Led by the Solar Industry, Grid Modernization Created Over 100,000 American Jobs in 2016

on January 20, 2017

energy storage greentech mediaGrid modernization investments are creating a construction boom across America — largely driven by the deployment of solar.

According to the Department of Energy’s latest report on jobs in the energy sector, employment in the electric power sector rose 13 percent in 2016 as utilities and developers built new power plants, replaced aging equipment, and invested in new technologies to manage an increasingly complicated distribution grid. 

There are now 860,869 people employed in the electric power sector, an increase of more than 101,000 jobs from 2015. Workers in the construction industry building solar, natural gas and wind power plants accounted for most of the increase, reported DOE. The coming year will likely bring a 7 percent bump in employment across power generation.

Coal has long been the dominant fuel for America’s electric grid, but no longer. Utilities are burning less of it, and miners are digging less of it. Many politicians — including the incoming president — believe the decline of coal is wrecking America’s economy.

But the opposite is happening. Jobs are being created in new areas of the economy.

There were 26,000 megawatts of new power plant capacity installed last year in the U.S. Wind provided 6,800 megawatts of new capacity, natural gas provided 8,000 megawatts, and solar provided 9,500 megawatts, according to the Energy Information Administration.

“The electric generation mix in the United States is changing, driven by the transition of coal-fired power plants to natural gas and the increase in low-carbon sources of energy. This transition has required significant build-out of new power generation facilities and technologies in the United States,” writes the DOE.

In fact, 10 percent of all U.S. construction jobs are now serving the electric power sector. And the majority of those jobs are being created by building out renewable power plants.

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GreenTech MediaLed by the Solar Industry, Grid Modernization Created Over 100,000 American Jobs in 2016

AES’ New Kauai Solar-Storage ‘Peaker’ Shows How Fast Battery Costs Are Falling

on January 18, 2017

energy storage greentech mediaAES Distributed Energy will build a solar-plus-storage “peaker plant” on the Hawaiian island of Kauai that stands out both in capacity and power price.

The project, if approved by state and local regulators, will combine 28 megawatts of solar photovoltaic capacity with 20 megawatts of five-hour duration batteries. AES will own and operate the system, and has executed a power purchase agreement to sell power to the Kauai Island Utility Cooperative (KIUC) at 11 cents per kilowatt-hour. The project is expected to be operational by late 2018.

Once completed, the facility will generate 11 percent of the island’s electricity and push the share of renewable generation above 50 percent, KIUC President and CEO David Bissell said in a statement.

“The project delivers power to the island’s electrical grid at significantly less than the current cost of oil-fired power and should help stabilize and even reduce electric rates to KIUC’s members,” he said. “It is remarkable that we are able to obtain fixed pricing for dispatchable solar-based renewable energy, backed by a significant battery system, at about half the cost of what a basic direct-to-grid solar project cost a few years ago.”

The combination of solar-plus-storage and Kauai might sound familiar — the cooperative utility announced a groundbreaking deal with SolarCity in September 2015 for a solar plant backed by batteries. That project, still under construction, paired 17 megawatts of solar PV with Tesla Powerpack batteries with 13 megawatts of power and 52 megawatt-hours of energy. The price tag on that power: 13.9 cents per kilowatt-hour.

In a little over a year, then, solar-plus-storage economics have improved such that AES can field more power capacity, an additional hour of duration and a lower volumetric price than SolarCity’s project.

That’s good news for the growing market segment of “firmed solar,” which promises greater control and dispatchability of the intermittent resource by storing it in batteries. The ability to control the timing of the plant’s output enables it to meet peak demand, a role typically performed by expensive natural-gas peaking plants. Unlike other states, Hawaii produces most of its electricity from petroleum-fired plants, as well as some coal plants.

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GreenTech MediaAES’ New Kauai Solar-Storage ‘Peaker’ Shows How Fast Battery Costs Are Falling

Mandatory Solar on Newly Built Roofs Could Be Coming to All of California

on January 17, 2017

energy storage greentech mediaAs of January 1, all new buildings of 10 stories or fewer in San Francisco must be built with solar panels included.

