Utility-Scale Energy Storage Will Enable a Renewable Grid

on July 2, 2019

The way the world gets its electricity is undergoing a rapid transition, driven by both the increased urgency of decarbonizing energy systems and the plummeting costs of wind and solar technology. In the past decade electricity generated by renewables in the U.S. has doubled, primarily from wind and solar installations, according to the Energy Information Administration. In January 2019 the EIA forecast that wind, solar and other nonhydroelectric renewables would be the fastest-growing slice of the electricity portfolio for the next two years. But the intermittent nature of those sources means that electric utilities need a way to keep energy in their back pocket for when the sun is not shining and the winds are calm. That need is increasing interest in energy-storage technology—in particular, lithium-ion batteries, which are finally poised to be more than just a bit player in the grid.

For decades pumped-storage hydropower, a simple process that features reservoirs at different elevations, has been the dominant large-scale energy-storage method in the U.S. To store energy, water is pumped into the higher reservoir; when that energy is needed, the water is released into the lower reservoir, flowing through a turbine along the way. Pumped-storage hydropower currently accounts for 95 percent of U.S. utility-scale energy storage, according to the Department of Energy. But as efficiency and reliability have improved, and manufacturing costs have tumbled, lithium-ion batteries have surged. They account for more than 80 percent of the U.S.’s utility-scale battery-storage power capacity, which jumped from just a few megawatts a decade ago to 866 megawatts by February 2019, the EIA says. A March 2019 analysis by Bloomberg New Energy Finance reports that the cost of electricity from such batteries has dropped by 76 percent since 2012, making them close to competitive with the plants, typically powered by natural gas, that are switched on during times of high electricity demand. To date, whereas batteries have largely been used to make brief, quick adjustments to maintain power levels, utilities in several states, including Florida and California, are adding lithium-ion batteries that will be able to last for two to four hours. Energy research firm Wood Mackenzie estimates that the market for energy storage will double from 2018 to 2019 and triple from 2019 to 2020.

Lithium-ion batteries will likely be the dominant technology for the next five to 10 years, according to experts, and continuing improvements will result in batteries that can store four to eight hours of energy—long enough, for example, to shift solar-generated power to the evening peak in demand.

But getting to the point where renewables and energy storage can handle the baseline load of electricity generation will take energy storage at longer timescales, which will mean moving beyond lithium-ion batteries. Potential candidates range from other high-tech options, such as flow batteries, which pump liquid electrolytes, and hydrogen fuel cells to simpler concepts, such as pumped-storage hydropower and what is called gravity storage. Pumped-storage hydropower is cheap once it is installed, but it is expensive to build and can be used only in certain terrain. Similarly simple is the concept of gravity storage, which purports to use spare electricity to raise a heavy block that can later be lowered to drive a turbine to generate electricity. Although a few companies are working on demonstrations and have attracted investments, the idea has yet to take off. Other options are still under development to make them sufficiently reliable, efficient and cost-competitive with lithium-ion batteries. There were only three large-scale flow-battery storage systems deployed in the U.S. by the end of 2017, according to the EIA, and utility-scale hydrogen systems remain in demonstration stages. The U.S. government is funding some work in this arena, particularly through the Advanced Research Projects Agency–Energy (ARPA-E), but much of the investment in those technologies—and in energy storage in general—is happening in China and South Korea, which have also ramped up storage research.

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Fractal Energy Storage ConsultantsUtility-Scale Energy Storage Will Enable a Renewable Grid

Nevada Utility Announces Three Major Solar Projects With Battery Storage

on July 1, 2019

(Reuters) – Nevada’s largest utility NV Energy will procure 1,200 megawatts (MW) of solar electricity paired with batteries, or enough to power about 228,000 homes, as it seeks to double its renewable energy resources and move away from fossil fuels.

The addition of energy storage to all three projects underscores how important – and cheap – batteries have become as utilities seek to extend the working hours of their solar facilities.

“The energy during the day time when the solar panels without a battery produce power, though valuable, is not as valuable as the energy when the sun goes down in the summer when air conditioners are running at full capacity,” Tom Buttgenbach, chief executive of 8minute Solar Energy LLC, which is developing one of three new solar and storage projects for Berkshire Hathaway Inc unit NV Energy, said in an interview on Tuesday.

