Editor’s Letter: States Are Leading the Way (Again) on the Utility of the Future

on June 6, 2018

Renewable-Energy-WorldRemember when U.S. states started voting renewable portfolio standards (RPS) into law? Iowa had the first and it was passed in 1983 requiring investor-owned utilities to build or procure 105 MW of alternative energy generating capacity. (Funny how small that amount is — 105 MWs would not even qualify as a “large” wind farm today).

Other states followed Iowa, creating statutes with renewable energy targets all the way through the 2000s, at which time states then began to modify their goals. Today, states are still upping the ante. California, New York and Hawaii boast the most aggressive RPS’s having modified their original goals multiple times.

These early RPS’s were indications that states were serious about forcing utilities to incorporate renewable energy into their energy portfolios.

In April, we witnessed two historic laws that once again showcase state leadership on clean energy. Hawaiian legislators passed the Ratepayer Protection Act, which directs utilities and the PUC to come up with mechanisms to reward utility performance such as affordability, reliability, customer engagement, integration of renewable energy and timely execution of competitive procurement. Utilities in Hawaii will no longer be able to “rate-base” capital expenditures but will instead be rewarded for meeting these new metrics. How? No one is sure yet. As State Senator Stanley Chang told me, “this is uncharted territory.”

On the other side of the country, the District of Columbia proposed the Distributed Energy Resources Authority Act, a law that would establish an independent body that ensures DC utilities look at non-wires alternatives whenever they propose to spend more than $25M on construction to expand capacity or enhance reliability. The independent body would determine if any of the capacity or reliability requirements could be met with energy efficiency, demand response or distributed energy resources like solar and storage.

These two laws (DC’s has not passed yet) represent very big changes for our utility system and are baby steps toward the utility of the future. Hawaii’s Senator Chang told me in an interview that he thinks these movements are the wave of the future and I agree. “I think we will see a lot more of this around this country and around the world,” he said.

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Fractal Energy Storage ConsultantsEditor’s Letter: States Are Leading the Way (Again) on the Utility of the Future

Why Energy Storage is Key to a Global Climate Breakthrough

on June 5, 2018

QuartzWhen Vaclav Smil writes about energy, the world pays attention. “I wait for new Smil books the way some people wait for the next Star Wars movie,” Bill Gates once tweeted.

Smil is a professor at the University of Manitoba, and one of his key arguments is that the world is unlikely to transition away from fossil fuels fast enough to avoid catastrophic climate change. His observation is based on previous energy transitions, such as from wood to coal and from coal to oil, which moved very slowly.

But Smil says one technology could change the prevailing trends: energy storage. “Give me mass-scale storage and I don’t worry at all. With my wind and [solar] photovoltaics I can take care of everything,” he told Science. “But we are nowhere close to it.”

Better energy storage could overcome the biggest limitation of renewable power: Instead of using it only when the sun is out or the wind is blowing, electricity generated by renewable sources could be held for when it is most needed.

Mass-scale energy storage already exists, but there is only one mature technology: pumped hydro storage. When there is excess power on the grid, this technology is used to pump water to a dam. When the grid needs more power, the stored water is used to run turbines to generate it.

Other technologies feature electrochemical storage in the form of batteries, electro-mechanical storage in the form of compressed air or flywheels, and thermal storage in the form of hot or cold materials in insulated chambers. These comprise a tiny share of overall energy-storage capacity, according to a new report by policy group REN21.

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Fractal Energy Storage ConsultantsWhy Energy Storage is Key to a Global Climate Breakthrough

World’s First Liquid Air Energy Storage Plant Opens Near Manchester

on June 5, 2018

Financial-TimesThe UK is pioneering a new way to store power with the world’s first grid-scale liquid air energy storage plant.

The Pilsworth liquid air energy storage (LAES) plant, which is owned by Highview Power, opens on Tuesday in Bury and will act as a giant rechargeable battery, soaking up excess energy and releasing it when needed.

This is particularly useful with the rapid growth in renewable energy, which accounted for 29 per cent of all electricity generated in the UK in 2017. It generates excess power when the sun is shining and the wind is blowing but is not reliable at times of peak demand.

