Despite NEC Energy Solutions’ decision to discontinue operations, it remains one of the top three global storage system providers along with Fluence Energy and Tesla, according to Sekine.

The company, which serves the utility-scale, commercial and industrial markets, remains committed to finishing projects already under development, according to a letter to customers cited in the Bloomberg News report. The U.S. subsidiary of Japanese parent NEC Corp. has ongoing maintenance projects through March 2030, Bloomberg reported.

The energy storage market has become increasingly competitive, according to a May 27 report by Guidehouse Insights. ENGIE, Enel X, Tesla, Honeywell, Con Edison Battery Storage, EDF, and NantEnergy are the top commercial and industrial energy storage integrators, according to the report.

The top competitors in the field are those capable of providing innovative financing, integrated software platforms and the ability to forecast future revenue streams, Rodriguez said. While third-ranked Tesla gained ground by developing internal capabilities, including machine learning capabilities that enable customers to optimize energy storage and use, according to Rodriguez, industry leader ENGIE found its success through a mergers and acquisitions strategy.

“The top firms today are distinguished based on the size of their portfolio — which includes how many projects they have been involved in, the MWh that are currently operating as well as how long they have been in the market,” Sekine said.

“They have been able to provide well-engineered systems, with product guarantees and safety certifications that other smaller players may struggle to back. In order to continue to be distinguished, they need to be able to compete on cost as well as value,” Sekine added.

NEC Energy Solutions did not respond to repeated requests for comment.

Fluence, a Siemens and AES company, today unveiled its sixth-generation energy storage technology stack combining factory-built hardware, advanced software and data-driven intelligence.

The technology stack creates the foundation for three purpose-built systems, Gridstack, Sunstack and Edgestack, that are configured for grid, renewable and commercial & industrial (C&I) applications, respectively, while easily addressing the need for larger systems and larger fleets of systems. Fluence has already been selected by customers such as Enel, LS Power and Siemens for 800 MW/2,300 MWh of projects using the new technology.

“Energy storage applications require highly flexible systems that can be tailored to specific markets and customer needs,” said Fluence CTO Brett Galura. “Until now, customers were forced to choose between custom-built solutions or inflexible, vertically integrated products. This sixth-generation technology combines our proprietary dataset – among the industry’s largest – and our deep industry experience to deliver unparalleled intelligence and flexibility, while adding the benefits of mass production to standardize safety features and significantly reduce the time and cost needed to deploy energy storage. Over the past decade, Fluence has reduced the total cost of energy storage systems by 90%; our new technology stack focuses on driving down the non-battery costs of energy storage systems by up to 25%, while empowering gigawatt-sized deployments.”

Fluence’s new technology stack includes three components:

• Fluence IQ: Digital intelligence engines use data and machine learning to improve system decision-making, manage battery degradation, reduce operating costs and optimize energy market dispatch.
• Fluence Operating System (OS): Built on a decade of digital control system development, the fully integrated operating platform combines comprehensive controls, system visibility and asset management to improve asset performance at a single site or across entire fleets.
• Fluence Cube: The modular, factory-assembled building block incorporates the latest technologies for rapid installation and scale, consistent operations and maintenance and improved quality control.

Commercial energy storage solutions provider Stem Inc has won out in a competitive Request for Proposals (RFP) to manage a 345MWh fleet of commercial and municipal energy storage systems in Los Angeles, California.

The company said last week that it has been contracted to operate 87 systems using its Athena advanced artificial intelligence software platform, including 25 at newly acquired customer sites, by SK E&S and SUSI Partners. SK E&S is a South Korea-headquartered power provider which has mostly focused on generating electricity from liquid natural gas (LNG) plants. Meanwhile Switzerland-headquartered sustainable infrastructure investment manager SUSI Partners is likely a familiar name to readers of this site for its energy storage activities in key markets including Ontario, Canada. In April 2019, Energy-Storage.news reported that SUSI Partners had acquired a 50% stake in a 340MWh portfolio of California commercial and municipal energy storage projects developed by Advanced Microgrid Solutions from owner Macquarie. This site has made enquiries as to whether this deal, which at the time was cited as 60MW/340MWh across 90 projects, refers to the same portfolio Stem will now be managing.

