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Vol. 1 | Issue 4 | 2013
BUSINESS & MARKET STRATEGIES FOR ENERGY STORAGE & SMART GRID TECHNOLOGIES
RINGING THE CHANGES FROM TELECOMS TO ISLANDS
MULTI-MWH PROJECTS
PERFECT MATCH?
Energy storage companies go after off-grid markets
Japan and the UK commission battery-based energy storage
Exploring the global PV and storage opportunity www.energystoragejournal.com
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GOING OFF-GRID ENERGYSTORAGEJOURNAL Business and market strategies for energy storage and smart grid technologies ENERGYSTORAGEJOURNAL is a quarterly publication www.energystoragejournal.com Views expressed in ENERGYSTORAGEJOURNAL are the authors’ and not necessarily those of IPVEA Published by International PV Equipment Association (IPVEA) P.O. Box 1610, D-63406, Hanau, Germany Registration Number: Court Hanau VR 31714 Tel: +1 407 856 9100 www.ipvea.org Publisher Bryan Ekus Publisher and Managing Director International PV Equipment Association ekus@ipvea.com Editor Sara Ver-Bruggen sara@ipvea.com Advertising Peter Jansen jansen@energystoragejournal.com Office: +49 (0) 2841 – 40 999 60 Cell: +49 (0) 176 – 20 25 78 72 Design Doubletake Design Ltd. (UK) darren@doubletakedesign.co.uk Cover image: © Doubletake Design Ltd. © 2013 International Photovoltaic Equipment Association (IPVEA) Every effort has been to ensure that all the information in this publication is correct, the publisher will accept no responsibility for any errors, or opinion expressed, or omissions, for any loss or damage, cosequential or otherwise, suffered as a result of any material published. Any warranty to the correctness and actuality can not be assumed. IPVEA reserves the right to make changes or additions to the information made available at any time without notice. © 2012 International Photovoltaic Equipment Association. All rights reserved. Contents may not be reproduced by any means, in whole or part, without the prior written permission of the publisher.
G
ermany’s incentive programme sparking demand for small-scale batteries in conjunction with photovoltaic (PV) systems, and the recent storage target set out by the California Public Utilities Commission, state-side, suggests the grid-tied market for stationary energy storage is set to gather pace over the next five years. In most parts of the world, millions of people, local businesses, schools, hospitals and critical facilities, cannot ever expect their governments to invest in extensive centralised grids to provide round-the-clock power supply that many of us in the west take for granted. Instead, burning diesel fuel has been the only affordable and reliable option available to generate electricity off-grid. Before successive governments began exhorting taxpayers to adopt distributed renewable energy generation with feed-in tariff (FIT) and similar incentives, the market for PV panels largely came from off-grid sources. Now that solar panels cost much less compared with even a few years ago, and the cost of producing electricity from diesel generation has risen, power generation systems that relegate the role of diesel to provision of backup power, whilst maximising the output of renewable energy generation sources, are proving more costeffective than burning through gallons of fuel. Consequently developers of energy storage systems, manufacturers of advanced battery technologies capable of the high cycling demanded for off-grid applications, as well as an increasing number of solar installers and panel suppliers are converging on the fast-expanding window of opportunity presented by the global off-grid market, whether supplying telecoms operators serving booming mobile phone demand in emerging economies, to remote mining operations, to luxury eco-resorts on islands. Thanks to initiatives in places such as California and Germany strong forecasts for grid-tied PV and storage market growth are emerging. However, the off-grid market is not only substantial and dynamic in its own right, but also receptive to providers of better-integrated systems, designed to optimise different sources of power needed to generate electricity reliably and efficiently. With the right local partnerships energy storage businesses can expect good returns from off-grid markets.
SARA VER-BRUGGEN EDITOR
OCTOBER/ 13 | ISSUE 4 | ENERGYSTORAGEJOURNAL
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INSIDE 4 NEWS Latest deals, projects and announcements from the global energy storage industry
14 NEWS ANALYSIS Multi-MWh energy storage projects using batteries are set to benefit the UK and Japanese power grids
16 MARKET ANALYSIS ESJ goes beyond the numbers to explore the global PV and storage market opportunity in more depth
14
22 MARKET ANALYSIS For PV and storage systems, the off-grid opportunity is significant and can provide developers and suppliers with good margins
26 COVER STORY As mobile usage spreads out to increasingly remote and less developed regions, stationary energy storage is in a position to displace diesel for powering telecom assets
34 GOING WITH THE FLOW Energy storage systems that leverage redox flow battery technologies are favoured for offgrid requirements
36 SOLAR AND STORAGE FOR REMOTE POWER The falling cost of PV panels is creating new opportunities for the energy storage industry, to bring green off-grid electrification to remote sites and communities
42 ADDING UP THE ENERGY THAT GOES INTO ENERGY STORAGE A paper from Stanford University makes a valid case for using energy values to appraise storage technologies for different applications
46 ENERGY STORAGE EVENTS Listing of key conferences and shows in the energy storage calendar
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36
48 ENERGY STORAGE AT INTERSOLAR AND EUPVSEC This year’s major solar shows increased their focus on energy storage topics and suppliers
ENERGY STORAGE NEWS
CALIFORNIA, US
California adopts historic energy storage targets On 17 October 2013 the California Public Utilities Commission (CPUC) set a target for Californian investor-owned utilities to procure 1.325 GW of cost-effective energy storage by 2020.
ROUND-UP OF KEY DEALS, PROJECTS AND ANNOUNCEMENTS IN THE GLOBAL ENERGY STORAGE MARKET
The target, which is the largest of its kind worldwide, could increase California’s installed energy storage capacity six-fold from its current 35 MW (excluding large-scale pumped hydro storage). In issuing the target the CPUC has, in effect, created an asset class specifically for storage, so that these systems no longer compete with conventional power generation.
NEWS
The decision is the result of a two-year regulatory process that studied many different and innovative stationary energy storage technologies and applications for meeting the state’s growing grid needs. The first solicitation for new energy storage capacity will be required to occur no later than 1 December, 2014. All five CPUC commissioners approved the landmark decision unanimously. Commissioner Carla Peterman stated: ‘I believe energy storage has great potential to help us address grid reliability and renewables integration issues. This decision is an important and appropriate step, especially considering the leadership role California has and continues to play in advancing progressive energy policy.’ The CPUC’s action sets targets for California’s investor-owned utilities and direct access providers to procure a specified amount of energy storage every two years through 2020, with targets increasing with each solicitation. Some energy storage facilities are expected to come into service as early as 2015, meeting grid needs such as phasing out dirtier power plants, deferring expensive transmission and distribution (T&D) upgrades, and helping to integrate renewables. Under AB 2514, which became law in 2010, the CPUC was required to open a proceeding, to consider developing energy storage procurement targets for Californian utilities to integrate grid-scale storage into the state’s electrical power system if determined to be viable and cost-effective. Assemblywoman Nancy Skinner, author of AB 2514, commented: ‘The CPUC’s decision to ensure storage capacity will increase the reliability of our electrical grid and optimise solar, wind and other renewable resources. This decision makes our state the global leader in energy storage, spurring innovation and creating jobs across California.’ The decision includes: • Specific, biennial energy storage procurement targets for Southern California Edison, San Diego Gas &
Electric, and Pacific Gas and Electric beginning in 2014 with targets increasing over time. By 2020, the three together are expected to have contracted for 1.325 GW of energy storage for their operations with an absolute installation requirement no later than 2024. • Utilities will be allowed to employ energy storage for a variety of functions throughout the electric power system, such as capacity, ancillary services, and peak shaving, which in turn will provide real-world data for further market expansion. Energy storage systems can be deployed in three ‘grid domains’: transmission-interconnected, distribution-interconnected and behindthe-meter-interconnected.
LAKE ELSINORE, CALIFORNIA
IDS Industries to acquire Charge! Energy Storage To expand into the residential, commercial and light industrial markets for stationary energy storage, IDS Industries is acquiring Charge! Energy Storage. In October IDS Industries signed of a letter of intent to acquire Charge!, a manufacturer of energy storage systems, and operate the company as a whollyowned subsidiary. Charge! will assume responsibility to commercialise a patentpending battery management and charge controller system, in beta testing, and will expand its portable energy storage systems that use lithium iron phosphate chemistries.
• Utility ownership of storage projects should not exceed 50% of all storage across all three grid domains. • While large scale pumped storage (>50MW) projects are excluded from the target, the CPUC will hold a workshop to further explore the operational characteristics and uses for pumped storage projects.
Wildcard However, Lux Research advises companies commercialising stationary storage systems, especially those based on lithium ion batteries, to keep in mind more solid, less risky markets such as uninterrupted power supply (UPS). ‘California is a wildcard. There is a caveat so that utilities can forego the majority of the mandate if energy storage systems implemented cannot provide a value proposition,’ said analyst Steven Minnihan, during a Lux Research webinar in October. Even though California accounts for 5% of the worldwide forecast for lithium ion battery demand in stationary applications, if the state does not succeed as a ‘trailblazer’ market then other utilities around the world will pull back from energy storage. ‘Conversely, if it does take off then other markets will also adopt storage more successfully,’ said Minnihan.
Charge! Energy Storage (previously called Installing Dealer Supply) is a Californian manufacturer and distributor based in Lake Elsinore, with a 24-year history in the construction materials business. Two years ago the company switched to manufacturing and distributing portable power generators and energy storage products for residential, commercial and light industrial applications. Charge! has distribution channels throughout California and across the US. IDS Industries CEO Scott Plantinga said: ‘With Charge! we will not only be able to offer cutting-edge smart Energy Storage systems for the portable and stationary markets, we will build on the architecture of lithium iron phosphate or “safe Lithium” and have staked our claim to energy storage devices based on the safest, most user-friendly battery chemistry currently available on the market.’ IDS Industries is active in the fields of energy storage and portable power generation. The company’s integrated battery management and charge controller system optimises advanced lithium chemistry functions, improving battery performance and extending battery life.
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ENERGY STORAGE NEWS Charge! has also applied for California supplier status under the self-generation incentive programme (SGIP), which offers incentives to customers with distributed generation systems. SGIP provides a $1.80/W (EUR1.30/W) incentive for advanced energy storage technologies installed on the customer side of the utility meter. Eligible generation technologies from approved California suppliers receive an additional 20% incentive. The California Public Utilities Commission (CPUC) administers the programme through participating utilities Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), Southern California Gas Company (SoCalGas) and San Diego Gas & Electric Company (SDG&E). Retail electric and/or gas customers of these utilities are eligible to participate in SGIP.
www.idsindustries.com www.chargeenergystorage.com
BERLIN AND SCHWERIN, GERMANY
Wemag and Younicos build commercial battery park in northern Germany In September 2013 north-east German power utility Wemag and renewablesintegration specialist Younicos started construction of a battery park for the balancing of short-term power fluctuations in Schwerin, in Germany. The lithium ion-based unit, which will have a capacity of 5 MWh, will be operational in September 2014. With a maximum power of 5 MW the energy storage system will
Courtesy of Younicos
help stabilise grid frequency to enable the safe integration of wind and solar power into the existing grid. Thomas Pätzhold, CTO of Wemag, said: ‘By constructing this large commercial battery park, Wemag is contributing the integration of renewables into the power grid.’ Although the battery system is a pioneering project, the unit will be operated economically. Following the initial EUR1.3 million investment grant through the innovation programme of Germany’s Federal Ministry for the Environment, the large-scale storage unit will earn revenue by taking part in Germany’s primary frequency regulation market. Berlin-based Younicos developed the fully automated battery power plant and will deliver the turn-key system composed of more than 25,000 lithium ion units. High power storage that can balance shortterm fluctuations in the grid can provide leverage for the economic integration of more renewable energy. Each MW of installed battery power can replace up to 10 times as much of conventional capacity that would otherwise be required to keep the grid stable. The business model of the Schwerin battery park is solely based on the provision of primary frequency regulation services. Frequency regulation balances power supply and demand, a service traditionally provided by conventional power plants. Batteries are also able to do so by storing and releasing power, without producing greenhouse gases in the process. The batteries are kept about 50% charged and store or release power automatically as the grid’s frequency requires it. As soon as the frequency drops below a pre-defined trigger-point below 50 Hertz, the battery feeds power into the grid. Conversely, the battery stores excess power as soon as grid frequency rises above another pre-defined point 50 Hertz. This balances the inherent fluctuations of clean, but intermittent, renewable generation units.
Such balancing is becoming increasingly important. Wemag’s wind-swept regional grid in north Brandenburg and west Mecklenburg alone has a renewable generation capacity of over 800 MW. In 2012 these units produced 80% of the amount of energy consumed by the customers of Wemag Netz. The grid operator expects this amount to increase to 100% in 2013. Battery cell provider Samsung SDI guarantees the performance of lithium cells for 20 years. Younicos and Samsung SDI are suppliers for a 10 MWh energy storage system that will be built in the UK, for UK Power Networks (read about the project in this issue’s news analysis on page 12), which will be used to develop economic models for using energy storage on the grid.
www.younicos.com www.wemag.com
MADRID, SPAIN
Proinso collaborates with battery maker to develop offgrid PV and storage product Proinso is to launch a PV and storage product for off-grid applications in early 2014. The Spain-headquartered firm, which is a leading global supplier and distributor of solar panels and system components for grid-tied and off-grid markets, is working closely with a battery company on the system. Speaking exclusively to Energy Storage Journal, Proinso says the collaboration will result in a fully integrated PV and storage system and the batteries will have a higher energy density and will be safer and more stable than some batteries in off-grid systems that are on the market. The company declines to reveal the battery partner’s name at this stage. With the new system the company aims to take a slice of the global diesel generation
NEWS
set (gen-set) market, which is growing fast and is expected to surpass $3.3 billion (EUR2.4 billion) by 2019. Supplying PVbased systems, whether as part of diesel hybrid systems or green off-grid systems, in emerging regions and countries is a core part of Proinso’s business strategy and an area in which it has gained a lot of experience and expertise. The new green off-grid PV and storage system will be available to worldwide installers though south-east Asia, south Asia, sub-Saharan Africa and South and Central America are the main targets. Proinso already offers a range of off-grid power generation systems, including PVdiesel hybrid systems, where the company sources and tests system components so they properly interoperate with modules, inverters from SMA and fuel save control (FSC) electronics. Like the PV-diesel hybrid system, the PV-storage system Proinso will introduce next year will comprise of components and hardware that have been sourced and comprehensively tested to seamlessly interoperate ensuring better performance of the system.
PITTSBURGH, PENNSYLVANIA AND ALPHARETTA, GEORGIA, US
Aquion and Siemens Industry team up to provide energy storage systems Aquion Energy has signed a memorandum of understanding (MOU) with Siemens Industry, in the US, to work on an integrated energy storage system for ongrid and microgrid applications. Under the MOU the companies are testing the compatibility of Aquion’s batteries and industrial converters made by Siemens Industry, a subsidiary of Siemens. Earlier this year Aquion began pilot production of its aqueous hybrid ion (AHI) chemistry and sending samples batteries to potential customers and partners. Siemens Industry’s Sinamics S120 inverter and Aquion’s battery are undergoing high voltage tests at Aquion’s R&D plant in Pittsburgh, and will undergo additional joint testing at Siemens’ Alpharetta lab. The compatibility of Siemens Industry’s inverter with Aquion’s battery is an initial step in developing an energy storage system based on Aquion’s battery.
Proinso is owned by OPDE Group, a Spain-headquartered industrial firm that constructs large solar PV plants.
www.proinso.net
In 2012 Siemens began marketing a modular energy storage system for microgrids, a variety of grid-scale deployments and commercial sector storage enabling buildings and industry to avoid costly peak loads and ensure uninterrupted power supply (UPS). Called Siestorage, the system uses lithium ion batteries. Italian utility Enel has evaluated a 500 kWh version of Siestorage for frequency regulation.
www.aquionenergy.com www.usa.siemens.com www.siemens.com/siestorage
NEW YORK, US
GE sells 30 MWh-worth of batteries
In addition, Proinso is a distributor for all individual components of off-grid PV-based systems, which can include batteries. Leading battery makers, such as Enersys, supply batteries for off-grid applications through Proinso’s channels. Proinso provides full solutions for blue chip companies and is in discussion with some to provide systems on a global basis for their off-grid requirements, including light industry, mining and agriculture. Through its network of qualified installers Proinso also offers engineering and design services in addition to supplying equipment.
