When Vaclav Smil writes about energy, the world pays attention. “I wait for new Smil books the way some people wait for the next Star Wars movie,” Bill Gates once tweeted.

Smil is a professor at the University of Manitoba, and one of his key arguments is that the world is unlikely to transition away from fossil fuels fast enough to avoid catastrophic climate change. His observation is based on previous energy transitions, such as from wood to coal and from coal to oil, which moved very slowly.

But Smil says one technology could change the prevailing trends: energy storage. “Give me mass-scale storage and I don’t worry at all. With my wind and [solar] photovoltaics I can take care of everything,” he told Science. “But we are nowhere close to it.”

Better energy storage could overcome the biggest limitation of renewable power: Instead of using it only when the sun is out or the wind is blowing, electricity generated by renewable sources could be held for when it is most needed.

Mass-scale energy storage already exists, but there is only one mature technology: pumped hydro storage. When there is excess power on the grid, this technology is used to pump water to a dam. When the grid needs more power, the stored water is used to run turbines to generate it.

Other technologies feature electrochemical storage in the form of batteries, electro-mechanical storage in the form of compressed air or flywheels, and thermal storage in the form of hot or cold materials in insulated chambers. These comprise a tiny share of overall energy-storage capacity, according to a new report by policy group REN21.

A recent tour of Canada’s biggest battery allowed participants to get up close to an 8.8MW/40MWh lithium-ion array housed in an otherwise unremarkable looking shed in the Wright Industrial Park in Stratford, Ontario.

“This is a historical moment,” says Stefan Goertz, Director of Development of Energy Services for Saturn Power, the EPC contractor. “But in the future, we’re going to see a lot more of this.”

The $20 million Stratford Festival Hydro battery, manufactured (and 50 percent owned) by Powin Energy, was procured under the IESO’s Energy Storage Procurement framework. Saturn has since secured another contract for a 25 MWh/50 MW facility under a separate RFP for regulation services.

The Stratford facility will provide reactive power and voltage support to help with Stratford’s growing demand. But it is ultimately a testing facility, where IESO and other participants can learn how a massive dispatchable battery can help manage Ontario’s grid.

A small desktop setup with three screens is “the brains of the whole operation,” says Goertz. “Through this portal, IESO remotely controls the whole facility.” In fact there are no permanent personnel on site; most days it sits unoccupied, just a big battery beside a transformer station.

In the long run, though, this battery may be the seed of a local micro-grid.

“Can we put in solar there as well and have a true micro-grid operating in the heart of our industrial park?” asks Ysni Semsedini, CEO of the local distributor Festival Hydro. “It would be something very unique to Stratford.”

Indeed, as PV continues to grow and disrupt grids with duck-curve regularity, storage is increasingly seen as a prerequisite to further PV growth.

With the energy storage market set to double six times by 2030, industry experts from global brewer Carlsberg, energy solutions advisor Centrica Business Solutions and conservation charity the National Trust discussed the role of energy storage to optimise onsite renewables generation during edie’s Powering Ahead webinar last week.

During the webinar, Carlsberg’s director of environment and utilities, Adam Pawelas, noted that storage solutions are being explored by the brewer, but only as one part of the energy matrix.

“At the moment, we consider battery storage a supplementary solution. We are at the early stages and will not be focusing solely on batteries,” Pawelas said. “In some markets, power-load management is a feasible option to be an active player either by us or by a third party.

“We have some locations where we would like to grow our solar projects where our base load will not be able to consume the installed capacity of those solar PV systems, and there, we will consider the extension of battery storage.”

Carlsberg, which is one of only three major companies to have set and approved a science-based target to reach a 1.5C ambition in line with the Paris Agreement, currently sources 45% of its electricity onsite, but storage solutions aren’t as advanced as onsite renewables for the firm.

The company has vowed to source 100% renewable electricity and eliminate coal as a source of energy by 2022 and the timing couldn’t be better. The business community is in the midst of a renewables revolution, with a record amount of installations coming online in 2017. Tumbling installation costs, combined with a plethora of technology solutions, have created an optimal environment to invest in onsite generation.

In fact, more than 100 not-for-profit organisations, including the National Trust, RSPB and Oxfam, have collectively saved almost £7m on energy procurement costs, after generating more than 48GWh on renewable energy to power estates in 2017.

The National Trust has installed more than 100 renewables arrays on its estate in the past five years and currently generates 12% of its heat damned onsite.

During the webinar, the Trust’s lead project manager for renewable energy investment, Adrian Fox, noted the charity would look at alternative options such as sleeving and hydro-schemes before installing battery storage facilities at any of its sites.