Coal-fired power stations that typically handled peak electricity demand are being shut down and National Grid, which owns and operates the electricity transmission network, pays small gas and diesel generators to bridge the gap.

LAES is another, non-polluting option, according to Gareth Brett, chief executive of Highview Power, which developed the technology. “LAES is arguably the only viable, long-duration, locatable energy storage technology available,” he said.

He added that the system, which was developed in conjunction with Birmingham university, has 33 patents and is cheaper than batteries at large scale. It is also more durable: plants last for up to 40 years and can be installed anywhere.

LAES works by cooling air to -196°C, transforming it into a liquid that is stored at low pressure in insulated tanks. When power is needed the liquid air is pumped to high pressure and heated. The result is a high-pressure gas that is used to power a turbine and create electricity.

The Pilsworth plant has a capacity of five megawatts and can store 15 megawatt hours (MWh) of electricity — enough to power about 5,000 average-sized homes for around three hours. A commercial-scale plant would have a capacity of 50mw.

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Fractal Energy Storage ConsultantsWorld’s First Liquid Air Energy Storage Plant Opens Near Manchester

Exclusive: Tesla Has Installed a Truly Huge Amount of Energy Storage

on June 5, 2018

Tesla, it’s been said, is less a car company than a battery company that sells cars. Today, the company is announcing a new milestone: Since 2015, it has installed a worldwide total of a gigawatt-hour of energy storage–technology that is critical for using renewable energy at scale. For comparison, that’s nearly half of the entire amount of energy storage installed globally last year. As the company’s electric car business quickly grows, the energy side of its business is growing even faster.

“It’s at a scale now where it’s undeniably making an impact,” says JB Straubel, Tesla cofounder and chief technical officer.

The cost of battery storage keeps falling; between 2010 and 2016, the price across the industry fell 73%, from $1,000 a kilowatt-hour to $273 a kilowatt-hour. By 2020, it may drop to $145 a kilowatt-hour, and by 2025, to $69.5 a kilowatt-hour.

The market is growing as renewable energy is also becoming cheaper and expanding. Batteries can be used to store any type of energy–on a grid with traditional fossil fuel plants, the technology can be used, for example, when power demand suddenly peaks on a hot day and thousands of air conditioners turn on (this helps avoid the need to fire up an extra coal or gas plant). But it’s particularly critical for renewables, since batteries make it possible to use solar power at night, or wind power when the wind isn’t blowing.

In Australia, the world’s largest lithium-ion battery, installed by Tesla over an area the size of a football field at a wind farm, is saving consumers millions of dollars by making the grid more reliable. On the Pacific island of Ta’u in American Samoa, a solar microgrid using 60 of Tesla’s large Powerpack batteries has fully replaced diesel power. In Hawaii, Tesla batteries store energy generated during the day at a solar farm on Kauai to release it at night. In Southern California, a Powerpack system handles peak energy demand without requiring extra fossil-fuel-powered plants to come online.

In Puerto Rico, after helping to provide emergency power following Hurricane Maria, Tesla is now installing permanent microgrids. More than 1,000 households on the island, like others around the world, now also use Tesla Powerwalls, the company’s product for home electricity storage, which can be connected to home solar panels to help keep lights on after disasters. Powerwalls can also be connected to each other to form “virtual power plants.” In Australia, for example, Tesla is working with the government on a new plan to distribute solar panels and batteries to 50,000 homes, which will work together to supply clean energy to the grid.

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Fractal Energy Storage ConsultantsExclusive: Tesla Has Installed a Truly Huge Amount of Energy Storage

NV Energy Awards 1GW PV, Proposes 100MW Batteries for Nevada – with Question 3 Ballot Caveat

on June 5, 2018

Energy-Storage-NewsUtility NV Energy has awarded contracts in the US state of Nevada for over 1,000MW of renewable energy projects – including a 420MW-dc solar farm – and has also requested approval for 100MW of energy storage.