Aquion was spun out of Carnegie Mellon University in 2009 and is headquartered in Pittsburgh. The company is leasing space within a large existing facility in the East Huntingdon Township from the Regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC). As part of a first phase manufacturing commitment at this site, Aquion aims to create over 400 high-tech manufacturing jobs by the end of 2015.
Since launching its industrial battery manufacturing business in July 2012, General Electric (GE) has sold 30 MWhworth of batteries.
Aquion’s 18 kWh battery provides high performance, long-duration daily cycling for grid and microgrid applications. Last year Aquion completed the testing and demonstration requirements for a Department of Energy (DoE) grant programme with its low cost, grid-scale, ambient energy storage device. The testing demonstrated a grid-connected, high voltage, 13.5 kWh system with a 4-hour discharge. Aquion plans to move into high-volume production in anticipation of supplying utility applications in 2014.
The figure includes sales of 6000 batteries to Megatron Federal for the South African telecoms market, which GE announced at the time of opening its $100 million (EUR74 million) state-of-the art battery manufacturing plant, located in Schenectady, New York, last year. The Durathon battery has been designed specifically for continuous chargedischarge-cycling in telecoms, where batteries are the primary energy source to cut down on fuel costs and emissions associated with diesel generation. As well as grid-tied and off-grid telecoms opportunities GE is targeting other offgrid markets with its Durathon batteries
OCTOBER/ 13 | ISSUE 4 | ENERGYSTORAGEJOURNAL
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ENERGY STORAGE NEWS and energy storage systems, including island microgrids. GE is also interested in grid applications, where energy storage systems on the transmission or distribution network can allow operators to manage peak loads more efficiently and other services.
2013, will serve as a hub and provide local support for telecom battery systems, including maintenance services, training and commissioning to meet the growing demand for energy backup systems linked to the deployment of mobile telecom networks in India.
The 30 MWh of orders, about half of which is for the telecoms market, are yet to be installed. Several years ago GE’s research arm began investigating a better power source for hybrid locomotives, evaluating several battery technologies in the process before settling on sodium nickel chloride chemistry as the most versatile and effective technology.
On average, 70% of the approximate 400,000 mobile towers in India face electrical grid outages in excess of eight hours a day, according to a white paper published last year by Intelligent Energy.
In 2007, GE acquired Beta R&D, a UKbased company that developed sodium metal halide batteries in the 1980s and had already demonstrated the technology’s reliability and durability through years of previous research.
geenergystorage.com
BAGNOLET, FRANCE
Saft receives €35 million of orders for lithium ion telecom batteries in India In July, European battery maker Saft received its largest order for lithium ion telecom batteries to date, from Reliance Jio Infocomm Limited (RJIL) in India. The order will see Saft’s Evolion products installed at over 10,000 RJIL global base monopole (GBM) – broadband mobile base station – sites across India. All are grid-tied. Saft’s automated lithium ion factory in Jacksonville, Florida, will make the batteries for the RJIL contract, while Bangalore factory subsidiary Amco Saft India Limited, which opened in early
RJIL is the only pan-Indian 4G long term evolution (LTE) operator. The first deliveries of Saft’s batteries to the company began during the second quarter of 2013 and will be completed by the end of the first quarter 2014. The high energy density and fast charging 48V Evolion module offers a capacity of 3.9 kWh, and is fully compatible with existing telecom equipment, but is around half the size of a conventional lead acidbased telecom battery – and much lighter – freeing up more space for revenuegenerating equipment.
www.saftbatteries.com
ROCKVILLE, MARYLAND, US
Greensmith reveals new utility and commercial projects Following the release of its latest version of energy storage software and integration services Greensmith Energy Management Systems will supply new energy storage projects in the US. The Maryland-based company specialises in developing software for specific energy storage applications for utilities and commercial clients, sourcing batteries and other hardware from different suppliers for integration into its energy storage systems. Greensmith’s latest system software, BOS4, has five core improvements. These include an expansion on application functionality for demand charge optimisation and frequency regulation, a reduction in the complexity of mechanical
architecture and the integration of two additional battery chemistries. BOS4 is shipping now, following an initial release in August during a successful factory acceptance testing of a 1 MW system which will be installed in southern California. Several upcoming projects will use BOS4, explains Greensmith CEO John Jung. ‘These include large frequency applications, a commercial and industrial multifunctional application featuring demand charge management, a commercial and industrial application featuring two additional battery chemistries and a retrofit of an underperforming set of batteries and inverters from a different vendor in central California.’ Greensmith has also started upgrading some of its customers looking to expand the capabilities of their earlier systems. In addition, Greensmith plans to make its BOS4 software platform more flexible by offering a standard API to customers so they may write their own proprietary applications. API is the bridge between software routine that is used to perform a function and the operating system or platform, based on a mix of rules, codes and standards. APIs embedded in Greensmith’s platform allow customers and partners to develop software-based functionality to support energy storage for solving grid congestion issues with intelligence, software and data, and maximises the capture of value streams, explains Jung.
www.greensmith.us.com
ALACHUA, FLORIDA, US
Encell’s nickel iron batteries outperform valve regulated lead acid batteries Encell Technology’s nickel iron batteries have been demonstrated to outperform valve regulated lead acid (VRLA) batteries for telecom and microgrid applications and
CHARGING THE FUTURE. EES 2014 – INTERNATIONAL TRADE FAIR FOR BATTERIES, ENERGY STORAGE AND INNOVATIVE PRODUCTION JUNE 4–6, 2014, MESSE MÜNCHEN, GERMANY ees (electrical energy storage) is the industry hotspot for
Enter the gateway to renewable energy industries by attending
suppliers, manufacturers, distributors and users of stationary
ees at Intersolar Europe 2014 in Munich, June 4–6, 2014.
and mobile electrical energy storage solutions. As of 2014, it will take the stage with Intersolar Europe, rounding out an
Storage solutions can also be found at the following exhibitions:
already stellar spectrum of products and services in the area
Intersolar India: Mumbai, November 12–14, 2013
of solar energy generation and electric energy storage.
Intersolar China: Beijing, March 26–28, 2014
Covering the entire value chain of innovative battery and
Intersolar North America: San Francisco, July 8–10, 2014
energy storage technologies – from components and
Intersolar South America: Sao Paulo, August 26–28, 2014
production to specific user applications – the ees is the ideal platform for all kinds of stakeholders in the rapidly growing energy storage market. The focus at ees will be on energy storage solutions suited to energy systems with increasing shares of renewable energy sources.
www.ees-europe.com
ENERGY STORAGE NEWS the firm has begun shipping first modules off the line. Battery life extends to thousands of deep discharge cycles with a float charge to 20 years, according to the Floridaheadquartered company. The Atlas 160 Ampere-hour (Ah) 12 volt rechargeable battery, developed by Encell, is designed to replace traditional VRLA batteries in demanding microgrid energy storage applications. The company began shipping its nickel iron battery in August 2013. Initial orders are for a microgrid designer and supplier in Silicon Valley, California, for microgrids in Lagos in Nigeria. Microgrid installations, typically consisting of standby diesel generators, solar panels and backup batteries, are used to ensure continuous, reliable power in environments where utility power is erratic. Remote microgrids can be installed where there is no grid network in place. Batteries in microgrid applications are often frequently cycled and may undergo deepdischarge cycles. But sustained deep discharge cycling severely reduces the battery life of VRLAs. Typical specifications show reduction from over 5000 cycles at 20% discharge to just over 500 cycles at 80% discharge for VRLAs. In contrast, Encell’s Atlas 160 NiFe cycle life under similar deep-discharge operating environments approaches 9000 cycles. For a typical installation, this extended deep-discharge performance can result in a dramatic reduction in the number of batteries needed without compromising battery life. Robert Guyton, Encell’s chairman and founder, says: ‘The economic benefits in terms of the number of batteries required and the frequency of replacement make the Atlas 160 the clear winner.’ The Encell Atlas 160 weighs 120 lbs and is packaged in the standard, front terminal configuration with maximum dimensions
(5.3 x 22.3 x 13.0 in) similar to comparable VRLAs. High-end temperature ranges for both operation (1000ºC) and storage (600ºC) exceed VRLA specs. Float charge battery life of the Atlas 160 is up to 20 years – several times longer than comparable VRLAs. When energy available over the entire cycle life of a battery is considered, the Atlas 160 product cost is one-tenth that of a lead acid battery with similar name plate capacity. For example Encell’s battery costs $0.034/kWh/cycle (EUR0.025/kWh/ cycle), based on 11,000 cycles, at 85% efficiency. In comparison a 175 Ah, 12 volt VRLA battery, based on 1200 cycles, at 85% efficiency costs between $0.35$0.42/kWh/cycle. According to Rob Guyton: ‘To make the nickel iron batteries we use modern manufacturing processes, not used prior to the 1970s, such as continuous coating, as opposed to manual pouch formats and techniques. Our IP consists of 21st century processing and production techniques on a tried and tested, established battery technology.’ The company has also made significant improvements to the rate capacity so from 6 charge (C) rate capacity up to 20 C, or more. In future the company will target applications such as frequency regulation and voltage sag support for on-grid applications. Currently Encell has batteries cycling at a higher rate past 8000 cycles and in accelerated life cycle tests, at Sandia National Laboratory. These are on track for 12,000 predicted cycles, at between 90100% depth of discharge. The company is targeting markets including wireless communications, cloud computing, mobile technology, renewable energy, and automotive, in applications such as energy storage, hybrid micro grids, industrial vehicles, and emergency backups.
www.encell.com
REUTLINGEN, GERMANY
Manz supplies production tools for German battery research project Solar production equipment supplier Manz has won an order to supply production tools for an R&D project in Germany, developing production processes and new materials for standardised prismatic lithium ion batteries. The research project is run by the government’s National Electric Mobility Platform, though it is anticipated that the battery technology developed will also be applicable to the stationary storage market. Manz, a supplier of production tools for high-tech industries including flat panel displays (FPD) and photovoltaics (PV), is expanding its battery business by supplying machines for lithium ion battery makers including Saft. The latest order is worth EUR5 million for the Manz’s battery business. The line, of which a significant part will use Manz equipment, is built at the Centre for Solar Energy and Hydrogen Research BadenWuerttemberg (ZSW) and is supported by the German Federal Ministry of Education and Research. The project will focus on increasing quality and safety of prismatic lithium ion batteries and reducing production costs, to accelerate the establishment of a strong cell and battery industry in Germany. German automotive brands and industrial companies, including BMW, Daimler, ElringKlinger, Rockwood Lithium and SGL Carbon are partners on the project. Forecasts predict battery capacities in the automotive sector are likely to grow with an average annual growth rate of 59% to 19 GWh by 2015 and 49 GWh by 2020. The growth prospects in the stationary electricity storage segment are similarly positive: capacities of 2 GWh for 2015 and as much as 10 GWh for 2020 are being forecast.
NEWS
Manz is not the only German PV equipment supplier that has adapted its core machine tool technology for batteries. Jonas & Redmann has supplied Dispatch Energy, a maker of lithium ion cells, batteries and energy storage systems with production tools. With funding support from the German Ministry for Economics and Technology Dispatch Energy, Jonas & Redmann, Fraunhofer Institute for Solar Energy Systems (ISE), Fraunhofer Institute for Silicon Technology (ISIT) and Isra Vision are involved in a separate project to tackle production-related challenges to bring about cost reductions in lithium ion cell manufacturing. In the Protrak project, announced earlier in 2013, the R&D will benefit the stationary energy storage as well as the electric vehicle lithium ion battery market. In 2010 Dispatch Energy was set up to produce smart stationary battery storage systems for the PV market, based on lithium ion battery cell technology developed by Fraunhofer ISIT. Jonas & Redmann has been a key technology partner from the outset, designing and building production tools for making Dispatch’s batteries.
www.manz.com www.jonas-redmann.com
ITALY BIRMINGHAM, UK
Power-One taps UK interest for energy storage Inverter company Power-One, bought by ABB earlier this year, is testing potential demand in the UK for its residential energy storage system. The system, dubbed React (renewable energy accumulator and conversion technology), was shown at Solar Energy UK in October. React will be available in 2014 and consists of a 4.6 kW single-phase grid connected Power-One inverter and a
lithium-ion battery, providing 2 kWh of usable capacity. The system lets home owners and landlords store any energy produced by their solar panel installations for times with higher energy demand. The system is equipped with fast dual MPP trackers, offering maximum installation flexibility for optimal energy harvesting during changing weather and light conditions as well as a broad input voltage range and good efficiency.
receive an assumed 50% export bonus.’ As there is currently no way of monitoring how much energy is exported to the grid, the end-user receives this bonus regardless of whether they self-consume the energy or export it to the grid. EuPD Research also mentions the UK as a potential market in Europe for PV and storage though coming after larger solar markets with high electricity rates, such as Germany and Italy.
The product is designed for a long battery life cycle of over ten years. React can also be expanded up to three times its original size by adding additional battery modules.
www.power-one.com
‘Looking at increasing electricity prices and reduced feed-in tariffs, self-consumption as well as energy independence will be the central issues for the residential PV market in the UK in the upcoming years,’ said Paolo Casini, vice president of marketing at Power-One. Market forecasts vary on predictions in terms of the solar and storage opportunity in the UK. Lux Research’s recent report ‘Batteries included: gauging near-term prospects for solar/energy storage systems’ predicts that the residential market will dominate coupled PV and storage systems over the next five years, and leader markets include Japan, Germany, the US and Italy, which have historically been strong solar markets anyway. However, according to ‘The Role of Energy Storage in the PV Industry’ from IMS Research (part of IHS Inc), even without subsidies, storage can be an attractive proposition in conjunction with residential PV systems in some markets, such as the UK, where the market is forecast to begin growing quickly in 2014, which is when the price of batteries is predicted to have fallen sufficiently to make PV storage financially viable. According to IMS Research: ‘The UK market is an interesting one, because the feed-in tariff (FIT) makes self-consumption financially attractive. Not only does the end-user get paid for generation, they also
BOSTON, MASSACHUSETTS, US
Lithium ion battery technologies find stability in backup/UPS markets, claims new research Stationary storage developers, hit by tumult in the grid storage market, will achieve supply-demand balance in the decade as they carve out an $896 million (EUR663 million) niche in 2020, according to Lux Research, a Boston-based analyst and consultancy firm. Emerging battery technologies used in the backup and uninterrupted power supply (UPS) markets will grow six-fold from $143 million this year. according to Lux. Lithium ion batteries will account for a bulk of this market, reaching $553 million in 2020, and additionally restoring demand-supply balance in the lithium ion market. Medical, commercial and datacentre operators are the major users in the conventional backup and UPS markets, which have a global installation base of 800 GW, or 15% of global peak consumption. ‘Energy storage developers continue to pump blood, sweat, tears, and cash into emerging markets for energy storage. However, the wisest developers have recently focused efforts on the mature backup and UPS markets for stable revenues,’ said Steven Minnihan, Lux Research senior analyst and the lead author of the report titled, ‘Backup and UPS: stable growth in the unstable stationary storage markets’.
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ENERGY STORAGE NEWS many cases, desirable,’ says Kerry-Ann Adamson, research director with Navigant Research. ‘This understanding now needs to be coupled with an understanding of how best to deploy these solutions. Renewable energy developers are realising that mining companies need solutions, not just technology.’
