Lightsource: No More Solar Bids Without Energy Storage West of the Colorado

on May 8, 2018

Greentech-MediaThe BP-backed solar developer Lightsource sees a very compelling case for deploying energy storage in the Western U.S.

All major utility-scale solar developers have added storage development talent, and some have begun regularly bidding on combined projects. But few have actually won bids for, much less constructed, hybrid plants. That makes it hard to determine just how central that kind of project is to their business models.

Not so with Lightsource, the largest European solar developer, which launched its U.S. branch last year and soon after received $200 million from oil and gas giant BP in exchange for a 43 percent ownership stake.

North America Chief Commercial Officer Katherine Ryzhaya affirmed the company’s view on storage in a keynote interview at GTM’s Solar Summit in San Diego last week.

“For a utility-scale solar developer, we’re not putting forward any proposals without storage, currently, to anybody west of the Colorado,” she said. “Every utility process, every bilateral at this point, at least on the West Coast, is looking at solar-storage hybrids.”

The American West enjoys a considerable solar resource, such that states like California and Arizona are starting to worry about a surfeit of solar on the grid at midday, with steep ramp requirements to meet peak demand in the evenings.

That dynamic has driven groundbreaking solar and storage contracts, like the NextEra project for Tucson Electric Power and the First Solar plant to deliver evening power to Arizona Public Service (the cartographically inclined may counter that most of Arizona lies east of the Colorado River, but it does sit west of the river’s source in the Rockies, so I’m going to count it for the purposes of this article).

So far, though, developers have kept their commitment to dispatchable solar more vague than “every proposal in the West.”

Co-location isn’t strictly necessary; on an interconnected grid, an offsite battery can store surplus solar power. Developing both resources together, however, creates savings on interconnection and installation costs, and improves system efficiency through DC coupling, which simplifies the power conversion process.

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Fractal Energy Storage ConsultantsLightsource: No More Solar Bids Without Energy Storage West of the Colorado