In January, Energy-Storage.News reported that NV Energy, owned by billionaire investor Warren Buffet’s Berkshire Hathaway since 2013, was tendering for 330MW of renewables. The solicitation process resulted in the utility selecting six new solar PV projects, now totalling more than 1GW. NV Energy is expected to file its resource plan for the approval of the regulator, Public Utilities Commission of Nevada (PCUN), today, 1 June.

The solar projects awarded include the 300MW (420MW-dc) Eagle Shadow Mountain Solar Farm in Clark County, about 30 miles north of Las Vegas on the Moapa River Indian Reservation. The largest solar project to date to be built on tribal land in the US as well as NV Energy’s single biggest PV project.

The contract was awarded to developer 8minute Energy Renewables, which issued its own statement on the project, stating that it should begin construction during the year 2020, to be completed by the end of the following year. With an annual output of more than 900 million kWh, mitigating around 600,000 metric tonnes of carbon emissions each year, the Eagle Shadow Mountain facility is also expected to create more than 600 jobs in Clark County during construction and development.

In addition to the solar farms, three large-scale battery storage projects were also picked out from the solicitation, although NV Energy did not reveal details of those in yesterday’s statement. It did however state that it would include “a major 100MW investment in integrated battery energy storage systems charged by solar energy, which will help meet the needs of customers during cloudy days and during late afternoon and evening hours when solar energy is unavailable.”

Plans hinge on Question 3 legislation

In fact, all of the projects awarded by NV Energy should be constructed by the end of 2021 if approved. The company said it will entail around US$2 billion of direct investment, with more than 1,700 construction workers needed and about 80 permanent jobs created. However, there is an important caveat, the so-called Question 3 issue. The state-wide ballot proposal to amend Nevada’s Constitution to create a deregulated, competitive energy market, avoiding the award of monopoly or exclusive franchises for the generation of energy.

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Fractal Energy Storage ConsultantsNV Energy Awards 1GW PV, Proposes 100MW Batteries for Nevada – with Question 3 Ballot Caveat

A New Energy Storage Solution Debuts In The Railway Sector

on June 4, 2018

oilprice-logoBattery technologies are all the craze these days as everyone is racing to find the perfect solution to energy storage for the growing share of solar and wind power in the grid.

But energy storage solutions are also making forays into the railways industry where batteries can help stabilize the railway electricity grid.

One new battery storage solution, developed by Italy-based power group Enel, will be tested and installed on the network of the Russian Railways.

“This is the first time this type of battery technology is used in the railway sector,” Enel, which has a very strong international renewables business, said upon announcing that it would test the “first-of-its-kind innovative storage system on Russia’s railway network.”

Enel and Russian Railways will team up to develop the energy storage solution in the hopes that it could help stabilize the Russian railway electricity grid, improve train operations, and avoid expensive grid upgrades that might otherwise be required.

While Enel was scarce on details in the announcement, CleanTechnica obtained more information from the Italian company about what this “first-of-its-kind” innovative storage system is.

The batteries will be lithium, with a minimum capacity of 10 MWh, Enel told CleanTechnica. At times of peak demand, the batteries can be automatically activated through an Enel in-house software to help respond to the growing energy demand of the railways system. Once installed on certain railway sections, the batteries could help make the train service faster, Enel says.Related: Why U.S. Oil Exports Are Only Heading Higher

The power company plans to couple the energy storage system with regenerative braking technology. This regenerative braking tech uses the energy that the train generates when it brakes to charge the batteries. The energy will be stored in the batteries for later use, which could help the railway network to reduce its overall energy consumption.

However, the Enel technology is still in a development and test phase—it’s not ready to be installed on the network of the Russian Railways yet.

The partnership with Russian Railways will entail a testing phase of up to three months, which is expected to begin by the end of 2018, Enel told CleanTechnica. During the test phase, Enel will install a single battery in a laboratory at Russian Railways, where the energy storage technology can be tested for performance in a controlled environment.

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Fractal Energy Storage ConsultantsA New Energy Storage Solution Debuts In The Railway Sector

Vattenfall’s Formula for Low-Cost Energy Storage Deployment

on June 4, 2018

Greentech-MediaSwedish energy giant Vattenfall has found a way to further cut the cost of grid-scale energy storage: share the infrastructure with a wind farm.

