As Energy Storage Costs Decline, Market Changes Needed to Increase Deployment

on May 10, 2018

Platts“As we think about storage at the ISO, really what we’re thinking about is how do we make sure that storage can participate as fully as possible as an asset, as a resource,” Michael DeSocio, senior manager of market design at the New York Independent System Operator said Tuesday at the Independent Power Producers of New York Spring Conference in Albany.

“We see storage as vital for the grid of the future and if you think about the stresses and strains the future grid will have, it will be an asset I think any grid operator would love to have,” he said.

The growth in intermittent renewable energy has created an important role for storage resources that can either store energy during low demand periods like windy evenings to be discharged during the day, or help smooth the transitions between high and low renewable energy production periods.

And as the use case for storage has become clear and more equipment is built, the costs are rapidly declining, which many see as a catalyst for wider deployment. Lithium-ion battery energy storage costs were $1,000/kWh in 2010 and have come down to less than $200/kWh today and are expected to be less than $100/kWh by the mid 2020’s, Jason Doling, energy storage program manager at the New York State Energy Research & Development Authority, said. Those costs are for battery packs, which account for 20% to 30% of the total installed cost of a battery energy storage system. “When we start to hit $400/kWh installed cost, really fascinating things happen because the number of use cases that economically” make sense significantly increases, Doling said.

These include distribution system relief, customer-sited storage for load relief or demand response, pairing with existing generation to operate plants more efficiently and pairing with renewables. Doling estimates that this point will be reached in the next three to five years and research indicates that around 2,000 MW could be deployed by 2025 in New York. The state has a goal of reaching 1,500 MW by that date.

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Fractal Energy Storage ConsultantsAs Energy Storage Costs Decline, Market Changes Needed to Increase Deployment

SolarEdge Moves Beyond Solar With Energy Storage Acquisition, Virtual Power Plant Launch

on May 10, 2018

Greentech-MediaSolarEdge reported record revenues and profitability for the first quarter of 2018 on Wednesday — along with plans to move into markets beyond solar power optimization.

On the energy storage front, SolarEdge announced an $11.5 million acquisition of Gamatronic Electronic Industries Ltd., an uninterruptible power supply (UPS) systems provider for commercial and industrial businesses around the world. CEO Guy Sella noted that the acquisition is the second major step for the company outside the solar arena, the first being last year’s launch of inverter-embedded electric vehicle charging systems.

Another came last week, with SolarEdge’s launch of a cloud-based virtual power plant management system, one that could turn its fleet of solar optimizers and inverters into nodes of a distributed energy resource control platform.

Last week’s launch marks the debut of a system that’s already controlling homes in projects in three countries, said Lior Handelsman, co-founder and vice president of marketing and product strategy, in a Monday interview.

In Vermont, utility Green Mountain Power is tapping SolarEdge’s capabilities to manage a small but growing fleet of smart homes equipped with Tesla Powerwall batteries, grid-controllable water heaters, Nest thermostats, and smart EV chargers, he said. In the Netherlands, utility Eneco is using the company’s platform for its CrowdNett home battery offering.

In Australia, utility AGL picked SolarEdgealong with Tesla and LG, to roll out its long-awaited residential VPP project, said Handelsman.

These projects are all using SolarEdge’s inverters as the home’s central control point for solar panels, batteries and electric vehicle chargers — constantly updating battery status, solar power output status, household load and other key data, he said. But they also serve as the end node for a cloud-based platform that orchestrates their operation in aggregate.

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Fractal Energy Storage ConsultantsSolarEdge Moves Beyond Solar With Energy Storage Acquisition, Virtual Power Plant Launch

ESNA and Calstart Partner to Showcase Energy Storage Tech

on May 9, 2018

renewable-energy-magazineFor the first time, the Calstart Annual Symposium will share a venue with ESNA 2018, providing an opportunity for developers, utility executives, energy users, fleet managers, auto manufacturers and suppliers, policy makers and other stakeholders to learn, network and exchange ideas. The joint conference will be the largest showcase of grid energy storage technologies and applications in North America, and will highlight innovations in clean transportation technologies, policy and infrastructure.

For three days, the Pasadena Convention Center plaza will become a showroom for the newest advanced technology vehicles that are eligible under the California Air Resources Board’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). Vehicle manufacturers will unveil their 2020 line of new low- and zero-emission medium- and heavy-duty buses and trucks.

