While a tranche of seven solar-plus-storage projects under proposal in Hawaii would see renewable energy make its biggest competitive play against fossil fuels in the US island state so far, a project just completed will deliver energy well into the evening at just US$0.11 per kWh.

Energy-Storage.news reported earlier this month that Hawaiian Electric Company-awarded contracts for 1,048MWh of energy storage to pair with 262MW of PV and has now put them up for approval before the regulator, the Hawaii Public Utilities’ Commission (PUC).

Those projects have garnered attention already for their low cost – ranging from US$0.08 per kWh to US$0.12 per kWh under long-term power purchase agreements (PPAs) – and the relative long duration of storage – four hours – that each will be equipped with.

Meanwhile, toward the end of last week, AES Distributed Energy announced the completion of Lāwa’i Solar and Energy Storage Project on the island of Kaua’i for local provider Kaua’i Island Utility Cooperative (KIUC). The facility, which AES has dubbed a “PV peaker plant”, is a 28MW PV power plant and 100MWh of lithium battery energy storage, allowing for five hours of storage.

An AES spokeswoman confirmed to Energy-Storage.news that energy from the plant will be sold to KIUC for the price agreed two years ago when the project began development: US$0.11 per kWh. Recent reports have put a figure on fossil fuel-generated electricity, usually from diesel, on Hawaii’s islands at around US$0.16 per kWh. Over 3.5 million fewer gallons of diesel would be imported onto Kaua’i as a result of the project’s contribution, AES has said. Energy-Storage.news reported in June that the low price had been secured on a 25-year term PPA. 

S&P Global reports the cost of solar with battery backup dropped precipitously in 2018. In a few cases in the sunny Southwest region of the United States, several tenders for solar plus storage came in at under $30 per megawatt-hour last year. Stand alone prices for installed battery storage — based on a 20 megawatt-hour system with 4 hours of storage — dropped 40% from the previous year to $357 per kilowatt-hour and are expected to keep falling. Bloomberg New Energy Finance projects a further 52% reduction by 2030.

Such tumbling prices have led Wood Mackenzie to forecast that as the market for solar plus storage matures, it could put more than 6,400 MW of new natural gas-fired peaking capacity in the US at risk by 2027. “I can beat a gas peaker anywhere in the country today with a solar-plus-storage power plant,” says Tom Buttgenbach, CEO of developer 8minutenergy Renewables. “Who in their right mind today would build a new gas peaker? We are a factor of two cheaper.”

Progress in battery storage was uneven around the world last year. South Korea has put significant incentives in place, which have led to a boom in that country. So much so, in fact, that Korean battery manufacturers have dedicated much of their production to meeting that demand at the expense of automakers hungry for EV batteries and residential storage products.

“When you see projects now being planned at over 1 GWh in scale, when only 18 months ago a 300 MWh installation was something to behold, you know you have entered a new era,” says Simon Moores, managing director of Benchmark Mineral Intelligence.. “It has been quite interesting to watch the battery makers’ dilemma of where to send the lithium ion cells. Of course they have contracts to honor with automotive producers, but the order inquiries from [energy storage] producers have been incredible.”

Some CleanTechnica readers have been wondering why Kia  and Hyundai have such low production targets for their newest EV offerings. The clamor for battery cells to meet the energy storage demand may be part of the reason for those low numbers.

“Even though progress was uneven, there was a much greater consensus in 2018 over the importance of energy storage, even in the near term, in major markets,” says Logan Goldie-Scot, head of energy storage at Bloomberg NEF. “In 2017, there were still a lot of people talking about how energy storage was not necessarily a competitive solution and was going to be limited. I hear those conversations much less now. Energy storage is now becoming more integrated into resource plans.”

New York — As liquid air energy storage company Highview Power prepares to launch two US projects this year, an official said Thursday, the company has teamed up with engineering firm Citec to help scale its storage facilities from 50 MW/500 MWh to multiple GWh.

“We will be starting two projects between 50 MW and 100 MW in the US this year,” Javier Cavada, Highview CEO, said in a phone call.

