Energy Storage Set to Compete in US Wholesale Markets Following Landmark Ruling

on July 14, 2020
PV-Tech

Distributed energy storage facilities in the US are set to join wholesale markets and compete to provide grid services after what’s described as the “single most important act” for the energy transition so far.

The United States Court of Appeal in the District of Columbia ruled last week against petitioning from the National Association of Regulatory Utility Commissioners and others which sought to prevent Federal Energy Regulatory Commission Order 841 from passing.

In doing so and allowing Order 841 to pass, distributed energy storage units can now compete with other assets, including fossil fuel resources, to provide grid services in wholesale markets.

FERC chairman Neil Chatterjee lauded the decision when it was handed down late last week, adding his consideration that it would be regarded as the “single most important act we could take to ensure a smooth transition to a new clean energy future.”

“…I’m extremely pleased that the DC Circuit denied the petitions challenging Order 841 on jurisdictional grounds and upheld our orders on the merits. The court found our actions to be well within our statutory authority,” Chatterjee said, adding that Order 841 and removing barriers for energy storage technologies had long been one of his top priorities as FERC chairman.

read more
Fractal Energy Storage ConsultantsEnergy Storage Set to Compete in US Wholesale Markets Following Landmark Ruling

The Next Energy Battle: Renewables vs Natural Gas

on July 13, 2020
The-New-York-Times

Dominion Energy, one of the nation’s largest utilities, in late June erected wind turbines off the Virginia coast — only the second such installation in the United States — as part of a big bet on renewable energy.

The company is also planning to build new power plants that burn natural gas.

Utilities around the country are promoting their growing use of renewable energy like hydroelectric dams, wind turbines and solar panels, which collectively provided more power than coal-fired power plants for the first time last year. But even as they add more green sources of power, the industry remains deeply dependent on natural gas, a fossil fuel that emits greenhouse gases and is likely to remain a cornerstone of the electric grid for years or even decades.

Utilities maintain that they need to keep using natural gas because the wind and the sun are too unreliable. They are also reluctant to invest in energy storage, arguing that it would cost too much to buy batteries that can power the grid when there isn’t enough sunlight or wind.

“We’ve got to have a resource that has an ‘on’ and ‘off’ switch,” said Katharine Bond, vice president for public policy and state affairs at Dominion.

For years, environmental activists and liberal policymakers fought to force utilities to reduce coal use to curb emissions and climate change. As the use of coal fades, the battle lines are rapidly shifting, with the proponents of a carbon-free grid facing off against those who champion natural gas, an abundant fuel that produces about half the greenhouse gas emissions that burning coal does.

Coal plants supply less than 20 percent of the country’s electricity, down from about half a decade ago. Over that same time, the share from natural gas has doubled to about 40 percent. Renewable energy has also more than doubled to about 20 percent, and nuclear plants have been relatively steady at around 20 percent.

read more
Fractal Energy Storage ConsultantsThe Next Energy Battle: Renewables vs Natural Gas

Microgrids in Hospitals Minimize Threats of Electrical Outages

on July 13, 2020

It is hard to imagine an institution more critical to public health and safety than a hospital. Unfortunately, hospitals are also vulnerable to the wide range of threats — floods, hurricanes, wildfires — that can cause electric power outages. The loss of power at a hospital, however, can be particularly catastrophic. In addition to the ordinary functions performed by electrical service such as lights, communications, and heating and cooling, hospitals also need electricity for critical functions, including life support systems such as ventilators and dialysis machines, emergency room equipment, and diagnostic equipment and monitoring systems for everything from heart monitors to oxygen delivery systems. The loss of power to these critical systems could be life threatening. Hospitals also often function as a focal center for the surrounding community during emergencies by providing shelter from the elements.

Hospitals not only have a more urgent need for electrical power than many other institutions, but they also use more power. Large hospitals account for less than 1% of all commercial buildings and 2% of commercial floor space, but they consume 4.3% of the total delivered energy used, according to the U.S. Energy Information Administration. And, despite energy efficiency inroads over the last two decades through the U.S. economy, hospital energy use is not declining. Nor is the overall carbon footprint of the industry.