“We’re proud to host this unique combined event that underscores the importance of energy storage across multiple industry segments,” said ESNA co-founder and Chair, Janice Lin. “Storage is not only a critical resource for grid resilience and the global transition to renewable energy, it also provides the foundation for clean transportation solutions.”

“Energy storage innovations are driving the evolution of the electric vehicle market,” said John Boesel, CALSTART president and CEO. “Given that dynamic, it’s logical to bring our annual symposium to ESNA 2018, where we will combine learnings and share strategies to build a globally competitive US clean transportation industry.”

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Fractal Energy Storage ConsultantsESNA and Calstart Partner to Showcase Energy Storage Tech

Why The Energy Storage Problem Won’t Be A Problem For Long

on May 9, 2018

CleantechnicaLast week, CleanTechnica took note of some concerns that energy storage and renewables have enabled utilities to keep leveraging fossil fuels into the grid. Sure enough, here comes the US Department of Energy with a solution: a newly announced round of $30 million in funding for next-generation technology leading to batteries that can store electricity in bulk for at least 10 hours.

At that scale, energy storage can solve three problems at once: it can funnel more wind and solar into the grid, it can shrink reliance on coal baseload power plants, and it can push gas “peaker” plants out of the picture. Problem solved!

Why Exactly Is The Trump Administration Interested In Bulk Energy Storage?

By the way, 10 hours is just for starters. The new round of funding aims at systems that can shoot electricity into the grid for up to 100 hours, which puts nuclear power on even shakier ground than it is now (that’s a whole ‘nother can of worms).

The funding comes through the Energy Department’s ARPA-E (Advanced Projects Research Agency – Energy) office, which kickstarts high risk, high reward R&D. That means we taxpayers get the credit for pushing new clean tech into the market when private sector dollars lack the muscle. Group hug!

For those of you new to the ARPA-E topic, Congress breathed the office into life in 2007 during the last years of the Bush Administration, but it wasn’t funded until 2009 under the Obama Administration.

If you’re thinking that breaks down along political lines well, it does — up to a point. President* Trump threatened to kill ARPA-E and he appeared to be on track for successlast year, but Secretary of Energy Rick Perry seems to have gotten the last laugh.

Renewables are not ARPA-E’s only area of focus but they’re a big one, and that’s where the 10-to-100 goal for energy storage comes in.

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Fractal Energy Storage ConsultantsWhy The Energy Storage Problem Won’t Be A Problem For Long

New York City Moves to Streamline Energy Storage Permitting

on May 9, 2018

Utility-DiveIf you can make it there, you can make it anywhere. At least that is what the song says about New York City. And it stands for energy storage.

New York City has some of the most stringent rules in the country for permitting energy storage projects, as well as an ambitious storage target of 100 MWh by 2020. But there were only 4.8 MWh of storage installed in the city at the beginning of 2017, as it is so difficult to secure a permit for a project — especially involving lithium-ion technology.

At the end of April, New York took a step toward resolving that issue with the release of the first comprehensive guidelines for installing lithium-ion batteries in New York City.

The guidelines were the result of a collaboration among the City University of New York (CUNY) Smart Distributed Generation Hub, the Fire Department of New York (FDNY), the NYC Department of Buildings (DOB), Consolidated Edison and the New York State Energy Research and Development Authority (NYSERDA). The guidelines are only for outdoor energy storage projects, including rooftop projects, but they represent a step forward in a multi-year process.

“Not only will the guidelines bring in more developers, I think we’ll see more movement in pending projects,” Tria Case, director of sustainability and energy conservation at CUNY, told Utility Dive.

A template approach

The CUNY guide is a “huge help because people are very uncertain about the process,” Veronica Ciechowska Weiss, a project manager with Burnham Nationwide, told Utility Dive. Burnham helps clients through the permitting process for a variety of types of projects.

The state treats the permitting of energy storage projects on an individual basis, which has led to a costly and time-consuming process, according to Ciechowska Weiss. Solar projects in New York faced a similar problem before the state came up with permitting guidelines like the ones now being developed for energy storage, she said.

“The goal is to help storage move to scale” by developing a process that provides more of a template-approach to project permitting, CUNY’s Case said.

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Fractal Energy Storage ConsultantsNew York City Moves to Streamline Energy Storage Permitting

Convergent Buys Up 40MW of Flywheels in New York and Pennsylvania

on May 9, 2018

Energy-Storage-NewsConvergent Energy + Power, a US-Canadian project developer which has attracted investment from the venture capital arm of Statoil, has acquired 40MW of flywheel energy storage already in operation in grid-balancing markets in New York State and Pennsylvania.

