Research firm Wood Mackenzie has held onto its forecast that the US will deploy around 7GW of energy storage annually by 2025 and found that 97.5MW / 208MWh of storage was installed during the first quarter of this year.

COVID-19 caused some near-term downside in the market during Q1 2020, particularly in the behind-the-meter segment, Wood Mackenzie Power & Renewables notes in the latest edition of its quarterly US Energy Storage Monitor report, but acknowledged that the impacts of the pandemic did not begin to really hit the sector until March and April, meaning that its effect on installations overall was limited.

From conversations with industry participants, Wood Mackenzie found that the market downside was mainly to be found “as a result of challenges relating to customer acquisition, installation and interconnection”. Brett Simon, senior analyst for energy storage at the company tweeted yesterday that the first quarter was “the calm before the storm,” and that the “economy-wide slowdown will bleed into market opportunities” in 2021 as well as during this year.

Although Brett Simon said that forecasts for this year and next have therefore been revised downward to reflect this, overall his firm still believes the annual market in the US will reach 7GW annually by the middle of this decade, having predicted earlier this year pre-pandemic that it expected that figure to be closer to 7.3GW.

The amount of annual deployment expected in 2020 is around 1.2GW, and the market will still exceed the US$1 billion mark in value for this year. By 2025 that figure will be closer to US$6.9 billion annually, according to the Monitor report. The company expects significant growth in residential, non-residential and front-of-the-meter segments, with front-of-meter becoming the biggest segment by far this year and continuing to grow.

Industry voices in the UK have said that electricity market activity during the COVID-19 pandemic shows that the network will become prohibitively expensive and possibly unmanageable without the further rapid deployment of energy storage.

In article published last week by our UK-based energy transition site, Current±, Aaron Lally, head of trading at aggregator and battery asset operator Kiwi Power said that the penultimate weekend in May, during which a record was set for low carbon intensity, offered a “glimpse of how the electricity grid has to look if National Grid are to hit 2025 targets”.

National Grid’s electricity system operator (ESO) arm said that the grid dropped to 46g of CO2 per kilowatt-hour of power on Sunday 24 May. Power generator Drax’s Electric Insights service also measured that wholesale electricity price on the day-ahead market across Friday 22 May – which was a public holiday – averaged out at £-9.92 (US$-12.43) per MWh, more than halving the previous record low set in December 2019 of £-4.62 per Mh. Prices bottomed out at £-52.03 per MWh at one point on the Friday morning.

With the UK still in lockdown and a public holiday taking place, the grid operator used its Optional Downward Flexibility Management (ODFM) service to balance the network. This is a new tool brought in by the operator that allows it to balance over generation without the need to turn off embedded generation without warning – which means that renewable assets do not have to be curtailed in large numbers, as had been feared.

Kiwi Power as well as EDF’s Energy Trading Services division both said that they helped balanced the grid using the ODFM. Batteries can play their role as they can absorb energy from the grid, EDF’s head of trading Chris Regan pointed out in a LinkedIn post.

Kiwi Power’s Aaron Lally similarly said that his company “utilised battery storage site across various revenue streams including ODFM, the new National Grid service to manage low demand,” during the long weekend.

The advance of renewable energy and electric vehicles (EVs) has incentivized scientists to look into various ways to solve the problem with efficient energy storage, which is the key to wider adoption of green energy technologies.

Most research focuses on batteries—how to make lithium-ion batteries safer and more efficient or how other, cheaper elements, can be used in batteries.

Most previous research has focused on the chemical storage and the electrochemical reactions in batteries.

Now researchers at Australia’s Queensland University of Technology (QUT) are proposing a design based on the mechanical properties of nanostructures containing diamonds that could potentially be used in mechanical energy storage devices, including batteries, biomedical sensing systems, wearables, and small robotics and electronics.

The mechanical functions of a diamond nanothread (DNT) bundle have the potential to store and release energy when stretched or twisted. These diamond nanothread bundles consist of one-dimensional carbon threads.

“Similar to a compressed coil or children’s wind-up toy, energy can be released as the twisted bundle unravels,” Dr. Haifei Zhan from the QUT Centre for Materials Science said in a statement.

Zhan and his colleagues have found that the diamond bundles have high energy density—that is how much energy a system contains compared to its mass. The team have successfully modeled the mechanical energy storage and release capabilities of a DNT bundle and published their research paper in Nature Communications.

The model is just a first step in the team’s research into the potential of mechanical energy storage as compared to electrochemical energy storage. The scientists now plan to design an experimental nanoscale mechanical energy system as proof of concept and will spend the next two-three years building the system that will control the twisting and stretching of the nanothread bundle.

Hawaiian Electric this week revealed the full list of winners from its second large-scale procurement of energy storage and renewables for the islands of Oahu, Maui and Hawaii. The winners run the gamut from major industry players like AES and Engie to relative newcomers to the large-scale energy storage game. 

The contracts were first announced on May 15 without naming the developers, to give each an opportunity to communicate with communities near their project sites to negotiate local land-use issues before a broad public announcement.

