German insurance company Munich Re will now offer long-term insurance on battery performance in energy storage systems, a move that could reduce barriers to investment in energy technologies.

Why it matters: Large-scale renewable energy systems are expensive and complex, and in some cases their manufacturers have declared bankruptcy before the end of their systems’ maintenance and warranty periods. Insuring against such risks — as well as those associated with relatively untested new battery chemistries — could spur adoption of innovative technologies by utilities and transportation providers and in off-grid applications.

How it works: For the purchaser, a 10-year warranty reduces the financial risk for both upfront and maintenance costs and increases confidence in the technology’s performance. For the insurer and manufacturer, such programs could speed up development and installation, as the lack of insurance options for energy storage projects is holding back development.

Offering an insurance product allows the manufacturer to more easily obtain financing for specific projects because warranty costs would be capped by the insurance policy.

Where it stands: The initial insurance offering will be for large projects to stabilize electric grids and improve performance during periods of peak power demand.

The first energy storage system provider to include Munich Re’s coverage is U.S.–based manufacturer ESS, which has secured it for two flow battery systems (a competitor of lithium ion technology that offers more flexibility, a longer cycle life and faster recharging).

Additional warranty coverage can be obtained to protect from manufacturers who declare bankruptcy, a common concern in the industry.

What to watch: Battery life and replacement costs have been major concerns with electric vehicles, as have 10-year warranties that in some cases outlast their manufacturers. When Fisker, maker of the EV Vehicle Karma, entered bankruptcy in 2012, owners were left with coverage of only $2000 per vehicle.

Future policies may extend further into mobility markets, offering more robust consumer protections.

Some of the energy industry’s largest players are putting a focus on corporate responsibility as the field of energy storage grows.

And the Energy Storage Association, of course, is leading the way.

ESA brought together 30 companies—including General Electric’s GE Energy Storage, Panasonic, LG’s LG Chem Power, and Duke Energy—to announce their intention to take part in the Energy Storage Industry Corporate Responsibility Initiative, which the association first convened at its Annual Energy Storage Conference & Expo this week.

According to an FAQ, the pledge came to light out of concern with the sector’s fast growth. According to The 2019 U.S. Energy & Employment Report, the energy storage industry saw a nearly 18 percent increase in battery energy storage roles last year, along with a 14 percent increase in general energy storage jobs.

“The U.S. energy storage market nearly doubled in 2018 and is expected to double again in 2019, so this marks an ideal time for the industry to demonstrate their commitment to corporate responsibility,” ESA CEO Kelly Speakes-Backman said in a news release.

In the past, rapidly expanding parts of the energy industry have run into operational safety challenges caused by fast deployment of such technology. By getting companies to sign onto the initiative, ESA hopes to hold the industry to strong standards as the field evolves, and it will work with stakeholders to create standards that limit risk and optimize performance.

“We intend to work proactively to address topics head-on that could otherwise disrupt the industry’s progress,” ESA stated in the FAQ.

The industry will roll out the task force’s standards-making in three phases: first by addressing operational hazards, then tackling end-of-life and recycling needs, and finally by creating responsible practices within the field.

Fluence has dispatched a team of experts to help utility Arizona Public Service determine what caused an explosion at one of its grid-scale battery facilities. The explosion on Friday reportedly left four firefighters injured, including three who were sent to a burn center.

Fluence has dispatched a team of experts to help utility Arizona Public Service determine what caused an explosion at one of its grid-scale battery facilities. The explosion on Friday reportedly left four firefighters injured, including three who were sent to a burn center.

Firefighters responded to a call on April 19 after smoke was seen rising from APS’ McMicken Energy Storage facility, one of two identical 2-megawatt/2-megawatt-hour grid-scale batteries the utility installed in 2017 in Phoenix’s growing West Valley region.

According to local press reports, the firefighters were inspecting the facility’s lithium-ion batteries when they were hit with an explosion. Several of the firefighters received chemical burns, the local fire department told the Arizona Republic.

The firefighters were later reported to be in stable condition.

APS, the state’s largest investor-owned utility, said in a statement on Twitter that it is still investigating the cause of the “equipment failure.”

“Our top priority is the health and safety of those first responders,” the utility said in its statement. “We will continue to work closely with response agencies on scene.”

The battery systems were supplied by AES Corp., an early leader in grid storage, which last year finalized the merger of its storage business with that of Germany’s Siemens into a new company known as Fluence.

