Tag: Battery Storage

NY Invests $40 Million in Solar Energy and Storage Projects

New York Governor Andrew Cuomo announced in October 2018 that $40 million will be available in early November to support solar projects that integrate energy storage. This latest investment is aimed at helping the state reach its energy storage target of 1,500-megawatts by 2025.

“As we continue our aggressive pursuit of clean, renewable technologies, funding for projects like this will ensure New York remains at the forefront of the global fight against climate change,” Gov. Cuomo says. “The strategic pairing of energy storage and solar technologies moves us closer to building a clean energy economy that protects critical natural resources and benefits all New Yorkers.”

The State’s Reforming Energy Vision (REV) program has spurred the statewide solar market by 1,000 percent, improving energy affordability for 1.65 million low-income customers along with creating thousands of jobs. The program also aims to reduce greenhouse gas emissions 40 percent by 2030 and to reach 80 percent by 2050.

The announcement was made during the Alliance for Clean Energy – New York annual conference in Albany, New York. The funding will accelerate the deployment of at least 50 megawatts of energy storage and will boost the continuing growth of the state’s solar industry while reducing emissions. Such solar projects and additional energy storage, can increase the electric grid’s efficiency and reliability. The energy storage capability helps ensures that renewable energy can be shifted to times of highest customer usage, such as afternoon hours on summer days.

To inform New York communities about the benefits of adding energy storage to solar projects, the New York State Energy Research and Development Authority (NYSERDA) will conduct outreach and provide technical resources. This past June, In June, NYSERDA and the New York Department of Public Service developed the New York State Energy Storage Roadmap to identify policies, regulations, and initiatives needed to fulfill the 2025 energy storage target.

The state’s $1 billion investment in a self-sustaining solar industry in the state has already led to the creation of 85,327 solar projects with a capacity of 1,203.2 megawatts and an expected annual production of 1,395 gigawatts, enough to power about 200,000 homes and reducing emissions equal to 160,000 cars. New York is third highest state for solar installations to date.

New York Lays Out Plan For Accelerating Energy Storage

Source: Solar Industry

Gov. Andrew M. Cuomo, D-N.Y., has announced the release of New York’s Energy Storage Roadmap, which is designed to support the governor’s energy storage target of 1.5 MW by 2025.

New York State currently has approximately 60 MW of advanced energy storage capacity deployed with another 500 MW in the pipeline, in addition to 1,400 MW of traditional pumped hydro storage. In order to advance energy storage development in ways that are “viable, replicable and scalable,” the roadmap recommends the following steps:

  • Providing $350 million in statewide market acceleration incentives to fast-track the adoption of advanced storage systems to be located at customer sites or on the distribution or bulk electric systems;
  • Adding incentives for energy storage to the New York State Energy Research and Development Authority’s (NYSERDA) NY-Sun initiative to accelerate the development of solar-plus-storage projects and allow those projects to access federal tax credits before they expire;
  • Enacting regulatory changes to utility rates, utility solicitations and carbon values to reflect the system benefits and values of storage projects;
  • Continuing to address project permitting and siting challenges and reduce system indirect expenses and soft costs; and
  • Recommending modifications to wholesale market rules to better enable storage participation, including allowing storage to meet both electric distribution system and wholesale system needs to provide greater value for ratepayers.

“Clean energy is the future of our planet, and New York will continue to lead the nation in this technology to fight climate change and conserve resources for generations to come,” says Cuomo. “This roadmap is the next step to not only grow our clean energy economy and create jobs but to improve the resiliency of the grid to keep our power running in the face of extreme weather and other emergency situations.”

The plan was developed by the Department of Public Service (DPS) and NYSERDA with input from numerous stakeholders.

“With this roadmap, Governor Cuomo has brought New York once again to the forefront of the nation in developing new energy solutions that will fuel our efforts to build a cleaner energy system for future generations,” states Alicia Barton, president and CEO of NYSERDA. “The roadmap will serve as a guide to jump-starting the market for advanced energy storage projects in New York on our path to achieving 50 percent renewable energy by 2030 and turn the Empire State into a global hub for the burgeoning energy storage industry.”

The New York Power Authority is currently working on several energy storage projects that demonstrate the value of the technology. This work includes a partnership with the State University of New York (SUNY) on multiple projects that would allow the university system to use stored solar power during emergencies and times of peak energy demand. A solar energy and battery storage system was completed this spring at the SUNY New Paltz campus, and planning is underway for a similar system at the SUNY Delhi campus.

Additionally, as proposed by Cuomo in his 2018 State of the State, NY Green Bank seeks to invest at least $200 million in storage-related investments, designed to help drive down costs for the strategic deployment of energy storage at scale. To support this commitment, NY Green Bank has released a request for information to solicit direct interest from project developers on how it can address financing gaps and support energy storage projects. NY Green Bank is also expected to issue a request for proposals later this year for projects combining solar and energy storage.