Since that local measure passed last spring, its author, Scott Wiener, moved from the San Francisco Board of Supervisors to the state senate. Now, he’s bringing the conceptto Sacramento, first in summary form, with the full proposed legislation expected in four to six weeks.

If adopted, mandatory rooftop solar legislation would set a groundbreaking example of how a legislature can expand distributed solar through less conventional means, diverging from the default models of renewable portfolio standards and tax credits. That outcome is by no means guaranteed, though.

The process of passing the legislation through the state legislature will likely raise new questions about how the policy would impact the entirety of the massive Golden State. There are more legislators to convince than in San Francisco, and more interest groups and industry lobbyists who may try to stop it. 

“The state, of course, is much bigger and much more diverse geographically and in every other respect,” Wiener told GTM. “We are actively soliciting input to make sure we’re crafting legislation that will work for the whole state.”

For any other state, requiring solar photovoltaics or solar thermal on most new buildings would seem dramatic, if not unthinkable. For California, however, it’s the latest iteration of a legislative program years in the making.

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GreenTech MediaMandatory Solar on Newly Built Roofs Could Be Coming to All of California

Italian Utility Enel Acquires Energy Storage Specialist Demand Energy

on January 12, 2017

energy storage greentech mediaThe year in energy storage started off with a bang as Italian utility Enel acquired a 100 percent stake in U.S.-based Demand Energy, a developer and operator of energy storage systems and software, for an undisclosed amount.

Enel’s renewables division operates 36 gigawatts of clean energy around the world. The North America subsidiary, which will control Demand Energy, has more than 100 plants spanning hydropower, wind, geothermal and solar energy, with a managed capacity of more than 2.8 gigawatts. That global portfolio now has become a ready and willing customer for Demand Energy’s storage and energy management software, named DEN.OS, for Distributed Energy Network Optimization System.

“Through this transaction, we will be able to greatly strengthen our position in the growing battery storage market with a complementary partner and innovator,” said Francesco Venturini, Enel’s head of global renewable energies, in a statement. “By combining our global presence and expertise in systems integration with Demand Energy’s software and established product offering, we will expand the development of renewables and storage both in the U.S. and globally, delivering a clean, reliable, high-tech and cost-effective energy solution.”

That’s not a bad outcome for the 30-person American startup with just 3 megawatts and 9 megawatt-hours of installed storage capacity under its belt. The goal now is to quickly scale Demand Energy’s resources and capabilities, said President and CEO Gregg Patterson.

“As we were looking at our options, Enel clearly stood out,” he said. “They have a monstrous renewables portfolio worldwide and they really wanted a dependable and capable software platform. We were looking for the ideal partner to scale and grow behind the meter, in front of the meter and in microgrids.”

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GreenTech MediaItalian Utility Enel Acquires Energy Storage Specialist Demand Energy

Here’s Every Company That Entered the US Energy Storage Game in 2016

on January 10, 2017

energy storage greentech mediaA new year means new resolutions, but here at GTM, we don’t care about what you do at the gym. 

The real goal-setters out there are the ones committing to enter the fast-changing world of energy storage. It takes confidence, determination and a willingness to keep showing up after the thrill of a new product launch has faded. 

We don’t know who will be taking that leap in 2017, but the figures are in for 2016. Here is a pretty comprehensive list of the companies that launched their first U.S. energy storage product or created a new business to serve that market last year. If we missed anybody, let us know in the comments section.

Sunrun launches BrightBox solar-plus-storage product

The national residential solar specialist took its first step into the storage world with BrightBox. The solar-plus-storage combo comes with no-money-down lease or cash deal options, and first hit the streets in Hawaii last spring. Sunrun expanded it to California Dec. 14, and promised more states to come.

The key applications the company has touted are optimized solar self-consumption and emergency backup for when the grid goes down.

As net energy metering programs start to fade and the compensation for rooftop solar generation declines, we can expect to see solar companies turning to storage to add more value and attract new customers, said Ravi Manghani, energy storage director at GTM Research.

“In a lot of these markets, the early adopters have already gone solar,” he said. “The next layer of customers likely to install solar are probably looking for other benefits, which can be served by storage.” Benefits like intelligent load management, resilience during blackouts and the ability to produce solar energy without exporting, for instance.