“Our organisation is probably a little bit more risk-adverse, so we are waiting a little bit longer for [storage] developments in terms of cost and security to be established, but it is something we do and will continue to consider on a case-by-case basis,” Fox added.

Salt River Project has announced contract execution and the start of construction with The AES Corp. for SRP’s first standalone battery-based energy storage project. The 10-MW, four-hour duration energy storage solution, to be supplied by Fluence, will provide peaking capacity that will inject power into the grid during high peak demand periods for SRP customers.

The 10-MW project, to be built in Chandler, was procured as part of an SRP initiative to learn more about grid-scale battery storage so that SRP will be better prepared to implement battery storage technology at an even larger scale in the future.

Related: Energy Storage: Are We There Yet?

“Energy storage is already providing a wealth of services to central Arizona’s grid through other deployments, from supporting the growth of renewables to boosting reliability on transmission and distribution grids,” said Mike Hummel, SRP’s General Manager and Chief Executive Officer. “This latest investment will add needed much-needed efficiency and value for our more than 1 million electric consumers.”

Under the 20-year agreement, AES will provide SRP with the 10-megawatt, 40 megawatt-hour battery-based energy storage system that will be charged by an SRP distribution substation. Fluence’s Advancion energy storage technology platform was selected to meet SRP’s need for an industrial-strength solution with high dependability, reliability and the ability to evolve over long-term operations. The solution can deliver the energy equivalent to power about 2,400 homes in the greater Phoenix metropolitan area for up to four hours and will help SRP assess how best to scale up future energy storage projects across its 2,900-square-mile electric service area.

SRP’s new energy storage project marks the latest move to secure resources that enable the integration of more renewables for its electric service area. This comes at a time when Arizona is evaluating steps to transform its energy infrastructure, including proposals for both the largest energy storage target in the United States – 3 gigawatts by 2030 – and a “clean peak” standard.

“AES is committed to developing solutions which will accelerate a cleaner and greener energy future,” said Ken Zagzebski, President of AES Southland Energy. “This project will allow SRP to continue meeting customer demands while also supporting the ongoing integration of renewable power sources.”

As the largest provider of power to the greater Phoenix area, SRP is drawing on both AES’ experience developing energy storage projects across its platform and Fluence’s experience in designing and deploying energy storage solutions in 16 countries. Together, SRP, AES and Fluence will deliver a long-lasting, reliable energy storage solution for central Arizona’s power grid and SRP’s electric customers.

The Energy Storage Association (ESA) honored Renewable Energy Systems (RES) and Lon Huber, Strategen vice president, at the 28th Annual Energy Storage Conference for their efforts in advancing the energy storage industry.

Huber was chosen as this year’s recipient of the Phil Symons Energy Storage Award, which recognizes an individual who has had the biggest impact in shaping the future of the industry, following an annual survey to ESA members and past award recipients. Outgoing ESA Board Chair Praveen Kathpal credited him as being instrumental in opening up markets for the industry throughout the United States and educating stakeholders along the way.

“I am honored to receive the Phil Symons Award and extend my gratitude to ESA for the recognition,” Huber said. “The Strategen market-based approach in designing policies that benefit consumers and ratepayers has demonstrated that these policies also can successfully advance industry and environmental sustainability; and importantly, advance the broad role energy storage plays in modernizing our grid.”

Global renewable energy company RES received the Brad Roberts Outstanding Industry Achievement by a Member Organization Award. RES contributions included receiving a world first non-recourse debt financing of an energy storage project and close permitting work with the New York Fire Department for a megawatt scale lithium-ion storage system in New York City.

“We are very excited to be the recipient of the Brad Roberts Award, and honored to follow in the footsteps of many prestigious companies in helping to grow the industry,” Craig Horne, vice president of Business Development, Energy Storage and the incoming ESA Board Chair, said. “RES is a leader in the storage industry with a portfolio comprised of 250 megawatts and almost 300 megawatt-hours spanning 19 projects, nine different electricity markets, and four countries. We strive toward realizing achievements that will help improve the commercial viability of all subsequent storage projects, and look forward to working hand-in-hand with the Energy Storage Association to continuing opening up markets nationwide.”

New York State has awarded Cadenza Innovation funding for a demonstration project featuring Li-ion supercell technology, a standalone system that includes a rack-mounted 200kWh, 50kW battery storage unit. The project is part of the New York State Energy Research and Development Authority’s (NYSERDA) drive to pursue nation-leading clean energy goals, including Governor Andrew M. Cuomo’s energy storage target of 1500 megawatts in New York State by 2025. As the pioneering provider of energy storage solutions for license to lithium-ion (Li-ion) battery manufacturers, Cadenza Innovation offers unique cell design that combines the best properties from wound jelly rolls and large prismatic cells. That allows for high energy density at low cost for EV, PHEV, and grid markets.