Richard Kauffman, New York State’s chairman of energy and finance, says, “Energy storage not only increases the use of renewable electricity generation but provides numerous benefits to our environment and economy and improves the resilience of the grid. Under Governor Cuomo, New York’s comprehensive approach supports the growth of the energy storage market by providing financing and policies that support the growth of this sector and ensure we meet the state’s ambitious clean energy goals and combat climate change.”

In his State of the State, Cuomo committed $60 million in NYSERDA funding to energy storage initiatives. NYSERDA has already made almost $22 million available in two separate solicitations as part of New York State’s long-term investment in the energy storage sector.

Multiple technical conferences will be held throughout the state to allow for public feedback on recommendations and approaches identified in the roadmap. The Public Service Commission has created a new proceeding to consider and establish a 2030 storage target and the deployment mechanisms to achieve the 2025 and 2030 energy storage targets by the end of the year. Public comments on the roadmap can be submitted via the DPS website.

New Efficient Energy Storage System Extracts Energy from Thin Air

May 3, 2016 – The gap between electricity generation and use could be narrowed with an Oak Ridge National Laboratory system that extracts energy from thin air. Actually, Ground-Level Integrated Diverse Energy Storage, or GLIDES, stores electricity mechanically in the form of compressed gas that displaces water in high-pressure vessels described by co-inventor Wale Odukomaiya as the heart of the system.

GlidesSlider

The GLIDES approach has the potential to change the way energy is stored.

He noted that GLIDES overcomes the site limitations of pumped storage hydroelectricity and compressed air energy, and the higher cost of batteries. Compared to these conventional energy storage systems, GLIDES also features near constant-temperature processes, higher efficiency and more flexible scalability. In addition, the system uses the world’s smallest Pelton turbine, which extracts energy from the impulse of moving water, manufactured at ORNL’s Manufacturing Demonstration Facility.

 

To arrange for an interview with a researcher, please contact the Communications staff member identified at the end of each tip. For more information on ORNL and its research and development activities, please refer to one of our media contacts. If you have a general media-related question or comment, you can send it to news@ornl.gov.

2015 HAS BEEN THE ‘YEAR OF THE BATTERY,’ BUT STORAGE CAN DO MUCH MORE

Via RMI Outlet

Report Release: The Economics of Battery Energy Storage

2015 has been the ‘Year of The Battery,’ but it’s time to focus less on cost and more on the value

DOWNLOAD THE ECONOMICS OF BATTERY ENERGY STORAGE from RMI

In many ways, 2015 has been “The year of the battery.” Consider the excitement around Tesla’s Powerwall, or battery energy storage’s 600 percent Q2 growth over Q1, or one of the world’s largest utilities recently proclaiming that batteries will obviate the need for any new gas peaker plants in the U.S. post-2020. But the most important and exciting news around batteries still lies ahead.

To date, the attention has been on cost—how cheap batteries have gotten, and how fast they’ve done so. Now, a new RMI report shifts the focus critically to the other part of the battery equation: value. The report found that batteries can reduce grid costs and customer bills, increase the resilience of the grid, and support a largely renewable electricity system. All that value is available, if we make some critical adjustments.

Batteries are usually deployed today for single, primary uses: think demand charge reduction in California or frequency regulation on PJM’s wholesale electricity market. These single use cases are usually compared against the relative cost of a battery. This sells batteries short: comparing one use case against the cost of a battery is like comparing the cost of a Swiss Army knife to the value you can get from just using the blade. A battery is capable of delivering many services with the same device, just like a Swiss Army knife. But right now folks are buying the knife and only using the blade when they could also be using the pliers, screwdriver, and so on.

So far, batteries deployed to reduce demand charges or defer traditional utility investments aren’t typically used to deliver multiple services. This means batteries might only be used for 1–50 percent of their useful life. And yet, a battery could be used to deliver other services for the other 50–99 percent of its useful life and get paid to do so. Would you build a hotel and only sell 1–50 percent of the rooms? Neither would we. So why do it with batteries?

In our new report, The Economics of Battery Energy Storage, we asked some important fundamental questions:

  1. What services can batteries provide to the grid?
  2. Where on the grid can batteries deliver each service?
  3. How much value can batteries generate when they are highly utilized and services are stacked?
  4. What regulatory barriers currently prevent single energy storage systems or aggregated fleets of systems from providing multiple, stacked services to the grid?

THIRTEEN SERVICES FOR CUSTOMERS, UTILITIES, AND THE GRID

Our research indicates that batteries, when placed behind the meters of residential, commercial, or industrial customers, can deliver 13 services to the electricity system at large. The figure summarizes these services and the stakeholder group that accumulates the lion’s share of each benefit (more detail on these services can be found in our full report).