The three solar projects will more than double the utility’s renewable energy by 2023, NV Energy said in a statement late on Monday.

The projects include a 690 MW array with a 380 MW battery storage system on federal land near Las Vegas. The Gemini Solar project is being developed by Quinbrook Infrastructure Partners and Arevia Power, NV Energy said.

The Southern Bighorn Solar & Storage Center, developed by 8minute, will combine a 300 MW solar facility with a 135 MW lithium ion battery and will be located on the Moapa River Indian Reservation. The battery will provide 4 hours of storage to extend the power plant’s effectiveness into the evenings.

8minute said the project will deliver power for about $35 per megawatt-hour, less than the cost of electricity generated by natural gas or coal.

The final project is a 200 MW plant with a 75 MW battery storage system on the Moapa Band of Paiutes Indian Reservation. It is being developed by EDF Renewables North America.

In April, Nevada passed a law requiring utilities to source 50 percent of their power from renewable sources by 2030. NV Energy said it has a long-term goal of serving customers with 100 percent renewable energy.

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Fractal Energy Storage ConsultantsNevada Utility Announces Three Major Solar Projects With Battery Storage

NREL: Longer Duration Battery Storage Can Combat Even More Of The Polluting Peak in US

on July 1, 2019
Energy-Storage-News

The US National Renewable Energy Laboratory (NREL) has put numbers on the significant potential for energy storage to replace peaking capacity on the grid in the US, albeit with an understanding that as the peak changes, the goalposts will also move.

NREL has said in a report just-published that around 70GW of peaking capacity in the US – from a total base of about 261GW – could be served by energy storage systems of four, six and then eight hour durations.

However, as has been pointed out previously to Energy-Storage.news by the likes of redT executive Scott McGregor in the past, once clean energy starts tackling the time during which demand peaks, the peak itself widens as a window during the daytime or – more likely – early evening.

As more and more storage is installed to allow for peak mitigation, so the peak could become a longer event. McGregor was talking specifically about demand reduction for commercial businesses in that instance, but it appears the same could broadly hold true for peaking capacity.

NREL said that some 150GW of peaking capacity is set to be retired within 20 years in the US, with natural gas turbines coming to the end of their lifetimes, but it cannot be assumed that this can all be replaced immediately or directly with energy storage.

“The step from 4 hours to 6 hours is relatively small (about 8 GW), because the first 4 hours of storage typically widens the peak to about 6 hours, leaving little room for 6-hour storage. The 8-hour step is much larger (about 34 GW), leading to a total potential for combined durations of about 70 GW,” the authors of the report, ‘The potential for battery energy storage to provide peaking capacity in the United States’, wrote.

Appetite for renewables remains the ‘X Factor’
However, that takes into account mostly a business-as-usual scenario, and in the event that larger and larger shares of renewable energy go onto the grid and change net loads even further from their present day shapes – which is hardly unlikely – that potential figure could see a large increase, NREL said.

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Fractal Energy Storage ConsultantsNREL: Longer Duration Battery Storage Can Combat Even More Of The Polluting Peak in US

Highview Power’s Improved Liquid-Air Battery Can Support Multi-Gigawatts Of Energy Storage

on June 28, 2019
Solar-Power-World

Long-duration energy storage solution provider Highview Power has developed a modular cryogenic energy storage system, the CRYOBattery, that is scalable up to multiple gigawatts. This technology reaches a new benchmark for a levelized cost of storage (LCOS) of $140/MWh for a 10-hr, 200-MW/2-GWh system. Highview Power’s systems can enable renewable energy baseload power at large scale, while also supporting electricity and distribution systems and providing energy security.

“This is a pivotal moment for the renewable energy industry and for anyone who wants to deploy large amounts of renewables,” said Javier Cavada, president and CEO of Highview Power. “As more and more renewables are added to the grid, long-duration, giga-scale energy storage is the necessary foundation to make these intermittent sources of power reliable enough to become baseload. Not only does our CRYOBattery deliver this reliability and allow scalability, it is proven, cost-effective, and available today.”