Though Cavada could not discuss specific locations or customers, he said Highview is looking at the wind corridor that runs through the Midcontinent Independent System Operator’s territory, as well as California, Texas and New York.

“It’s ideal to mix the technology with renewable generation, but it can be located anywhere,” Cavada said.

UK-based Highview Power has chosen Finland-based Citec as its engineering partner to help Highview modularize its GW-scale cryogenic energy storage system, according to a Wednesday statement. Highview said Citec will help it “easily and cost-effectively” scale the capacity of its plants up or down.

The economy of scale “is steep” so the larger the system the cheaper it gets, Cavada said.

The technology uses liquid air as the storage medium and can currently deliver 20 MW/80 MWh to more than 200 MW/1.2 GWh of energy. Air is cooled and stored as a liquid, then converted back to a gas to generate energy that powers turbines producing electricity.

In April 2018, Highview launched a grid-scale demonstrator plant that converts waste heat from landfill gas engines at the Pilsworth Landfill in Bury in the UK into power.

In December, the six major Independent Systems Operators (ISO’s) across the country filed their plans for creating new market rules and opportunities for energy storage. While the rules will take at least a year to go into effect and the plans are just an initial step, a recent study suggests that this effort may add up to 50,000 megawatts (MW) of storage nationwide in the next decade.

At the same time, many states – like California, Massachusetts, New Jersey and New York – are recognizing the potential value of energy storage and are starting to integrate it as a key component of their plans to meet climate and renewable energy goals.

Combined with falling capital costs, these trends suggest a lot of new energy storage in the pipeline. This presents both opportunities and challenges for states looking to reduce their greenhouse gas emissions.

Not all energy storage is “clean”

When designed and incentivized properly, energy storage can be charged using clean power, and that power can then be discharged to displace dirtier power later in the day. While this is the optimal outcome, a growing body of research suggests that energy storage could actually increase emissions if it’s not done carefully.

The environmental benefits of storage depend critically on how, and when, it is operated. Electricity rates, wholesale energy markets and the physical constraints of the electricity grid all combine to incentivize when storage owners charge and discharge their devices, and for what purpose – the “how” and “when” of storage utilization. Essentially, the effect that energy storage has on emissions depends on which power plants are used to charge the storage, which plants are offset when the storage discharges, and how efficiently the storage itself operates.

North America, western Europe and Asia Pacific are expected to account for nearly 90 percent of the new long-duration energy storage capacity installed globally over the next eight years.

A new report from Navigant Research found that most new projects being installed fall into the four-hour to eight-hour duration categories, with most of those served by lithium-ion batteries. 

“This type of storage provides the necessary flexibility to manage dynamic resources effectively,” says Alex Eller, senior research analyst with Navigant Research. “Demand for long duration storage will continue to increase around the world as prices continue to decline and more ambitious targets for greenhouse gas reduction are implemented.”

Earlier this month, AES Corp. and Hawaiian utility Kaua’I Island Utility Cooperative completed their joint solar and storage project at Lāwa’I, calling it a record-breaking effort for photovoltaic peaker capacity. The Lāwa’I Solar and Energy Storage Project combines a 28-MW solar PV and 100-MWh five-hour duration energy storage system. The system can deliver approximately 11 percent of the Kaua’i island’s power needs.

This would make Kaua’i more than 50 percent powered by renewables, according to AES. Hawaii has a mandated goal of reaching 100 percent renewable energy by 2045.

Another recent report by Global Market Insights forecast that China’s energy storage investment could grow some $700 million to more than $6 billion by 2024.

Fluence, Nidec ASI, Tesla and RES are the leading players in the increasingly competitive utility-scale energy storage market, according to a new report from Navigant Research. These leaders are “actively pushing the boundaries” of how energy storage is viewed in the industry and are working to open new markets.

But companies that are currently trailing the leaders are also well-positioned to capitalize on new markets and project opportunities, Navigant says. Dramatic growth is expected in the market, and all players covered in the report are positioned to be successful as the market grows, according to the research. However, some are more likely to thrive as they build on the strong foundation and capitalize on complementary offerings, including ESS hardware and renewable energy project development.

