The technology group Wärtsilä has signed an Engineering, Procurement and Construction (EPC) contract for a new 100 MW/100 MWh total capacity energy storage project in South East Asia.

The energy storage system facility, including Wärtsilä’s GEMS, an advanced energy management software platform, and GridSolv solution, will be used for grid support purposes. The order was booked with Wärtsilä in Q4 2019. This contract comes in addition to the similar size contract announced in July 2019.

Wärtsilä is enabling the transition towards a 100% renewable energy future around the world by designing and building flexible systems that integrate renewables, traditional thermal assets and energy storage.

In 2018, the Association of Southeast Asian Nations (ASEAN) committed to meeting 23 percent of its primary energy needs from renewables by 2025. The region is aiming to leverage its abundant wind and solar resources and reduce its reliance on fossil fuels, especially as grid systems develop and economies grow. Wärtsilä’s new 100 MW/100 MWh energy storage project will help provide some of the reliability necessary to support South East Asia’s transition to renewable energy sources.

Wärtsilä’s GEMS platform has the ability to react near-instantly to smooth the integration of renewables, enabling the grid to emerge more stable and responsive. Grid support applications of GEMS include voltage and frequency regulation, reactive power support, spinning reserve, ramp rate optimization, renewable energy output smoothing and energy arbitrage. GEMS will make it possible for grid operators to rely on renewables as baseload power.

Wärtsilä Energy Business has delivered more than 35 EPC projects totaling 1500 MW in the South East Asia region.

A municipal landfill in the City of Amesbury, Massachusetts, has become the latest site to host a solar-plus-storage project under the state’s SMART programme to promote economically viable clean energy.

New England-headquartered renewables developer Kearsage Energy and the technology provider / system integrator division of NEC Corporation (NEC) have completed work on the 4.5MW solar PV array, combined with a 1.6MW / 2.8MWh AC-coupled battery energy storage system, the pair announced earlier this week.

The project’s partners also put numbers on the expected economic benefits. The City of Amesbury will save around US$4 million in municipal spending on energy over 20 years, panning out at US$200,000 or so every year. This is from a combination of energy credits, lease revenue and tax generated by the site’s operations.

Connected to National Grid, the battery and PV system will play into the New England ISO (NE-ISO) markets, which made provisions to enable energy storage to participate in its wholesale markets during 2019. Along with the Solar Massachusetts Renewable Target (SMART) incentive and the state’s Clean Peak Standard, which has put a higher value on low carbon-generated electrons injected to the grid at times of peak demand than fossil fuel power, the region became a hotbed of solar-plus-storage activity last year.

Public-private partnerships key to unlocking value
While Energy-Storage.news reported on multiple technology providers including NEC and Sungrow hitting that market last year, for Kearsage, this is the company’s first project to include energy storage as well as solar in a pipeline that Kearsage claims totals 250MW. Kearsage said it has built up partnerships with more than 40 public organisations in New England and in New York – and even more recently emerged hot market for battery storage – and the City of Amesbury is not exception.

“Our mission at Kearsarge is to develop sustainable energy solutions in public-private partnerships that boost local economies, provide budgetary relief for municipalities, and enhance community life using underutilised resources like landfills,” Kersage managing partner Andrew Bernstein, said.

“The Amesbury project is a superb example of how all those objectives can be met when municipal leaders are forward looking and open to win-win partnerships.”

Over 2 GW of pumped hydro storage could be coming to Navajo Nation lands, as the Federal Energy Regulatory Commission has accepted developer Daybreak Power’s application for a preliminary permit for its proposed 2,200 megawatt Navajo Energy Storage Station.

The acceptance has been described as an “important early milestone,” but it doesn’t mean that development can begin full steam ahead yet, the permit hasn’t even been issued. Once it has been issued, there is still planning and permitting to be done.

The estimated $3.6 billion project would sit on Navajo Nation lands near the south shore of Lake Powell. The location is interesting because the project would technically be located in San Juan County, Utah, but the nearest city would be Page, Arizona.

Another important point of note is that the project plans outline the use of transmission infrastructure formerly used by the now-retired Navajo Generating Station coal facility.

If built, the project would clock in at 2,230 MW, which could provide 10 hours of continuous generation, with an average annual generation of 3,365 GWh, however, as the company shared with pv magazine:

“These are ballpark figures based on the proposed installed capacity and estimates for how often we’d be generating. We expect the figures to change as we refine the project and conduct engineering/feasibility studies.”

