To date, distributed-scale ESSs have focused on providing storage benefits to residential or commercial and industrial (C&I) host facilities, including resilient backup power and energy demand charge savings. Companies such as Green Charge Networks, Stem, and Sunverge are Leading Integrators of Distributed-Scale ESSs.

However, stakeholders in the stationary energy storage market also recognize that these ESS installations can deliver grid benefits to regional transmission organizations and independent system operators, as well as local distribution system utilities.

“Leaders in the distributed-scale ESS sector have built on innovative software platform capabilities to focus on playing multiple roles across the delivery value chain,” says William Tokash, Senior Research Analyst with Navigant Research. “As a result, they can drive down costs, enable financing innovation, and establish customer access advantages relative to their peers.”

Grid benefits from distributed-scale ESSs are driving the development of software platforms that can integrate distributed generation and building controls along with storage to reduce demand charge. These software platforms can also serve as virtual power plants (VPPs) capable of analyzing, controlling, and optimizing a portfolio of these ESSs.

As power market rules mature, according to the report, these types of VPPs are expected to emerge as a necessary integration solution for distributed energy resources.

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Work begins this month on solar-plus-storage projects in North Carolina that will deploy a total of 12MWh energy storage, by developer Cypress Creek Renewables and turnkey solar and storage provider United Renewable Energy.

The pair is working with local electric cooperative, Brunswick Electric Membership Corporation (EMC) on the projects. There are 12 in total and construction begins this month, with completion expected before October of this year, Cypress Creek Renewables said.

The electric cooperative will be the off-taker for energy and services from the projects, signing power purchase agreements (PPAs) that were put together by United Renewable Energy.

“These projects provide low-cost solar energy to our members, and compound the value by delivering it exactly when we need it. This partnership will provide significant value to our members for years to come,” Brunswick EMC CEO Don Hughes said.

The 12 projects were acquired by Cypress Creek, which also executed project development, financing and now construction. The company has 5GW of solar PV deployed or in the process of deployment.

The batteries – for which the technology to be used was not specified by the partners in their announcement – will charge cheaply from the solar panels during the day’s off-peak periods. The PV panels will continue feeding directly into the grid once the batteries are fully charged, while during subsequent peak load times, a combination of solar and batteries will be used to reduce the cooperative’s peak power demand.

Cypress Creek and United said they look ahead to executing more solar-plus-storage, or “standalone storage projects”. Cypress Creek in particular said that in the short term, solar-plus-storage was of most interest, drawing on its track record in developing, financing and constructing utility-scale PV.

“Energy storage is a key component for solar. We see energy storage as inevitable. It makes solar 24/7 and permits us to be better partners to everyone in the energy food chain. Cypress Creek Renewables began building out our storage team in 2016. These efforts are aligned with our goal to create a generation profile that more accurately matches the needs of our utility partners and retail customers,” Cypress Creek chairman Ben Van de Bunt said.

“Energy storage allows Cypress Creek Renewables to provide ancillary services to utilities to help them with reliability concerns and to allow them to defer investment in certain types of grid updates.”  

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UK energy: ‘inefficient and carbon intensive’

Global research institute McKinsey & Company has analyzed current energy storage prices and concluded that commercial customers are already feeling the economic benefits of cheaper batteries and recent price falls in lithium-ion technology.

With battery-pack costs now down to less than $230/kWh – compared to around $1,000/kWh as recently as 2010 – storage uptake is on the rise across Europe, Asia and the U.S. This growth is being facilitated by a greater uptick in electric vehicle (EV) adoption, with major players now scaling-up their lithium-ion manufacturing capacity in order to meet demand.

The immediate effect of this has been a downward pressure on prices, and storage has now begun to play a more central role in energy markets, the McKinsey report said, moving from niche uses such as grid balancing to becoming a viable alternative to conventional power generators, and a stable support act for renewable energy.

Furthermore, as more and more PV markets begin to trim and pare back their solar incentives, consumers – particularly commercial-scale PV owners – are exploring with greater gusto the idea of solar+storage to allow them to consume power on demand and export excess electricity to the grid.

And the key driver behind this new trend is price. McKinsey believes that in a matter of years households and business will soon be able to pair solar+storage with a small electrical generator and defect fully from grids.

Aside from giving customers more energy independence, the impact of cheaper storage costs could be profound for utilities, the report found.

Challenges of cost

Cheap battery storage will pose an increasing challenge for big utilities behind-the-meter, whereas those that operate in-front-of-the-meter (such as large-scale installation used by utilities for a variety of on-grid applications) will see opportunities for flexible deployment and cost reduction increase, said the report.

“Cheap(er) storage will be even more disruptive to ‘business as usual’ because different combinations of storage and solar will likely be able to arbitrage any variable rate design that utilities create,” the report adds, pointing to how net metering and FITs have served as powerful incentives to install solar panels over the past few years.

