “will be seen as the single most important act we could take to ensure a smooth transition to a new clean energy future.”

Any electrical grid that wants to run on 100% renewable energy — as many, including California’s and Germany’s, plausibly could do in the not-too-distant future — will need to have lots of energy storage on hand to ensure that wind- and solar-generated electricity is still available even when the wind isn’t blowing or the sun isn’t out.

The energy storage industry is booming. This is not new news — the up-and-coming sector has been on a swift upward trajectory for quite a while, but now there are some new developments in the works that are set to catapult the industry into new levels of success. Last year, Oilprice reported that the energy storage industry was “exploding” as grid-connected energy storage deployments had increased significantly around the globe with a hefty annual compound annual growth rate of “74% worldwide in the years 2013 to 2018, with a ‘boom’ in deployment figures expected over the next five years,” according to Energy Storage News reporting based on Wood Mackenzie analysis in April.

Asia has been at the helm of this book, with China poised to dominate the energy storage market, as its “cumulative energy storage capacity is projected to skyrocket from 489 megawatts (MW) or 843 megawatt-hours (MWh) in 2017 to 12.5 gigawatts (GW) or 32.1GWh in 2024,” an impressive increase ”in the installed base of 25 times.” This puts China on track to become the single biggest energy storage market in the Asia Pacific region by 2024, according to reporting by British data analysis and consultancy group Wood Mackenzie.

While Asia is at the helm of the global energy storage market, however, the United States is also set to significantly increase its own capacity in the coming years and significantly contribute to the global energy storage boom, with China and the U.S. “set to dominate with over 54% of the market by 2024 shared between them.”

And the boom is just beginning. According to WoodMac’s reporting, “the ancillary services market will be transitioning from a basic compensation mechanism to a market integrated with spot energy prices by 2020. That, along with maturity in technology and subsequent cost reduction, are key factors that will contribute to the exponential growth in the nation’s energy storage market through to 2024.” We’re already starting to see major developments for some of these revolutionary tech improvements, from solid-state batteries and green hydrogen solutions to bio-based materials such as shrimp shells.

Related: New Tech Puts Lithium Batteries Back In The Energy Storage Race

And now, just last week, the energy storage industry received yet another massive boost from the United States’ federal appeals court in a landmark decision. “In a victory for the energy storage industry, a federal appeals court has upheld the Federal Energy Regulatory Commission’s Order 841,” Wood Mackenzie’s Greentech Media reported last week, “clearing the way for transmission grid operators across the country to open their markets to energy storage, including aggregated batteries connected at the distribution grid or behind customers’ meters.”

Despite significant growth of the energy storage market in recent years, the process of connecting this technology to the electricity grid remains complex and unclear in many states across the U.S.​ A new project​, supported by a cooperative agreement with the U.S. Department of Energy S​olar Energy Technologies Office,​ aims to simplify the interconnection process for energy storage.

The project team, led by the Interstate Renewable Energy Council (IREC), will ​identify and develop solutions to regulatory and technical barriers in the interconnection process of standalone energy storage and solar + storage projects​. From there, the team will create a nationally applicable toolkit of solutions that apply to diverse states and markets. Extensive training and educational outreach will drive adoption of the resulting solutions in a majority of states. Ultimately, the project aims to reduce the costs and time to process interconnection applications and interconnect energy storage and solar-plus-storage systems safely to the distribution grid.

In addition to IREC, the project team includes the Electric Power Research Institute (EPRI), the Solar Energy Industries Association (SEIA), the Energy Storage Association (ESA), the California Solar & Storage Association (CALSSA), utilities New Hampshire Electric Cooperative Inc. (NHEC) and PacifiCorp, and law firm Shute, Mihaly & Weinberger, LLP (SMW).

“In many states, if you propose a system with solar + storage, the rules about how to interconnect to the grid are not at all clear,” explained ​Larry Sherwood, IREC president and CEO​. “That creates a lot of uncertainty for developers, which increases costs and may scare them away from certain markets. As a result, the full benefits of storage are not realized. Establishing best practices for the interconnection of storage to the grid is critical to sustaining market growth and enabling significant clean energy deployment.”

“Stand-alone energy storage and solar + storage systems provide significant potential for increased grid reliability and resilience,” said ​Arshad Mansoor, president of EPRI​. “We look forward to applying our technical expertise to help address grid interconnection challenges.”

Connecticut has launched three new proceedings to explore grid modernization policies that are likely to be of interest to the microgrid community.

Underway before the state Public Utilities Regulatory Authority (PURA), the three policy tracks will look at reliability and system resilience metrics and targets, non-wires alternatives, and the state’s clean and renewable energy program.

They are part of Connecticut’s larger effort to create a framework for an “equitable modern grid,” released by PURA in October and described as a way to lead “by example and show that economic and environmental objectives are not mutually exclusive.” (Docket No. 17-12-03 Interim Decision).

The three topics are among 11 the regulatory authority is investigating in its grid modernization efforts. Six of the topics are further along in the multi-prong proceeding. They cover energy affordability, electric storage, advanced metering infrastructure, zero emissions vehicles, innovation pilots, and interconnection standards.

The regulatory authority in May released requests for proposals and requests for program designs for the six topics. Proposal deadlines run through July 31.

After it receives responses from the six solicitations, the authority will create a straw proposal, which it will open to comment, before releasing a final decision.

Coming up later in the process — what PURA calls Phase III — are the latest three topics:

• Resilience metrics and targets (Docket No. 17-12-03RE08)
• Non-wires alternatives (Docket No. 17-12-03RE07)
• The state’s clean and renewable energy program (Docket No. 17-12-03RE09)

The regulatory authority seeks industry experts to provide information and comment on the three topics. Those who want to participate must file a petition by July 31.

US utility firm PacifiCorp has launched its largest request for proposals for energy projects yet, seeking bids for more than 1.8GW of new solar and 600MW of battery energy storage.

The firm, which owns utilities Pacific Power and Rocky Mountain Power, issued the RFP as part of its latest Integrated Resource Plan (IRP) which outlines its intent to massively scale up its renewable energy capacity.

Alongside 1,920MW of wind, PacifiCorp wants to add 1,823MW of solar and 595MW of battery energy storage to its portfolio by the end of 2023, an increase it described as “significant” compared to its current output.

The RFP, which is open now, will accept bids of different types and resource structures, including power purchase agreements and those entailing build-transfer contracts. Projects must be able to achieve operation by the end of 2024, and more detail on the RFP is available here.

Rick Link, vice president of resource planning at PacifiCorp, said the RFP was a “catalyst” to help realise an “affordable, reliable and increasingly sustainable” power system.

PacifiCorp, which is owned by Warren Buffett’s Berkshire Hathaway Group, operates in US states including California, Oregon, Washington, Idaho, Utah and Wyoming.

US utilities and their respective IRPs have proven to be a particularly rich vein for solar developers of late, with numerous companies outlining more ambitious plans for solar and other renewables as they look to decarbonise their power supplies.

Late last month Arizona’s Tucson Electric Power revealed plans to derive 70% of its power from solar and wind by 2035, with Indiana utility Vectren having outlined plans to replace nearly 700MW of coal generation with renewables.