We know energy storage is coming. The question is: How much and how fast? Tesla showed us that they’d rather build cars versus energy storage installations, and that makes sense since more than 90% of their revenue is from cars. And Bloomberg recently reminded us that the whole of the industry is in a situation of greater demand than supply. Nonetheless, the potential is there and the manufacturing capacity is growing immensely.

In a report commissioned by the Public Utilities Commission of Nevada and Nevada Governor’s Office of Energy, the Brattle Group found that over the next year and a half 175 MW / 700 megawatt-hours (MWh) of energy storage could be deployed while saving money for ratepayers. The Economic Potential for Energy Storage in Nevada (92 page PDF), also found that by 2030 – depending on how pricing moves – 700 to 1,000 MW of energy storage can be effectively deployed. Additionally volume could be found behind-the-meter, as deployments could range from 30 to 40 MW / 120 to 160 MWh by 2030.

These numbers are particularly interesting in light of Warren Buffet’s NV Energy recently signing contracts including 100 MW / 400 MWh of energy storage.

The report made its judgments on value of the energy storage based on power grid benefits (noted on the right of the chart above). What was not included in the chart below were the societal emissions-related impacts of up to $10.6 million per year in 2020, and $27 million a year in 2030, as these items aren’t reflected in electricity bills.

The report suggests there is also a chance to expand the volumes deployed by large amounts with ever so slight adjustments in how we recognize the value provided by energy storage or through declines in the cost of deploying energy storage. The report also notes that if a regional market develops, beyond 1,000 MW is a possibility.

A Montana utility case pending before federal regulators could set a precedent for how energy storage facilities paired with renewable generation will be treated under the Public Utility Regulatory Policies Act (PURPA), a 1978 law intended to increase competition in power generation.

This summer, Northwestern Energy asked the Federal Energy Regulatory Commission (FERC) to revoke qualifying facility (QF) status under PURPA for four wind-plus-battery facilities a developer is trying to site in its Montana service area. The federal law compels utilities to purchase power from QFs.

Developer Caithness Beaver Creek has QF status for four planned 80 MW wind facilities paired with battery storage. Northwestern argues their status should be revoked because the addition of batteries violates generation sizing requirements under PURPA.

The case comes in the middle of FERC’s ongoing review of its implementation of PURPA and would be the first ruling directly addressing paired storage facilities under the law. Utility trade group Edison Electric Institute asked FERC to put the case on hold until the commission completes that review, but one federal regulator said it is still in its early stages.

Northwestern v. Caithness

FERC today has little experience relating energy storage to PURPA. In the 1990 case Luz Development and Finance Corp., FERC found that a standalone storage project could receive QF status if it is charged with renewable energy, but the agency has not yet considered how to treat paired storage projects, like the Beaver Creek facilities.

Northwestern filed with FERC in late August, arguing the Beaver Creek batteries should be considered separate facilities from the wind turbines. If not, the utility said the combined facilities would violate PURPA’s 80 MW capacity limit.

“Integrating battery storage facilities with a wind farm in these circumstances is simply a combination of power production facilities,” the utility wrote. “There is no precedent for the proposition that a battery storage facility’s capacity can be deemed to be zero simply because the battery may receive charging energy from another QF or because the battery storage facility is to be ‘integrated’ with an existing QF.”

Global energy technology giant Siemens plans to acquire Massachusetts-based Russelectric, a move likely to strengthen Siemens position in state’s increasingly fertile microgrid market.

Russelectric manufactures power control systems and made a splash in the microgrid arena last year with the opening of a sophisticated microgrid demonstration at its Hingham, Massachusetts headquarters.

The Russelectric microgrid not only powers the facility, but also serves as a learning ground for potential customers who want to see a microgrid in action. Such projects are viewed as valuable within an industry that is still young and needs to prove itself to customers

The acquisition of Russelectric by Siemens means that two of the major players in microgrids — Siemens and Schneider Electric — will have corporate demonstration projects in Massachusetts.  Schneider Electric, a prime competitor to Siemens, operates  a demonstration microgrid at its Andover, Massachusetts headquarters.

Like most of the Northeast, Massachusetts is viewed as a prime market and a launching ground for the North American industry because of severe hurricanes and winter storms that cause power outages. (The other launching ground for microgrids is California, where the market has been driven by environmental goals and grid vulnerability to earthquakes and wildfires.)