Hospitals have high rates of energy consumption because they are open 24 hours a day, every day of the year, serving thousands of patients, employees and visitors who all require light, heat and cooling resources. In addition, hospitals also house many energy intensive activities such as laundry, food services and refrigeration as well as medical and lab equipment, sterilization machines, computers and servers, which also need energy to run. In general, hospitals use up to 2.5 times as much energy as commercial buildings of similar size.

Hospitals house many energy intensive activities such as laundry, food services and refrigeration as well as medical and lab equipment, sterilization machines, computers and servers, which also need energy to run.

Criticality and high use mean that hospitals have to take extra care to make sure they have reliable energy supplies. Regulators require hospitals to have some form of backup power, and they have more stringent and complex requirements for backup power than most commercial institutions. In short, hospitals must identify all loads whose failure can lead to patient injury or death, i.e., essential electrical systems, and back them up with a reliable source.

At the most basic level, hospitals must be able to provide essential electrical service to equipment whose loss would result in major injury or death —in addition to the direct supply of power to that equipment. Diesel generators are a common source of backup power but, as discussed earlier, they have several potential weaknesses, including limits on how much fuel can be stored on-site, potential fuel delivery issues, and the possibility that they will not perform when needed.

read more
Fractal Energy Storage ConsultantsMicrogrids in Hospitals Minimize Threats of Electrical Outages

Tiny Little Shrimp Could Spark Huge Energy Storage Breakthrough

on July 10, 2020
Cleantechnica

Low cost, large-scale energy storage is the key to accelerating the renewable energy revolution, and now shrimp have been enlisted in the cause. The aim is to push down the cost of flow batteries by using bio-based materials such as shrimp shells. That would help ramp up the transition out of fossil fuels and into clean power, thus saving the planet in time to avert a climate catastrophe. Thank you, shrimp. Wait, what is a flow battery?

Shrimp (May) Be The Key to Energy Storage That Flows
We’ll get to that flow battery thing in a minute. First let’s clarify the news about shrimp shells and energy storage, which has been zooming all over the Intertubes in recent days.

The news involves research published in April at ACS Sustainable Chemical Engineering under the title, “Exploration of Biomass-Derived Activated Carbons for Use in Vanadium Redox Flow Batteries.”

The research team did not exactly determine that shrimp shells are the best bio-based material for flow batteries. What they did was compare shrimp shells to pine wood, in order to develop a method for determining the performance of a wide variety of bio-based materials and develop a general set of design principles.

Got all that? Good! Shrimp could still come out on top, but shrimp shells are just one of many bio-based sources that could be used to produce the activated carbon used in flow batteries.

The bio-based approach is relatively new, so before anybody skips to the front of the line, there needs to be “a systematic approach to advancing biomass-based functional materials for use in energy applications,” as the research team explains.

If you know your atoms, you know what the team means when they conclude that “electrochemically accessible surface area, rather than the heteroatom composition” is a more effective representative of the material’s performance.

Spoiler alert: surface area is a big deal in energy storage performance.

read more
Fractal Energy Storage ConsultantsTiny Little Shrimp Could Spark Huge Energy Storage Breakthrough

Japanese Firm Develops Battery That’s 90% Cheaper Than Lithium-Ion

on July 10, 2020
oilprice-logo

APB Corp founder Hideaki Horie has received backing from a swath of Japanese firms to develop a new kind of battery that would significantly decrease production costs and improve safety, Bloomberg reported on Wednesday.

The battery, which would replace the intricate battery parts such as metal-lined electrodes and liquid electrolytes with a resin material, would be more like mass producing steel instead of the complex production process that lithium-ion batteries undergo today.

This complex process requires pricey clean rooms that only a handful of industry players can afford.

What’s more, the resin-based battery would also be fire resistant even when punctured. Fire safety has dogged lithium-ion batteries for years, with multiple fires, some of which have grabbed headlines. One such fire was of lithium-ion batteries carried by a FedEx truck in 2016. The fire destroyed the truck and its contents, and was attributed to a safety loophole that doesn’t require low production or prototype lithium-ion batteries to undergo the same level of testing that mass production batteries are subject to prior to being transported.

Even more headline-grabbing were a series of alleged battery fires in Teslas that raised even more awareness for battery safety.

APB’s bipolar battery design would prevent traditional power bottlenecks that are present in lithium-ion batteries that cause batteries to overheat, instead allowing the whole surface of the battery to absorb any power surges that are often created by punctures.