Unlike some pumped hydro plants, which use some of the energy generated while the water is released to re-charge the pump for the next use, Navajo will use solar and wind energy to pump water to the upper reservoir.

The issue of where this energy will go and who will be buying it is an entirely different matter.

The project’s $3.6 billion price tag is another issue, one not necessarily focused on if it will get financed, but rather how. Likely, developers will look to support financing by selling the generation via a power purchase contract, though there is also the possibility that grid operators might see value in the project as a transmission asset and choose to invest in it.

Whelp, that was fast. No sooner does the notorious coal-fired Navajo Generating Station shut its doors, when a massive renewable energy project jumps in to take its place. We’re talking about the proposed Navajo Energy Storage Station in Arizona, and it’s not just any old renewable energy project. It’s a 10-hour, 2,200 megawatt system, which puts it in the long duration storage category, which is something the US Department of Energy has been lusting after quite lustily.

Long Duration Energy Storage In The Time Of Trump
To be clear, the so-dubbed NESS project is still in the proposal and permitting phase. If all goes according to plan, it will be online in 2030 — just in time to absorb new wind and solar development in the area.

If and when NESS does go online, it could pull the rug out from under future plans for gas-fired power plants. The developer, Daybreak Power, is anticipating that NESS will provide wind and solar power to Los Angeles, Las Vegas, and Phoenix for 10 hours, lasting from peak daytime hours and into the night.

That 10-hour energy storage capability is key. The Energy Department has a whole initiative dedicated to long duration storage, which it defines as a minimum of 10 hours and up.

If you’re guessing that’s a recipe for decarbonizing the electricity grid, run right out and buy yourself a cigar.

That’s right, regardless of the Commander-in-Chief’s pro-coal rhetoric, the Energy Department has been promoting the coal-killing combo of renewables and energy storage hand over fist all throughout his tenure (for that matter, the recently impeached President* seems to have lost interest in coal, but that’s a whole ‘nother can of worms).

The Energy Department’s ARPA-E office for cutting edge R&D explains:

“Long-duration energy storage systems address grid needs beyond those covered by daily cycling. Such systems could provide backup power for several days, improving grid resiliency, or allow for the integration of even larger amounts of intermittent renewable sources like wind and solar.”

ARPA-E notes that long duration systems also have a role in daily cycling, which is where a 10-hour system like the NESS project would fit in.

“Such systems could help shape the output from individual wind and solar installations, improving the reliability of these resources and thus greatly increasing their value to the grid,” ARPA-E explains.

So. There.

A new study has predicted the energy storage industry will grow to employ millions by 2050, fuelling a renewables jobs boom as fossil fuel industries shed millions of workers.

Renewables will grow to host 80% of all direct energy sector jobs by 2050 – from 28% in 2015 – as the fossil fuel and nuclear industries decline worldwide from a 70% to a 3% share over the period, according to scientists from Finland’s Lappeenranta University of Technology (LUT).

In a new report, the researchers predicted energy storage alone could create up to 4.5 million new jobs by 2050, helped along by the world’s shift to a fully renewable electricity system in line with climate change goals. For its part, solar would add a workforce of new 22.2 million employees.

The Finland-based team styled their research as the first ever to offer long-term employment forecasts for energy storage worldwide. Using what they termed the “LUT Energy System Transition modelling tool”, they produced estimates around the jobs energy storage will create across all key regions, including Europe (277,000), North America (330,000) and Subsaharan Africa (862,000).

“The results indicate that job losses in fossil fuels and nuclear power sectors are more than outweighed by the job creation in renewable power generation and storage sectors,” the scientists said, predicting the segment to create around 17% of all new energy jobs already by 2030.

VC funding of battery storage companies increased 103% from $850 million in 2018 to $1.7 billion in 2019, according to Mercom’s report. The sector received $2.8 billion in total corporate funding last year, including debt and public market financing, up from $1.3 billion in 2018.

In an email to Utility Dive, Mercom CEO Raj Prabhu noted that VC funding has been rising for three years. The 2019 increase follows a 96% increase from 2016 to 2017 and a 20% increase from 2017 to 2018, he said.

VCs contributed nearly 61% of total corporate funding for energy storage, compared to about 12% of the total corporate funding for solar, according to Mercom.

The report also looked at corporate funding for the energy efficiency and smart grid sectors, such as technologies that allow utilities to automatically deal with distribution grid problems. For smart grid companies, VC funding was down from $530 million in 2018 to $300 million in 2019, and total corporate funding for the sector was down from $1.8 billion in 2018 to $372 million in 2019.