New York state lawmakers are aiming to adopt one of the most aggressive policies worldwide for confronting climate change by passing the Climate and Community Protection Act.

The legislation would require the state to transition away from fossil fuels by 2050 and would set an example for other states to follow at a time when the federal government is actively working against efforts to combat climate change.

Supporters of the CCPA say it is just the first step in what would be ongoing efforts to accelerate the development and adoption of clean energy sources like solar and wind power.

City & State caught up with three key lawmakers to discuss the bill, the state’s energy policies and how pragmatism remains a top concern in crafting strategies to meet perhaps the biggest challenge facing the Earth. The interviews have been edited for length and clarity.

Steve Englebright

Chairman, Assembly Environmental Conservation Committee

What’s the status of the Climate and Community Protection Act, which you’re carrying in the Assembly?

Both the Senate and the Assembly leadership were strongly of the opinion that this should be something that we would make a priority, but that it was so important to get it right that it should not be shoehorned into the complexities of the budget itself. This is arguably the most important issue on earth. Literally.

The governor is talking about a climate action council that would develop state climate strategy. What do you think?

The representation should be broad and the stakeholders should include representatives from those communities that have historically been exploited by historic trends that have caused environmental degradation and harm in the form of asthma and shortened life spans within those communities. This is something that we really would like to see in a form much closer to what our Assembly bill has proposed. The guidance system for accomplishing carbon reduction going forward needs those voices at the table.

Equinor and Hanon Systems have joined the Volta Energy Technologies global energy storage investor consortium, it was recently announced. Equinor is an international energy company and Hanon is a global automotive supplier. Volta CEO Jeff Chamberlain answered some questions for CleanTechnica about the new additions.

What benefits result from organizing and managing this type of consortium?

By acting as a syndicate, Volta and our investors have the opportunity to jointly shape the interconnected energy system of the future. By working together to gain early insight into potentially breakthrough technologies, our investors, who will be the users of the products created by our portfolio companies or suppliers to those companies, will be able to stay ahead of their competition and ensure that the technologies Volta pursues will have a home in the marketplace.

What do the new members bring to the consortium?

Volta’s strategic investors have unique interests and needs; however, developments in batteries and energy storage technology have the potential to disrupt all investors’ businesses by fundamentally shifting the way we produce, store and use electricity. Participating in Volta puts investors in a place to drive — instead of follow — massive, industry-wide changes. With the addition of Equinor and Hanon Systems, Volta’s investors represent a fuller spectrum of the energy storage value chain, from energy production and supply, to the use of storage in vehicles and on the electric grid.

Why is cross-sector collaboration beneficial?

Cross-sector collaboration with corporations – particularly those with strategic interest in energy storage and batteries – is a hallmark of Volta’s model. Batteries and energy storage, interconnected and in multiple applications, are central to the energy system of the future, so Volta’s scope includes any hardware, software, materials, or manufacturing process that enable the ubiquitous adoption of batteries for electric vehicles and storage for renewable power generation. Each Volta strategic investor participates in a working group that meets regularly to discuss the opportunities in Volta’s pipeline. Volta prioritizes its efforts based on the feedback from this group to ensure we are squarely focused on investors’ strategic and financial needs.

Top energy companies — including GE Energy Storage, Panasonic, LG Chem Power and Duke Energy — joined the Energy Storage Association today to make safety a priority when manufacturing and operating energy storage systems.

ESA formally launched the Energy Storage Industry Corporate Responsibility Initiative and pledge at its Annual Energy Storage Conference & Expo in Phoenix. To date, 30 companies have signed the pledge, emphasizing their commitment to the well-being and safety of consumers. At the conference, ESA and the signatory companies launched a task force to develop best practices for potential operational hazard prevention, end-of-life recycling and responsible supply-chain practices.

“The U.S. energy storage market nearly doubled in 2018 and is expected to double again in 2019, so this marks an ideal time for the industry to demonstrate their commitment to corporate responsibility,” said ESA CEO Kelly Speakes-Backman. “Representing the national trade association and the voice of the energy storage industry, I can say unequivocally that the industry stands ready to tackle the topics outlined in the Corporate Responsibility Initiative in a proactive and direct manner.”

Vistra and environmentalists disagree on whether the utility’s coal plants are needed for reliability.