SK E&S is latterly rolling out a clean energy business, including solar power and fuel cell technology. SK E&S CEO Daejeon Choi said that Stem Inc had been evaluated alongside other companies in a “highly competitive RFP process” and “stood out”.

“We were extremely impressed with the company’s technical and operational capabilities as well as the superiority of its software and services solution,” SK E&S CEO Daejeon Choi said.

The multinational pair are partners in owning the 345MWh energy storage portfolio in LA, which all sits in the service area of investor-owned utility (IOU) Southern California Edison (SCE). SCE is one of three major IOUs in California and was therefore bound by mandate AB2514 to procure a large amount of energy storage by the start of this decade, which in many ways kickstarted the ongoing mainstreaming of energy storage.

NEC’s Energy Solutions division, which has been responsible for NEC Corporation’s activities in the battery energy storage industry, is “going out of business” according to a report by Bloomberg today.

The Massachusetts-headquartered division was previously known as A123 Energy Solutions and has been a subsidiary of the Japanese electronics major since its acquisition in 2014 for US$100 million, when it was the energy storage systems business of lithium battery maker A123 Systems, owned by Chinese automotive components company Wanxiang.

The company has since delivered 986MW across 141 battery energy storage projects in the grid-scale and commercial sectors. The Bloomberg article said that a plan to sell the division off had been “thwarted” by the COVID-19 pandemic, that an “orderly winding down” has been announced to customers and that CEO Steve Fludder, who joined the company in 2017, has stepped down with immediate effect.

The Bloomberg report said despite a global reach, the division had found its activities unprofitable. Bloomberg reported that the NEC Energy Solutions has battery maintenance contracts lasting to March 2030 and will remain open until then, although the company, which makes GSS (Grid Storage Solution) and Distributed Storage Solution (DSS), will not be actively seeking new projects.

Major projects in key US territories such as New York have recently been executed using NEC technologies, while recent distribution partnerships had been signed with the likes of US automated and intelligent energy storage company Stem Inc to try and cover as much market share in North America as possible. At the beginning of this year the company revealed it had been contracted by UK listed fund Gore Street Capital to power up a 100MW pipeline in Northern Ireland, while it also delivered or announced projects in the Netherlands and the Czech Republic in the early part of 2020.

Representatives for NEC Energy Solutions’ Asia-Pacific office in Tokyo had recently also told Energy-Storage.news that it expected to see sales pick up in Japan’s commercial and industrial (C&I) segment over the next two to three years and that the wider Asia market held great potential.

A high-capacity energy storage solution is needed to capture clean energy and release it when demand exceeds supply. Massive electrochemical batteries are one possibility, but battery technology has limitations related to cost and durability.

British start-up company Gravitricity has developed a system to store excess electricity by using the power of gravity.

The company’s power supply system uses a series of winches to store electrical energy as potential energy by raising large weights in a vertical shaft. When energy is needed, the weights can be released and the winches can be turned into electrical generators.

Gravitricity was developed by inventor Peter Franco, who also produced the first full-scale tidal energy turbine.

What is Gravity-Based Energy Storage?

Gravity-based energy storage is an evolution of pumped hydro storage (PHS) technologies, which can store large quantities of energy using the mass of water at different elevations.

PHS systems are only economically viable as massive operations due to installation costs. For instance, the cost of a PHS tunnel doubles when it doubles in diameter. However, a tunnel twice the width quadruples the quantity of water that can pass through it, boosting the storage capacity of the system.

The UK hit a new flexibility milestone earlier this year, with a gigawatt of lithium-ion battery energy storage now estimated to be operational according to Solar Media Research. The trend mirrors a global picture – lithium-ion batteries continue to dominate the global energy storage market, accounting for 99.3% US share in Q4 2019, continuing a long historic trend.