New York State has access to some of the world’s most promising wind and solar energy resources. However, to fully capitalize on those, next-generation energy storage solutions are necessary. Enter Cadenza Innovation’s technology, which incorporates commercial-grade battery pack systems through novel packaging architecture for Li-ion battery technology. The demonstration project will be a unique design delivering high energy and improved safety at low cost. Cadenza Innovation’s recently patented multicore Li-ion battery cell structure, the supercell, serves as the cornerstone of its novel architecture and provides simplification in battery pack design. That, in turn, greatly reduces production and manufacturing costs, overcomes safety issues, and improves the energy density of Li-ion batteries.

In a private interview in September, 2017, Dr. Lampe-Onnerud, Cadenza Innovation Founder and CEO, alluded to the NYSERDA project. “I believe we are on the cusp of something new and different,” she outlined, tracing how, when New York state suffered through Superstorm Sandy and inoperable generators, they realized they “should do something different. They evaluated policies and saw how our battery architecture is so simple and fire retardant. You can touch it.”

The latter point is important, as Cadenza’s new chemistry and packaging lowers the risk of fires — like the ones that plagued the Boeing Dreamliner, the Samsung Galaxy Note, and a couple of early Tesla Model S sedans.

“The world is moving beyond fossil fuels and traditional power plant infrastructures, with utility-scale batteries emerging as a core component for renewable electricity,” said Dr. Lampe-Onnerud, who is among the world’s foremost authorities on battery chemistry and design. “The cost savings achieved by lithium-ion alone are undeniable. By combining that with technology and design that substantially improves safety and energy density, we’re providing a first-to-market, scalable platform to address today’s energy concerns.”

LAES is one of the technologies attempting to stretch out the duration of energy storage systems. LAES technology is similar to compressed air energy storage (CAES) except that it cools air to -169 degrees Celsius to turn it into a liquid.

As with CAES, LAES arbitrages the differences between electricity prices at times of high and low demand. Using low cost power, the technologies use pumps to compress and store air under pressure. When energy prices are higher, the air is released and fed into a conventional turbine to produce electric power.

LAES’ advantage is that, unlike CAES, it is not dependent on geography. CAES requires large storage caverns, such as depleted salt mines, to store air. LAES stores energy in insulated tanks.

While that solves the location problem, it introduces other issues. In particular, the liquefaction process adds to the already inefficient thermal air cycles, Tim Grejtak, energy storage analyst at Lux Research, told Utility Dive via email. It takes more energy to liquefy the air than it does to just compress it and store it.

Grejtak also said it is important to note that the Pilsworth plant is a pilot project to evaluate LAES technology, and “three hours of storage isn’t a suitable duration for a system that is likely very inefficient.” Longer durations typically make better use of poor efficiency technologies, he said. Nonetheless, he noted the importance of developing an efficient and cost effective long-duration storage technology.

The Pilsworth plant is designed to demonstrate how LAES can provide several reserve, grid balancing and regulation services. But Highview sees even greater opportunities. The company says LAES technology can scale to hundreds of megawatts and could easily store enough electricity to power a town like Bury (around 100,000 homes) for many days.

“The market opportunity for LAES is considerable. We estimate that 60% of the global energy storage market comprises long-duration, grid connected storage and that our LAES technology is ready to meet almost half of this,” Highview Power CEO Gareth Brett, said in a statement.

An increasing number of major car manufacturers are developing solutions in a space that at first glance may seem like a strange choice: energy storage.

BMW recently signed a contract that adds 500 of its i3 battery packs to the UK national energy grid. Audi is running a pilot project. Renault is turning some of its Zoe batteries into a home energy storage solution, and in Japan, both Toyota and Nissan have announced that they will offer battery energy storage.

A closer look reveals many good reasons for car companies to pursue energy storage. Here are five of the biggest.

Electric Is the Future

The strangeness of adding energy storage to the mix fades a bit when considering how much money car companies are investing in batteries. Volkswagen recently announced it plans to spend a whopping $48 billion on batteries in the coming years.

The future of transportation is a subject dear to the hearts of car companies. Their view seems to increasingly be that transportation is going to be a) self-driving and b) electric.

The question for companies becomes: why stop at cars? If you are going to be making batteries anyway, why not explore other markets that need batteries?