State policy swings in favor of microgrids in Massachusetts with state grant programs through the Massachusetts Clean Energy Center and strong energy storage, renewable energy and climate goals. The city of Boston also has laid out microgrid plans, with a much-watched project at the Raymond L. Flynn Marine Park Project.

We know energy storage is coming. The question is: How much and how fast? Tesla showed us that they’d rather build cars versus energy storage installations, and that makes sense since more than 90% of their revenue is from cars. And Bloomberg recently reminded us that the whole of the industry is in a situation of greater demand than supply. Nonetheless, the potential is there and the manufacturing capacity is growing immensely.

In a report commissioned by the Public Utilities Commission of Nevada and Nevada Governor’s Office of Energy, the Brattle Group found that over the next year and a half 175 MW / 700 megawatt-hours (MWh) of energy storage could be deployed while saving money for ratepayers. The Economic Potential for Energy Storage in Nevada (92 page PDF), also found that by 2030 – depending on how pricing moves – 700 to 1,000 MW of energy storage can be effectively deployed. As part of this, behind-the-meter deployments could range from 30 to 40 MW / 120 to 160 MWh by 2030.

These numbers are particularly interesting in light of Warren Buffet’s NV Energy recently signing contracts including 100 MW / 400 MWh of energy storage.

The report made its judgments on value of the energy storage based on power grid benefits (noted on the right of the chart above). What was not included in the chart below were the societal emissions-related impacts of up to $10.6 million per year in 2020, and $27 million a year in 2030, as these items aren’t reflected in electricity bills.

The report suggests there is also a chance to expand the volumes deployed by large amounts with ever so slight adjustments in how we recognize the value provided by energy storage or through declines in the cost of deploying energy storage. The report also notes that if a regional market develops, beyond 1,000 MW is a possibility.

Renewables developers eyeing Saudi Arabia remain wary of the market following the news that the world’s biggest solar project has been canceled.

The $200 billion, 200-gigawatt solar plant planned by SoftBank and the Saudi Public Investment Fund had raised skepticism among developers when it was announced in March, partly because of technical concerns over how it might be integrated into the grid.

The main worry, though, was that the megaproject appeared to have been approved independently of plans for an orderly ramp-up of solar through a tender program managed by the Saudi Renewable Energy Project Development Office (REPDO).

Soon after the SoftBank agreement was unveiled, it emerged that top officials in the kingdom had been excluded from negotiations, adding further uncertainty.

Given the haphazard way in which the deal was brokered — and the fact that the Saudi state and SoftBank had both previously announced plans for massive solar investments that had been canceled — last week’s news came as no surprise.

“Precedent would suggest that grand solar plans from SoftBank or the Saudi state come with a gap between promises and reality,” said Benjamin Attia, global solar analyst with Wood Mackenzie Power & Renewables. “This is no exception.”

He said the project never got beyond an initial feasibility study.

According to The Wall Street Journal, the announcement of the freeze was greeted with relief by Saudi energy officials. “Everyone is just hoping this whole idea would just die,” one said.

Although the SoftBank project was widely viewed as being doomed from the start, the cancellation is a further blow to the Saudi solar market.

Investment management firm Gresham House is to float an energy storage fund on the London Stock Exchange next month, with an aim to raise £200 million (US$260 million) to fund 262MW of energy storage projects over the next year.

Gresham House Energy Storage Fund has already secured a seed portfolio of 70MW across five projects it has developed alongside its partner Noriker, ranging from 7MW up to 20MW. Gresham House also took over Hazel Capital in 2017, a renewables investment fund company which delivered the 15MW Lockleaze battery project, at the time one of Britain’s biggest projects of that type.

Gresham House New Energy, which will manage the fund, says it also has exclusivity over 132MW of shovel-ready sites across the UK, with a further 80MW in the advanced stages of negotiations.

Finally, more than 50MW of storage projects are also within sight of the management team, which has already invested more than £30 million alongside institutional investors, all of which is expected to be acted on over the next year.

Gresham House hopes to have completed the initial public offering (IPO) and admission to the LSE early next month, with the fund offering yields of 7% to investors.

Rupert Robinson, managing director of Gresham House Asset Management, said: “We are excited to bring this opportunity to invest in energy storage systems to institutional and high net worth investors.

“What will set the Fund apart is the proven expertise of the management team in this highly specialist sector and the cornerstone investment of more than £30 million, from the management team and institutional investors.

“We are confident that we can deploy up to £200 million in a tangible pipeline within 12 months of IPO.”