Rockland Capital, an investment company focused on the energy sector in North America, acquired renewables integrator Beacon Power in 2012 and in doing so created a limited liability entity, Stephentown Spindle, to develop a 20MW flywheel project in Stephentown, New York. Spindle then went on to also develop the second 20MW flywheel project, Hazel Spindle, in Hazle Township, Pennsylvania.

The former went into operation in 2011, the latter in 2014, providing frequency regulation to the transmission networks of PJM Interconnection and New York ISO (Independent System Operator), bringing Convergent’s portfolio of energy storage assets in North America up to 66.5MW across seven projects.

The flywheels, which store power as rotational energy, can respond to grid signals in a fraction of the time it takes fossil fuel generators or nuclear, and do so cleanly. While not as fast-responding as lithium batteries, the wheels, in this case 400 of them weighing five tonnes each, experience little degradation over time and theoretically require less maintenance. With increasing amounts of variable renewable energy generation in North America, there is an increasing need to balance the frequency of grids. The flywheels were manufactured by RGA Investments, an arm of advanced engineering and technology group RGA Labs.

Convergent claimed the flywheels help support the local transition away from fossil fuels and towards renewable energy and also support the local grid at much less expense than the equivalent in transmission or distribution infrastructure upgrades. The company said it manages “all aspects” of development for its customers, which include utilities, grid operators and industrial entities.

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Fractal Energy Storage ConsultantsConvergent Buys Up 40MW of Flywheels in New York and Pennsylvania

Serial Entrepreneur Taps Crowdfunding to Disrupt Energy Storage Industry

on May 8, 2018

Kansas-City-Biz-JournalSerial entrepreneur Kevin Williams of Kansas City developed a new power storage product called Wise Power and has a crowdfunding campaign to help bring it to market.

Williams founded Kansas City-based cybersecurity company Wilco Technologies. It was providing workforce credential services to more than 1.5 million registered users throughout the U.S. Department of Defense by 2017, when he decided to sell it.

Williams used the money to help develop a revolutionary new power storage unit and controller system that uses Internet of Things technology to communicate with all the electronic devices in your home. Now he has prototypes built and seeks to raise $1.07 million to hone them in preparation for mass production. He has field testing scheduled in August and hopes to go to market by the fourth quarter.

The crowdfunding campaign was launched on a regulated site called StartEngine, which was founded by Howard Marks, a video game programmer famous for bringing “Guitar Hero” and “Call of Duty” to market.

“I received an email from Howard’s group, which had seen some information about Wise Power and what we were doing,” Williams said. “They said I should really consider using their platform to raise capital.”

Williams has two patents for his products, with a plan to disrupt a market estimated to be worth $11 billion.

The Wise Power crowdfunding campaign offers convertible notes, which allow the holder to convert them into company stock once Wise Power raises at least $3 million in qualified equity financing during its next equity round. There is a minimum investment of $100. All investors gain preferred customer status for a period of one year.

“One of the reasons we’re using StartEngine is so the masses can invest for as little as $100,” Williams said. “We want to use distributors so others can share in this as well. We designed this specifically to be shared with the masses.”

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Fractal Energy Storage ConsultantsSerial Entrepreneur Taps Crowdfunding to Disrupt Energy Storage Industry

New Water-Based Battery Could Help Store Solar and Wind Energy

on May 8, 2018

Popular-MechanicsA group of researchers at Stanford University have developed a new type of battery using water and salt that they hope could be used to store energy produced from wind and solar farms, increasing the effectiveness of renewable energy sources.

The two fastest-growing forms of energy generation in the world today are wind and solar, and both have the same fundamental limitation. They’re subject to the weather, and routinely go for hours or days without generating any electricity at all. Energy companies relying on these generation methods need some sort of backup while their solar farms and wind turbines are offline.

There aren’t too many options for these energy companies, and most simply turn to fossil fuels like coal or natural gas which significantly undercuts the benefits of green energy in the first place. An alternate solution—and one being trialed in places like Australia—is battery storage, so that excess power produced from renewable energy can be saved for later.

But batteries have their own problems. Most utility-scale battery systems are expensive to build, and there’s a limit to how long they last. Typically, rechargeable batteries have a lifetime of around a decade before they can no longer effectively hold a charge and need to be replaced.