Highview Power’s proprietary cryogenic energy storage technology uses liquid air as the storage medium and has the ability to provide voltage support, frequency regulation and black start capabilities. Unlike competing long-duration technologies, such as pumped hydro-power or compressed air, Highview Power’s CRYOBattery can be sited just about anywhere. The CRYOBattery has a small footprint, even at multiple gigawatt-levels, and does not use hazardous materials.

Alex Eller, senior research analyst with Navigant Research, said, “Long-duration technologies such as cryogenic energy storage will become increasingly necessary for an electricity system to transition from a primary reliance on conventional fossil fuel generation to a grid dominated by variable renewable generation from solar and wind.”

Cavada said Highview Power’s CRYOBattery can enable grid operators to maximize renewable penetration without needing fossil fuel generation to make up for intermittency. “This makes replacing gas peaker power plants with a combination of solar, wind, and energy storage a viable reality and truly sets the stage for a future where 100% of the world’s electricity comes from clean energy sources,” he said.

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Fractal Energy Storage ConsultantsHighview Power’s Improved Liquid-Air Battery Can Support Multi-Gigawatts Of Energy Storage

Massachusetts Sweetening The Deal For Energy Storage Systems

on June 28, 2019
axios

A new $3.5 million energy storage system went online last month in Ashburnham, Mass., continuing a statewide expansion of systems designed to ease pressure on the electric grid at times of peak demand.

Why it matters: In January, Massachusetts became the first state to offer incentives for battery systems, with the approval of a $2 billion state energy efficiency plan. The program is expected to support the installation of 30–34 MW of storage capacity during its 3-year term, on top of 190 MW from other operating and planned projects.

How it works: Behind-the-meter energy storage is typically paired with renewables, allowing for the capture of excess wind or solar energy. The stored energy can be used during periods of peak demand — to alleviate strain on the electric grid — or when the wind is not blowing or the sun is not shining.

Details: The plan draws on recommendations from an economic study performed by the Applied Economics Clinic. Its reports, presented to the state’s Department of Energy Resources and Energy Efficiency Advisory Council, concluded that the cost benefits of battery storage should qualify it for efficient energy incentives.

Both commercial and residential customers will be able to sign up for 5-year contracts with their utility provider for new battery storage installations.
At the end of each year, incentives will be paid out based on how much the storage system was able to offset use of the grid.
What to watch: Massachusetts has one of the country’s largest energy efficient budgets, at $620 million a year — alongside California ($1.4 billion) and New York ($450 million).

The state is making good progress toward its energy storage goals: 200 MW by 2020 and 1000MW by 2025.
As of April, New York has offered $280 million in incentives to energy storage companies.
As these states continue to realize the benefits of behind-the-meter storage, others may begin to include batteries in their own incentive policies.

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Fractal Energy Storage ConsultantsMassachusetts Sweetening The Deal For Energy Storage Systems

AES Breaks Ground On Energy Storage Project In Long Beach, California

on June 28, 2019
Electric-Light-and-Power

AES Alamitos, a unit of The AES Corp., announces the groundbreaking of a 400 MWh battery-based energy storage system for Alamitos Energy Center as part of a larger modernization and replacement project of the existing AES Alamitos Generating Station.

The energy storage facility in Long Beach will provide up to 400 MWh of local energy to ensure power flexibility and reliability for Southern California Edison (SCE) customers, while helping the state meet its target of 100 percent clean energy by 2045.

While the AES Alamitos facility was procured specifically to provide power at times of peak demand, it will also support grid modernization, increase the integration of renewable energy, and lower costs and greenhouse gas emissions.

Supplied by Fluence, a energy storage and technology services provider, the storage used for the project will include the company’s Advancion 5 batteries and control systems; when fully charged, the batteries will be able to supply power to tens of thousands of homes in milliseconds.

AES Southland was awarded a 20-year power purchase agreement (PPA) by SCE in 2014 to provide 100 MW of interconnected energy storage. It is part of a $2 billion repowering initiative in Long Beach to replace aging natural gas peakers with a combination of efficient combined-cycle gas capacity and battery energy storage, which is now a viable alternative to replace traditional thermal generation to meet peak power demands.