So far, APB has raised close to $80 million, which is sufficient to startup one mass-production factory in Japan that will start next year, growing to a capacity of 1 gigawatt-hour by 2023.

While the battery addresses the safety and cost issues of lithium-ion batteries, the resin material is less conductive than metal, so the carrying capacity would be reduced.

read more
Fractal Energy Storage ConsultantsJapanese Firm Develops Battery That’s 90% Cheaper Than Lithium-Ion

Investors Still Betting on Next Big Energy Storage Technology: Solid-State Batteries

on July 10, 2020
Greentech-Media

The U.S. may have fallen behind Asia and Europe in battery manufacturing, but a number of well-funded companies are looking to get the country back in the game with a technology that could supersede today’s lithium-ion chemistries.

Companies including Ionic Materials, QuantumScape, Sila Nanotechnologies, Sion Power and Solid Power are developing all-solid-state batteries (ASSBs) that are expected to be safer and more energy-dense than the lithium-ion products used in today’s electric vehicles and battery systems.

“Lithium-ion today, with a metal-oxide cathode and carbon-based anode, is starting to approach its theoretical limits,” said Solid Power CEO Doug Campbell in an interview.

Current lithium-ion technologies might achieve power densities of up to 300 watt-hours per kilogram, Campbell said, but not much more. “Solid-state is a platform that allows things like metallic lithium as an anode,” he said. “That’s perhaps the most direct pathway to significantly increasing the energy.”

ASSBs will not have liquid electrolytes that are susceptible to thermal runaway, so the batteries should be inherently safer. And because today’s lithium-ion products require costly thermal control systems, “a safer battery pack is a lower-cost battery pack,” Campbell said.

That combination of potential upsides is attracting big bucks. Massachusetts-based Ionic Materials has drawn investment from a fund backed by Nissan, Mitsubishi and Renault, in addition to Sun Microsystems co-founder Bill Joy. Daimler has backed Sila Nanotechnologies, based in California’s Bay Area. Samsung and Hyundai have invested in Colorado-based Solid Power.

According to Wood Mackenzie, U.S. investments in ASSB and advanced lithium-ion players amounted to $300 million in 2018, $250 million in 2019 and $200 million so far this year, with the 2020 figure made up by a single cash injection from Volkswagen into QuantumScape.

read more
Fractal Energy Storage ConsultantsInvestors Still Betting on Next Big Energy Storage Technology: Solid-State Batteries

What The $11B Hitachi ABB Joint Venture Means to Microgrids

on July 9, 2020

Several global technology giants are vying to capture the fast-growing microgrid market, and now the coming together of two — Hitachi and ABB — could reconfigure the landscape.

Japan-based Hitachi and Switzerland-based ABB finalized a new $11 billion joint venture last week that will become home to ABB’s Grid Edge Solutions, its arm that develops microgrids. The acquisition encompasses all of ABB’s power grids business.

It’s too early to say exactly how the venture — called Hitachi ABB Power Grids — will change what the Grid Edge Solutions division offers, but the companies intend to leverage their respective strengths. In the microgrid realm, that means pairing ABB’s automation technology with Hitachi’s digital platform.

The new entity also strengthens Grid Edge Solutions’ geographic reach and gives it greater access to Japan, home to Hitachi and the third largest economy in the world.

“We see a great opportunity for collaboration across geographies, governments, business and other stakeholders to seize this moment and drive a greener economic recovery by investing in a sustainable energy future, underpinned by modern infrastructure including power grids,” said Maxine Ghavi, senior vice president and head of the Grid Edge Solutions Business at ABB.

How business models or products may change is still unclear because of limits on the ability of the companies to collaborate before the deal closed.

read more
Fractal Energy Storage ConsultantsWhat The $11B Hitachi ABB Joint Venture Means to Microgrids

European Union To End ‘Double Charging’ of Grid Fees on Energy Storage

on July 9, 2020
Energy-Storage-News

The European Union (EU) has just published its Strategy for Energy System Integration, including pledges to support renewables and energy storage as the continent targets carbon neutrality by 2050.

Published through the European Commission, the strategy provides the “framework for the green energy transition,” with a particular emphasis on bringing together the disparate energy supply and demand scenarios in transportation, industry, gas and buildings – also known as ’sector coupling’.