The winners include:

• AES Distributed Energy, a subsidiary of U.S.-based energy company AES, which through its Fluence joint venture with Siemens has developed the world’s largest fleet of grid-scale batteries. AES won bids for two Oahu projects: a 30-megawatt/240-megawatt-hour system being built in conjunction with a 46-megawatt solar farm, and a 7-megawatt/35-megawatt-hour solar-linked system. 
• Two French energy giants won bids to develop solar-battery systems on the Big Island of Hawaii, each to consists of 60 megawatts/240 megawatt-hours of storage: Engie North America, a large-scale renewable energy and storage developer owned by French energy and water project giant Engie, and EDF Renewables North America, the subsidiary of French utility and nuclear power giant Électricité de France. 
• Hanwha Energy USA Holdings Corp. (formerly 174 Power Global), a U.S.-based unit of South Korean multinational and solar manufacturer Hanwha, won a bid for another 60-megawatt/240-megawatt-hour solar-linked battery system on Oahu.  
• Wind and solar developer Longroad Energy won bids for two projects: a 120-megawatt/480-megawatt-hour system on Oahu, and a 40-megawatt/160-megawatt-hour system on Maui. Longroad was co-founded by Paul Gaynor, the former CEO of long-time Hawaii wind project developer First Wind. 
• Bright Canyon Energy, a subsidiary of Pinnacle West Capital Corp., the owner of utility Arizona Public Service, will build a 42-megawatt/168-megawatt-hour battery system along with 42 megawatts of solar on Maui. Bright Canyon has primarily invested in wind power projects to date, including ownership stakes in Missouri and Minnesota projects being developed by Tenaska. 
• Two other smaller-scale projects are being built by developers with deep-pocketed backers seeking opportunities in the distributed renewable and energy storage space. Onyx Development, a commercial-industrial and smaller-utility-scale renewable energy project developer backed by Blackstone Energy Partners, won a bid for a 6.6-megawatt/26.4-megawatt-hour project on Oahu. And Kaukonahua Solar, owned by the SB Energy subsidiary of Japan’s SoftBank, plans to build a 6-megawatt/25.4-megawatt-hour project on Maui.

The U.S. energy storage industry was on track for a record-breaking year in 2020 before the arrival of COVID-19. While still on track to surpass the $1 billion threshold this year, the overall market value of U.S. energy storage this year likely won’t achieve the heights expected before the pandemic.

At the beginning of 2020, the market value was expected to top $2 billion before the end of the year, according to a statement by Kelly Speakes-Backman, CEO of the U.S. Energy Storage Association. But after COVID-19 swamped the industry with delays and cancellations, expectations have dropped to $1.6 billion, Speakes-Backman said.

April 2020 saw 40% fewer residential storage applications than March 2020, according to the U.S. Energy Storage Monitor. But utility-scale storage projects, including a handful of new mid-stage projects targeting the fourth quarter of 2020 for commissioning, are expected to make up for the steep decline in growth on the residential side this year, according to Dan Finn-Foley, head of energy storage at Wood Mackenzie.

“While COVID has thrown sand in the gears of the residential, commercial and industrial segments due to social distancing requirements and associated complications with customer acquisitions, effects on utility procurements have been relatively minor,” he told Utility Dive in an email. The handful of utility projects that have not moved forward, he said, seemed as though they were “on that path” before the pandemic, he added.

Growth of major utility projects will allow the total U.S. energy storage market to double its $712 million 2019 value in 2020, despite the pandemic for the time being, Finn-Foley said, and residential and commercial deployments are expected to return to previous rates of growth by the end of the year.

Finn-Foley acknowledged that “the watchword for the industry is still uncertainty,” but Speakes-Backman said the fundamental factors that enabled the record-setting growth in the first quarter of this year remain in place.

Tell me about Panasonic’s energy solutions that combine solar power and battery storage.

Panasonic manufactures and sells both solar panels and residential home energy storage systems. Panasonic’s premium HIT panels are made with heterojunction technology to minimize electron loss and dual-sided cells that multiply energy output, resulting in an industry-leading temperature coefficient of -0.258% /⁰C. The EverVolt battery storage system stores electricity for instant access during peak hours and grid outages, providing homeowners with the ability to tap into their private energy storage anytime. The total home energy solution consisting of Panasonic premium HIT solar panels and EverVolt allows homeowners to optimize their investment by lowering their carbon footprint, improving grid independence and saving money.

Panasonic solar panel and battery storage customers also receive the added benefit of peace of mind, knowing their whole home energy solution is backed by one of America’s most trusted brands with a century of financial stability and reliability. When installed by a Panasonic Authorized, Premium or Elite Installer, the Panasonic HIT solar panels include a TripleGuard warranty which covers the solar panel performance, workmanship, parts and labor for 25 years. EverVolt is backed by Panasonic’s 10-year product and performance warranty, one of the best in its class for homeowners.

Can EverVolt be added to an existing solar system already on a home, or is it only compatible with a new installation of panels?