Lithium ion chemistry offers enhanced life and power density over incumbent lead acid systems, justifying higher capital expenditure. This market growth carries an additional payoff in bringing the global demand for stationary lithium ion systems in line with forecasted supply, ending years of glut, he added. Lux Research analysts studied the broader impact of the battery technologies on the global stationary storage market. Among their conclusions: • Lithium ion offers modest cuts in total cost of ownership (TCO) - As lithium ion developers struggle to find large-volume customers, the UPS and backup markets offer a chance for modest, steady growth. The sector will add 12.5% to global demand for stationary lithium ion systems. Lithium ion developers, in return, offer a modest 4% to 11% reduction in TCO over competing lead acid. • Sodium nickel chloride battery market will grow - The sodium nickel chloride battery, which offers significant cost benefits for high-use applications on account of its low capital cost and significant energy capacity, will grow to $116 million in the backup market in 2020. On the other hand, power-dense technologies including flywheels and ultracapacitors will not find a home in UPS because of their low energy density and prohibitive cost. • End to lithium ion glut in sight - Of the 14 GWh of forecasted lithium ion production in 2017, only 5 GWh will
target stationary applications, thanks to demand from the consumer and mobile sectors. This will help strike a delicate balance between global supply and demand, ending years of oversupply and eroding margins.
www.luxresearchinc.com
Energy storage included in new report on renewable energy in the mining industry A new report from Navigant Research projects the annual market for energy storage in the mining industry to be worth nearly $4 billion (EUR2.9 billion) by 2022. Mining operations consume enormous amounts of power — as much as 400 terawatt-hours of electricity per year. As the mining industry grows into more remote areas, the percentage of mines that generate their own power, instead of bringing the grid infrastructure with them, will increase. Today, less than 0.1% of power consumed by the mining industry is generated from renewable energy, but that figure is set to grow in the coming years. The worldwide market for renewable energy systems in the mining industry will grow from $210.5 million in 2013 to $3.9 billion in 2022, according to ‘Renewable energy in the mining industry’. ‘The mining industry has clearly reached a tipping point, with a growing consensus that renewable energy at mine sites, both grid-tied and off-grid, is doable and, in
Of the renewable energy technologies in which the mining industry is investing, wind power is the technology nearest to eliciting wide-scale adoption. A number of mines are already using large-scale wind power, but these sites were chosen based on extreme needs and/or ideal wind characteristics. Over the next 2-3 years, according to the report, mining companies will begin deploying wind power for broader use rather than considering it only on a case by case basis. Using renewables in the mining industry, especially for off-grid applications, is also creating new opportunities for energy storage. ‘Renewable energy in the mining industry’ details promising stationary energy storage technologies. These are pumped hydro, compressed air energy storage (CAES), sodium-sulphur batteries, nickel cadmium batteries and vanadium redox flow batteries. As well as wind, the report covers several other important renewable energy technologies, including solar photovoltaic (PV), geothermal, fuel cells and solar thermal. The study provides an analysis of developments in the sector from a quantitative and qualitative perspective. Global market forecasts of revenue and capacity, segmented by region, technology, and investment scenario (base and aggressive), extend through 2022.
http://www.navigantresearch.com/ research/renewable-energy-in-themining-industry
www.africapvsec.com
NEWS ANALYSIS
UK and Japan commission multi-MWh energy storage projects A 10 MWh project, outside London, will examine value cases for using energy storage, while in Japan two projects – one 20 MWh and another that is 60 MWh – will help to support the expanding use of
the year – mid-winter – peak demand can be met. The siting of the system should save at least £6 million by deferring capital investment required for more traditional network reinforcements.
solar and wind in the northern part of the country.
FLEXIBLE AND QUICK TO DEPLOY
Until now, most grid-based energy storage
‘Storage gets you over that peak capacity. You install the capacity that you need for the mid-long term. But storage is also more flexible and quicker to deploy and, it could be more cost-effective. Today the headline capital expenditure (CapEx) is higher, but we think that other services could offset the initial cost,’ says Nick Heyward, commercial manager, UK Power Networks.
pilots have been done in order to evaluate the technology, monitoring how such systems work and the impact they have on the grid network. But a new project announced in the UK recently will evaluate storage for its potential to provide services and to establish a business case for unsing energy storage. The project has been awarded £13.2 million (EUR15.5 million) in funding by electricity industry regulator Ofgem, under the Low Carbon Networks (LCN) Fund scheme. Project leader UK Power Networks will contribute a further £5 million to the project and academic partners about £1 million. UK Power Networks distributes power to a third of Britain’s population through its electricity networks serving London, the south-east and the east of England. The storage system will be sited where peak demand is reaching full capacity. An alternative is to install a new cable from the grid to the substation, a distance of around 20 km; an expensive and disruptive process to ensure that for a limited part of
Construction work on the containerised 6 MW/10 MWh energy storage system, which will be based at a UK Power Networks substation in Leighton Buzzard, in Bedfordshire, will begin by January 2014. Once the system is installed and operational by middle of next year it will be monitored for two and a half years. The services provided by the asset will include load shifting and frequency regulation. The system will help to stabilise the grid, too, by providing more space on the network for intermittent renewable energy sources such as wind and solar. S&C Electric Europe has been chosen as lead contractor and South Korea’s Samsung SDI will provide batteries. ‘Lithium ion battery technology is going
to be the best technology for the different services,’ says Andrew Jones, MD of S&C Electric Europe. ‘Storage technology was not specified for the project but in order to carry out various services, such as peak shaving and frequency regulation, this ruled out other technologies. Then there are also safety aspects, as the site is near a water course, so a relatively mature battery technology was needed, ruling out other, newer chemistries, particularly liquid-based ones,’ Heyward explains. German firm Younicos will supply energy and management systems and software. Younicos designs and supplies energy storage management systems for different applications, including islands and grid networks, configured to work with different types of advanced batteries, as well as software for grid management and services.
JAPAN TO INSTALL 80 MWH OF STORAGE ON THE GRID In Japan, the Ministry of Economy, Trade and Industry (METI) recently announced two projects in the northern part of the country to help ease more solar and wind into the grid. The largest is a 60 MWh redox flow battery at the Minamihayakitaon substation in Hokkaido. Sumitomo Electric Industries Ltd and Hokkaido Electric Power will jointly install the system, which will have a rated output of 15 MWh.
NEWS ANALYSIS
In a separate project Tohoku Electric Power Company will install a 20 MWh lithium ion battery at the Nishisendai substation in Tohoku region. Like the UK, these installations mark Japan’s first steps to introduce large-scale storage batteries in electricity grids. METI aims to rapidly acquire the necessary technology and know-how in order to use batteries in electricity grids for specific services. Tohoku Electric Power’s lithium ion project was chosen to address the issue of frequency regulation. Sumitomo’s redox flow battery has been chosen to assess at the technology’s ability to balance supply and demand at times when demand falls. The Tohoku project will coordinate the lithium ion batteries to operate with conventional power generation while using the batteries as much as possible to adjust frequency, reducing the impact on battery life.
In the Hokkaido project, the companies will not only look at how well the batteries address varying electricity output from wind and solar, but also at developing technology to control and manage the battery system. An advantage of redox flow batteries in such an application is that they can be used to deal with supply and demand balance over a long period of time. METI aims for the projects to increase the capacity of the supply-demand adjustment function by 10% in each region. Sumitomo and Hokkaido Electric plan to complete installation of the redox flow battery by the end of 2014, and carry out verification tests over the next three years. The massive battery system will occupy two floors of new building roughly 5000
sq m in size, with the electrolyte tank on the first floor, and the cell stack and heat exchanger on the second floor. Based on the results of the tests, Sumitomo plans to offer a redox flow battery with improved performance.
consideration and this project is important for that,’ says Jones. One approach, in future, would be to enable DNOs to buy storage capacity as part of a service. Here, Ofgem sees fewer barriers, according to Heyward. ‘Technically there is nothing to stop us
MULTIPLE SERVICES The potential advantage of using intelligent energy storage systems assets is the provision of multiple services on the grid, generating investment returns for each. However, though energy storage has always been used on the grid, largely markets that define and regulate energy storage do not yet exist. In the US, for example, this is changing as new FERC rules recognise storage for provision of frequency regulation services. And California’s new mandate and target for 1.325 GW of energy storage by 2020 has created a new asset class for storage.
but the issue is that there are not enough demonstrators so we very much hope to validate such approaches and give some confidence to the market,’ he says.
SAVINGS Research from Imperial College, London, identifies savings from energy storage of £3 billion a year by the 2020s, based on the deployment of 2 GW of energy storage. The value increases significantly with increasing proportions of renewable generation, with savings of £10 billion a year identified towards 2050, based on 25 GW of capacity.
In the UK, when the electricity generation industry was privatised and different parts broken up, energy storage and the twoway flow of power was not considered, so regulatory changes will be needed if storage is to become more established. For example, if storage systems are over a certain size DNOs cannot be granted licenses, which is a legacy of breaking up the market to prevent monopolisation of power generation and distribution. Unlike cables and connectors and more traditional infrastructure of DNOs, storage assets are not recognised among investments into the network that generate a return for shareholders. However, S&C and other companies are involved in working with the government, and secondary legislation may be required to change regulations.
The UK project, since its announcement,
‘If you said what manufacturer or company would invest in storage and run services based on such assets, there are none today. S&C is an employee-owned business, we don’t think the business will become completely focused on running services, however if the returns are as good as those we are getting through our other businesses then it is for
www.sandc.com www.samsungsdi.com www.ukpowernetworks.co.uk www.meti.go.jp www.global-sei.com www.hepco.co.jp www.tohoku-epco.co.jp
has attracted lots of interest. In public consultations answers to plenty of technical questions were prepared, though local residents wanted to know what the system would look like and whether it would interrupt their area. Lots of students interested in research off the back of the system have contacted the partners. ‘We’re even thinking of putting a camera in system, so people can see what it is and how it works,’ says Jones. ‘The wider industry will also be watching developments keenly. At this stage it is about sharing the learning from such projects,’ says Heyward.
USEFUL LINKS FOR FURTHER RESEARCH AND READING
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MARKET ANALYSIS
PERFECT MATCH? ESJ goes beyond the numbers to explore the global PV and storage market opportunity in more depth For beleaguered elements of the global photovoltaic (PV) industry and for developers of energy storage systems based on advanced batteries, signs of hope stem from the opportunity presented by the trend towards self-consumption of electricity generated by solar panels on site.
next few years, in comparison, the grid-tied market will grow significantly to overtake off-grid. By 2017, IMS Research forecasts cumulative installations for residential PV energy storage systems to amount to 2.5 GW. The commercial market will start to take off towards the end of the forecast period.
Three regional markets have emerged as having the requisite drivers for so-called PV and storage demand. But, as any PV industry professional will tell you, large singular markets that become the focus for an entire industry’s selling strategy are not good for business long term. Does the PV and storage market pose similar risks or can more sustainable growth be achieved?
Three countries – Japan, Germany and the US – are responsible for the growing demand for grid-tied PV and energy storage-coupled systems, a trend very much in evidence at this year’s major solar shows, including Intersolar and EU PVSEC.
GLOBAL DEMAND FOR PV AND STORAGE According to a report published by IMS Research (part of IHS Inc), in May 2013, entitled ‘The role of energy storage in the PV industry’, the global market for PV systems with energy storage is forecast to reach $19 billion (EUR13 billion) in 2017, from less than $200 million in 2012. To reach this figure, global installations of PV with energy storage systems – both for grid-tied and off-grid applications – across residential, commercial and utility segments are forecast to almost reach 7 GW with off-grid accounting for about 2.1 GW of this amount. This translates as 4000 MWh of installed effective storage capacity. The top-line projection is fairly in-line with Germany Trade and Invest’s forecast that the global market for energy storage, solely for the purposes of PV integration, will be worth $17 billion by 2019. Currently, off-grid accounts for the larger share of PV and energy storage systems by installed capacity. However, over the
All three markets have strong solar PV bases, though in the case of the US this is down to several individual states, chiefly California, Arizona and New Jersey, according to EUPD Research. High retail electricity rates also a key ingredient in creating the right conditions for demand. Japan, also, has unique drivers shaping demand for PV and storage systems.
GERMANY In Germany rising electricity prices and decreasing feed-in tariffs (FIT) for solar panels will continue to serve as a disincentive for consumers to export their power to the electricity grid. But earlier this year, in order to kick-start demand for PV and energy storage systems, Germany introduced a new package of incentives, consisting of subsidies and soft loans, aimed at households and other small-scale end-users, to make self-consumption attractive. Germany is one of the few markets that have all of three key drivers, identified by Navigant Consulting, which create the right conditions for PV and storage in terms of residential-led demand. These are: high retail electricity rates (particularly relevant if there is dynamic pricing), a feed-in tariff (FIT) for PV that is either lower than the retail electricity rate or is quickly approaching parity with the grid and an adoption subsidy either for stationary
MARKET ANALYSIS
electrical storage systems or for these systems and PV together. Several more markets have at least two out the three, according to Navigant Research, and these should make a strong business case for PV and storage also over the next few years. According to ‘The role of energy storage in the PV industry’ by 2017, Germany will remain the largest single market for PV and storage by installed capacity, accounting for a 20% share of the global market, compared with 30% in 2013. However other regions will grow their respective shares significantly during the next five years. By 2017, the second largest market will be North America, though utility demand for PV storage systems will account for most of the demand in the US market, according to the report by IMS Research.
JAPAN In post-Fukushima Japan, a strong desire among consumers and businesses to equip themselves with backup power generation, including storage and PV systems, to ensure self-sufficiency in grid outages is fuelling demand. According to Lux Research’s report ‘Batteries included: gauging near-term prospects for solar/ energy storage systems’, which deals with non-utility demand segments, Japan is the largest market for PV and energy storage systems. Irrational buying factors, due to the Fukushima nuclear disaster and the country’s subsequent move away from this form of electricity generation, have seen some energy storage systems sell for as much as 10 times higher than the market price. Japan will continue to lead Germany and the US, through to 2018, according to Lux Research.
US The residential PV energy storage market in the US will be driven predominately by demand for backup power supply, but until some sort of financial incentive to install such as system is introduced, there will be no acceleration in this market. However, in its report IMS Research forecasts the US commercial market to grow significantly due to peak demand charges, not just limited to California, but in other states across the US. In California the PV and storage market is roughly two thirds residential and one third commercial, according to Lux Research. In 1.3 GW storage mandate by the California Public Utilities Commission (CPUC), utilities can lease solar and storage systems to homeowners and count these towards their own targets, so this will make it trickier to break down what is residential and what is utility. In the near term, incentives and clear policy frameworks will kick-start activity
COMMERCIAL MARKET INSTALLATIONS OF SOLAR AND STORAGE ACCOUNT FOR JUST OVER 3 MW AND ARE EXPECTED TO GROW TO REACH 2.3 GW IN 2017
in the residential and utility-scale PV and storage markets, such as the case with Germany. Societal drivers are the reasons for investment in PV and storage in Japan’s residential and commercial markets. But while residential is the largest PV and storage market by application today, a different picture will begin to emerge over the next four or so years.
COMMERCIAL SEGMENT SET TO LEAD SOLAR ENERGY STORAGE MARKET BY 2017 IMS Research’s report projects that the commercial segment, which is currently the smallest part of the global PV and storage market is set to grow to its share to 40% in 2017, from 5% today. Commercial market installations of solar and storage account for just over 3 MW and are expected to grow to reach 2.3 GW in 2017. The residential segment will barely register growth while the utility segment, which has a 75% share today, will account for just under 40% of the market in 2017. Energy storage co-located with utilityscale PV systems will initially be driven by regulations that require an energy storage solution to meet interconnection requirements, such as that introduced in Puerto Rico. However, in the coming years storage it is likely that storage will
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MARKET ANALYSIS IN GERMANY WE CAN ALSO ANTICIPATE THAT THE COMMERCIAL MARKET WILL ALSO BEGIN TO ADOPT STORAGE AND SOLAR, BECAUSE OF HIGHER DEMAND CHARGES COMPARED WITH OTHER MARKETS. be installed co-located to a utility-scale PV system but operate in transmission and distribution (T&D) line services. This will be related to the ownership of the system. According to Abigail Ward, PV analyst at IHS: ‘Facing rising energy prices and the growing need for backup power supplies, commercial enterprises are turning to PV storage solutions that work in concert with their solar-power systems. The advantages of installing energy storage with a PV system, is that PV energy can be stored and time shifted to be consumed either during times of high electricity charges or during an electrical blackout.’ In the commercial segment, it is predominately electricity rates promoting the adoption of PV and storage and not incentives or policies. The financial payback of an energy storage system in a commercial PV application is already attractive, due to the high demand charges imposed by utilities, particularly in the US. However, the market is presently limited by the number of suppliers targeting this application. Other relevant regions for commercial applications for PV and storage include Japan, where electrical blackouts are common following the Fukushima nuclear disaster and Germany, where selfconsumption of PV energy is becoming increasingly financially attractive in the commercial sector to offset peak electricity demand charges. ‘In Germany we can also anticipate that the commercial market will also begin to adopt storage and solar, because of higher demand changes compared with other markets, so there is a large incentive for manufacturers and commercial entities to install solar and storage in order to reduce
peak demand and avoid heavy charges,’ says Steven Minnihan, co-author of Lux Research’s ‘Batteries included: gauging near-term prospects for solar/energy storage systems.’ For the PV industry commercial and industrial represents a significant application segment, ranging from offices, retail buildings, and light manufacturing, to heavy consumers of energy, such as datacentres, industrial plants and hospitals. The more energy a building or business consumes then the more quickly owners can realise a return on investment from on-site electricity self-consumption, enabled by a PV and storage system, so it is reasonable to expect that the industrial end of the commercial segment may adopt PV and storage systems more swiftly.