Batteries deployed further downstream in the electricity system (behind the meter) can technically deliver the maximum number of services to the grid. But as you move upstream in the electricity system—towards large centralized power plants—energy storage loses the ability to deliver some of these services. For example, a battery connected at the distribution level can’t perform customer bill management, while a battery connected at the transmission level won’t be able to defer any distribution-level investments.

BATTERIES DEPLOYED BEHIND THE METER CAN BE COST EFFECTIVE TODAY

This finding, though important, doesn’t tell us how much net value batteries can deliver to the electricity system. To estimate this, we developed an energy storage dispatch model to understand the economics of energy storage in four potential real-world scenarios.

Our results were surprising. Batteries deployed behind the meter are “in the money” right now, under prevailing cost structures, without subsidy. This finding comes with two major caveats:

  1. Batteries must be well utilized and deliver multiple services to customers and the grid in order to be cost effective. The prevailing energy storage business model in the U.S., using a battery to reduce a commercial customer’s demand charge, delivers a single service to a single stakeholder and typically underutilizes the battery—sometimes dramatically so. Batteries deployed for demand charge reduction are only used for 5–50 percent of their useful life. That means those same batteries could be re-dispatched to deliver other services to other stakeholders, like utilities and independent system operators/regional transmission organizations, and get paid for them, dramatically changing the economics of energy storage.
  2. Our modeling results assume no regulatory barriers to aggregated, behind-the-meter market participation or revenue generation. As we’ll cover in a moment, a number of regulatory prohibitions currently prevent batteries deployed behind the meter from delivering and getting paid for these services. Our modeling results artificially remove these regulatory barriers in order to understand the economics of energy storage without regulatory restrictions.

Let’s use a case from the report to highlight our findings and the two caveats above. The figure shows how a battery deployed behind the meter for a hotel in San Francisco is used, and what value it generates. As you can see, when the battery is deployed for a single use (demand-charge reduction) it doesn’t pay off (the orange portion of the revenue stack is smaller than the black cost stack in the bar chart) but when additional services layer on top of demand charge reduction, the economics flip in favor of energy storage. The pie chart also illustrates how little of this battery’s lifetime capacity is needed for demand charge reduction: about 53 percent. That means it can be dispatched for the remaining 47 percent of its lifetime time to deliver other services (in this case, resource adequacy for the utility and a suite of wholesale electricity services).

THE ECONOMICS ARE PROMISING, BUT REGULATIONS MUST EVOLVE

Every one of the revenue-generating services in this example is being delivered by some behind-the-meter energy storage systems in operation today. But very few projects are simultaneously providing this full stack of services (or other combinations thereof) with a single device or fleet of devices.

This is because energy storage—and other distributed energy resources (DERs) like smart controls, energy efficiency, and rooftop solar PV—has matured faster than the rates, regulations, and utility business models needed to support them as core components of the future grid. To overcome these barriers and realize the full value of rapidly evolving battery technologies, we recommend the following changes:

FOR REGULATORS

  • Enact regulatory reform to unlock DERs and reduce the cost of the grid. Regulatory proceedings in New York (NY REV), California (IDSM, DRP, and NEM 2.0), Hawaii, Texas, and emerging efforts in other states have begun the long road towards open distribution system planning, utility business model reform, and ubiquitous advanced rate design. But no state or region in the U.S. should be left out of the cost and resiliency benefits that come from DERs, so more work is needed both inside and outside of these leading states.
  • Require that DERs be considered as alternative, potentially lower-cost solutions to problems typically addressed by traditional “wires” investments and/or centralized peaking generation investments.

FOR UTILITIES

  • Prior to considering new centralized assets, consider how storage could be leveraged across utility departments. Utilities have a number of tools at their disposal that could obviate the need for new power plants or distribution upgrades. Distribution planners, grid operators, and rate designers should work together to leverage the full capability of storage and other DERs to get multiple uses out of assets, whether singly or in fleets.

FOR BATTERY AND DER DEVELOPERS

  • Pursue business models that fully utilize batteries
  • Pursue cost reduction efforts for all power-focused elements of energy storage systems (all $/KW components) in order to unlock more markets, faster.

Battery-based energy storage is a powerful resource capable of reducing grid costs and customer bills, increasing the resilience of the grid, and supporting a largely renewable electricity system. And even though the economics of storage look good today, they’re only going to get better as gigafactories other than Tesla’s come online across the globe and costs come down further. It’s time for utility business models to evolve and for regulations to change in order for the benefits offered by behind-the-meter, battery-based storage to be captured across the U.S.

DOWNLOAD THE ECONOMICS OF BATTERY ENERGY STORAGE from RMI