EverVolt battery storage can be installed whether or not homes have an existing solar system. Available in both AC- or DC-coupled versions and storage options ranging from 11-102 kWh, EverVolt is customizable to fit homeowners’ needs.

The use of batteries for energy storage is expected to grow faster than that of other flexible assets in the period to 2030 and beyond, as renewable energy generation expands, consultancy Wood Mackenzie said in research published on Wednesday. Battery storage will increase to 26 gigawatts (GW) by 2030 from 3 GW in 2020 across the five major European power markets, Britain, Germany, France, Italy and Spain, WoodMac forecast in the findings, which were aimed at investors in energy systems.

The study of European power system flexibility assessed the longevity of traditional technologies to offset supply and demand imbalances on networks – which must maintain a constant voltage level to avoid crashes – versus batteries, which are still a small market segment. Demand for flexibility will increase with the closure of older thermal and nuclear power stations and the transition to wind and solar plants and electric vehicles, which will make massive and sudden demands on grids.

The more than eight-fold growth in battery storage would outpace that of existing flexible assets – namely pumped storage plants, cross-border interconnectors and gas “peakers” – where capacity is seen increasing to 205 GW by 2030 from a current 122 GW, the research showed. The latter, made by companies such as Wartsila (WRT1V.HE) or Sembcorp (SCIL.SI), are fast engines that provide bursts of power at short notice.

“Gas peakers will compete for more market share in the 2020s. They will have a good decade complementing the renewable power system,” said WoodMac analyst Rory McCarthy. “But by 2030, battery storage gets so cheap, it will be difficult to see more net addition for peakers,” he added.

In this Greentech Media series, we’re asking people with jobs in cleantech — from installing solar panels, to permitting wind projects, to promoting building energy efficiency software — to tell us what they really do all day.

We hope this series can serve as a source of information and inspiration for recent graduates, cleantech professionals planning their careers or anyone who wants to transition into the industry. We also hope it makes cleantech opportunities more visible and accessible to those groups, including women and people of color, who are underrepresented in our growing industry.

What do people in energy storage business development do?
2019 was the biggest year ever for energy storage in the United States. As of late 2019, there were planned or contracted utility-scale storage projects in 47 states, per Wood Mackenzie.

Laura Meilander is one of the people working to expand the energy storage market even further. Meilander is vice president of business development at Convergent Energy + Power, a storage-focused developer, owner and operator based in New York. She is responsible for growing Convergent’s book of business with utility companies.

“The [utility business development] team’s goal is to build as many energy storage projects as possible, as long as it is advantageous and feasible for both us and the utility customer,” Meilander explained.

Front-of-the-meter storage has found a foothold across the United States by providing a range of services, according to Wood Mackenzie’s most recent Energy Storage Monitor. Services for utilities include ancillary services in the territories of PJM, NYISO, ERCOT, ISO-New England and CAISO, standalone and solar-paired capacity applications, and distribution upgrade deferral and non-wires solutions in constrained parts of New York and Massachusetts.

“As part of my role, I identify and connect with utilities that could benefit from a battery storage system. As a result, I am constantly communicating with potential customers,” said Meilander.

The global battery energy storage market is projected to grow from USD 5.7 billion in 2020 to USD 7.3 billion by 2021

The study covers the battery energy storage market across segments. It aims at estimating the market size and its growth potential across different segments such as application and region. The study also includes an in-depth COVID-19-focused profiles and analysis of key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies to cater to the growing market demand during the current pandemic.

The utilities segment is projected to grow at a higher growth rate than the other applications during the forecast period

The utilities segment is likely to account for the largest share in the battery energy storage market, by application. According to the US EIA and NREL, utility-owned battery energy storage systems play a crucial role in the operations of current and future energy generation mix of a country. In addition to the system flexibility it provides, a battery energy storage system also offers reliable interconnections in neighboring power systems. The utilities segment is mainly being driven by the increasing financial incentives and regulatory supports from the governments globally.

Asia Pacific is projected to be the largest and fastest-growing battery energy storage market during the forecast period

The Asia Pacific region is projected to be the fastest-growing market for battery energy storage during the forecast period. The market in the region is expected to witness a moderate decline during the forecast period due to the COVID-19 pandemic. The region is the largest market for battery energy storage and home to some of the fastest-growing economies in the world.

Asia Pacific also plans for electrification in remote areas, which are mainly off-grid in several countries. The governments of various countries in this region focus on minimizing the adverse effects of the energy sector on the environment. Some of the major battery energy storage system manufacturers based in Asia Pacific are Samsung SDI, LG Chem, Hitachi, Panasonic, and NEC Corporation.

The battery energy storage market includes major players, such as ABB (Switzerland), LG Chem (South Korea), NEC (Japan), Panasonic (Japan), Samsung SDI (South Korea), AEG Power Solutions (Netherlands), General Electric (US), Hitachi (Japan), Siemens (Germany), Tesla (US), and Schneider Electric (France). The study includes COVID-19-focused profiles and analysis of these players in the battery energy storage sector, with their company profiles, recent developments, and the key market strategies.