OTHER MARKETS FOR PV AND STORAGE To anyone familiar with the PV industry, small numbers of big markets responsible for driving global demand and expectations of a particular technology are not always good for business. There are already signs that production capacities for lithium ion batteries will see huge investment in a bid to meet speculative demand led by a few regional markets, such as Japan, Germany and the US, which are carrying high expectations for PV and storage. As set out in its 12th Five-Year plan China intends to become a global exporter of cleantech. To make this happen, China is already the world’s largest manufacturer of PV panels, with much of its 45 GW manufacturing capacity output destined for export markets, despite government measures to raise solar targets to relieve the glut in overcapacity. As part of its
12th Five-Year plan China is also poised to leverage its lithium ion battery base to supply the grid storage market, through domestic manufacturers such as BYD. It is better for the industry as a whole for demand for promising stationary storage technologies, like lithium ion, to be spread across many regional markets. Over the next five years or so, in other strong solar markets with rising retail electricity costs, grid-tied demand for coupled PV and storage systems is also expected to gain traction. In Europe, Italy, which has a large PV market, is emerging behind the three front-runners. Falling FIT rates coupled with rising electricity rates is a trend being witnessed across a number of European residential solar markets. But at today’s prices, financial gains to be obtained by growing self-consumption do not yet offset the increase in upfront costs associated with the addition of an energy storage element in a residential PV system, over the expected 20-year lifetime of the installation. However, over the next five years IMS Research predicts residential PV storage prices to fall by 45% making investment in PV and energy storage systems more financially appealing to consumers in several markets across Europe. Other markets in western Europe that also look favourable for PV and storage include Spain, Denmark and the UK, both at the utility and at the residential/small-scale. According to EUPD Research the UK is an interesting case for PV and storage because households/system owners are not only paid for generation, but also receive an additional bonus for exporting electricity. However, as there is no way of monitoring how much is exported, the household receives this bonus even if they consume the energy themselves. While the rate of return is much higher in Germany, for example, between 1025%, in these other markets it is between 4-10%, so adoption will come later, over the next 3-5 years, explains Minnihan.
MARKET ANALYSIS
prepared to play the long game, searching out new potential markets for PV and storage that may take a few years longer to evolve, as storage costs fall significantly enough, in addition to targeting the leader markets.
According to Navigant Research, the European market for storage, including applications ranging from bulk storage, to community/residential storage and microgrids, will grow 10-fold to $7 billion by 2018 and a significant amount could come from demand for PV and storage. It stands to reason that if a key driver for PV and storage has to be a region with a PV market in the first place, there is a good chance that demand for stationary storage could grow at a more stable rate, as there are many more established PV markets today, compared with a few years ago. Lux Research sees this is a good development as more numerous markets with steady growth are more stable for basing projections and business decisions upon than few markets bolstered by incentives that can be removed. Therefore, emerging markets also present an
attractive case further down the road as storage prices decline.
STRATEGIES However, this does present something of a quandary for developers, including solar industry players looking to integrate storage into their businesses as well as start-ups and other companies commercialising stationary energy storage systems. The handful of historically strong and established PV markets are emerging as key markets for PV and storage demand. But, betting on just a few markets is a risky business strategy that has seen many solar companies come unstuck. As costs of storage come down, this could also open up many new potential PV and storage opportunities, especially emerging markets where PV demand is becoming established. Companies will need to be
LED BY LITHIUM ION, EMERGING BATTERY TECHNOLOGIES USED IN THE BACKUP AND UPS MARKETS WILL GROW SIX-FOLD FROM $143 MILLION IN 2013 TO $896 MILLION IN 2020, ACCORDING TO LUX RESEARCH.
Lux does not see energy storage as disruptive or a threat to the solar market, more that storage provides companies with an opportunity for product portfolio differentiation and to stand out and also allow for better profit margins, which distributors and installers will be looking for in the coming years. Lux Research’s report ‘Batteries included: gauging nearterm prospects for solar/energy storage systems’, which covers residential and commercial/industrial segments, both for grid-tied and off-grid, forecasts the market to grow to $2.8 billion in 2018. According to the report, energy storage companies are likely to benefit more from this complementary pairing than solar businesses. While the market will grow quickly over the next five years, it will remain small, reaching 711 MW by 2018. According to EUPD Research, based on a survey of the US PV market, many installers have added value to their portfolio of product offerings with net metering systems, so that 79% of PV systems are installed with a net meter. Currently 10% of PV systems are installed with an energy storage system. The consultancy sees great opportunity for solar installers to use storage as they continue to fill out their offerings to the market and add value to their portfolios. In a recent webinar, Minnihan also highlighted solid growth opportunities in stationary storage for advanced battery technologies, chiefly lithium ion, in the collective backup power and uninterrupted power supply (UPS) markets. He made a convincing case for targeting these as riskier PV and storage and utility storage market opportunities begin to unfold.
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MARKET ANALYSIS
THE MARKET FOR STORAGE FOR RENEWABLES INTEGRATION Navigant Research predicts that energy storage systems for solar and wind power integration will reach 21.8 GW of installed capacity over the next 10 years, from 20132023. This is based on the expectation that more than 1300 GW of wind and solar power generation capacity will come online in the same timeframe, producing 567,053 GWh of misaligned generation to load. This is set to be worth $30.4 billion (EUR22.2 billion) in 2023 (from a market currently worth $143 million). Of this PV (distributed and nondistributed) will account for about $10 billion. Navigant Research estimates the investment of energy storage to integrate the 1300 GW of wind and solar assets in 2023 is expected to reach $10.3 billion. The integration of 1300 GW of wind and solar will create much more grid instability, especially in key markets in western Europe, Asia Pacific and North America. Germany, Japan and the US have all enacted various rules or legislation encouraging adoption of energy storage systems for integrating variable energy sources onto the grid. Market incentives range from outright subsidies for ESS adoption, to reforms that change how variable generation is compensated and adjustments to connection requirements for variable power plants. In particular, changes to the compensation arrangements for variable power generation will have significant influence on the market for ESSs for solar and wind, states Navigant Research’s report ‘Energy storage for wind and solar integration’. Compensation mechanisms have changed drastically over the past 10 years, according to the report, and many compensation schemes have grandfather clauses—meaning that older wind and solar systems have much different compensation rates and structures than newer systems coming online.
UPS AND BACKUP According to Lux Research the total addressable market for stationary energy storage is over 5 TW in total. It includes, for the purposes of comparison, 805,855 MW for backup and UPS, mainly for medical, commercial and datacentre applications, and 1,881,000 MW for utility. Led by lithium ion, emerging battery technologies used in the backup and UPS markets will grow sixfold from $143 million in 2013 $896 million in 2020, according to Lux Research. ‘The point about UPS and backup is that the market is actual. This market already uses energy storage and therefore the specifications for designing batteries for such applications are known and there is an established supply chain. For UPS, for example, lead acid batteries are always coming out of service, in which lithium ion batteries can then potentially replace lead acid. The market is not reliant on any government mandates and subsidies and policies, so it is relatively low-risk,’ says Minnihan. ‘However, reliability and safety are keys to this market, so suppliers have to establish a track record in these areas,’ he says.
Value at peak load of variable energy curtailed by technology, world markets: 2013-2023 Source: Navigant Research
USEFUL LINKS FOR FURTHER RESEARCH www.luxresearchinc.com/ industries/energy-and-utilities.html www.imsresearch.com/researcharea/Power_and_Energy www.navigantresearch.com/ research/smart-energy www.eupd-research.com
NEWS
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MARKET ANALYSIS
SOLAR PV AND STORAGE FOR OFF-GRID Compared with the potential market for grid-tied solar photovoltaic (PV) and storage systems, the off-grid opportunity is smaller. But it is significant as suppliers can expect to benefit from higher margins, especially in the telecoms market This article is based on excerpts from
onsite capacity previously and found that
‘Batteries included: Gauging near-term
the economics, and therefore technology
prospects for solar-energy storage
selection, are dictated by the capacity factor
systems’, a new report published by Lux
of the onsite capacity (see the Lux Research
Research. The report’s analysts used
report Off-Grid). Backup systems – defined as
competing sources of electricity in grid-
on-site systems that operate for fewer than
tied and off-grid applications to build a
1000 hours a year (less than three hours every
top-down model and determine break-
day) – fall outside the scope of this report.
even pricing for solar-storage coupling
The off-grid customers that require primary
in various geographies, and gauge the technology’s feasibility in the near term. The report was authored by Steven Minnihan and Matthew Feinstein, both senior analysts at Lux Research.
HIGH DIESEL PRICES DRIVE RENEWABLE AND STORAGE ADOPTION IN REMOTE OFF-GRID LOCATIONS
generation fall into two main categories, telecoms and microgrid. • Off-grid telecom tower demand will grow rapidly over the decade Over 80% of telecommunication towers in the developed world are connected to the electric grid and typically require small backup systems rather than primary generation systems described in this report. The remaining 20% of towers, along with
Nearly all commercial or industrial customers
nearly 50% of towers in developing regions,
require onsite generation or storage capacity
including India and Pakistan, require on-site
to ensure reliable service in the event of
generation for providing continuous power
grid disturbance. This onsite capacity
around the clock. In total, there are over
could range from a small bank of lead acid
500,000 off-grid towers globally, growing to
batteries to large diesel generators capable
over 750,000 off-grid towers in 2018, which
of providing full continuous power indefinitely.
represent 2.65 GW of demand growing to
Lux has examined the economics of such
nearly 5 GW of demand in 2018.
MARKET ANALYSIS
• Microgrids begin to take hold among customers requiring continuous power Microgrids in remote off-grid locations require continuous power for commercial, industrial, or residential customers. The vast majority of these systems are low-tech, consisting of small fleets of diesel generators and simple load control systems. Customers may be motivated to migrate away from diesel fuel towards renewable in efforts to both reduce fuel costs and ensure reliability of power. In each of these market segments customers require a mixture of technologies in order to construct a functioning integrated power system. This step, usually provided by system integrators that design, procure, integrate, and optimise hardware from different suppliers, is costly and time-consuming, as technology developers have not optimised their systems to interoperate with each other’s hardware or control systems. Additionally, system integrators have a history of adding healthy profit margins in to the project price. Developers from the PV and energy storage industries have begun to partner with each other to offer better-integrated and optimised systems, to eliminate cost and technical hurdles. Diesel Consumption Increases if the Generator Operates below Nameplate Capacity
THE OFF-GRID MARKET WILL GROW TO $132 MILLION (EUR95.9 MILLION), DRIVEN BY THE TELECOMS SECTOR Diesel capacity and average diesel power rating are key inputs to determine the economics of our off-grid systems.
• Diesel capacity heavily influences capital costs Configurations with progressively higher solar and storage capacities are able to decrease the size of the diesel generator set (gen-set), which has a mixed effect. For most system sizes, a small diesel genset has a lower total capital cost than a larger diesel genset. But, towards the low end of the spectrum, as progressively smaller gensets are deployed, the cost in $/kW spikes dramatically. There is diminishing capital cost savings on generators for small configurations under 10 kW of capacity. • Average diesel power rating dictates fuel consumption For a diesel-heavy application, the fuel cost constitutes the bulk of the lifetime total cost of ownership, making the efficiency of the diesel generator central to the analysis. Broadly speaking, the efficiency of the generator increases with the power capacity. However, the average power rating dictates fuel consumption. If the diesel generator is responsible for addressing peak demand, then it is operating well below its nameplate capacity for the most of the hours in the day. At this reduced average power rating, fuel consumption and cost of fuel increases significantly. However, in the event of solar and storage supplying peak demand, the operator is able to downsize the generator and operate it at 100% of nameplate capacity. Such an operation profile improves diesel efficiency and lowers costs.
DIESEL CONSUMPTION INCREASES IF THE GENERATOR OPERATES BELOW NAMEPLATE CAPACITY • The effective diesel price is above the market trading value Customers in the offgrid market segments commonly pay prices that are 50-100% higher than roadside diesel prices we are used to seeing. Transportation and on-site storage drive up the effective price of diesel, and the inflation depends on geographic location,
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surrounding topology, and local piping or road infrastructure. Therefore, the base case diesel price is assumed to be $5/gallon, representing a 40% increase over the US roadside price at the time of writing. Additionally, all cost comparison data is presented as a function of diesel price to highlight the full range of possible values. • Lifetime cost calculations reveal that solar and storage lower system costs The levelised cost of energy (LCOE) over the lifetime of the system offers the best proxy for the ongoing operational cost of the offgrid site. Where diesel prices range from $4/ gallon to over $10/gallon, integrated solar and storage systems offer superior value over conventional diesel generation, so more solar and storage is better. In the telecoms market, the Diesel + Solar + Storage in the Heavy configuration offers the lowest LCOE for diesel prices above $4/gallon. This same configuration offers the lowest LCOE in the microgrid space for diesel prices above $7/gallon, while a simple Diesel + Storage configuration offers the cheapest option at lower diesel prices.
Hybrid Diesel, Solar, and Storage Systems Offer the Lowest Cost for Microgrid Systems at High Diesel Prices
• Energy storage helps small systems, while larger systems benefit from higher diesel efficiency If we fix the diesel price at $5/gallon, we see interesting trends emerge as a function of the system size. For systems with peak power demand between
1 kW and 50 kW, additional energy storage capacity offers the optimal LCOE. However, as we reach systems with peak demand greater than 100 kW, the combination of diesel and solar offers the optimal economics. At these scales, the diesel capital expenditure (CapEx) is sufficiently low, and the diesel efficiency is sufficiently high, that these systems do not financially benefit through energy storage at today’s costs between $1,000-$1,500/kWh. • High break-even prices for the off-grid sector indicate developers can defend their profit margins The break-even price illuminates the true potential for energy storage technologies. It represents the maximum price that a battery supplier can charge for the energy storage component of an integrated system. Therefore, it determines if a supplier can play in a given market segment, as well as illuminating the kinds of profit margins that the supplier can achieve. • Diesel price has the strongest impact on storage’s value proposition The fuel cost is one of the most important variables in the assessment. Battery suppliers can enter the microgrid market with prices as high as $1,980/kWh in markets with diesel price of $5/gallon. The break-even price jumps to $4,000/kWh in areas where the effective price of the diesel is $10/gallon. • Batteries can defend the highest margins at smaller system sizes Since both the capital cost and efficiency of diesel generators improve with the size of the system, batteries must compete at lower prices for larger installations. For small telecom operations in the range of 5kW, battery suppliers can enter the market at $2,100/kWh. However, as systems grow to 300 kW, the same supplier must lower the price to $1,300/kWh to compete.
MARKET ANALYSIS
• The off-grid market for integrated solar and storage will grow from $30 million to $130 million in 2018 Fuelled by the growth of the telecom sector in developing markets, combined solar and storage systems in the off-grid sectors will growth from $30 million in 2013 to $130 million in 2018; a 35% CAGR. Of that market, solar comprises $7 million in 2013 and $32 million in 2018, while the storage component of the market comprises $23 million in 2013 and $101 million in 2018. • Telecom will lead the growth, reaching $129 million in 2018 Integrated solar and storage systems will find strong success in the off-grid telecom market. Solar will grow from 1.5 MW$6.5 million in 2013 to 6.5 MW and $29 million in 2018. Meanwhile, storage will grow from 6.4 MW/22.4 MWh and $22.4 million in 2013 to 28.5MW/99.6 MWh and $100 million in 2018. This growth is driven by the large growth of the telecom sector in emerging and developing nations, along with the substantial decrease in LCOE that solar and storage systems offer over the conventional diesel configuration. • Microgrid growth will be slower, due to the nascent state of the sector The microgrid market will grow more slowly than the telecom space. Solar technologies will grow from 225 kW and $0.7 million in 2013 to 1.1 MW and $3 million in 2018. Meanwhile, storage will see minimal growth, from 90 kW/360 kWh and $0.4 million in 2013 to 430 kW / 1.2 MWh and $1.7 million in 2018. This market segment as a whole will grow much more slowly than telecoms as it is a nascent industry segment that is still in the piloting phase at the time of this report. Storage will comprise a small segment of the microgrid capacity mix because the diesel-solar configuration offers lower LCOE than the diesel-solar-storage or solar-storage mixes do. In regions where diesel prices climb well above $7/gallon, storage will begin to work its way into the microgrid sector, while at lower fuel prices, storage remains too costly to justify.