The company has announced the commissioning of what it said was “the largest co-located battery installed in the United Kingdom” — a 22-megawatt plant, which shares electrical plans with the Pen y CyMoedd wind farm in Wales.

Developers of many current and upcoming wind projects are studying energy storage as a way of earning extra revenues from arbitrage, by storing power until it can be sold for a higher price. But in Vattenfall’s case, the wind and battery plants will operate independently.

The 76-turbine wind farm, which is Vattenfall’s largest onshore project and also the biggest in England and Wales, was opened for business in September 2017 and delivers up to 228 megawatts of power direct to the U.K. grid.

Pen y Cymoedd is capable of meeting the equivalent electricity needs of more than 13 percent of households in Wales and displaces an average of around 331,000 tons of carbon dioxide from fossil-fueled generation every year, said Vattenfall in a press release.

The GBP £400 million ($532 million) project was officially opened in September 2017.

The battery system, meanwhile, shares electrical infrastructure with the wind farm but earns its keep by delivering ancillary services, and specifically enhanced frequency response, to electricity network operator National Grid.

The battery system is made up of six shipping container-sized units, five of which house 500 i3 BMW-manufactured battery packs. Each of the new BMW lithium-ion batteries has a capacity of 33 kilowatt hours and is adapted for stationary storage applications, Vattenfall said.

In March last year, Vattenfall inked a deal with BMW Group for a supply of batteries originally destined for the i3 electric vehicle series. The energy company committed to buy 1,000 of the lithium-ion batteries.

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Fractal Energy Storage ConsultantsVattenfall’s Formula for Low-Cost Energy Storage Deployment

Tesla Has ‘About 11,000’ Energy Storage Projects Underway in Puerto Rico, Says Elon Musk

on June 4, 2018

ElectrekTesla is apparently significantly ramping up its effort to help rebuild the power grid in Puerto Rico after it was destroyed by hurricanes last year.

After having completed hundreds of energy storage project on the islands in the last few months, Tesla CEO Elon Musk now says that they have ‘about 11,000’ energy storage projects underway in Puerto Rico, which means something big is in the work.

Last month, Tesla CEO Elon Musk said that the company installed batteries at 662 locations in Puerto Rico.

We reported that they focused on critical services. For example, Tesla deployed a series of Powerpack systems on the Puerto Rican islands of Vieques and Culebra for a sanitary sewer treatment plant, the Arcadia water pumping station, the Ciudad Dorada elderly community, the Susan Centeno hospital, and the Boys and Girls Club of Vieques.

The automaker’s energy division also deployed a solar+battery system at a hospital in Puerto Rico.

While it’s one of the biggest examples of Tesla deploying energy storage systems in a single market, it now sounds like it’s only the beginning as Musk says that there are about 20 times more projects underway in Puerto Rico:

At the very minimum, it would be one Powerwall per project, which would add up to a deployment of at least ~150 MWh of energy capacity.

But that’s just the bare minimum since as we have recently seen, most projects include more than one Powerwall.

For example, we recently reported on a homeowner in Puerto Rico who received a 3-Powerwall installation that helped keep the lights on during the last power outage:

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Fractal Energy Storage ConsultantsTesla Has ‘About 11,000’ Energy Storage Projects Underway in Puerto Rico, Says Elon Musk

Onsite Power And Microgrids May Be The Key To Global Development

on June 4, 2018

Nearly a quarter of the 1.1 billion without access to reliable electricity are located in India, which is critical to its development and which requires creative solutions. While the growth of centralized power generation and delivery is expanding there, so too is onsite rooftop solar energy with localized microgrids.

India’s government is crafting a plan to build such decentralized power and delivery mechanisms over the next five years — a $2.5 billion effort. While the focus there is on extending access to those rural areas without electricity, it could also be used in its industrial and manufacturing sectors.

