Customized Energy Solutions and the U.S. Energy Storage Association have released the StorageIQ Q1 2020 Quarterly Summary, a brief report outlining RTO/ISO actions, rulemaking and state and regulatory proceedings that have impacted energy storage across the United States in 2020.

The Northeast

In Q1, storage developments in the Northeast were led by three main markets: New York, Massachusetts and Virginia. In New York, NYISO’s Distributed Energy Resource filing, one which set the capacity value for storage at 2-, 4-, and 6-hour durations was approved by the Federal Energy Regulatory Commission (FERC). The state also approved changes to its Buyer Side Mitigation policy that will make it easier for storage to pass a Buyer Side Mitigation test and be deemed economical. New York committed over $200 million to proposed storage projects and NYSERDA opened existing incentives to bulk storage projects in the ConEdison territory, which includes the coveted storage markets of York City and the lower Hudson Valley.

Massachusetts, meanwhile, led all ISO-NE states in terms of regulatory developments relating to storage, namely at the Department of Public Utilities and the Department of Energy Resource, which submitted the finalized Clean Peak Standard. On the whole, ISO-NE was directed by FERC to improve practices in its capacity market auction, though claims of the mistreatment of storage in the auction were dismissed.

Virginia boasted the most notable legislative development related to storage, with the state passing a deployment target of 3,100 MW by 2035. Not to be overlooked, Maryland reauthorized and improved a first-in-the-nation energy storage tax credit program for businesses and households installing energy storage systems.

Central and West

ERCOT made meaningful strides in regards to the treatment of hybrid storage systems, advancing a Key Topic & Concept covering registration, market operation and settlement for dc-coupled systems.

Out West, CAISO filed energy storage model revisions to further comply with FERC’s Order 841, while the state of California’s public utilities commission advanced proceedings on the future of Resource Adequacy, Integrated Resource Planning (IRP), the Self-Generation Incentive Program, and microgrids. All of these topics, while differing in scope, highlight the consideration of both distributed and grid-connected storage being primary electric resource types in future generation mixes. Specifically, the IRP’s approved Reference System Portfolio sets a mandate for nearly 9 GW of new battery storage and another 1 GW of pumped or similar long-duration storage by 2030.

Energy solutions company Alfen has seen its quarterly revenue climb across all three of its business lines, with its energy storage arm seeing revenues increase by 144% against the first quarter of 2019.

The Euronext Amsterdam exchange-listed company posted strong financial results as a whole for Q1 2020, with its EBITDA jumping from €1.7 million (US$1.83 million) in Q1 2019 to €4.6 million in Q1 2020.

Its EV charging equipment arm saw the biggest increase during the quarter, with its revenues jumping from €4.5 million in Q1 2020 to €13.2 million, an increase of 194%.

The company cited the growing market for EVs, increasing volumes under the framework agreements that have been set up over the last few years, “new client wins” and further internationalisation for its growth, adding that its business in the UK, the Netherlands and Germany experienced strong growth in particular. Over the quarter, it produced around 13,200 charge points, up 207% from Q1 2019.

Alfen is also planning to relocate its EV charging operation to larger facilities in a move to significantly expanding its production capacity.

Its energy storage systems business line meanwhile generated revenues of €3.2 million, up 144% from Q1 2019.

This was a result of a “significant pick-up in the demand for energy storage projects” in comparison to the first quarter of 2019, which Alfen said was characterised by “challenging market circumstances”.

Electric utility Southern California Edison (SCE) has announced seven battery-based energy storage projects of 770MW total capacity.

The projects are aimed to bridge energy supply shortfalls in California, direct renewable energy to the grid and improve grid performance.

According to the California Public Utilities, the proposed storage projects will allow the state to meet its growing energy needs while maintaining efforts to reduce greenhouse carbon emissions by 2030.

William Walsh, SCE Vice President of Energy Procurement & Management, said: “These new emissions-free projects will help us ensure the reliability of the grid for our customers and integrate an ever-increasing amount of clean renewable energy over the next decade.”