The new battery developed by researchers at Stanfordsolves these problems with a cheap, long-lasting battery perfect for utility-scale energy storage. The battery is a manganese-hydrogen battery, and it’s made by dissolving manganese sulfate, a common salt, in water.

When electricity is pumped through the solution, it triggers a chemical reaction, creating manganese dioxide and pure hydrogen gas. That hydrogen gas can then be stored and later burned as fuel whenever excess electricity is needed. The battery itself can be recharged with more electricity and the process repeats.

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Fractal Energy Storage ConsultantsNew Water-Based Battery Could Help Store Solar and Wind Energy

Lightsource: No More Solar Bids Without Energy Storage West of the Colorado

on May 8, 2018

Greentech-MediaThe BP-backed solar developer Lightsource sees a very compelling case for deploying energy storage in the Western U.S.

All major utility-scale solar developers have added storage development talent, and some have begun regularly bidding on combined projects. But few have actually won bids for, much less constructed, hybrid plants. That makes it hard to determine just how central that kind of project is to their business models.

Not so with Lightsource, the largest European solar developer, which launched its U.S. branch last year and soon after received $200 million from oil and gas giant BP in exchange for a 43 percent ownership stake.

North America Chief Commercial Officer Katherine Ryzhaya affirmed the company’s view on storage in a keynote interview at GTM’s Solar Summit in San Diego last week.

“For a utility-scale solar developer, we’re not putting forward any proposals without storage, currently, to anybody west of the Colorado,” she said. “Every utility process, every bilateral at this point, at least on the West Coast, is looking at solar-storage hybrids.”

The American West enjoys a considerable solar resource, such that states like California and Arizona are starting to worry about a surfeit of solar on the grid at midday, with steep ramp requirements to meet peak demand in the evenings.

That dynamic has driven groundbreaking solar and storage contracts, like the NextEra project for Tucson Electric Power and the First Solar plant to deliver evening power to Arizona Public Service (the cartographically inclined may counter that most of Arizona lies east of the Colorado River, but it does sit west of the river’s source in the Rockies, so I’m going to count it for the purposes of this article).

So far, though, developers have kept their commitment to dispatchable solar more vague than “every proposal in the West.”

Co-location isn’t strictly necessary; on an interconnected grid, an offsite battery can store surplus solar power. Developing both resources together, however, creates savings on interconnection and installation costs, and improves system efficiency through DC coupling, which simplifies the power conversion process.

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Fractal Energy Storage ConsultantsLightsource: No More Solar Bids Without Energy Storage West of the Colorado

100 Hours and Longer: ARPA-E Seeks 5¢/kWh Energy Storage

on May 7, 2018

In order for power grids to rely mostly or entirely on intermittent energy sources such as wind and solar power, we’re going to need a lot of energy storage. Some studies have suggested that the United States would need 12 hours of energy storage in order to meet 80% of our grid needs from wind and solar, and in order to hit 100% wind+solar – without oversizing capacity or nationwide HVDC – the same study says we’ll need three weeks of energy storage.

While current technologies – namely lithium ion batteries – can technically run for as many hours as is needed, it is assumed that this technology won’t scale well due to its cost.

With that, the U.S. Department of Energy’s (DOE) Advanced Research Projects Agency-Energy (ARPA-E), has put out a request for projects to develop energy storage systems that provide power to the electric grid for durations of 10 to approximately 100 hours, or up to a month.

The program application page can be found here.

The DAYS program (Duration Addition to electricitY Storage) seeks two categories of projects – 1) DAYS systems that provide daily cycling in addition to longer duration, less frequent cycling and 2) DAYS systems that do not provide daily cycling, but can take over when daily cycling resources are either filled or depleted.

The program’s LCOS (Levelized Cost of Storage) target is 5 center per kilowatt-hour (kWh)-cycle, and ARPA-E suggests it likely requires system round-trip efficiencies greater than 50%. ARPA-E believes that long durations and infrequent cycling provide opportunities for design tradeoffs that may be leveraged to reduce costs and realize economically-viable long-duration energy storage systems. As can be seen in the image above, the goal is to be able to resell the wind and solar power, when including the generation costs of 2.5¢/kWh at 7.5¢/kWh.

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Fractal Energy Storage Consultants100 Hours and Longer: ARPA-E Seeks 5¢/kWh Energy Storage