Storage Developers Can Charge Nearly $4,000/kWh in Regions with High Diesel Prices
(Lux Research)
About the authors Matthew Feinstein currently leads Lux Research’s solar systems intelligence practice, covering solar module technologies, grid interconnection and project development/finance, as well as power electronics and other balance of systems technologies. Matthew received his BSE in Mechanical Engineering from the University of Michigan. Steve Minnihan leads the company’s grid storage intelligence service while simultaneously exploring new research areas. In this role, he speaks first-hand with innovative companies, start-ups, government agencies, and research groups that are developing technologies in the fields of power and energy storage and combines the information from these discussions with extensive secondary research to offer advising services to Lux Research’s clients. He also directs clients on how to navigate developing technological fields including grid-scale energy storage. Steve holds a BS in Material Science and Engineering from the University of Pennsylvania. Visit www.luxresearchinc.com or contact carole.jacques@luxresearchinc.com for more information.
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RINGING THE CHANGES
As mobile usage spreads out to increasingly remote and less developed regions, stationary energy storage is in a position to displace diesel for powering telecom assets
COVER STORY
The rapid growth of mobile telecommunications subscriber bases across developing regions and countries is creating significant opportunities for the energy storage and solar PV industries, as telecom operators look to reduce the amount of diesel consumption required to provide power for cell sites and base station tranceivers (BST), many of them in remote locations, off the grid. In fast-developing emerging economies, like India, with booming mobile telecoms subscriber bases, telecom cell sites in cities, connected to a grid network, need access to reliable power. Consequently many suppliers and players from the stationary energy storage industry and complementary sectors, such as solar, are targeting both off- and grid-tied opportunities in telecoms, while others are targeting the off-grid telecoms market as part of their overall off-grid businesses.
According to a new report by Lux Research, ‘Batteries included: Gauging near-term prospects for solar-energy storage systems’, over 80% of telecom towers in the developed world are connected to the electric grid and typically require small backup systems rather than primary generation systems. The remaining 20% of towers, along with nearly 50% of towers in developing regions, including India and Pakistan, require on-site generation for providing continuous power around the clock. The report estimates there are over half a million off-grid towers globally, representing 2.65 GW of demand today. Lux projects this number to grow to over 750,000 in 2018, the equivalent of nearly 5 GW of demand. Navigant Research forecasts that revenue for off-grid BST power will grow from $1.6 billion (EUR1.16 billion) in 2012 to more than $10.5 billion in 2020.
TELECOM MARKET BACKGROUND AND SIZE
INCUMBENTS ADAPT TO MEET DEMAND FOR HYBRID SYSTEMS
Diesel generation sets ( gen-set s) and lead acid batteries are the workhorse power generation systems for places and sites too far from the grid or where supply of electricity is poor. Estimates vary as to the installed number of diesel gen-set s in the global telecoms industry, though some put it at over 4 million, covering grid-tied and off-grid installations. India alone boasts over 400,000 mobile towers.
Demand from telecom operators to reduce the cost associated with diesel fuel consumption, which includes fuel-related operational expenditure, has spurred suppliers of power generation equipment to develop more efficient diesel-based systems designed to reduce fuel consumption. As conventional lead acid backup batteries do not lend themselves to such heavy cyclic usage required by hybrid diesel gensets,
Sunpower off-grid telecom installation, Morocco
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a growing number of companies, including engineering businesses, battery manufacturers, energy storage start-ups and solar firms are targeting opportunities to supply demand for more efficient and advanced power generation systems and hardware for the telecoms market. Through its South African joint venture (JV) with local company Powertech, global battery maker Enersys supplies and installs off-grid systems across sub-Saharan Africa mainly for telecoms and for rural electrification applications.
‘NAVIGANT RESEARCH FORECASTS THAT REVENUE FOR OFF-GRID BST POWER WILL GROW FROM $1.6 BILLION (EUR1.16 BILLION) IN 2012 TO MORE THAN $10.5 BILLION IN 2020.’ Powertech, a subsidiary of Allied Electronics Corporation (Altron), is one of South Africa’s leading suppliers of electrical and electronic equipment, supplying the mining, power utilities, telecommunications, renewable energy and transportation industries. The Enersys Powertech JV was formed in 2011 when Powertech sold 50.1% of its industrial battery business to Enersys, which included several subsidiaries, one of which is Rentech, a supplier of solar panels and related components, including inverters and batteries, in South Africa. Rentech also designs and installs solar and offgrid systems and projects. For off-grid and reserve power demand Enersys Powertech supplies a range of systems, including hybrid systems that use a combination of battery and diesel generation. Compared with standard telecom power systems that use a diesel genset, with a battery for backup, hybrid systems use larger batteries and a controller that manages the ratio of gen-set to battery. Typically hybrid systems are designed so that diesel is not used as the primary power source. The gen-set is run at full power for a few hours, charging up the battery, then switches off while the battery provides the main source of power
for several hours. Hybrid systems can be further enhanced by the integration of renewable energy sources such as solar or wind. Enersys Powertech also provides solar and storage systems that do not use any diesel. In contrast to rural electrification, which might involve supplying power generation for a school or clinic, telecoms projects tend to have much bigger energy requirements, explains Enersys Powertech renewables specialising electrical engineer Cornel Coetzee. ‘Telecoms will need systems with larger battery capacities, and a good understanding of the peak loads and careful planning as there can be limited space in which to install systems. In terms of maximising the installation’s performance, design of the systems must also establish best angle for panels for solar irradiation,’ he explains. While there may be more rural electrification projects in regions like sub-Saharan Africa, telecom projects have more value attached enabling suppliers and project developers to build in very healthy margins. The cost of diesel in any given local area, or region, is critical in the economic analysis for choosing a hybrid system or even forgoing diesel and opting for a solar and storage system. The higher the cost of diesel, the more savings can be achieved over the life of the system by using higher solar and storage capacity. According to Lux Research battery suppliers can supply the off-grid telecoms and microgrid market with prices as high as $1,980/ kWh in places where the price of diesel is $5/ gallon. Through its Johannesburg office where Coetzee works, Enersys Powertech designs, supplies and installs entire off-grid power generation systems, sourcing diesel gen-set equipment, power electronics and other hardware, such as solar panels, from suppliers both locally and globally. These use Enersys’ range of batteries and other components that have been designed for off-grid and other types of remote and reserve power applications. According to Coetzee in the telecoms market hybrid diesel and storage systems predominate, though he adds: ‘But there is a shift in perspective to PV and storage due to companies needing to reduce their carbon footprint and
COVER STORY
‘ACCORDING TO LUX RESEARCH BATTERY SUPPLIERS CAN SUPPLY THE OFFGRID TELECOMS AND MICROGRID MARKET WITH PRICES AS HIGH AS $1,980/KWH IN PLACES WHERE THE PRICE OF DIESEL IS $5/ GALLON.’
the ever-increasing remote sites as telecoms operators and providers continue to expand their networks. Both off-grid markets – rural and telecoms in sub-Saharan Africa – are seeing demand increasing steadily.’ Enersys’ battery range for off-grid and reserve power, Powersafe, is based on lead acid chemistry and technology, including more conventional valve regulated lead acid and also Enersys’ advanced thin plate pure lead technology designed to provide good cyclic performance even in very hot climates.
ADVANCED BATTERIES Suppliers of alternative advanced batteries are also working with diesel generator makers to provide more efficient hybrid power systems for the telecom industry. One example is Ausonia in Italy, which is supplied by Saft, a Franceheadquartered battery maker specialising in lithium ion and nickel-based chemistries. In response to the telecom industry’s demand for reducing operational expenses in terms of diesel fuel costs, and trips for maintenance and refuelling, Ausonia launched its Hybrid Integrated Module (HIM) system in 2012. The system consists of a variable speed direct current (DC) generator which charges a battery bank in cycling mode and powers the load at the same time. A fuel consumption rate of 0.4 litre/kWh is possible, due to the battery cycling, even for very low load demand. The system can also be integrated with the grid and with PV panels.
Enersys battery at Intersolar
Since HIM’s launch at the Mobile World Congress in Barcelona last year, hundreds of units have been deployed both in Italy and worldwide. In Italy Ausonia’s company Medipower sells energy to telecom operators at their off-grid sites, taking care of installing, controlling, monitoring, servicing and refuelling generators. Ausonia has an 85% share of Italy’s off-grid BTS power supply market. Global markets supplied include Greece, Spain, South Africa, Kuwait and the Philippines, where Ausonia supplies global telecoms operators with HIM and other high-efficiency DC generators or sells energy produced by the systems for use by telecom operators’ off-grid BTS sites. ‘Global telecoms operators are all looking for power solutions which can be efficient and allow them to achieve significant savings on their financial accounts. HIM and our similar systems are capable of giving the highest efficiency now available in the market, thanks to a unique technology we developed internally on the generator side,’ says Giuseppe Taranto, an area manager in Ausonia’s export department. The generator simultaneously charges the battery and powers the site load. When the battery has been fully charged the generator shuts down and the battery takes over as the primary source of power. By reducing the gen-set runtime down to a typical four hours a day this approach offers savings in fuel consumption – up to 74% – compared with a standard gen-set and reduces emissions. When developing HIM, several storage technologies were tested before Ausonia chose Saft’s lithium ion batteries. The company’s Evolion battery range met several requirements, including fast charge capability, high energy density, freedom from maintenance, good performance under extreme environmental conditions and long life cycles. Ausonia is seeing rising demand for its fuel efficient systems, with operators reportedly pleased with company’s claims on performance, operational lifetimes and savings, backed up by field trials. The HIM system has been designed to work with Saft’s Evolion Li-ion batteries only, but Ausonia’s variable speed DC generator – the common
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element in all three of the company’s high efficiency family of systems – can work in cycling mode with other kind of batteries. ‘We advise our customers on what we think is best in terms of daily total cost of ownership (TCO), after that they are free to choose the battery technology they decide is better for their own application,’ says Taranto. Solar PV is always under high consideration by operators and tends to be used for low loads on site, typically below 2 kW. In these instances the HIM is installed to run as the last source of energy available on the site. ‘In fact, the HIM’s engine will only start when the energy produced by the solar panel is not enough for powering loads and charging the HIM’s batteries,’ according to Taranto. When this does occur the variable speed DC generator will provide the right amount of energy which the solar source is not capable of supplying, running in parallel without switching between the PV system and the gen-set. This means there is no loss of energy produced by the solar panel, even if in low quantity.
LITHIUM ION BATTERIES FOR GRID-TIED TELECOMS In mid-2013 Saft announced its largest order for Li-ion batteries from the telecom industry,
SATISFYING INDIA’S INSATIABLE DEMAND FOR MOBILE PHONES, WITHOUT THE DIESEL - The Indian telecoms market is experiencing phenomenal growth and teledensity has increased by more than 70%, compared with a decade ago - Where grid supply is poor, which is the case across much of India, BTS and cell sites rely on diesel gen-sets to provide uninterrupted cellular mobile services - Telecom infrastructure providers are the second largest consumers of diesel in India, where gensets have to be run for more than 12 hours on average every day in many parts of the country - On average, 70% of the approximate 400,000 mobile towers in India face electrical grid outages in excess of eight hours a day, according to a white paper published by Intelligent Energy - Roughly 2 billion litres of diesel is consumed every year by India’s telecom cell sites, releasing nearly two million tonnes of carbon dioxide into the atmosphere on an annual basis
worth EUR35 million. The customer, Reliance Jio Infocomm (RJIL), in India will use Saft’s Evolion batteries across 10,000 of its broadband mobile base stations – global base monopole (GBM) – sites across the country, all of which are gridtied. The GBM sites are being rolled out, first from mega-cities, such as Mumbai and Delhi, to large cities like Bangalore, spreading out further and further to smaller towns and communities across the country. RJIL is the only pan-Indian 4G long term evolution (LTE) operator. The first deliveries of Saft’s batteries to the company began during the second quarter of 2013 and will be completed by the end of the first quarter 2014. Saft’s Evolion lithium ion batteries, which are much lighter and smaller than conventional telecoms batteries, will be suspended 4-5 metres from the ground in the installations, to protect them and prevent damage. For more remote, off-grid, installations the company supplies its nickel cadmium batteries.
COAXING MORE OUT OF LEAD ACID Lead acid batteries still predominate in the reserve power and off-grid markets, including telecoms. To optimise their operational life, Florida-headquartered energy storage developer Encell Technology has developed a management technology, Sentinel, which protects lead acid-based backup and power systems from damage caused by constant overcharging and degradation. The system is able to monitor and test lead acid batteries. Warning data can be sent to the operator in real-time without requiring a site visit so that weaker batteries can be replaced before they fail unpredictably. Encell CEO Rob Guyton had previously worked in the information communication and technology (ICT) industry, during the initial boom years of the internet as search engines became established. ‘The Achilles heel of mobile communications is batteries and storage – to ensure continuous power supplies, where networks cannot afford to go without power. In the late 1990s I started looking at this issue from the standpoint of developing an energy storage technology that is sustainable and reliable for backup and reliability,’ says Guyton.
COVER STORY
which went back to factory condition after being refilled. As well as cell design and battery management software, the company’s IP covers production processes.
MUSCLING IN ON THE ACTION Engineering conglomerate General Electric (GE) is active in the telecoms market – both on- and off-grid – with its industrial battery Durathon, which is based on sodium nickel chloride chemistry.
GE’s Durathon battery
In the US, wireless carriers and service providers, such as T-Mobile, Verizon and Motorola, have trialled Encell’s Sentinel smart power systems for managing lead acid battery assets. Encell developed the Sentinel as a product to get in front of the US domestic telecoms industry. According to Guyton this will put Encell in a stronger position further down the road to supply the telecom industry with its nickel iron batteries, which the company began shipping in mid-2013 for trials with customers. For battery companies large and small, one challenge is identifying strategies and models for supplying telecom and other off-grid markets. In addition to supplying its initial runs of batteries to a US microgrid business for projects in Africa, Encell is also interested in supplying a company that supplies mainly diesel gen-set and lead acid systems in India, mainly for applications up to 50 kWh in size. This involves setting up a try-and-buy model and should evolve from field trials into larger volume orders.
‘There are about 600,000 off-grid mobile telecom cell sites worldwide, most of which are powered by diesel gen-sets and many of these are run a long way from their most efficient point,’ says Adrian Pinder, in charge of strategic marketing for GE’s Durathon energy storage business. Across grid markets and in the telecoms sector GE has sold about 30 MWh, and about 15-20 MWh of this amount is for telecoms. These are orders not yet installed and include the 6000 batteries for Megatron Federal in South Africa, which GE announced in 2012, as well as other orders. Typically the Durathon battery is situated between the diesel gen-set and the telecom cell site. The diesel gen-set is run hard for 5-6 hours a day, also recharging the battery, then the battery takes over for about the same number of hours. ‘This can reduce costs by about 3040%, achieving a payback in one to three years
The collective telecoms, off-grid and remote microgrid market is so big and so nuanced that there is room for many players and suppliers, Guyton believes. ‘There are plenty of niches that nickel iron batteries can supply and also grow into substantial revenue streams in future.’ Nickel iron batteries cycle over and over without degrading. To test this as part of its battery technology development, the company had bought some 85-year-old nickel iron batteries,
Encell’s nickel iron batteries
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depending on the individual site. The market is starting to take off,’ says Pinder. Sodium nickel chloride cell chemistries cycle well and withstand temperatures better than lead acid, especially in hot climates where lots of telecoms infrastructure is being built. The design life of the battery is 4500 cycles, at 100% full ones. In the field it varies.
ABCS FOR BSTS According to Navigant Research, a US consultancy, demand for mobile phones in Africa and India, which is the reason for growth in telecoms infrastructure like base station transceivers (BST), is accelerating the adoption of direct current (DC) distribution networks such as microgrids. Navigant’s energy, storage and smart grids expert analyst Peter Asmus gave an example of a new business model emerging in one of his blogs, recently. The A-B-C model targets developing countries that make up about 80% of the world’s population, but consume only 30% of global commercially traded power. This approach, promoted by The World Bank and the UN, takes advantage of the fact that some 550 million people out of the estimated 1.4 billion people without power own a cell phone. ‘A’ stands for anchor load, which for most remote microgrids running on DC power are green telecom towers. ‘B’ stands for businesses; the first customers served by the DC remote microgrid as the network expands. ‘C’ stands for community, referring to the DC distribution network microgrid extending out to residents as the final phase of this remote microgrid expansion model. As more and more systems along the ABC model’s lines are installed they could form the basis of DC microgrids in the developing world that could be networked together to provide energy in specific regions. We could then be witnessing a sort of ‘bottom up’ approach to building a grid as opposed to conventional centralised grids that distribute alternate current (AC) electricity in the developed world. In most cases off-grid mobile phone towers run on DC power so they represent the largest market opportunity for DC networks, according to Navigant Research in its report ‘Direct Current Distribution Networks’.