The seven contracts form part of the SCE Pathway 2045, a research-based strategy to comply with carbon-neutrality by 2045.

Fluence has been able to keep working on “all but two or three” of 73 utility-scale battery projects, with battery energy storage increasingly considered an essential part of grid infrastructure in many parts of the world.

Energy-Storage.news spoke to John Zahurancik, chief commercial officer at the technology provider formed in a joint venture (JV) between power project developer AES Corporation and engineering giant Siemens.

Zahurancik said that while there have been some necessary delays and adjustments to working practises to minimise the possibility of COVID-19 transmissions, nearly all of the company’s project pipeline is “moving ahead in one form or another”.

“We’re very actively out and doing installations of equipment in most pieces these are utility-scale energy storage installations that the construction of those has in most spots been exempted from restrictions on shutting a business down or it’s considered to be part of critical infrastructure development,” the Fluence COO said.

A ‘bigger and bigger part of the conversation’: Energy transition and economic recovery
Longer term, John Zahurancik said that energy storage will be “part of the conversation” in how economies move to restart and move forwards once the pandemic is finally under control. Energy storage has been an “increasing part of the conversation in terms of infrastructure,” in replacing ageing infrastructure as well as in terms of the transition to a cleaner and more efficient electrical grid already, he said.

“We see more of the infrastructure planners, whether those are utilities or regulatory bodies, or other people that are dealing with long-term infrastructure, include energy storage as part of their long-term planning cycles. We’re seeing people conduct solicitations, procurements for energy storage all around the world in different forms.

In some places it’s aimed at strengthening the generation side, in complement to renewables, in other cases it’s aimed at strengthening the transmission and distribution side, you even see energy storage at the customer-sited level for resiliency and cost reduction,” Zahurancik said.

(Washington, D.C. – May 5, 2020) EDF joins allies supporting the Federal Energy Regulatory Commission today for virtual oral argument in a case that will have a vital impact on America’s clean energy future.

This morning a three judge D.C. Circuit panel will hear argument by teleconference about FERC’s Order 841 – an order that permits energy storage to compete fairly in wholesale power markets. EDF is supporting the order.

“FERC’s order 841 creates an even playing field for energy storage to compete with traditional fossil fuel generators, which is an essential step to realizing cleaner, healthier air and a clean energy future for America,” said EDF attorney Michael Panfil. “Order 841 removes market barriers for energy storage and unlocks its enormous public health, environmental and cost-saving potential.”

FERC’s Order 841 “remove[s] barriers to the participation of electric storage resources” in wholesale power markets. The order could catalyze energy storage deployment by up to 50 gigawatts, according to expert analysis. The order unlocks critical benefits from such deployment while carefully respecting longstanding state authority to craft climate, clean air and clean energy policy.

Opponents, including an association of traditional utility companies and NARUC, have sued to block the rule. They will argue against it today, opposite attorneys for FERC.

EDF is intervening in the case in support of FERC’s order, along with NRDC and VoteSolar, both represented by EarthJustice.

A coalition of clean energy trade associations including the Energy Storage Association, the Solar Energy Industries Association, and the Advanced Energy Economy, also intervened in the case in support of FERC Order 841. A coalition of state Attorneys General and a coalition of innovative tech companies including Sunrun, Tesla, Vivint Solar Developer, and ENGIE Storage Services have filed amicus briefs in support of the order.

South Australia’s principal electricity Transmission Network Service Provider (TNSP), ElectraNet, recently won Energy Networks Australia’s 2019 Industry Innovation Award for its Dalrymple Battery Energy Storage System (BESS). The remarkable project is now in full commercial operation and is the first BESS in the National Electricity Market (NEM) to provide both regulated network reliability and security services alongside competitive market services.

As one of the most extensive regional transmission systems in Australia, ElectraNet’s network extends across some 200,000 square kilometres.