Tesla

Tesla has been doing exactly that, with big success in both large-scale projects in Latin America and Australia and in general with its Powerpack and Powerwall systems for homes and companies. Last year, it sent heads spinning in top offices of major car manufacturers by briefly overtaking them to become the most valuable American car company.

Tesla’s goal is to be much more than a car company, though. As Elon Musk explained to Fast Company, “This is the integrated future. You’ve got an electric car, a Powerwall, and a Solar Roof. It’s pretty straightforward, really.”

Other car companies seem to be thinking along the lines of “well, if Tesla can do it, so can we—and we better get going before they corner the market.”

The Future Is Smart (and Bundled)

Another important point from the Musk quote is that we are heading towards an integrated future. One of a smart grid consisting of not just stand-alone energy storage units, but also things we attach and detach from the grid. Like electric cars, for example. Our four-wheeled friends can be of use for much more than the short periods of time they ferry us around. Using them as energy storage during stand-still hours makes excellent sense.

Finding ways to link cars and energy storage will be increasingly valuable, as will the ability to offer complete packages. The logic goes that if you have a Tesla or a Powerwall, you are much more likely to buy a product from the same manufacturer than from a competitor.

Tesla (NASDAQ:TSLA) CEO Elon Musk’s update on the electric-car maker’s business on Tuesday afternoon at the company’s annual shareholder meeting obviously impressed investors. The stock surged higher on Wednesday, finishing the trading day up nearly 10%.

For the most part, headlines after the meeting seemed focused on Musk confirming that the automaker is on track with its production and profitability plans. Of course, there’s good reason to believe the news that Tesla is on track to achieve a production rate for its Model 3 of 5,000 units per week by the end of June and GAAP profitability in both Q3 and Q4. Production delays have previously plagued the Model 3 as Tesla attempts to transform into a mass-market auto company, which has weighed on profitability. But another narrative discussed during the shareholder meeting is worth examining: Tesla’s surging energy storage business.

What Musk said about Tesla’s energy storage business

Musk was extremely optimistic about Tesla’s energy storage business, implying energy storage sales will see wild growth at rates that exceed the sharp growth in Tesla’s vehicles sales.

Launched just three years ago, its energy storage business has already swelled to a total of 1 gigawatt-hours of energy storage deployments globally as of May, Musk said during the shareholder meeting. He also said he expects that in “less than a year from now” Tesla will deploy another GWh of energy storage.

But this is just the beginning, according to Musk. “I think for many years to come, each incremental year will be about as much as all of the preceding years [in terms of energy storage deployments],” the CEO predicted.

Furthermore, he said deployments are ultimately limited by production, which is notable since Tesla’s Gigafactory has morphed into the world’s highest-volume battery factory when measured by battery capacity output.

Musk put the extraordinary demand for energy storage and the scale of the Gigafactory’s output into perspective:

We would actually be able to do more if we could produce more. And we are producing a lot of batteries. So in fact, next quarter, at the Gigafactory, we expect to make more battery capacity than all other EVs combined worldwide, including China. So I mean, this is a really crazy amount of batteries. This one factory is making — will make more than all the other factories on earth…

San Diego Gas & Electric (SDG&E) has obtained approval to add 83.5 MW of energy storage facilities in California, the power utility said on Monday.

The company has been given the green light by the California Public Utilities Commission (CPUC) to contract five projects envisaging the installation of lithium-ion battery storage facilities in San Diego and south Orange counties. A 30-MW/120-MWh storage system will be constructed in San Diego by Renewable Energy Systems (RES) America, while Advanced Microgrid Solutions will build a 4-MW/16-MWh lithium-ion battery in San Juan Capistrano. Both facilities are planned to be switched on by December 2019.

The approved capacity also includes a 40-MW/160-MW energy storage project in Fallbrook, proposed by Fluence, a business created in January 2018 by Siemens AG (ETR:SIE) and AES Corp (NYSE:AES), as well as a 6.5-MW/26-MWh facility in Escondido, to be installed by Powin Energy. Those two lithium-ion systems are scheduled for completion by March 2021 and June 2021, respectively.

The fifth storage project, under which SDG&E is contracting Enel Green Power, is for a 3-MW/12-MWh facility in Poway, slated for completion by December 2021.

CPUC’s clearance also covers a contract between SDG&E and OhmConnect under which the latter is providing a demand response programme for the equivalent of 4.5 MW.

The projects are seen to improve the reliability of the local power grid and enable the addition of more renewable energy capacity, SDG&E said. They are in line with its goal to develop or interconnect more than 330 MW of energy storage capacity by 2030.