Last spring, the Natural Resources Defense Council (NRDC) and the Sierra Club released a report that found retiring eight of the utilities coal plants in the Midcontinent ISO (MISO) Zone 4 could save ratepayers $14 billion without impacting reliability. But the utility maintains the coal plants are necessary.

“There are many challenges to operating power plants in Illinois, from longstanding and unresolved capacity market design flaws to delays in regulatory updates and other economic pressures,” Curt Morgan, president and CEO of Vistra and its Illinois subsidiaries, said in a statement.

The legislation establishes a “reasonable and achievable path” to transition existing coal plants to renewable resources, he said.

Through its subsidiaries, Vistra has nearly 5,500 MW of capacity that accounts for 40% of MISO Zone 4’s summer capacity. The company says 75% of its capacity in the region is at risk of closing by the end of this year “due to a number of factors.”

But environmental groups oppose the legislation for a variety of reasons, according to J.C. Kibbey, a clean energy advocate with the Natural Resources Defense Council.

“The way it’s being marketed is pretty misleading,” he told Utility Dive. “It’s lipstick on a pig. Vistra uses the word ‘transition’ over and over again, I think hoping people wont notice this is a coal bailout.”

The report last year, issued with the Sierra Club, concluded energy supply in southern and central Illinois would be secure, “even with the closure of these plants,” he said.

An online map developed by the Consortium for Battery Innovation (CBI) has identified the location of more than 120 lead-battery storage projects worldwide.

The CBI published the map as part of the lead-up to the Energy Storage Association’s annual conference, which is being held this week in Phoenix, Arizona. The map features operational storage systems on every continent except South America. It even pinpoints the location of a 400 kWh system – powered by batteries supplied by Berlin-based Younicos, now part of the Aggreko group – at the Amundsen-Scott South Pole Station in Antarctica.

“We are seeing growing interest in lead-battery energy storage for utility and renewables systems all over the world,” said CBI director Alistair Davidson. “The aim of this initiative is to highlight some of these installations and encourage companies to share other examples. Our analysis suggests demand for battery energy storage will increase significantly in the next five years. This new tool will allow us to demonstrate that the latest lead-battery technology is supporting a wide range of installations with reliable, safe, sustainable and cost-effective energy storage.”

Village mini grids included

By drawing on case studies, the map gives detailed information on how lead-battery storage systems are supporting renewables projects globally. The map includes a number of systems serving as back-up for small local grids.

The online tool also lists a handful of off-grid installations powering isolated communities, including an 18 kWh microgrid in Nigeria. That installation – powered by batteries supplied by California-based Trojan Battery – was built with Green Village Electricity Projects, a Nigerian PV mini grid developer. The project is providing electricity to 260 homes and 60 businesses in the small village of Bisanti.

CBI’s interactive map also lists battery storage installations in Australia, a hotbed for global deployment. A report by Bloomberg NEF in January predicted more than 70,000 energy storage systems will be installed in the country’s residential segment alone this year. With Australian storage demand set to triple, the nation is expected to account for 30% of global demand by the end of the year.

Subsidiaries of state-run energy conglomerate China Energy Engineering Corp have started constructing two major solar plants and one of the largest energy storage systems in China, according to filings on the Stock Exchange of Hong Kong (HKEX).

China Energy Engineering Group Shanxi Electric Power Engineering has started building a 500MW solar PV project, split between two separate 250MW plants, located in Licheng County and Pingshun County in Shanxi Province. No further details were provided in the filing.

Meanwhile, China Energy Engineering Group Jiangsu Electric Power Design Institute has started building a huge energy storage system in Jiangbei New District, Nanjing, in Jiangsu Province.

The 130.88MW / 268.6 MWh grid-side electrochemical energy storage system is claimed by the company to have the largest capacity and the highest power in China, but no further details were released on the specific storage technology – presumably lithium-ion batteries – being used for the two-hour duration system.

China is underway in building massive flow battery projects as well as lithium-ion energy storage, with policy initiatives including a nationwide strategy on energy storage and market dynamics including regional high penetrations of renewable energy and coal power station retirements or efficiency upgrades among the drivers for adoption. In February, Energy-Storage.news reported that lithium battery company CATL had deployed a 100MWh battery storage system at a mixed renewables plant, Luneng Haixi Multi-mixed Energy Demonstration Project, while

China, alongside the US, will account for more than half of the global energy storage market by 2024, according to a recent report from Wood Mackenzie.