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The Maryland Department of Transportation (“MDOT”) has issued a request for proposals (“RFP”) to create a Master Services Agreement (“MSA”) to select contracts to design, construct, finance, and operate renewable energy facilities and energy storage projects at MDOT locations throughout the State of Maryland.  The terms of the MSA will be five years, with an optional two year extension.

The scope of the RFP encompasses solar, geothermal and microhydropower renewable energy systems. In addition to traditional renewable energy facilities, bidders may also propose energy storage systems and microgrid development. Bidders are encouraged to find cost-effective project financing, and the contractor will be responsible for applying for and obtaining incentives offered by the State of Maryland.  Proposals are to be submitted in two parts:  Part I should include the technical aspects of the project, and Part II should contain the pricing information required by the RFP.  

Although the RFP places few limits on the types of projects to be considered, MDOT does include the following parameters:

• Responses should include a management approach to facility implementation, a plan for executing the project to meet the scheduled operational dates, and a plan for operating and maintaining the facility for the duration of the entire term of the MSA.

• While the RFP does not specify a maximum project capacity, each project “must not produce more power than [MDOT] can use or net-meter in any given location.”

• Bidders must be able to demonstrate compliance with MDOT’s “Offeror Minimum Qualifications,” which include at least five years experience and capability to design, build, commission, finance, operate, and maintain a grid-connected renewable energy system.

• Contractors selected shall control and coordinate with subcontractors and third parties, including other state and local agencies and the public.

• Responses should identify key risk areas of the project and address how they will be managed.

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The Energy Storage Association announced that advanced energy industry veteran Kelly Speakes-Backman will become the organization’s first CEO, effective July 1.

“As evidenced by our recent ’35 by 2025 Vision’ announcement, in which we see the potential for 35 GW of new energy storage additions to the U.S. power grid by 2025, our industry is in the midst of an explosive growth stage,” noted Praveen Kathpal, vice president of AES Energy Storage and chair of ESA’s board of directors. “As our industry expands, ESA must also expand to ensure our messages are clearly heard by regulators, industry players and other stakeholders, while also supporting our members with the insight and tools necessary to navigate the dynamic environment such growth creates. Kelly’s diverse experience as a state regulator, industry executive and trade association leader will enable ESA to take the next step in its evolution to fully support the energy storage industry as it enters this rapid expansion phase.”

“I am thrilled about the opportunity to lead ESA in service to its members and the energy storage industry overall in this era of exponential growth,” added Speakes-Backman. “For over 20 years, I have worked to help the energy efficiency, distributed energy and renewable energy sectors evolve. I’m going to do everything in my power – working closely with ESA’s members, government officials and the energy industry – to make sure energy storage becomes an integral linchpin of the modern power system.”

Speakes-Backman joins ESA from the Alliance to Save Energy, a premier trade association representing the energy efficiency sector. As the Senior Vice President of Policy and Research, she directed the policy efforts, working closely with industry and policy makers to advance energy efficiency. Prior to that, Speakes-Backman served as a Commissioner at the Maryland Public Service Commission and the Director of Clean Energy for the Maryland Energy Administration. Earlier in her career, she held strategy, marketing and sales roles at SunEdison, UTC Power, Wärtsilä and Jenbacher.

As part of ESA’s evolution, Matt Roberts will assume the role of Vice President. In this capacity, Roberts will build upon the growth, policy impact, and market recognition that ESA accomplished under his leadership over the last three years as ESA’s first executive director.

“Working together our industry has grown tremendously, and is transforming the future of the power sector. We are very excited to build upon ESA’s successes and look forward to working with Kelly on advancing ESA’s mission to propel the energy storage sector into a multi-billion dollar industry,” said Roberts. “Now that we are at this stage I can fully devote my energies to what I have been most passionate about: growing ESA’s impact by empowering our members and educating stakeholders throughout the power ecosystem.”

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Green Charge Networks, Stem, and Sunverge top a new list published by Navigant of companies that lead in distributed energy storage.

The energy storage leaders are driving growing use of the resource as means to lower costs for customers and for the larger grid. Commercial buildings use energy storage for back-up power during outages and to reduce their utility demand charges. Meanwhile, energy storage also can act as a virtual power plant and provide a capacity resource for the grid.

“Leaders in the distributed-scale ESS sector have built on innovative software platform capabilities to focus on playing multiple roles across the delivery value chain,” says William Tokash, senior research analyst with Navigant Research. “As a result, they can drive down costs, enable financing innovation, and establish customer access advantages relative to their peers.

An executive summary of the report,  Navigant Research Leaderboard Report: Distributed-Scale Energy Storage Systems Integrators, is available on Navigant’s website.

Other energy storage leaders on Navigant’s list are: Johnson Controls, Advanced Microgrid Solutions, Tesla/SolarCity, Sharp, sonnen, Greensmith and Lockheed Martin Energy.

And speaking of energy storage leaders…

Energy industry veteran Kelly Speakes-Backman will become the Energy Storage Association’s first chief executive officer on July 1.  Speakes-Backman joins ESA from the Alliance to Save Energy, where she was senior vice president of policy and research.

As part of the organizational change, Matt Roberts’ role will change from executive director to vice president.