The report, Navigant Research Leaderboard: Utility-Scale Energy Storage Systems Integrators, compares the strategy and execution of 12 leading ESSIs focused on the utility-scale market. These companies are rated on 12 criteria, including vision, go-to-market strategy, partners, production strategy, technology, geographic reach, sales/marketing/distribution, product performance, product quality and reliability, product portfolio, pricing, and staying power. 

Moving Past Project Development to Integrated Solutions

The utility-scale energy storage market has grown increasingly competitive since 2016 as projects become economically viable for a range of new applications in new geographies. As the market matures and expands, the role of energy storage systems integrators (ESSIs) such as Fluence and others has become the most important element in the value chain when it comes to ensuring successfully built and profitable energy storage systems. 

Companies in the ESSI space are moving beyond simply providing project development services to offering integrated hardware and software solutions for a range of ESS customers. These companies are responsible for both the design and management of an energy storage project, typically using robust software and controls platforms to maximize the value of a project both to the grid and to the system owners.

While there are several competing utility-scale energy storage technologies with differing characteristics matched for certain applications, battery ESSs are emerging as the leading technology globally for new projects.

In addition to the leading players in the market, the Navigant Report looks at “contenders” – including Powin Energy, Greensmith, LG CNS, NEC Energy Solutions, and NextEra Energy Resources – “challengers,” and “followers.”

As part of its nascent plans to begin expanding into other clean energy technologies, Danish wind energy giant Ørsted announced earlier this month that it completed its first standalone battery storage project, the 20 megawatt (MW) Carnegie Road battery project located in Liverpool, England.

The Carnegie Road battery storage project was announced in April of 2018 to be built in Liverpool, England, and which will provide services to the UK’s National Grid to support grid stability during shifts in power generation. While it would not be the company’s first foray into energy storage itself, it is the company’s first standalone, large-scale project.

The company had previously announced small demonstration projects in Denmark, the UK, and Taiwan, and currently boasts a behind-the-meter 2 MW battery at its Burbo Bank offshore wind farm which supports the 90 MW offshore wind farm’s production scheduling.

The newly completed 20 MW Carnegie Road battery project consists of three battery containers and associated power conversion systems, both provided by NEC Energy Solutions. Its primary function is to provide grid balancing services to National Grid, the company which operates the UK’s national electricity grid. Ørsted does not release megawatt-hour capacity figures for its battery storage announcements for “commercial reasons,” according to a company press representative.

“Climate change is a real and pressing threat to our planet and, in order to minimise its effects, we urgently need to decarbonise our electricity system,” explained Matthew Wright, UK Managing Director at Ørsted. “The good news is, we’re on the right path, especially in the UK, where we lead the world in deploying renewable technologies, such as offshore wind.

“We have a vision to create a world that runs entirely on green energy, and that means we will need more than just clean energy generation. That’s why we’re investing in energy storage systems like Carnegie Road, to accelerate the transition to a smarter, low carbon grid. Batteries, and other innovative storage technologies will form a critical part of an integrated green energy system required to ensure we keep the lights on without harming our planet.”

Anesco and Shell’s New Energies division are to partner on a utility-scale battery storage project in Norfolk, England.

The battery project, which is expected to have a capacity of 1.25MW/1.25MWh, is to be located adjacent to the Bacton gas terminal site, one of the company’s most significant energy facilities in the UK.

Anesco is to provide design, procurement, installation, commissioning and maintenance of the utility-scale system. While a specific timeframe for the project has not been disclosed, Solar Power Portal understands it is expected that the project be launched this summer.

Steve Shine, executive chairman at Anesco, said the news was an “exciting new” development for the storage sector. 

“It marks another significant milestone for us at Anesco. We have fully complied with Shell’s high standards of quality and safety and that is a massive compliment to the Anesco team,” he added.

The news follows recent reports that Shell is to double down on its focus on renewables and associated technologies, placing greater significance on its New Energies division which is dedicated to low carbon technologies crucial to the energy transition.

Last year Shell invested in domestic battery storage manufacturer sonnen in a bid to bolster its consumer offering, but the energy giant had yet to make any kind of move into the UK’s utility-scale storage market until today’s partnership. 