Then there are even more specific applications within the telecoms market that GE is targeting also. Some cell sites are on the grid but the connection is weak, so, again, the battery serves the same purpose of charging up and discharging but always ensuring that a supply of power is available. There are more specific applications GE has identified. For example, certain telecom cells act as more centralised receivers of signals from other cells that mobile phones connect to, so if one of these goes down it potentially cuts off 20-30 cells. In many cases the central cells are in cities, connected to the grid, often on buildings. However, as in many developing countries where even cities suffer from power losses, but it is not feasible to install a diesel gen-set on the roof, GE aims to supply its Durathon battery for use on the rooftop, to ensure the central cell is powered for several hours through a power shortage. GE is partnering with local suppliers and companies on the ground in different markets. In addition to Megatron Federal in South Africa, GE is working with Adrian Company, a telecoms, ICT and energy services company in Kenya. Through its acquisition of Tenesol, US PV panel manufacturer Sunpower, in which Total owns a stake, has gained a considerable offgrid business, in regions including North Africa and the Middle East. The business spans rural electrification to more industrial applications, chiefly telecoms, followed by oil and gas. The company supplies both solar and storage and also hybrid systems for telecoms and oil and gas, according to David Monceau, senior director of Sunpower’s off-grid business. ‘The driver for solar-based off-grid systems for telecoms and other industrial applications, is mostly OpEx savings, with a return on investment usually in less than three years,’ says Monceau. Conversion of telecoms bases from diesel to solar, newer telecom bases and newer pipelines under construction or planned are contributing to growing demand for solar-based off-grid systems. As well as having the highest power output of PV panels on the market, Sunpower’s products are very reliable with solid performance guarantees, important especially in remote areas where the panels have to work in very hot and tough climates.
COVER STORY
Enersys hybrid off-grid telecom installation
FUTURE OPPORTUNITIES The long term growth of the telecoms market continues to be fuelled by emerging and developing nations, where the need for good quality power supply is more acute and diesel fuel costs can be highest, when everything – refuelling, transportation and protection from theft – is factored in. There is ample room for players from the stationary energy storage industry as well as the solar sector as diesel fuel costs continue to rise making ‘green’ systems, based on renewable sources, storage – batteries and fuel cells, for trickle charging, more popular options. Advanced batteries have many advantages for telecom applications, both grid-tied and offgrid. And it’s not just lithium ion benefitting as a new wave of energy storage systems based on redox flow technology are being piloted in telecom and other off-grid applications around the world (see Going with the flow). However suppliers need to have good track records in performance and safety to show the telecom industry. loser collaboration between different industries is needed to develop fully optimised
systems. This is especially important for off-grid telecom markets, where Navigant Research highlights that the level of market pain to supply so-called ‘green base stations’, combining PV, battery and fuel cell technologies, is high but is also starting to see real market traction. Growth will hinge on companies that can produce systems in commercial volumes that work very reliably in a given local environment. Designing systems the seamlessly integrate different sources of hardware and other components is the challenge, but also the opportunity.
LINKS FOR FURTHER RESEARCH www.enersys-emea.com/reserve/ www.enersyspowertechjv.co.za/ www.ausonia.net www.saftbatteries.com www.encell.com www.geenergystorage.com www.navigant.com www.luxresearchinc.com
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GOING WITH THE FLOW From telecom towers to luxury islands, energy storage systems that leverage redox flow battery technologies are favoured for off-grid requirements Several developers of newer advanced flow battery technologies are targeting telecoms and off-grid markets with energy storage devices that are durable, have long lifetimes, fast reactions and require little maintenance, making them suitable for providing electricity for remote applications, reducing diesel consumption.
TELECOMS Redflow is an Australian company set up in 2005 to commercialise a zinc bromide module (ZBM) based on the work of two brothers. Since then the company has filed patents on its module technology, listed on the Australia Stock Exchange and completed a series of trials, mainly offgrid, for its energy storage system. In July 2013 Redflow announced a partnership with Emerson Network Power, part of US engineering firm Emerson, to deploy its ZBMs in the field. Plans are underway for a trial with a telecoms company in the AsiaPacific and a European telecoms company is interested in the technology. Under the terms of the agreement Emerson Network Emerson Power will integrate Redflow’s ZBMs with its solar energy systems to serve remote sites that
lack continuous power. ZBMs can be fully discharged so fewer batteries are needed to power a site and they function well in very high temperatures. Redflow has over 100 ZBMs deployed in various off-grid and island grid installations, in Australia, the US and other countries. In Europe several companies are bringing to market energy storage products and systems based on vanadium redox flow batteries (VRFB). Rather like an engine and its fuel tank VRFBs separate power and energy. Stack size determines the power, rated in kW, while the vanadium electrolyte volume determines the energy, which is rated in kWh. This creates an easily scalable system, where it is possible to extend the storage capacity from hours to days without needing to upgrade the power generation system.
GILEDEMEISTER AND CELLSTROM In 2010, German equipment supplier Gildemeister acquired a majority stake in Cellstrom through its renewable energy subsidiary A+F. Set up in 2000, Austrian start-up Cellstrom is bringing to market energy storage technology based on vanadium redox flow battery
(VRFB) chemistry. Since first field trials of the technology in 2004, Cellstrom has completed about 50 installations of its Cellcube energy storage system, which pairs VRFB modules with battery management and control technology from Younicos, a Berlin-based technology company with experience of on-grid and island-microgrid projects, and which is also the parent company of in Cellstrom. At the time of taking a stake in Cellstrom A+F Gildemeister also took a 5% stake in Younicos, in order to become a player in energy storage with its sights on both on- and off-grid/micro-grid segments. Last year Cellcube as modular systems in the MW range entered series production. About two thirds of the 50 or so Cellcube installations are used in on-grid applications such as for peak load shaving, demand response, as well as e-mobility infrastructure, while the other third – around 15 – are for unstable and off-grid applications, primarily in the telecoms market. Many companies developing energy storage systems based on advanced batteries such as redox flow chemistries
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are targeting telecoms in its entirety, which encompass ‘pure’ off-grid as well as gridtied systems. Energy storage systems in combination with solar panels, or with hybrid diesel systems, can replace or reduce diesel fuel consumption, which is used to generate electricity for operating telecom masts. VRFBs are durable and well-suited to unstable loads and fast reaction times with the battery’s ability to be charged and discharged rapidly without impacting performance. With the Cellcube, cycles in the region of 20,000 are also possible, which on an average of two full cycles a day means that the battery can last for 25 years, with maintenance/servicing of parts. Equipment from the actual telecom site can be included in the CellCube system, for example the telecom rectifiers and inverters are already integrated in the CellCube and are tailored to the specific site layout. This helps to bring down the overall operating costs of the whole telecom site, especially at off-grid sites because diesel consumption is further reduced. While the capital expenditure (CapEx) for energy storage systems such as Cellcube is higher for than for alternative, legacy distributed generation systems based on diesel generation and more conventional lead acid batteries, the operational expenditure (OpEx) savings are significantly higher. According to a Cellstrom source, telecoms operators are beginning to look past the initial higher investment in new storage technologies as they take into consideration what is called the total cost of ownership (TCO) associated with diesel hybrid solutions such as logistics, transportation, asset life, diesel theft and security. Telecoms is a fast-growing market and one where technology changes occur rapidly compared with other industries and margins are higher making it an attractive market for Cellstrom, Younicos and Gildemeister.
storage system, using its zinc bromide batteries, to an island microgrid project in French Polynesia. The system, which uses 40 of ZBB’s modules, will provide power for a luxury eco-resort, The Brando, on the island of the late actor’s private atoll, Tetiaroa. The client is Pacific Beachcomer, a luxury hotel and cruise operator in the region. The resort’s electrical supply includes an 896 kW solar panel array and generators that use sustainable biofuels made from locally sourced coconut oil. The resort will be able to cut back on the amount of fuel consumed by using generators for backup purposes only, when stored solar energy is not significant enough to meet overnight demand. The resort will be fully self-sustaining and is expected to be the first Leadership in Energy and Environmental Design (LEED) Platinum-certified destination resort in the world.
5 kW of power, or peak power of 10 kW for shorter intervals. It is possible to build VRFB systems that scale to 250 kW power or more, by using many stacks in a multiple array. The energy is determined by the capacity of the electrolyte tanks. REDT has a pilot underway at a remote telecom hub. Using the VRFB technology in place of lead acid batteries increases project internal rate of return (IRR) to more than 30%. The company is targeting a potential market of 100,000 sites. Benefits of the system include a long life, of 10,000 cycles or more and the electrolyte has a 20-year life, and very low maintenance as the symmetrical vanadium chemistry tolerates cross membrane mixing, and safe operation. The batteries are fully recyclable. According to REDT’s calculations, over a 10 year period, a VRFB diesel hybrid system would achieve a generation cost of $1.16/kWh (based on an off-grid load of 70kWh a day), compared with $1.62/kWh with a diesel gen-set. A VRFB-solar system would come in at $0.60/kWh.
Then there is UK developer Renewable Energy Dynamics Technology (REDT). The company has developed a VRFB system and is expected to enter volume production in 2014.
ViZn Energy Systems (which was called Zinc Air), has also launched a large-scale battery for the microgrid market and renewables integration applications, based on its zinc redox flow chemistry. The battery has a 20-year plus lifespan. The company will ramp up production capacity for its 160 kWh batteries in 2014.
REDT is applying for funding from the UK government to build a 1.2 MWh off-grid demonstrator on the Isle of Gigha, off the coast of Scotland, to supply surplus wind energy for use in the local electricity network when needed, which would be more cost-effective than building a cable from the mainland to the island. In 2000, REDT’s predecessor, Re-fuel Technology, was founded by Camco Clean Energy to develop a redox flow battery in research partnership with the University of New South Wales in Sydney, Australia. Following several years of R&D REDT has developed and field tested its system, Enify, which is available through distribution partners in Asia, Africa and North America.
MICROGRIDS FOR WINDY ISLANDS AND ECO-RESORTS
REDT works on clean energy projects with Camco Clean Energy, leveraging Camco’s extensive experience, and International office network, in the development of clean energy solutions.
In April 2013, ZBB Energy Corporation, in the US, shipped a 2000 kWh energy
Enify is a five-stack module, a 5 kW building block that delivers a continuous
USEFUL LINKS FOR FURTHER READING AND RESEARCH www.redflow.com www.zbbenergy.com For more on The Brando project and the microgrid system visit www.youtube.com/ watch?v=Z94dIntsutA REDT Energy Storage Systems www.poweringnow.com www.gildemeister.com/ energysolutions/en
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SOLAR AND STORAGE FOR REMOTE POWER The falling cost of photovoltaic (PV) panels is creating new opportunities for the energy storage industry, to supply demand for more integrated systems to bring green off-grid electrification to remote sites and communities
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diesel reduction is attractive because it reduces costs of burning diesel and associated costs such as transportation,’ he adds. The challenge is for businesses to find the right model and approach in different regions as the market is so fragmented.
RURAL ELECTRIFICATION – HOMES AND FARMS
Significant off-grid opportunities for the
In some markets, legislation is a key
stationary energy storage industry reside in
driver, explains Navigant Research’s
off-grid markets, from rural electrification of
principal research analyst Peter Asmus
homes to remote microgrids, where such
who authored the firm’s recently published
systems are configured to supply different
‘Remote Microgrids’ report. ‘In Australia
power loads, with a renewable energy
the carbon tax means mining corporations
source (RES) of generation and batteries,
must reduce their fossil fuel consumption.
as well as diesel. Declining PV panel costs,
They cannot just burn through diesel
in the face of rising costs of diesel, means
anymore,’ while he notes that Peru,
that the levelised cost of energy (LCOE)
Chile, South Africa and China are all
of PV energy is now falling below that of a
interesting markets for remote microgrids
diesel generator set (gen-set).
in mining. ‘But despite the potential, mining
IMS Research (part of IHS Inc) forecasts total installed capacity of off-grid PV systems with energy storage to exceed 2 GW in 2017, with microgrids accounting for the largest share of this market, followed by residential.
companies tend to avoid publicity so these projects often happen without raising interest. However, the mining market will be important because it is starting from such a low small number,’ Asmus explains. According to IMS Research analyst Abigail Ward: ‘By 2017 Asia will be the largest
MARKET OVERVIEW According to a recent report from Navigant Research worldwide revenue
region for off-grid PV and energy storage systems due to many countries in this region with low levels of electrification.’
from remote microgrids, which use RES,
Navigant’s report forecasts Asia Pacific,
is forecasted to grow from $3.1 billion in
which includes Australia, as a key remote
2013 to more than $8.4 billion in 2020.
microgrid market by region, while Latin
By then, remote microgrid revenue in
America, Africa and the Middle East also
North America alone will reach $1.8 billion,
have lots of microgrid opportunities,
with village electrification and physical
according to Asmus. ‘Though mainly grid-
islands accounting for the vast majority of
interconnected, Europe has a lot of islands
revenues.
and a high solar penetration. On islands,
Many successful off-grid rural electrification programmes exist in Africa, where much of the focus is on small solar-based systems, for households. The US PV panel maker Sunpower, has an extensive off-grid solar business (through acquiring Total subsidiary Tenesol in 2012), spanning rural electrification as well as telecoms and oil and gas. For 10 years Total had been providing decentralised rural electrification programmes in South Africa and Morocco, supplying over 45,000 households across both countries with solar systems, which use fossil fuel for backup power or lead acid batteries. Recent price declines, not just for solar panels but for low-energy DC-powered light-emitting diode (LED) lamps, are also opening up new opportunities to provide remote households in parts of Africa and also India with the basics – electrical lighting and sufficient power for recharging mobile phones. Such kits, as well as larger off-grid systems, are made affordable through payment schemes based on the pay-as-you-go (PAYG) payment model for mobile phones. In rural electrification markets the biggest barrier to PV and storage systems remains the higher upfront cost, compared with a diesel gen-set. Companies and developers from different industries, such as solar and energy storage are converging to design more integrated systems or hybrid diesel systems that incorporate RES. Cadoppi, a family-run business in Montecavolo, in Italy, supplies a solar and storage system specifically developed for providing power for electricity-powered water pumps for crop irrigation, as well
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Middle East. Subsidiaries and associated companies are in Germany, France, Eritrea, Greece, Sudan and Panama. Phaesun sources hardware from manufacturers to produce different systems for different off-grid markets and has completed over 500 projects in more than 80 countries. These span small PV and lighting kits and solar home systems to larger standalone systems, which typically include PV panels and batteries, for direct current (DC) and alternating current (AC) loads in schools and clinics, up to larger DC/AC hybrid systems that require several power sources, such as solar, wind and diesel. According to Phaesun’s head of marketing, as pumping stations and greenhouses. Agricultural regions and communities, particularly in Central and South America, Africa, Middle East and Asia, are the main target market for the company’s Alba system.
industry, including Italian manufacturers of solar concentrator and micro-wind turbines and also sells and installs turnkey systems. Cadoppi is seeking to expand into new markets, such as South Africa and Australia.
Cadoppi, which has been engineering and supplying pumping equipment since 1935, began exhibiting Alba in 2012. Sales of the system started in November 2012 and the company has a target of selling 250 units each month by the end of this year. The system can handle several inverters at the same time, for driving surface and submersible conventional water pumps and for driving home electrical appliances as well as providing water for irrigation.
Solar system components distributor Proinso is expanding its off-grid business, by collaborating with a battery company to develop a fully integrated and optimised PV and storage system. With the new system, expected to launch in 2014, Proinso is going after the global diesel gen-set market, which is growing fast and is expected to surpass $3.3 billion by 2019. Supplying PV-based systems, whether as part of diesel hybrid systems or green off-grid systems, in emerging regions and countries is a core part of Proinso’s business strategy.