The transmission network has more than 90 substation sites and 5,500 circuit kilometres of transmission lines operating at 275,000 and 132,000 volts.

The Australian Energy Market Operator’s (AEMO) Integrated System Plan (ISP), published in July 2018, highlighted that energy storage has a significant role to play in the future energy system with the continued growth of intermittent renewable energy sources.

The Dalrymple BESS showcases the widest range of services provided by a grid-connected BESS in the NEM, covering both energy and system security services.

ElectraNet designed, built and owns the Dalrymple BESS and leases commercial operation to AGL. The project received part-funding from the Australian Renewable Energy Agency (ARENA).

Objectives and rationale

The objectives of the project were to demonstrate that utility-scale battery storage can effectively:

• Provide network reliability and security services alongside competitive market services in a network with a high penetration of renewable non- synchronous generation
• Provide “seamless” islanded operation with 100 per cent renewable generation following transmission outages
• Demonstrate a commercial model for the provision of regulated services and competitive energy market services, and build delivery capability for such assets
• The Dalrymple 30MW, 8MWh BESS is the first transmission grid-connected battery in the NEM providing both regulated and competitive market services.

US-based utility company Southern California Edison (SCE) has signed seven contracts for 770MW of battery-based energy storage capacity to strengthen California’s electric system reliability.

SCE has signed agreements Southern Power, NextEra Energy Resources, TerraGen Power and LS Power to procure the capacity.

The company has signed three 15-year contracts with NextEra Energy Resources for a total capacity of 460MW. It has signed two 20-year contracts with Southern Power for a total capacity of 160MW.

The other contracts include a ten-year contract with TerraGen Power for 50MW capacity and a 15-year contract term with LS Power for 100MW.

A majority of the energy storage projects will be located adjacent to the solar power plant to charge the battery over the term of the contract.

SCE has signed contracts with Southern Power for its Garland and Tranquillity projects that have a capacity of 88MW and 72MW respectively.

NextEra Energy has been contracted for the Blythe 2, Blythe 3 and McCoy projects with a capacity of 115MW, 115MW and 230MW respectively.

On the other hand, TerraGen Power has signed a contract with SCE for its Sanborn project for a capacity of 50MW while LS Power secured contracts for its Gateway 1-2 project.

SCE Energy procurement and management vice-president William Walsh said: “These new emissions-free projects will help us ensure the reliability of the grid for our customers and integrate an ever-increasing amount of clean renewable energy over the next decade.

The U.S. Energy Storage Association (ESA) unveiled its 2020-2021 executive committee officers last week, along with a newcomer to its board, Jeff Bishop, co-founder and CEO of Key Capture Energy.

For the trade association, elections are a yearly measure, resulting in a changing board of directors that selected new officers. In this case, the chosen officers include Board Chair John Hewa of Rappahannock Electric Cooperative, Immediate Past Chair Troy Miller of GE Renewable Energy, Vice Chair Kiran Kumaraswamy of Fluence, Treasurer Dr. Peter Muhoro of National Rural Utilities Cooperative Finance Corporation, with Jacqueline DeRosa of Ameresco rounding out the appointments as secretary.

Bishop, however, is the newest face to the board, appointed by Hewa to fill a vacancy that had opened.

“We extend our thanks and gratitude to our board officers as they continue in their role of guiding and supporting the organization during this pivotal time,” ESA CEO Kelly Speakes-Backman said. “We are equally excited to welcome our newly elected board member, Jeff Bishop. While we face challenges across our communities, our organization can proudly say that we have the best minds collaborating on determining the most viable solutions to ensure a more resilient, efficient, sustainable, and affordable grid.”

Bishop was the founder of Key Capture back in 2016. The company has since expanded in the market of building large-scale energy storage projects and taken a place among ESA’s Leadership Circle.

In their roles, Bishop, along with his fellow board members and officers, will work to accelerate the use of energy storage systems throughout the United States.