Funding for energy efficiency dipped more dramatically. VC funding for energy efficiency was $1.5 billion in 2018, thanks to a $1.1 billion deal from Silicon Valley-based company View, which designs “smart” windows to allow more daylight into buildings like office spaces. In 2019, VC funding fell to $298 million, while total corporate funding for the sector falling from $1.7 billion in 2018 to over $670 million in 2019.

“Funding for the smart grid sector has been inconsistent but the funding decline in 2019 has been the steepest in the past five years,” Prabhu said. “Financing for energy efficiency companies has been on a downward trend over the past five years except for 2018, when one large billion-dollar deal skewed the numbers.”

Lithium-ion batteries, the most popular form of battery storage by far, accounted for $1.4 billion of the $1.7 billion in VC funding for storage, but Mercom noted that many other forms of storage received funding, including flow batteries, compressed air energy storage, fuel cells, liquid metal batteries, thermal energy storage, solid-state batteries, sodium batteries and zinc-air batteries.

The storage companies bringing in the most VC investment in 2019, according to the report, were Northvolt, a Swedish designer and manufacturer of lithium-ion batteries and battery systems, with a $1 billion deal, followed by the U.S. firm Sila Nanotechnologies with $170 million and $45 million in two separate deals. Energy Vault had the fourth-biggest deal with a $110 million investment from SoftBank’s Vision. Based in Switzerland, Energy Vault’s technology uses the force of gravity generated by lowering concrete blocks from a tower as a form of energy storage.

California regulators have finalized plans to direct more than half a billion dollars in behind-the-meter battery incentives over the next four years to customers most at risk of being impacted by the state’s increasingly deadly wildfires and the grid outages meant to prevent them.

The decision from the California Public Utilities Commission finalizes a proposal pushed ahead last month as a response to the state’s wildfire and blackout crisis. Its vehicle is the Self-Generation Incentive Program (SGIP), the state’s premier incentive for energy storage and on-site generation technologies, which will now direct 63 percent of its $830 million in new funding through 2024 to a newly created “equity resilience budget.”

This, along with $100 million in previous funds, adds up to about $613 million through 2024 that will be set aside for low-income, medically vulnerable and other select groups of disadvantaged residents who live in Tier 2 and 3 “High Fire Threat Districts” spread across the state. It’s also open to customers who aren’t in those zones if they’ve experienced two discrete “public safety power shutoff” (PSPS) events, like the multiday blackouts that left millions of customers of bankrupt utility Pacific Gas & Electric without power this fall.

Critical facilities, ranging from fire stations and nursing homes to cell towers and supermarkets serving remote communities, can also qualify for this budget. But the CPUC’s decision reserves the most generous subsidies available from the SGIP program — $1 per watt-hour, or enough to almost completely cover the upfront costs of a typical residential solar-storage system — for residents who could face serious deprivation or even death due to multiday PSPS events.

Under last week’s decision, these customers will be allowed to exceed SGIP’s limits on sizing of residential storage systems to allow them to choose the next step up in modular battery-solar offerings on the market if that’s needed to support their longer-duration backup needs. They’ll also be allowed to include electrical and circuit load panel and wiring upgrades in the costs.

California’s investor-owned utilities, which administer the system for vendors to apply for and receive SGIP grants, have been asked to speed up the typical process from more than 90 days to less than 60 days, in order to assure that systems can be in place for the 2020 fire season.

SGIP’s budget for its remaining existing categories will be cut to pay for this new focus. That’s a potential challenge for companies that have relied on the incentive to boost the business case for behind-the-meter battery projects.

In the last 15 years, the increase in renewable energy sources such as photovoltaic and wind energy has accelerated significantly. At the same time, manufacturing and installation costs, especially for PV systems, have fallen significantly, making this energy source one of the cheapest and cleanest forms of energy, depending on the location. With the increase of fluctuating renewable energies in an electrical grid, the need for compensation possibilities at times when renewable energies are not available increases [1]. One possibility is the use of electrochemical energy storage such as lithium-ion, lead-acid, sodium-sulphur or redox-flow batteries. Additionally, combinations of hydrogen electrolysis and fuel cells can be used [2]. Batteries can be adapted in a flexible and decentralised manner depending on the respective requirements and are scaleable from a few kW/kWh for e.g. domestic storage up to systems of several MW/MWh for grid storage. The different types of electrochemical energy storage systems have different physical/chemical properties, which affect the cost of the system. It is important to note that the cost of the storage system over its lifetime (levelised cost of storage – LCOS) is a critical factor used in selecting the most suitable system for a particular application [3]. For example, the investment costs for lead-acid batteries are significantly lower than for all other technologies, but the service life is very short.