Despite many energy storage technologies vying for market share – including much-hyped alternatives like flow batteries, which position themselves as the long-duration technology of choice – lithium-ion has maintained its leading position in the sector. Why?

To provide some background, Fluence is a horizontally integrated and technology-agnostic energy storage technology company. This means we do not manufacture batteries, electrolytes or similar ourselves nor have any stake in their supply chain, and aren’t placing “bets” on any one storage medium. We approach energy storage from a “job to be done” perspective and deploy what we view as the right technology to do that job at the time.

As a result, we see ourselves as well-placed to pivot once technologies hit a point of maturity. Indeed, over the past 12+ years of deploying and servicing energy storage assets and a fleet approaching two gigawatts operational or awarded globally, we have done so a number of times.

Across this fleet, we have delivered a diverse range of storage chemistries, including variants of NMC and LFP (under the lithium-ion chemistry umbrella), as well as advanced lead acid, sodium sulphur and yes, even flow batteries.

We work with whatever technology is right for customers in terms of price point, energy density and performance today: in almost all cases, that technology is lithium-ion based.

A project demonstrating aggregated solar-plus-storage in Louisiana involving energy storage company SimpliPhi Power, technology partner Heila and local utility SWEPCO has started off small, but is “expected to transition into a larger network of distributed systems, soon”.

Shreveport, Louisiana, is home to the virtual power plant (VPP) for which SimpliPhi Power contributed its lithium iron phosphate (LFP) chemistry battery storage units, integrated with inverters. The scheme also counts on Heila’s control platform, which acts as energy management system (EMS) and battery management system (BMS).

SimpliPhi representatives told Energy-Storage.news that the first site for the demonstration project – for SWEPCO, a subsidiary of American Electric Power (AEP) serving over half a million customers in parts of the US states of Louisiana, Arkansas and Texas – will start out with just 20kW of solar and 30kWh of battery storage systems. The solar arrays and storage systems are split across three separate aggregated units. Using SimpliPhi’s 3.8kWh PHI brand battery storage, the company said that initial rollout took “only a few months”.

“This initial project was a proof of concept project that is expected to transition into a larger network of distributed systems, soon,” the SimpliPhi spokesperson said.

As seen with larger projects of this kind, the installed solar-plus-storage can be aggregated by the utility and managed as an optimised fleet. SWEPCO will be able to peak shave, manage overall energy supply and correct the power factor to balance networks at local level. The combined batteries and control system can be controlled as a single entity using common protocols and any ADMS or SCADA controller.

The seasonality of supply is a big deal, and requires very long duration storage. Our modelling of South Australia shows that 4-10 hour storage supplied by batteries and/or pumped hydro was often full during excess wind and solar periods, and equally was often empty during periods of excess demand. This led to a need for gas or its equivalent to ensure there was no unserved energy demand.

An extremely crude estimate of the firming cost was around $12/MWh and the majority of that cost was the gas capital and operating costs. We note the gas generation capacity already exists.

Gas ended up supplying 7.5% of the energy and so South Australia would have been very low carbon emissions in this scenario. Overall the results suggest that even with the benefit of exports and imports it’s likely some long duration storage will be required NEM wide as VRE penetration increases. However, much more work remains to be done in studying storage duration requirements before we at ITK really know what we are talking about.

The seasonality of wind and solar is a big deal
Recently, ITK looked at the excellent prospects for batteries and the increasing amount of evidence that utility scale batteries are finding a place in the market.

We noted that in the US, where, somehow, ancilliary services and frequency control don’t seem to be the issues that they are in Australia, batteries were starting to be of longer duration. Many of the 2GW of the battery contacts signed by leading US utility NextEra Energy are for four hour duration.

In Australia though, all the grid scale batteries are of 2 hours or less duration.