But the country’s utility-scale battery storage market is already home to many of the globe’s energy giants. The likes of Vattenfall, EDF and Centrica have all completed large-scale battery projects in recent years and, just last month, Orsted completed a 20MW battery near Liverpool. 

Earlier this week National Grid, within a wider Capacity Market consultation, outlined its expectation for the UK’s battery storage capacity to swell to as much as 1.7GW by the 2021/2022 winter period.

LONDON & NEW YORK–(BUSINESS WIRE)–Highview Power, the global leader in long-duration energy storage solutions, announced today that it has partnered with Finland-based Citec, a global engineering firm specializing in industrial plants and projects, to modularize its gigawatt-scale cryogenic energy storage system. With a simplified design and streamlined engineering from Citec, a standard plant configuration of 50 MW/500 MWh can be easily and cost-effectively scaled up to multiple gigawatt hours, or down, without limitation.

“Last year, we launched the world’s first grid-scale liquid air energy storage plant, and in 2019 we will be commercializing our long-duration energy storage solutions globally,” said Javier Cavada, President and CEO of Highview Power. “Modularizing our liquid air technology will help us deploy our systems more efficiently and cost-effectively, providing an attractive advantage for project developers and investors.”

The company is working on multiple projects in both Europe and the U.S., with construction expected to begin this year.

Highview Power selected Citec as its engineering partner because of the company’s proven track record of modularizing industrial plant products, as well as the global resources and a strong understanding of delivering engineering projects around the globe. The first modular solution will be designed with a standard configuration of 50 MW/500 MWh and can then be customized to the individual needs for varying storage capacities.

“This first project is to develop a modular solution for one storage capacity, and from this basis, repeated projects with localization and for varying storage capacities will be developed,” said Johan Westermarck, CEO, Citec. “We are very excited to begin work on this first project – both parties’ ambition is to create and establish a long-term partnership. The business cooperation with Highview Power is strategically important as it brings Citec to the frontline of new energy solutions that are eagerly needed to balance the increasing solar and wind production capacity.”

Replacing Fossil Fuels

As momentum builds toward adding more renewable energy sources to the power grid, giga-scale energy storage is the necessary foundation to make these intermittent sources of power reliable enough to become the baseload and reach a target of 100 percent renewable power. “Our cryogenic energy storage systems are equivalent in performance to – and could replace – a fossil fuel power station,” said Cavada. Highview Power’s system can also support electricity and distribution systems while providing additional security of supply.

Energy efficiency and sustainability firm Ameresco announced that Jacqueline DeRosa has joined the company as vice president for energy storage. 

DeRosa’s career spans more than 25-years in energy policy and regulatory reform, energy storage consulting, and commercial project development.

“We are thrilled that Jacquie has joined the Ameresco team,” Michael T. Bakas, Executive Vice President, Ameresco said. “Her market and industry expertise will prove invaluable in assisting Ameresco to continue to lead in shaping the transforming Distributed Energy Resource space, and providing long-term value for our existing and new customers.”

Prior to joining Ameresco, DeRosa was the Vice President for Emerging Technologies at Customized Energy Solutions (CES), where she advised clients on how to value energy storage resources and interpret the changing market rules. Prior to CES, DeRosa worked for the California ISO in the areas of policy and market design. She has also worked on international energy sector restructuring matters for United States Agency for International Development (USAID), and in power project development for an independent power producer. She began her career at the Federal Energy Regulatory Commission (FERC).

“I have been working to accelerate the integration of new technologies into competitive power markets and I’m eager to focus my expertise and passion to develop clean and sustainable energy projects at Ameresco,” she said. “Energy storage and distributed resources are thrusting the electric power industry into a new paradigm, and it is a tremendous opportunity for me to join such an accomplished organization at this dynamic time in the industry.”

DeRosa serves on the Board of Directors for the national Energy Storage Association (ESA) and has been involved in ESA’s efforts to educate stakeholders about new technologies and promote fair rules for energy storage. She is frequently invited to speak at industry conferences worldwide and has contributed to publications and podcasts concerning the benefits of energy storage technology.