Technologies with similar investment costs at higher lifetimes result in a lower levelised cost of storage, but to be precise additional factors such as recycling, energy efficiency and maintenance costs have to be considered. A battery with a high efficiency, low recycling effort, low investment and maintenance costs and great freedom of scalability to meet the requirements of the application would be an ideal system. In electrical networks there are different storage time requirements: short-term storage, medium-term storage and long-term storage. The shorter the storage time, the more suitable are physical storage devices such as capacitors. Batteries are suitable for applications ranging from a few minutes to several hours. In addition, mass storage systems such as electrochemical hydrogen generation (power-to-gas) are particularly suitable for long-term storage of several weeks.

Redox flow principles
All electrochemical energy storage systems convert electrical energy into chemical energy when charging, and the process is reversed when discharging. With conventional batteries, the conversion and storage take place in closed cells. With redox flow batteries, however, the conversion and storage of energy are separated [4]. Redox flow batteries differ from conventional batteries in that the energy storage material is conveyed by an energy converter. This requires the energy storage material to be in a flowable form. This structure is similar to that of fuel cells, whereby in redox flow batteries, charging and discharging processes can take place in the same cell. Redox flow batteries thus have the distinguishing feature that energy and power can be scaled separately. The power determines the cell size or the number of cells and the energy is determined by the amount of the energy storage medium. This allows redox flow batteries to be better adapted to certain requirements than other technologies. In theory, there is no limit to the amount of energy and often the specific investment costs decrease with an increase in the energy/power ratio, as the energy storage medium usually has comparatively low costs. Figure 1 shows the general operating principle of redox flow batteries. The energy conversion takes place in an electrochemical cell which is divided into two half cells. The half cells are separated from each other by an ion-permeable membrane or separator, so that the liquids of the half cells mix as little as possible. The separator ensures a charge balance between positive and negative half cells, ideally without the negative and positive active materials coming into direct contact with each other. In fact, however, separators are not perfect so some cross-over of the active materials always occurs and this leads to the self-discharge effect.

What a difference a decade can make. Ten years ago, Li-ion batteries were mostly confined to phones and personal computers; fast-forward to the present and they now power our cars, houses, unmanned aerial vehicles (UAVs), marine vehicles, and even factories.

The coming energy storage explosion will, however, make all this look like a mere stage rehearsal.

A host of energy experts including the U.S. Energy Information Administration (EIA), UBS, BloombergNEF, S&P Market Intelligence, Wood Mackenzie and others are extremely bullish about the prospects of the battery storage industry– both over the near-and long-term–as the clean energy drive gains huge momentum.

Investors who capture the massive economic opportunity could enjoy long growth runways for decades to come.

Utility-scale storage critical in a green world

With the severity of our climate crisis becoming more apparent with each passing day, the need to rapidly transition to a renewable-fueled world becomes even more urgent. Despite our best efforts, greenhouse gas emissions have kept climbing, putting paid our goal to keep the planet from warming to no more than 1.5 to 2 degrees Celsius above pre-industrial levels. This calls for deeper cuts on dangerous emissions and a much faster transition to lower or zero-carbon energy sources.

At the center of our green energy drive are solar and wind power, both of which are expected to contribute nearly half of the global power mix by 2050 as per Bloomberg New Energy Finance. The intermittent nature of these renewable sources, however, means that large-scale storage is absolutely critical if the world is to successfully shift away from high dependence on fossil-fuels.

The surge in lithium-ion battery production since 2010 can be chalked up to huge improvements in the technology from a cost and performance standpoint.

Over the past decade, an 85% decline in prices fueled a revolution in lithium-ion battery technology, making electric vehicles and large-scale commercial battery deployments a reality for the first time in history.

The next decade will be defined by a massive increase in utility-scale storage.

United States utilities are trying to cut down on emissions by implementing utility-scale battery storage units (one megawatt (MW) or greater power capacity).

In March 2019, NextEra Energy (NYSE:NEE) announced plans to build a 409-MW energy storage project in Florida that will be powered by utility-scale solar.