India is an example of how microgrid technologies could be applied in the world’s growth regions. To have universal electrification by 2030, microgrid expansion would need to double, notes the Microgrid Investment Accelerator, which was founded by Microsoft and Facebook, along with Allotrope Partners. And that requires reduced barriers to entry to entice risk takers.

“Microgrid (and solar home system) solutions powered by renewables provide electricity to nearly 90 million people,” says the Microgrid Investment Calculator. “To achieve universal electricity access by 2030, the current pace of expansion will have to double. It is estimated that off-grid solutions will supply 50%-60% of the additional generation needed to achieve universal electricity access by 2030.”

About 95% of those without electricity are in sub-Saharan Africa or Asia and 80% of those are in rural areas. General Electric and Italy’s Enel are active in Africa while Schneider Electric and Chili’s Engie are investing in Southeast Asia.

Unlocking Capital

The good news is that the microgrid technology market is growing by 20% a year, says Bloomberg New Energy Finance. It totaled $6.8 billion globally as of 2017, adds the Advanced Energy Economy; the Pacific island nations announced 15 different projects in the last year. Even better, the costs of both renewables and energy storage technologies — two assets central to microgrids — are falling.

The bad news is that CrossBoundary told the Clean Energy Finance Forum that the payback for microgrid systems takes 10 years, which requires developers to charge more per kilowatt-hour. That is because developed nations have dense urban areas that consume much power while developing countries have sparse populations that use much less, meaning that companies must charge more.

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Fractal Energy Storage ConsultantsOnsite Power And Microgrids May Be The Key To Global Development

Hybrid Energy Storage System Gets First-of-Its-Kind Certification

on June 3, 2018

Power-Magazine

DNV GL, an Oslo, Norway-headquartered global quality assurance and risk management company that also acts as a certification body, handed the certificate to the Spanish conglomerate at WINDPOWER 2018 in Chicago this May. DNV GL’s certificate demonstrates the safety, performance, and reliability of ACCIONA’s hybrid plant for storing electricity in batteries as part of a grid-connected wind farm at Barásoain in Navarra, northern Spain.

The Barásoain plant has a storage system that consists of two batteries that are located in separate containers. One is a fast-response battery of 1 MW/0.39 MWh, which is capable of maintaining 1 MW of power for 20 minutes, and the other is a slower-response battery, though it has “greater autonomy” of 0.7 MW/0.7 MWh, maintaining 0.7 MW for 1 hour, said ACCIONA. Both employ Samsung SDI lithium-ion technology. The energy storage technology is connected to a single 3-MW AW116/300 wind turbine that uses ACCIONA Windpower (Nordex Group) technology. According to ACCIONA, the wind turbine is one of five that make up the Experimental Wind Farm at Barásoain, which it has operated since 2013. ACCIONA manages the entire system using control software it developed in-house. The system is monitored in real-time by the company’s Renewable Energies Control Center (Figure 4).

The certification milestone is important because while energy storage technologies are increasingly being deployed along with renewable projects at a grid-scale, a comprehensive standard that guarantees their safety and reliability is rare. The certification is designed to provide more certainty to industry, including technology designers and manufacturers, as well as auxiliary backers like investors, insurers, and government authorities, which often seek information about risk mitigation and cost controls, particularly for fledgling energy storage projects.

“Certifying new systems like ACCIONA’s grid-scale storage plant demonstrates that pioneering projects like this are meeting the required safety, performance and reliability standards and providing the industry with confidence in the quality of emerging new technologies,” said Kim Mørk, executive vice president, Renewables Certification at DNV GL.

According to Carlos Albero, global finance segment leader of DNV GL’s energy division, as well as providing a quality benchmark, the certification verifies ways a hybrid renewables-storage project can make money. “We’re not speaking about the batteries themselves,” he explained to POWER. “You are integrating the wind turbines with the storage platform, and at the end of the day, they have to work together.” Hybrid projects have the benefit of providing revenue streams from grid-related services, such as from frequency and voltage regulation. “So, these are the kinds of revenue considerations that will need to support storage projects in the future,” he said.

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Fractal Energy Storage ConsultantsHybrid Energy Storage System Gets First-of-Its-Kind Certification