Most solar installers won’t have the wherewithal to design a product in-house like a Sunrun or SolarCity can, but they can easily procure storage from manufacturers and install it themselves.

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GreenTech MediaHere’s Every Company That Entered the US Energy Storage Game in 2016

For the First Time, Emerging Markets Are Deploying More Renewables Than Developed Nations

on January 3, 2017

energy storage greentech mediaClimatescope, a new report from BNEF, was released last week, and while many news outlets highlighted the finding that solar is now cheaper than wind, the report contains numbers that signal another major shift in renewable energy.

The report focuses on “clean energy market conditions and opportunities in 58 emerging nations in South America, Africa, the Mideast, and Asia” and contrasts the progress of these poorer nations against the achievements of the OECD countries — the wealthier nations of the world that are members of the Organization for Economic Co-Operation and Development.

And for the first time, the developing nations are winning.

The center of the clean energy universe has shifted from north to south

The 58 emerging-market economies aggregated in the Climatescope report set a record for clean energy deployed in 2015 with 70 gigawatts built, compared to the 59 gigawatts of clean power deployed in the 35 wealthier OECD countries. Cumulatively, the developing nations have won $154.1 billion in cleantech investment and added more clean energy capacity, with faster growth rates than the OECD nations using both those metrics. 

According to the report, 80 percent of the developing nations studied now have national clean energy targets, while three in four have set CO2 emissions reduction goals.

China played a big part in this, but “less-developed nations also played a role.”

There is a downside to record rates of renewables being added to existing grids, and that’s integration challenges. The report notes that some nations have built wind or solar projects despite not having the “associated transmission to deliver power” along with “grid operators [prioritizing] delivery” of power from fossil-fuel plants over those from renewable sources.

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GreenTech MediaFor the First Time, Emerging Markets Are Deploying More Renewables Than Developed Nations

Panasonic to Invest $256 Million in Tesla’s Solar Cell Factory in NY

on December 28, 2016

energy storage greentech mediaPanasonic Corp (6752.T) will invest more than 30 billion yen ($256 million) in a New York production facility of Elon Musk’s Tesla Motors (TSLA.O) to make photovoltaic (PV) cells and modules, deepening a partnership of the two companies.

Tesla’s shares were up 3.5 percent at $220.75 in early trading on Tuesday.

Japan’s Panasonic, which has been retreating from low-margin consumer electronics to focus more on automotive components and other businesses targeting corporate clients, will make the investment in Tesla’s factory in Buffalo, New York.

The U.S. electric car maker is making a long-term purchase commitment from Panasonic as part of the deal, besides providing factory buildings and infrastructure.

Bloomberg: Yamanashi Vies for Energy Storage Investment

A patch of land in the shadow of Mount Fuji is becoming a testing ground for energy storage, with some of Japan’s leading companies trying to develop technologies such as spinning flywheels and fuel cells.

The Yamanashi Prefectural Government is hoping that by attracting companies such as Panasonic Corp. and Toray Industries Inc. it can become a kind of Silicon Valley for energy storage development.

As part of a project in the city of Kofu, the prefecture has built a 1-megawatt solar power station that is being made available to developers of storage devices who want to run tests under closed conditions, according to Masaki Sakamoto, an official in charge of the project.

“It’s not easy to find a large-scale solar power station available for pilot projects,” Sakamoto said. “The best scenario would be that advanced research being conducted here leads to more collaboration between major and local companies and the creation of supply chains.”

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GreenTech MediaPanasonic to Invest $256 Million in Tesla’s Solar Cell Factory in NY

The New Tesla Powerwall Is Actually Two Different Products

on December 23, 2016

energy storage greentech mediaWhen Elon Musk released the second generation of Tesla’s home battery in October, one of the key upgrades was the inclusion of an inverter.

That piece of power electronics plays a vital role in switching the battery’s electricity from DC to AC so it can be used in the house or sold back to the grid. The first Powerwalls required a separate inverter, adding time and expense to an installation. Putting Tesla’s in-house inverter in the box amounted to a significant advance in the customer experience.

It turns out, the situation is a little more complicated.