Together with the AES AEC combined-cycle gas turbine (CCGT), this project will result in more than $132 million in local purchases, 1.48 million hours in construction-related work, and a payroll of over $315 million.

At completion – projected for late 2020 – the new AEC will not only be cleaner and more responsive to California’s energy needs, but it will also contribute between $12.3 and $14.6 million annually to the local economy.

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Fractal Energy Storage ConsultantsAES Breaks Ground On Energy Storage Project In Long Beach, California

Transforming Utility Customer Service: Grid-Scale And BTM Energy Storage

on June 26, 2019
Electric-Light-and-Power

This series of articles explores both grid scale and behind-the-meter (BTM) grid optimization strategies and the implications for our customers. The first article in the series set the stage by providing the regulatory framework and outlining the delivery framework being implemented to enable 150 megawatts (MW) of both grid-scale and behind-the-meter demand assets over the next three years in Eversource’s Massachusetts service territory.

Battery storage is often described as the “killer app” for the grid due to its versatility and ability to provide multiple services. This second article describes how utilities can re-program that “killer app” of storage to reduce costs for customers and reduce emissions. Future articles in this series will explore the technology, processes, and customer facing aspects of successful distributed energy resource programs. The last article in this series will offer a glimpse of how behind-the-meter and front-of-the-meter assets come together in the grid of the future.

Utility-scale storage

for utilities to consider both utility-scale and behind-the-meter (i.e. customer-sited) storage. In Massachusetts, Eversource has already received approval for two utility-scale storage projects. The first project is located on Cape Cod: a 25-MW/38-MWh project that will provide increased reliability and resiliency for the Outer Cape communities of Provincetown, North Truro, Truro and Wellfleet. The second project is a 4.9-MW/20-MWh system located on the island of Martha’s Vineyard. This battery system will reduce greenhouse gas emissions created by diesel-fired generators during times of high energy demand. These projects will be beneficial for customers by lowering costs by avoiding traditional investments, increasing reliability, allowing for additional renewable generation, and reducing emissions by decreasing the need to run older expensive, dirty fossil fuel generation during peak times.

Behind-the-meter storage

In addition to utility-scale storage, utilities should consider customer-sited storage as well. Future articles in this series will discuss the synergistic effects of coupling utility-sited storage with customer-sited storage. Eversource expects to help deploy over 20 MW of customer-owned and sited storage that can potentially enhance grid operations. Taking a holistic approach to analyzing storage and which type of technology is best suited for each customer allows for a more customized approach to storage. For instance, lithium ion batteries may be a good fit for certain facilities that see temporary spikes in energy use from air conditioning or process loads. However, thermal storage, such as ice storage or phase change material, may be a better solution for a customer with cold storage or a food processing facility.

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Fractal Energy Storage ConsultantsTransforming Utility Customer Service: Grid-Scale And BTM Energy Storage

A Remarkable Year for Stationary Energy Storage, Says IDTechEx Research

on June 26, 2019

BOSTON, June 25, 2019 /PRNewswire/ — 2018 was a remarkable year for stationary energy storage. According to IDTechEx’s research report, governments and policymakers around the world are beginning to wake up to the value batteries can offer to the grid, both in terms of flexibility and decarbonization. Over 6 GWh was deployed, and market leaders, such as Tesla, expect to double their deployments for 2019.

The progress is thanks, in no small part, to falling Li-ion battery costs, driven by the economies of scale of the electric car industry: plug-in passenger electrics topped five million on roads globally at the beginning of 2019. Indeed, as costs have fallen, projects with longer duration battery systems have become feasible (many new grid-level projects are now four hours). This has created opportunities for storage developers: in some scenarios, it has even enabled the displacement of gas peaker plants, for grids aiming to fully decarbonize. As detailed in the new IDTechEx report, “Batteries for Stationary Energy Storage 2019–2029,” enormous projects are underway.

For example, the famous ‘100 MW (120 MWh) in 100 days’ challenge from Elon Musk to the South Australian government, a previous world record and now operational, is a fraction of the planned 730 MWh system Tesla will install in Moss Landing, California to help replace three aging gas plants.