The predominant application for the system is for use with PV panels, or small wind turbines where applicable. Diesel gen-sets are for backup when storage capacity ends overnight but electricity is required in some instances to drive refrigerators or freezers. The system is compatible with different battery technologies, but the most popular storage option is lithium iron phosphate (LiFePO4, LFE), followed by lead gel. The entry price for the Alba system for local importers is under EUR4000. Cadoppi works in partnership with companies in the renewable energy
RURAL ELECTRIFICATION – VILLAGES AND SMALL MICROGRIDS Founded in 2001, Germany-headquartered Phaesun sells, installs and services off-grid PV and wind energy systems. The company is one of a few leading system integrators in off-grid systems operating internationally, providing project management, customer training and technical support. Phaesun’s main target markets are Africa, Latin America and the
Géraldine Quelle, most of the systems installed run only using solar or wind generation mainly. Some systems run in combination with diesel gen-sets, and these are mainly in the industrial segment, for telecoms. ‘The demand for systems, just with solar, has been growing over the past 20 years or so. The off-grid market is a market that is growing slowly but continuously,’ she adds. ‘Village electrification tends to have the most support from governments and agencies like the World Bank and tends to consist of small projects in large numbers,’ says Asmus. Through its joint venture with Powertech, US-headquartered battery maker Enersys supplies, installs and maintains off-grid power systems in sub-Saharan Africa, mainly for rural electrification and telecoms. ‘In rural communities there is always lots of interest in the installations that we do and there is often quite a lot of excitement and joy when the systems are up and running, especially when the lights are switched on,’ according to Enersys Powertech renewables specialising electrical engineer Cornel Coetzee. A typical rural electrification project consists of a standalone system, based on energy storage hardware and solar panels, for a school or a clinic, for powering lights,
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end up netting them multiple contracts to supply projects in some degree of volume and consistency. For example, there are efforts to use European housing construction know-how and expertise to build homes in some African countries, like Mozambique, which will be equipped with their own PV and storage systems for generating electricity on site.
refrigerators and a few computers. ‘For microgrid applications, which tend to be the set-up for small village of around 10-15 houses, it is more usual to have a combination of PV, gen-set and storage,’ explains Coetzee. Enersys Powertech is one of a few companies with an extensive network in sub-Saharan Africa. The challenge is not so much sourcing projects. ‘Some locations are from any type of centralised grid or, indeed, infrastructure of any kind. In parts of rural Africa a journey of 50 km can take a day to complete and some remote sites can take as many as 3-4 days to reach. In most instances the biggest constraint is the logistical challenge of getting the system hardware and components to the site, which takes time and planning,’ says Coetzee. Depending on size and location, projects can take between a month and year to install and begin generating electricity. The off-grid power market varies hugely in terms of project size, from electrification of small villages in regions such as Africa to providing islands of thousands of inhabitants with microgrids. However, smaller projects cost more, as getting materials and hardware to each site mounts up. Consequently some companies are focusing their energies on developing strategies and models that can
Similarly, Cadoppi is expanding into new markets by supplying its Alba system, with PV panels, as part of prefab- type housing kits where homes being planned in remote and off-grid areas can have their own electricity supply. These prefabricated homes will be supplied through government agreements, which have taken a long time to come to fruition but plans are expected to be finalised by the end of 2013 or early 2014, according to a source at the company. In such applications the Alba system would provide sufficient electricity for a home, as well as drive pumps to take water from wells for storing in tanks for clean, drinking water and provide power for small-scale crop irrigation or greenhouses. In parts of Africa there are efforts underway to persuade governments to commit to rolling out microgrids across the country, which could amount to thousands of MW collectively. ‘Negotiating a whole country’s fleet of microgrids could be a very lucrative route to go down,’ says Asmus. Successful off-grid businesses often rely on good partnerships with local and regional companies. ‘India, for example, is emerging as an interesting market because all microgrids under 1 MW are deregulated, which is attracting lots of entrepreneurs,’ says Asmus. US energy storage developer Encell Technologies is exploring several different options for supplying its nickel iron batteries, which the company began shipping in mid-2013. The first couple of months of production’s worth – about 30 batteries – have been shipped to a technology company in Silicon Valley, in California, which carries out microgrid
projects and services. The Silicon Valley client’s microgrid configurations vary in size, but are typically 500 kW and use gensets, solar panels, batteries, three phase inverters and software. The Encell batteries are ultimately destined for microgrids in the Nigerian capital city Lagos, for banks, retailers and fast food chains. Other potential partners include a company in India that supplies smaller diesel power generation systems. Encell is also talking to a strategic investor which has distribution networks in place.
LARGE MICROGRID PROJECTS – ISLANDS Larger projects, such as island microgrids, tend to entail lots of negotiations and tender processes but the benefit for successful suppliers is that they get to supply one, or a few, meaty projects, as opposed to having to go after lots of single small leads, so overall margins tend to be much higher. Therefore, island microgrids, described by Asmus as ‘low-hanging fruit’, are attracting many companies, from large technology players, like General Electric (GE) and ABB, to providers of advanced energy storage systems that have been specially developed to orchestrate all hardware components in a carefully designed microgrid system. According to Eurelectric the share of diesel in electricity generation on European islands, home to about 2% of the European population or roughly 10 million people, is projected to fall from 76% in 2012 to 31% in 2020, even in the face of rising electricity demand. Increased use of RES will contribute to reduced consumption of diesel on these islands. High levels of RES penetration pose new sets of challenges for existing island grid networks, which storage can alleviate by capturing RES electricity for later use and by providing flexibility to ensure grid stability. Austrian start-up Cellstrom is commercialising an energy storage system, called Cellcube, based on
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vanadium redox flow batteries (VRFB), targeting several markets including telecoms, grid management, electric vehicle (EV) recharging stations and offgrid opportunities. The largest Cellcube installation to date is in a microgrid on the island of Pellworm, off the German coast. The system, with an energy capacity of 1600 kWh, integrates with both wind and solar RES. Other off-grid installations for Cellcube include a LEED platinum-rated manufacturing building in Bhopal, in India, which went off-grid two years ago. GE, which launched an industrial battery business in 2012, is targeting microgrids, telecoms and utility markets. Despite its size and industrial capability GE is embarking on new business models and approaches to supply microgrids, which include leveraging its existing partnerships with local companies for supplying the South African and Kenyan telecom markets, tapping into these company’s engineering expertise from related fields, like energy and grid maintenance. ‘In other cases separate local partners may need to be found for telecom and microgrid. Part of the work being done now is to identify who these companies are, caused by this shift in the market, as PV costs have fallen,’ says Adrian Pinder in charge of strategic marketing for GE’s Durathon energy storage business. Island microgrids are a definite target market for the Durathon technology, where a PV and battery system is cost-effective because it is difficult and expensive to ship out diesel and store it. ‘But part of the challenge is identifying who these customers are and whether a company such as GE wants to become an installer of microgrids or supply its batteries for local installers.’ These potential customers could already be served in another capacity by another GE business unit, such as lighting. On the other hand, GE’s renewables business which supplies wind turbines to gas plants, counts utilities in many countries and regions as customers, though these are not necessarily going
to be the ones making investments in microgrids. ‘It could more likely to be a business such as a large hotel or leisure complex on an island that is a luxury holiday destination,’ says Pinder. Luxury island resort could well prove to be a lucrative opportunity for stationary energy storage system suppliers, as ZBB Energy Corporation, in the US, is already proving. Earlier this year the company shipped a 2000 kWh energy storage system, using its zinc bromide batteries, to provide power for a luxury eco-resort in French Polynesia. The system uses a solar panel array and generators fed with sustainable biofuel. These are used for backup purposes only. It has taken German developer and designer of microgrids and grid-tied energy storage installations Younicos to several years of negotiation and effort to prove to the Azorean power utility EDA that renewables, in combination with energy storage, can replace diesel generation, almost entirely, on the island of Graciosa, in the Azores. Younicos’ intelligent power controls and its purpose-built energy management system make the current grid independent of conventional generators, by combining the company’s software with a 2.5 MW battery storage system, a 5.4 MW wind park and a 500 KW PV array, with one cable needed to link the wind park to the grid. On Graciosa, the diesel gen-sets will only be needed for backup in weeks with very poor weather conditions, allowing the system to cover an annual average of up to 70% of the island’s power demand with renewables. The system’s operator receives a portion of the money, which the diesel fuel would have otherwise cost, while the island’s inhabitants continue to pay the same for a clean and better quality supply of electricity. With the numerous benefits of switching to microgrids, powered by RES, it is no wonder the market is developing at a fast pace.
USEFUL LINKS FOR FURTHER READING AND RESEARCH Navigant Research www.navigantresearch.com IMS Research www.imsresearch.com Younicos www.younicos.com Cadoppi www.cadoppi.com Encell Technology www.encell.com GE Energy Storage http://geenergystorage.com Enersys Powertech JV http://enersyspowertechjv.co.za/ Phaesun www.phaesun.com Primus Power www.phaesun.com S&C Electric Company www.sandc.com
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MILITARY MIGHT The other microgrid applications that can yield lucrative contracts for developers are for the military and defence sectors. These are not all purely off-grid, but have the ability to operate independently of the grid. Military microgrid pilots, many of which are happening in the US, are well underway, but many of these are being done with the view of replicating such models in warzones, often off-grid, where using solar PV and storage cuts out the logistical issue and operational expenditure of shipping in diesel. In a warzone where fuel tankers are the targets for attacks a standalone microgrid is a much more secure proposition,’ says GE’s Adrian Pinder. Dan Girard, S&C Electric Company’s director for renewable energy business development, concurs: ‘We see a lot of demand for microgrids from the military or defence sectors looking at using energy storage with RES for remote locations, typically to ensure that there is always power supply guaranteed for certain facilities’ operations.’ The company’s microgrid projects include a defence aerospace facility, which has been in operation for seven years. S&C also carries out other rural electrification projects in Kenya, in Africa.
California-headquartered energy storage system developer Primus Power is supplying a military microgrid project through a contract with Raytheon’s Integrated Defense Systems (IDS) business at the Marine Corps Air Station (MCAS) in Miramar, California. The project, which uses zinc bromide flow battery technology for islanding and backup power is funded by the Department of Defense, which is adopting microgrids at stationary bases to sustain operations independent of what is happening on the larger utility grid.
Sandia National Laboratories, under a partnership between the Department of Defense and the Department of Energy, and involving several US federal laboratories, agencies and military commands. The project is helping to address a major challenge as the US looks to transition its military bases from over-reliance on diesel-powered backup generators, towards a hybrid system that integrates solar power, hydrogen fuel cells and other on site or local sources, along with advanced energy storage. SPIDERS will also help overcome an inefficient model within bases, where each building can only use its own backup generator. An integrated, base-wide microgrid, allowing energy to be directed wherever it is needed, is possible with microgrids based on hybrid power generation. In addition to providing more security, the microgrid approach matches the supply of energy to a building’s actual usage.
At MCAS Miramar a Primus Power 250 kW / 1 MWh energy storage system will be integrated with an existing 230 kW solar array. The combined microgrid system will demonstrate several capabilities including reducing peak electrical demand typically experienced in weekday afternoons and providing power to critical military systems when grid power is not available.
SPIDERS is being implemented in three stages, with the first test – at Joint Base Pearl-Harbor-Hickam – in Hawaii having already taken place in January. Hickam has integrated a 146 kW solar system and up to 50 kW of wind power generation assets. The energy storage component is based on a flow battery. Aside from helping to resolve security issues and reducing the use of fossil fuels, the microgrid will save Hickam around EUR20,000 a year.
SPIDERS MICROGRID PROJECT Smart Power Infrastructure Demonstration for Energy Reliability and Security (SPIDERS) is a $30 million (EUR25 million) project led by
Phase two of SPIDERS, at Fort Carson military, is underway. It will integrate 2 MW of PV, over 2 MW of diesel power and five 60 kW bi-directional electric vehicles, using energy storage. The Fort Carson microgrid loads include a datacentre, a network control centre, battalion headquarters and a library. In 2014, the third and final, and largest, phase of SPIDERS will be implemented. Courtesy Lockheed Martin
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ADDING UP THE ENERGY THAT GOES INTO ENERGY STORAGE A research paper from Stanford University, in California, makes a valid case for using energy values to appraise storage technologies for different applications
A method developed and used to account for energetic costs and benefits into solar photovoltaic (PV) systems, developed by researchers within Stanford University’s Global Climate & Energy Project (GCEP), has more recently been applied to stationary energy storage technologies. In September several online news articles picked up a news item based on the project, emphasising the research’s conclusion that, in certain cases, curtailing is a better option than using storage, particularly for power produced by largescale wind farms. Curtailing essentially means not putting power produced from renewable energy sources (RES) into the grid. The paper is more nuanced than the online reports suggest. Stationary energy storage is widely acknowledged as complementary to renewablesbased generation, counterbalancing the mismatch between supply and demand that occurs when unpredictable natural resources such as wind and solar are harnessed for energy production. Batteries – by virtue of encompassing many different types of electrochemical technologies with varying attributes – have significant potential to meet many stationary energy storage requirements now and in the future. Manufacturers of advanced batteries and developers and suppliers of energy storage systems and technologies have different markets in their sights, ranging from utility-scale bulk storage to distributed generation.
But, whether batteries are the panacea for all storage challenges, especially those posed by increased uptake of renewables, is an important consideration. The Stanford research paper ‘The energetic implications of curtailing versus storing solar- and wind-generated electricity’, published in the journal Energy & Environmental Science, could help to spark further debate and help to formulate frameworks in future that assess whether storage is always the best alternative to squandering RES-generated electricity through curtailment practices.
NET ENERGY ANALYSIS The GCEP group at Stanford is one of a handful of research efforts that is using net energy analysis techniques to evaluate the energy return on investment (EROI) ratios of storage technologies in relation to those for wind and solar resources. ‘We calculated how much energy is used over the full lifecycle of the battery – from the mining of raw materials to the installation of the finished device,’ according to the paper’s author Charles Barnhart. ‘Batteries with high energetic cost consume more fossil fuels and therefore release more carbon dioxide over their lifetime. If a battery’s energetic cost is too high, its overall contribution to global warming could negate the environmental benefits of the wind or solar farm it was supposed to support.’ EROI takes into account the amount of energy produced by a technology, such
as a solar array, or a wind farm, divided by the amount of energy needed to build and maintain a given storage system when paired with the energy generation technology in question.
CURTAILMENT VERSUS STORAGE Taking wind power as an example, turbines are oft-criticised for being unsightly and mostly unproductive whenever there is not sufficient wind to turn them. Occasionally, when turbines are turning and therefore producing energy, curtailment occurs. In this context curtailment is when wind is available, but the grid operator does not allow the wind farm to dispatch, or put, power into the grid. Not only is it seen as counterproductive to curtail RES, but curtailing practices also increase the lifetime cost of energy produced from generators that cannot dispatch their power. In the Stanford paper Texas is referred to, where between 1.2% and 17.1% of potential wind generation was curtailed on an annual basis between 2007 and 2012, equal to a total of 13 TW h of electrical energy. What’s more, globally curtailment rates are projected to increase as wind and solar continue to comprise a larger share of the generation mix. In this context, storage would seem an obvious solution, to bank RES output and dispatch it when required by the grid operator. The Stanford research team employed net energy analysis to compare the energetic
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increased use of RES in the first place, asserts the paper. EROI grid values as a function of storage or curtailment fraction and EES technology paired with solar PV (top panel) and wind (bottom panel)
It’s an important point, especially as governments are preparing to mandate for greater uptake of electrical energy storage (EES) technologies, California being a prime example. Both wind turbines and PV panels deliver more energy than it takes to build or maintain them but the overall the overall energetic cost of wind turbines is much lower than conventional solar panels as wind farms require comparatively less energy to build and maintain.