This includes a recognition that behind-the-meter resources such as household energy storage batteries and electric vehicles (EVs) could help manage distribution grids better. EVs for example could provide 20% of Europe’s required electricity system flexibility by 2050, the Commission said, according to a new study.

Meanwhile larger-scale energy storage resources including pumped hydropower, grid battery storage as well as hydrogen (H2) electrolysers could also provide a great deal of flexibility, to help manage the system. Thermal storage at industrial facilities, closely integrating heat with power, could also be a big provider of flexibility, allowing for demand response that takes advantage of electricity price changes in real-time.

In addition to adding increased flexibility, energy system integration – planning the whole energy sector holistically – will have multiple benefits from reducing greenhouse gas emissions in difficult-to-decarbonise sectors, to increasing energy efficiency and reducing demand, to supporting European economic competitiveness, the Commission argued. It will also mean “greater consumer empowerment, improved resilience and security of supply”.

read more
Fractal Energy Storage ConsultantsEuropean Union To End ‘Double Charging’ of Grid Fees on Energy Storage

US$1.3 Billion Funding Proposed For US Energy Storage R&D, Demonstrations, Manufacturing

on July 9, 2020
Energy-Storage-News

A subcommittee of the US House Committee on Appropriations has approved more than a billion dollars in support for developing energy storage deployment, research and manufacturing in a funding bill for the 2021 Fiscal Year.

The Congressional Committee, which makes funding decisions on the federal government’s key activities, approves 12 bills a year on topics including legislation, labour and education, defense and energy and water.

Yesterday, the FY 2021 Energy and Water Development Funding Bill was approved by the Committee, set to invest a total of US$49.6 billion in programmes to address climate change, improve infrastructure, strengthen national security and make measures to support the revitalisation of the economic in the wake of the coronavirus pandemic.

The Committee noted that this was an increase of US$1.26 billion – or 3% – above the 2020 equivalent Bill. Also included was US$43.5 billion of emergency spending for the repair of water infrastructure and the modernisation of energy infrastructure. The bill now heads to the full committee for markup.

In the section on electricity, the Bill proposed a total of US$3.35 billion of “necessary expenses related to grid modernisation programmes”. Alongside a US$2 billion commitment to grants and demonstration for the enhancement of grid resilience, reliability and energy security of national electricity infrastructure including allowing for the greater adoption of renewable energy, there were specific pledges on energy storage. These were:

read more
Fractal Energy Storage ConsultantsUS$1.3 Billion Funding Proposed For US Energy Storage R&D, Demonstrations, Manufacturing

How Microgrids Introduce New Data Center Economics

on July 8, 2020

Data centers are increasing in number across the US and around the globe. They are the new industrial factory of the modern digital economy and require a massive amount of power to support their high-tech operations. Data centers are located in every state, but the largest hyperscale data centers are sited where power is the least expensive. However, low-cost power does not ensure highly reliable power, so the standard data center design includes backup power systems that can carry the facility, computing and infrastructure loads without interruption during a power outage.

These backup power supplies are typically large arrays of diesel generators connected in parallel strings to create maximum resiliency when coupled with battery based uninterruptible power supplies (UPS). However, diesel generators present a handful of challenges to data center operators. For example, they have high emissions, which makes environmental permitting and reporting burdensome. Additionally, they are expensive to own because of the high upfront cost and ongoing operations and maintenance costs. They also sit idle for most of the year and do not provide grid services, which makes them an expensive drag on both the balance sheet and income statement of the data center operators.

These generators are an essential component in mitigating operational risk in the data center. Still, they lack the higher level of resiliency as well as other key benefits that a microgrid system offers.

With all of this in mind, let’s take a few minutes to break some legacy paradigms around economics and the overall cost of today’s microgrid solutions.

Overcoming common economic myths surrounding microgrids
The first challenge we often hear about is that microgrids are expensive to deploy and maintain. The reality is that it depends on a variety of factors, and with innovative business models, it can be significantly cheaper than traditional alternatives.

It is crucial to consider the total cost of an outage, in dollars, lost time, reputational damage, and so on, and then compare it to the price of a resiliency microgrid system.

read more
Fractal Energy Storage ConsultantsHow Microgrids Introduce New Data Center Economics