The U.S. has led the industry for a number of years—a sizable mandate from California, coupled with big-budget financial incentives, have underpinned the country’s deployments, as well as the batteries procured for frequency response in PJM’s territory from 2012-2017 (now saturated). In 2018, landmark rulings like FERC Order 841, ambitious decarbonization and renewables targets in multiple states, and growing momentum behind state-wide energy storage mandates will pave the way for the future of energy storage in the country.

The global picture is also changing: both China and South Korea topped 1 GWh in yearly deployments in 2018, with India also commissioning some of its first large-scale projects. With such rapid progress, teething problems have emerged: to meet the sudden demand in South Korea, ESS makers compromised on quality, leading to a government shutdown of hundreds of public battery systems that spontaneously caught fire. The issue was reported by Korean news outlets to be faulty battery management systems. States in the U.S. with energy storage mandates and targets. Source: IDTechEx “Batteries for Stationary Energy Storage 2019–2029.”

Despite hiccups, the ambitious levels of renewables integration in many of these countries will nevertheless require massive amounts of energy storage to manage moving forward. The new IDTechEx report, “Batteries for Stationary Energy Storage 2019–2029,” details the leading countries now and in the future.

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Fractal Energy Storage ConsultantsA Remarkable Year for Stationary Energy Storage, Says IDTechEx Research

Huge VAT Increase For Solar And Battery Storage Products

on June 26, 2019
energy-live-news

Legislation to increase VAT rates for solar and battery storage technologies for households was put forward yesterday, despite strong opposition from industry.

Under the new law proposed by HM Revenue and Customs (HMRC), the VAT for new solar and storage products will increase from 5% to 20% from October.

The legislation is put forward on the same day MPs debate the adoption of the net zero carbon emissions target for 2050.

In contrast, coal sold as a fuel for domestic use will continue to receive a reduce VAT rate of 5%.

The Renewable Energy Association (REA) believes the HMRC proposals should be reconsidered, particularly considering public support for renewable energy was recently announced to have reached an all-time high of 84%.

It adds the VAT hike could push back the decision of households and businesses to install solar with battery storage “by years”.

Dr Nina Skorupska, Chief Executive of the Renewable Energy Association said: “The VAT proposals will create a barrier to British homes and businesses who are seeking to take action on climate change and reduce their bills by installing solar with battery storage.

“With 84% of the public supporting renewable energy and a further 80% concerned about climate change, the government should be doing all it can to install these technologies rather than enacting barriers.”

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Fractal Energy Storage ConsultantsHuge VAT Increase For Solar And Battery Storage Products

GE Gas Plant To Close 20 Years Early, Become Battery Storage Site — Sign Of The Times?

on June 25, 2019
Electrek

General Electric will demolish a California natural gas-fired plant with 20 years remaining in its useful life, deeming the plant “uneconomical” as inexpensive solar and wind grab a larger share of power in the state.

The Inland Empire Energy Center (IEEC), a 750 megawatt plant, is slated for closure by the end of the year. GE told Reuters, “We have made the decision to shut down operation of the Inland Empire Power Plant, which has been operating below capacity for several years, effective at the end of 2019.”

The complete Inland Empire Energy Center Decommissioning and Demolition Plan has been published on the commission’s website. It notes that IEEC is selling the project site to Nova Power “for the purpose of developing a battery energy storage system (BESS).”

The plant relies on GE’s H-Class turbines, which is now considered a legacy technology. Experts told Reuters the turbine has a number of technical issues. GE noted the plant is now “uneconomical to support further.”

GE’s plant was first approved in 2003 and only came online about a decade ago, according to the California Energy Commission. Now the plant is set to close, only having gone through one-third of its designed useful life.

California is aiming to get 100% of its electricity from carbon-free sources by 2045, with 50% of its electricity generation to come from renewables by 2025. A report earlier this month noted the state is now putting so much solar power into the electrical grid that there’s a surplus at times. Starting next year, all new homes in California must come with solar panels.

The state’s own goals, combined with falling renewable costs, are putting the squeeze on fossil fuels. As the decommissioning and demolition plan notes:

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Fractal Energy Storage ConsultantsGE Gas Plant To Close 20 Years Early, Become Battery Storage Site — Sign Of The Times?