ESA is making the changes to ramp up its push for 35 GW of energy storage by 2025.

Big leadership changes underway in New York too

New moves also are underway at the New York State Energy Research and Development Authority (NYSERDA), where Massachusetts clean energy veteran Alicia Barton is now president and CEO.  Barton takes over from John Rhodes, who became chair of the Public Service Commission. He replaces Audrey Zibelman, who joined the Australian Energy Market Operator.

Barton was most recently at the law firm of Foley Hoag in Boston and previously worked as chief of operations for the Global Utility group at SunEdison. She also served as CEO of the Massachusetts Clean Energy Center (MassCEC), a quasi-public agency.

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Lux’s breakdown of the market as forecast by analyst Chris Robinson and team. Image: Lux Research.

We are pleased to share our Energy Storage interview with Dr. Carolin Funk,  Chief Operating Officer, FreeWire Technologies, USA. Dr. Carolin was a speaker at the 10th Energy Storage World Forum in May 2017 in Berlin. Learn more about the 11th Energy Storage World Forum and the 5th Residential Energy Storage Forum 2018 in Berlin by downloading the program

And here are the questions from our editor. Enjoy the interview!

What are the global technological market innovations that drive the next generation Energy Storage solutions? And in your opinion, what are the biggest challenges?

A number of variables contribute to, and detract from, growth in the energy storage market. As with many industries, we are seeing economic and political factors playing vital roles. Cost reductions from adjacent markets, such as battery-powered electronics (like electric vehicles) and large-scale renewable energy growth (such as solar) are paving the way for increased storage, while regulation around grid stability and renewable adoption has been extremely inviting as well. That being said, significant challenges exist in the market, too. In particular, there is no “one-size-fits-all” solution to energy storage, meaning a certain amount of customization is required. Value stacking and flexible solutions are the key to finding the right option across customer segments and scaling up manufacturing.

At ESWF in Berlin you tapped into very interesting topic “Will second-life Battery Systems Ever Be More Cost Effective Than An Efficient Battery Recycling Industry?” Is there a straightforward answer and where are the things headed?

The battery world is constantly innovating, meaning there are no straightforward answers! That being said, a number of patterns are emerging in the second-life battery ecosystem that allow us to make some predictions about what factors will be most influential. Right now, there is very little regulation, meaning that utilizing second-life batteries is an economical choice. However, as prices for new batteries fall, and the market becomes more saturated with second-life batteries, we will see new trends emerge based on this changing landscape.

FreeWire believes that second-life batteries have the potential to benefit the entire energy storage market; however, all the players will need to rally together to share insights and make this opportunity a viable one. The question of whether or not it will be more cost-effective than recycling will also depend on the simultaneous development of the lithium-ion battery recycling industry. Battery costs, industry expectations, and other variables — such as regulation — will factor into cost-effectiveness. Whether we are looking at the future of recycling or energy storage, voices from each of these different corners will likely impact the direction of the market. The worst thing that can happen is just seeing these batteries locked up in warehouses; as long as all the different partners work together to offer a better solution, recycling and reuse can both be viable alternatives.

What kind of partnerships do we need to build between different members of the value chain to make energy storage successful?

There are a number of invaluable partnerships on both the supply and demand sides of the process. Fostering relationships early on in the development of energy storage systems with original suppliers (such as lithium-ion battery manufacturers) and policymakers is key to a lean, reliable supply chain. On the other end of the spectrum, tapping into the right markets for demand is vital. Partnering with large-scale adopters of energy storage, such as utilities, ensures a healthy understanding of customer need and viability.

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State standards are driving electric utilities’ use of renewable energy — but without battery storage capacity, electricity generated from wind, water or the sun may soon saturate the market in certain regions.

Ten years ago, utilities underestimated how much renewable energy they would use due to states’ regulations and the falling cost of wind and solar power. But without large-scale battery storage, the increases observed so far could be at risk of plateauing.

The growth and breakthroughs in renewable energy contributed to lowering the country’s carbon footprint since renewable and nuclear energies do not create carbon dioxide; a saturation in the renewable energy market could also hurt some states’ ambitious climate goals.

The Energy Information Administration estimates carbon dioxide emissions from the electric power sector fell about 5 percent last year and the year before, the largest-ever decline for two years in a row since 1973.

A study out this month funded by the Energy Department looked at the relationship between planning and electricity procurement for 12 utilities in 10 Western states through 2015. The study showed Western utilities bought three times more wind energy more than regulators expected based on the utilities’ resource plans.

This uptick may not be surprising due to newer laws in 29 states and the District of Columbia that require utilities to get a set amount of renewable energy. In addition, eight other states have renewable energy goals (as opposed to enforced standards). Montana, for instance, had set a renewable portfolio standard in 2005 to use 15 percent renewable energy by 2015.

NorthWestern Energy, a Montana utility, currently surpasses the standard, with 60 percent of its electricity coming from hydropower and wind generation. But the company says renewables aren’t as reliable as other sources of power.

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