​It will be the second listed fund dedicated to energy storage after Gore Street Energy Storage Fund was announced in March, targeting £100 million and also promising 7% returns.

However the fund underwhelmed in May having only raised £30 million, with half of this coming from external investors.

Nevada could cost-effectively deploy between 750MW and 1,000MW of energy storage by 2030, according to an economic study commissioned by the state’s rulemakers to investigate the potential for the technology.

Massachusetts, California, New York and Arizona are among the US states to have already implemented or closely investigated the implementation of procurement targets for energy storage, mainly by utilities. A 2017 Nevada Senate Bill, SB204, ordered the state Public Utilities Commission of Nevada (PUCN) to determine whether biennial targets for energy storage deployment by electric utility entities would be in the public interest.

To that end, the PUC and the Nevada Governor’s Office of Energy (GOE) commissioned economists from Brattle Group to produce the study, ‘The economic potential for energy storage in Nevada’, a 90+ page document which has been filed as a docket by PUCN.

Brattle took into account numerous variables in its modelling, including the use of energy storage systems for ‘stacked applications’ i.e. for providing multiple services, the impact of cost savings made by generating and storing power during low-priced hours and looked at various different applications and their value to the Nevada network.

Essentially, Nevada’s future power mix could cost-effectively incorporate storage, the study found, although deployment levels vary under the different market scenarios modelled by Brattle. At the low end, where battery and other costs remain relatively high, some 700MW of storage could be deployed cost-effectively, while if high end expectations on cost reduction are proven correct, the figure could be closer to 1,000MW. In other words, while the analysis found that energy storage, which could include other technologies as well as advanced battery storage, could be a useful addition to Nevada’s networks and for consumers, much depends on the future cost declines of the technology and its deployment.

The economists also made the prediction that behind-the-meter (BTM) storage will carry a compelling business case, although opportunities may be fairly limited compared to booming markets for C&I energy storage such as California. Brattle predicts that without any supporting incentive programmes, around 7MW of storage could be deployed cost-effectively BTM, rising to 31MW by 2030. The addition of incentive programmes could boost this figure by between 6MW and 39MW.

Eguana Technologies (tsx.v:EGT) (otcqb:EGTYF) and Ameresco SolarAMRC, +0.80% are pleased to announce that Eguana’s “Evolve” Home Energy Storage System is immediately available to Ameresco’s select partner network in North American markets. Initial product certification training is scheduled to take place on October 5 [th] , 2019 at Ameresco’s Temecula, California facility.

Ameresco maintains a network of several thousand active solar and electrical contractors located in key SunBelt states who stand to benefit from the immediate availability of the Evolve residential energy storage system. Ameresco designs and engineers grid-tie battery backup and residential power systems delivering a unique experience for installers and contractors. The one stop solution approach for products, engineering services and project management, coupled with a strong product portfolio, has positioned the company as a high-value added reseller for energy storage systems.

“Ameresco Solar has an extensive background in the grid-tie battery backup and residential power solutions market and the Evolve system enhances their existing offering with advanced grid interactive energy storage functionality,” said Justin Holland, Eguana Technologies CEO. “Ameresco brings a new group of value added partners who will open up new markets for the Evolve residential energy storage system throughout North America.”

Renewables as baseload will ‘flip the old model on its head’

October 3 (Renewables Now) – LG Electronics Australia will next year start offering energy storage solutions (ESS) for residential customers in Australia, thus marking its entry into that market.

The company, a unit of South Korea’s LG Electronics Inc (KRX:066570), said on Wednesday that the home battery system will come with its LG 3 phase hybrid inverter in a pack that will be launched on the market from the second quarter of 2019. The first such product will be first presented at the All-Energy Expo in Melbourne on October 3-4.

The new ESS battery and inverter pack will be able to store up to 12.8 kWh of electricity, with the pairing of an expandable 6.4-kWh battery pack. It will be provided with a 10-year warranty. “The addition of the ESS to our energy portfolio will enable us to support Australian homeowners with a 3 phase electric power and their demand for greater control over their residential energy consumption,” said Markus Lambert, general manager solar & energy at LG Electronics Australia.

In addition, LG announced it will lift by 5 W the efficiency of its 2019 NeON R and NeON 2 premium solar panels and will also start offering 370-W, 380-W and 400-W 72-cell “made to order” panels. Those panels will be suitable for homeowners with limited rooftop space, the company said.