HIGHER CYCLES FROM BATTERIES
The energetic costs of wind and crystalline silicon solar technologies, with a variety of battery technologies, as well as alternative storage techniques in the form of compressed air energy storage (CAES) and pumped hydroelectric storage (PHS), were calculated in the study for comparison. From a net-energy perspective, electricity generated using solar PV technologies can be stored efficiently using all storage technologies in the study, while ‘wind power should be stored with more energetically favourable storage options such as PHS and CAES.’
cost of wind and solar generation curtailed at various rates to the energetic cost of those generators paired with storage. In some cases it is energetically favourable to store excess electricity. In other cases, it is favourable to curtail these resources. This is because batteries with high energetic costs tend consume more fossil fuels in their production, including the processes used to mine battery materials and so on, and also in their operation. ‘These embodied energy costs are not as immediately apparent, but they are an energy sink from a societal perspective,’ states the paper. In the long term, using energetically costly batteries will require additional energy consumption and increase emissions, hindering climate change mitigation efforts that motivated
Obviously, geologic sources of energy storage such as pumped hydro are not going to be suitable or practical for all energy storage requirements, just as it is unlikely that one broad energy storage solution can be expected to plug all gaps as we continue to transition to increased RES generation and our insatiable demand for electricity across all parts of the globe rises. In Germany, for example, high wind penetration is posing instability challenges on parts of the grid, calling for alleviation by using storage technologies, but not necessarily big banks of batteries. A potential alternative is the use of hydrogen storage, which can leverage the country’s existing extensive natural gas infrastructure and provide a promising option for large-scale energy storage. Also it is worth keeping in mind that lead acid dominates today’s battery market and while more advanced technologies
such as lithium ion grow their share, they have considerable potential to not only become cheaper but to improve in terms of performance. The best way of boosting battery EROI is to increase battery life cycles, states the Stanford paper. Charge cycle, which is the process of charging a rechargeable battery and discharging it as required into a load is the best indicator of a battery’s lifetime.
The researchers estimate batteries must be able to go through 10,00018,000 cycles to efficiently store energy on the grid. In a previous study Barnhart calculated the cost of building and maintaining five different battery technologies for grid-scale storage. Lead acid batteries had the highest energetic cost, while lithium ion the lowest, he found. Barnhart acknowledges that like other high-tech industries – PV being a very good example – improvements in materials, device architectures and production all contribute to driving down energy required for energy-intensive manufacturing. Collective advances in batteries anticipated possible over the next decade should further enable higher cycles and other performance benefits, and yield efficiencies in battery production, even where lead acid technology is concerned. However, if attempting to salvage energetically cheap power, like wind, using energetically expensive batteries is wasteful, then what alternatives exist to an option that seems as wasteful as curtailment?
CALCULATING ALTERNATIVES Net energetics could provide a means with which to evaluate different options for different cases, so it might be less energetically costly to build more turbines, or to invest in transmission lines, instead of a battery to store power that arrives at off-peak times. The paper acknowledges that there are many reasons why storage provides
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FEATURE
On the fringes: net energy analysis Net energy analysis seeks to assess the direct and indirect energy required to produce a unit of energy. Direct energy is the fuel or electricity used directly in the extraction or generation of a unit of energy and indirect energy is the energy used elsewhere in the economy to produce the goods and services used to extract or generate energy. Direct and indirect energy use make up embodied energy. For batteries, it is easy to imagine not only the energy required for manufacturing these devices, but the energy bound up in the activity required to mine, extract and process the metals and raw materials used in such devices. A line plot of minimum cycle life values electrochemical storage technologies must achieve to yield better EROI ratios than curtailment when paired with wind generation. Dashed lines indicate different embodied electrical energy values per unit storage capacity
a useful tool for increasing grid flexibility and the paper has only focused on only one measure of the value of storage. The research is, after all, focused solely on comparing the energy efficiency of storing electricity versus curtailing electrical generation. ‘EES has significant value not quantified or analysed in this study, including electricity market economics, insuring reliable power supplies to critical infrastructure, ancillary benefits to power grid operation and application in disaster relief and war zone scenarios.’, according to the paper. Electricity generated by wind or solar that would otherwise be stored or curtailed could be used where the need for on-demand and not adversely affected by intermittency, such as directed at powering water activities such as desalination and purification, irrigation and so on. This would require some more creative thinking and planning, across different stakeholders and agencies but it is not impossible. The framework presented by the researchers can be tailored to other technologies, including variable generation, increased transmission, and demandside management including smart grid technology and further results will emerge from the group in due course. A comparison of their energetic cost to storage and curtailment could lead to ‘identifying energetically favourable combinations of grid flexibility technologies sensitive to regional power grid policy, operations and natural resources,’ says the paper.
Both the energy product and the embodied energy are expressed in physical units of measurement, such as joules. Energy return on investment (EROI) is the ratio of energy delivered to energy costs. Net energy analysis assesses the change in the physical scarcity of energy resources. Interest in net energy analysis arose in the 1970s in response to the oil crisis but has largely existed as a controversial analytical tool, compared with standard economic analysis of energy, and most adherents find time outside of other main academic duties and careers to pursue its study. In addition to Stanford, pockets of interest can be found at University of California, Berkeley and State University of New York. This may be about to change as efforts to establish a permanent, dedicated institute at Stanford are underway. More information about Net Energy Analysis can be read here: www.eoearth.org/view/article/154821/
LINKS FOR FURTHER RESEARCH Stanford University’s Global Climate & Energy Project http://gcep.stanford.edu/ Press release on the study http://gcep.stanford.edu/news/ windsolaronthegrid.html Link to GCEP’s research paper in Energy & Environmental Science http://pubs.rsc.org/en/content/ articlelanding/2013/ee/c3ee41973h#divAbstract
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EVENTS LIST
ENERGY STORAGE EVENTS 13-14 NOVEMBER 2013
18-20 NOVEMBER 2013
Low Carbon Networks Fund Conference (UK)
8th International Renewable Energy Storage Conference and Exhibition (IRES 2013)
Hilton Brighton Metropole Hotel UK regulator Ofgem has set up a Low Carbon Networks Fund (LCNF), allowing up to £500 million support to projects sponsored by distribution network operators (DNO) to try out new technology, operating and commercial arrangements. With more storage projects underway in the LCNF funding round, this will be a major event in the UK’s storage calendar for this year The objective of the projects is to help all DNOs understand what they need to do to provide security of supply at value for money as the UK moves to a low carbon economy. Ofgem expects that many projects receiving support from the Fund will involve the DNOs partnering with suppliers, generators, technology providers and other parties to explore how networks can facilitate the take up of low carbon and energy saving initiatives such as electric vehicles, heat pumps, micro and local generation and demand side management, as well as investigating the opportunities that smart meter roll out provide to network companies. http://energynetworksassociation.symonline.com/LCNF2013/default.htm
Berlin Congress Center, Germany Due to the enormous successes of past IRES Conferences EUROSOLAR and the World Council for Renewable Energy (WCRE) strengthen the IRES series in collaboration with EnergieAgentur.NRW and numerous other partners. The 8th International Renewable Energy Storage Conference and Exhibition (IRES 2013) will take place at the bcc Berliner Congress Center, November 18-20 2013. The conference series has emerged as the central platform for sharing knowledge and exchanging ideas on one of the key issues of future energy supply, having attracted more than 3,100 participants since its beginnings in 2006. http://www.eurosolar.de/en/index.php/ires2013-mainmenu-173
21 NOVEMBER 2013
1st Energy Storage Forum Israel PV costs are going down drastically and wind power is seeing a huge growth, this is causing a shift in attention towards enabling technologies such as storage. With this in mind Eilat Eilot RE presents a unique platform for discussing the future of storage for renewable energy. Topics include: Latest technology and market developments in energy storage – will the market go beyond batteries?
Will the world go off-grid as it did with cellular phones? The Eilat Eilot region’s suitability as a location for mini- and microgrid pilots, Israel’s potential to become a global leader in the field Israeli storage start-ups and investment opportunities http://eilateilot.wix.com/energyeng
4-6 DECEMBER 2013
Energy Storage India (1st International Conference & Exhibition on Energy Storage and Smart Grids in India) Nehru Centre, Mumbai Energy Storage India conference and expo, addressing the need for energy storage solutions in India, is the first energy storage conference and exhibition in the country to focus exclusively on applications, customers and deal making. The show is poised to provide a first-class networking event to drive energy storage market expansion in profitable applications, highlighting synergies, inter-relationships and new business opportunities for transmission, distribution, customer-sited, microgrids/campuses and mobility (electric vehicle charging) applications. Topics and themes include energy storage applications and technologies, national policy framework and international case studies on renewables integration, as well as emerging applications and future technologies such as smart grid, cities and telecom. www.esiexpo.in
EVENTS 14-16 JANUARY 2014
25-27 MARCH 2014
1-3 APRIL 2014
4th Annual Electric Energy Storage
Energy Storage – International Conference and Exhibition for the Storage of Renewable Energies
7th Energy Storage World Forum Conference & Exhibition
The Westin San Diego, California This Marcus Evans 4th Annual Electric Energy Storage Conference will allow attendees to gain insight from best practices on staying abreast with regulatory updates, while assessing the best technological and financial case studies and histories of large scale electrical storage. Electricity is inherently difficult to store and transport. This event will catalyze the further development of storage as a real option by bringing together stakeholders such as industry (IPP, ISO, RTO), academia, and government to examine increased reliability, performance, and competitiveness of storage systems. Viability of Smart Grid Scale storage is challenged through markets, finances, technology and the environment. Attendees will be able to interact with speakers and their peers encouraging both audience participation and engagement. http://www.marcusevansassets.com/ HTMLEmail/MB_CHC510_SJ.pdf?MEC_ Title=4th_Energy_Storage_Email_1_ FU&MEC_ID=136941860
30-31 JANUARY 2014
Smart Metering UK & Europe Summit 2014 ETC Venue, St Paul’s, London The Smart Metering UK and Europe Summit 2014, now in its 5th year, is Europe’s leading gathering for smart metering and utilities professionals from around the world. Held in the luxurious surroundings of London’s ETC Venue St. Paul’s, this 2 day conference, exhibition and awards ceremony will play host to the key decision makers in the UK and Europe’s Utilities and Smart Metering sectors looking to network, discuss and engage on the key topics and developments affecting Europe’s Energy future.
Each year over 25 of the world’s leading utilities, TSOs and DNOs gather at our forum to shape the future of energy storage.
Messe Düsseldorf, Germany With more than 530 participants spanning 33 countries Energy Storage 2013, in Düsseldorf, counted among the industry’s important meetings. The conference was accompanied by a trade exhibition. With 45 exhibitors, there were more participants than at the first event in 2012. The next Energy Storage will take place in Düsseldorf, 25-27 March 2014. The programme will have a stronger focus on concrete business models, and the accompanying trade exhibition will concentrate more on the presentation of marketable solutions and applications for storage system.
According to Lux Research, the global demand for storage solutions will reach a staggering $113.5 billion by 2017. Through the Energy Storage World Forum in London, we provide you with an excellent opportunity to establish key partnerships early, explore new investments and plant a stake in this burgeoning industry. The forum will allow you to meet the industry’s movers and shakers in person and benefit from their extensive connections – an incredible networking experience. www.energystorageforum.com
8-9 MAY 2014
www.energy-storage-online.com
Australian Energy Storage Conference & Exhibition
1-2 APRIL 2014
Melbourne Exhibition & Conference Centre
Energy Harvesting & Storage Europe Estrel Berlin Convention Center and Hotel This fifth annual IDTechEx event provides insight into energy harvesting technologies, case studies and markets, ranging from consumer electronics and sensors all the way to vehicles, building and industrial automation. Attendees to this event will learn: Who needs energy harvesting, the ROI and sectors close to adoption – end-user and integrators from a diverse range of markets present their needs and experiences All the technology options - from energy harvester choices, energy storage options, through to the latest in low power electronics and wireless sensors and related technologies such as thin film harvesters and supercapacitors The current state of the technology at the event tradeshow
Australian Energy Storage Conference and Exhibition is the country’s first event dedicated to on-grid and off-grid energy storage. This event will be co-located with Solar 2014, the leading solar industry event in Australia, last year attracting more than 2200+ registered delegates from over 15+ countries, and hosted 70+ exhibiting organisations and 60+ conference presenters over the two day show. The Australian Energy Storage Conference and Exhibition will feature an expert two-day conference program, as well as showcasing the latest energy storage technology, market trends and financial analysis. By bringing these two important events together, we will create a fantastic opportunity for you to network and meet all of the critical players in Australia’s solar and energy storage industries. www.australianenergystorage.com.au/
http://www.idtechex.com/energyharvesting-europe/eh.asp
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EVENTS REVIEW
ENERGY STORAGE BECOMES A MORE CENTRAL TOPIC AT KEY PV INDUSTRY SHOWS HELD IN 2013 This year’s Intersolar exhibition provided a strong platform for off-grid and grid-tied systems and products, while EU PVSEC’s conference programme included energy storage-related topics.
© Solar Promotion GmbH
In remote areas where the cost of diesel-generated electricity is getting more expensive and also because solar panels have become much cheaper than they were a few years ago, it is more economical to integrate PV with batteries as solar-storage systems or within hybrid diesel generator-based systems. For many traditional off-grid power system suppliers and developers, this year’s Intersolar provided an opportunity to tap new customer and distribution partnership leads with systems that are compatible with solar power generation.
Intersolar At the leading exhibition and conferences in the photovoltaic (PV) industry’s 2013 calendar, energy storage moved much higher up the agenda. With an exhibition reflecting the breadth of the solar value chain, during this year’s Intersolar show, in Munich, it was the halls and spaces dedicated to energy storage that seemed to attract the most visitors and enquiries. Over 200 companies from the solar, industrial battery, inverter and power electronics, power systems and equipment industries demonstrated products and systems for energy storage applications. Thanks to an incentive introduced by the German government in May to subsidise small sized battery systems, many German and European energy storage system suppliers, including Varta, Leclanche, Dispatch Energy and Nedap used Intersolar to begin taking enquiries.
Energy storage was also a significant portion of Intersolar’s conference programme, with presentations covering different energy storage technologies and applications, including powerto-gas and hydrogen based concepts for long-term energy storage. But most of the presentations covered various battery technologies used in stationary storage applications, from the merits of lead acid versus lithium ion in off-grid applications, to economic analysis comparisons of redox flow against lithium ion systems for integration of large-scale PV generated electricity into the grid.
There were a large number of off-grid solar and storage products at Intersolar, also, ranging from systems designed to provide back-up power for homes in areas with no or poor grid access, to larger systems designed for microgrids as well as for grid stabilising, including Outback Power, Gildemeister and Cadoppi. © Solar Promotion GmbH
EVENTS
EUPVSEC EU PVSEC, the leading technical conference for the PV industry, had several programmes on energy storage and related topics. In some presentations the growing relevance of storage in the PV industry, especially where renewables in some regions are reaching high levels of penetration, of 10% or more, was acknowledged. Like Intersolar, many of these presentations discussed different storage applications and technologies, beyond easing solar into the grid. These included presentations on applications and case studies of PV in off-grid and remote microgrid applications and a session on the final day of the conference devoted to PV and electricity storage. Industrial players ABB and Fiamm participated, discussing their experience of developing energy storage systems for grid applications. Fiamm, which mainly produces batteries based on lead acid chemistry, is bringing to market more advanced batteries that use sodium nickel chemistry, for on and off-grid applications and countries with weak grids, as well as telecoms and uninterruptible power supply (UPS) applications.
global markets will be responsible for most storage demand. These include Germany, the US, Italy and also Japan, which due to high electricity rates and the nuclear Fukushima disaster has created what Lux analyst Matthew Feinstein called ‘perfect storm’ conditions for storage, which will see it become a leading market for solar and storage from about 2015 onwards. One presentation also raised the possibility that the stationary storage market is beginning to suggest similar patterns to the PV industry, where a few markets or regions account for the lion’s share of demand, which is less favourable than many markets with more steady or incremental demand. The PV and Battery Production Forum, a parallel seminar coorganised by EUPVSEC and the International Photovoltaic Equipment Association (IPVEA), included a presentation for Schmid Group in Germany, which is expanding into manufacturing energy storage systems based on vanadium redox flow batteries (VRFB). In its fourth year, the forum provided an audience of around 200 attendees with market information, including an insight into China’s plans for its PV industry and other relevant cleantech industries such as lithium ion batteries, as well as market data from NPD Solarbuzz.
The company’s Sonick batteries are bring used in a hybrid island power system for a luxury hotel resort in the Maldives. The sodium nickel batteries storage energy generated by a PV array, while two diesel generators are used for backup. Today the cost of batteries is not competitive for many markets. Lux Research gave a presentation during the session based on its forecasts that outlined how, over the next five years, four
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With the help of Oerlikon technologies, our customers are using less energy to produce textiles. The next generation of agricultural equipment will require less fuel thanks to Oerlikon’s improved synchronizers for transmission systems. Adapted from Oerlikon technology, electric cars equipped with a lighter gear shift will be able to travel farther, will provide a smoother ride and will no longer produce CO2 emissions. These are just a few examples of how we – through our innovative solutions for global growth markets, such as food, energy, clothing, electronics, transportation and infrastructure – are helping protect the environment and conserve resources.