The Powerwall 2 actually comes in two different versions: an AC-coupled model that includes the inverter and a DC-coupled one that does not. That’s a departure from the company’s product website, which says the new Powerwall is an “all-in-one” product that “uses an internal inverter to convert DC energy to the AC energy required for your home.” 

Tesla didn’t advertise its decision to offer both types of battery, but doing so gives installers more options in designing the best system for a given house. And Tesla says it will charge the same price either way.

A choice of architectures

By quietly offering Powerwalls with or without an inverter, Tesla is providing installers options to customize the product for homeowners, without asking the customer to think through the details of power electronics.

“Tesla is trying to simplify the information that it’s providing to the end customers, whereas other companies will specifically say, ‘This is an AC-coupled system or a DC-coupled system,'” said Ravi Manghani, energy storage director at GTM Research. “It’s probably an information overload in some cases.”

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GreenTech MediaThe New Tesla Powerwall Is Actually Two Different Products

Lessons From 40 Years of Electricity Market Transformation: Storage Is Coming Faster Than You Think

on December 20, 2016

energy storage greentech mediaWhat do Gerald Ford, a fossil-fuel plant on the Houston Ship Channel, the second-largest utility in Vermont, and the California legislature have in common?

They each ushered in a major national market transformation in the U.S. power sector over the last 40 years, at a rate of one per decade.

And in 2016, right on schedule, that once-per-decade cycle repeated. This year, it was batteries that made a transformative advance into both the competitive and vertically integrated power markets. 

A quick review of how competition entered the power industry, decade by decade:

  • 40 years ago: Energy efficiency bills signed by President Ford established incentives to encourage demand management.
  • 30 years ago: Generation competition launched as the AES Deepwater co-generation plant began operating in Houston under PURPA.
  • 20 years ago: Retail competition launched with Green Mountain Power, then the second-largest utility in Vermont, offering renewable energy choices in the first retail pilot programs in New England. 
  • 10 years ago: Solar competition launched as California’s legislature passed SB1 supporting the California Solar Initiative, thus creating terminal market velocity for distributed solar to orbit across the U.S. — the ultimate form of retail choice.
  • 2016: Battery competition hits early, widespread market penetration, culminating with FERC’s November efforts to establish national standardization for energy storage participation in organized wholesale markets.
  • With four momentous market transformations under our belts, what have we learned that can inform industry and advocates’ efforts on the next stage of power market design evolution including central and distributed storage? Here are five conclusions.

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GreenTech MediaLessons From 40 Years of Electricity Market Transformation: Storage Is Coming Faster Than You Think

Ambri Returns to the Energy Storage Hunt With Liquid Metal Battery Redesign

on December 19, 2016

energy storage greentech mediaAmbri, with its liquid metal battery technology, has returned to the energy storage race after “a pause” during which it redesigned its high-temperature seals and worked on other facets of its storage system.

Getting an entirely new and novel battery chemistry to commercial scale is Sisyphean work. About a year ago, the firm had to lay off approximately 25 percent of its staff because the startup had “not made the technology progress [it] had anticipated.” The CEO said at the time, “Bringing new scientific discoveries in the physical sciences to commercial success is hard; the process is not entirely knowable or amenable to predictable timelines.” Ambri had been working on prototype storage systems with project partners such as Hawaiian Electric and Con Edison.

The now 37-employee company just announced that it’s still going after the potentially immense stationary energy storage market, but with an improved version of its unique battery.

Ambri’s technology is based on the research of Donald Sadoway, MIT professor of materials chemistry, and inspired by the economies of scale facilitated by modern electrometallurgy and the aluminum smelter. The big-battery startup has raised more than $50 million in venture capital from investors KLP Enterprises, the family office of Karen Pritzker and Michael Vlock, Building Insurance Bern, Khosla Ventures, Bill Gates and French energy giant Total. 

Over the last year, the firm kept busy redesigning high-temperature seals and developing its battery management system and heater control. Ambri has been testing a “fully functioning in-lab” energy storage system, which provides 20 kilowatt-hours of energy storage with a peak capacity of 6 kilowatts.

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GreenTech MediaAmbri Returns to the Energy Storage Hunt With Liquid Metal Battery Redesign