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New Storage spark for renewables · 2019. 3. 8. · market with more sophisticated types of investors who are doing it with their eyes open,” he added. Nonetheless, UK installations

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Page 2: New Storage spark for renewables · 2019. 3. 8. · market with more sophisticated types of investors who are doing it with their eyes open,” he added. Nonetheless, UK installations

CONTENTS

DS3 capped tender finally launched Brandenburg flagship blueprint German power-to-gas nears reality REDT looks beyond lithium-ion

Developers get creative Pivot’s ambitious play Eelpower and Orsted set to deliver Council and EU salt cavern schemes

France and its territories get active Italy leads European charge Schemes to improve grid stabilityBattery demand tipping point ahead

Gigawatt gain from US regulations Ontario’s peak shaving opportunities Mexican’s first big battery Utility-scale development in Chile

India’s storage industry mission Policy push in China and beyond Middle East make storage moves South Australia leads the way

BIG BOOST: Eneco’s Puurs 2MW battery supplied by Alfen and linked to 2.3MW Enercon turbines, Belgium’s first large storage system Photo: Alfen

IRELAND/GERMANY

UK

FRANCE/REST OF EUROPE

AMERICAS

REST OF WORLD

FRONT PHOTO

10–12

03–09

14-15

16–18

19–21

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ENERGY STORAGE 0221 February 2019

Battery overdriveEnergy storage is

flourishing as costs fall and regulations

loosen in the drive to balance grids, writes

Tim Probert

SKY’S THE LIMIT: ElectraNet’s 30MW Dalrymple battery storage project in Yorke Peninsula, South Australia, commissioned last month Photo: ElectraNet

renews.biz

The global installation of energy storage is surging as costs continue to fall and regulators

step up efforts to facilitate batteries to help balance growing volumes of intermittent generation.

Figures compiled by renews show around 2.5GW of 1MW-plus storage is due online in major markets in 2019 — more than double the around 1GW deployed last year. This expansion is led by the UK, Australia, the US and South Africa.

Storage developers believe the technology is on an unstoppable path as renewables-plus-storage solutions become increasingly competitive with fossil fuel alternatives.

“The point at which renewables generate cheaper than existing thermal plant is coming to pass,” said Mark Simon, chief executive of UK developer Eelpower.

In the UK, energy storage is going through the same kind of growing pains as renewables did when support mechanisms evolved.

Developers have had to crunch the numbers hard to make projects stack up financially in light of the suspension of the capacity market and derating of short-duration projects as well as other regulatory uncertainties such as grid charges.

The imminent removal of embedded benefits, which incentivise the use of storage to avoid grid charges at peak times, have hit financial models for storage projects.

Co-located sites remain on the agenda but planned regulatory changes to remove barriers to deployment are yet to take serious effect.

Merchant projects that can participate in a wider range of grid

service markets, such as the balancing mechanism, are now the name of the game.

“There was a very significant growth in interest in storage, particularly after the enhanced frequency response auction, which seems to have peaked,” said Anthony Price, director at UK storage consultancy Swanbarton.

“It has turned into a more mature market with more sophisticated types of investors who are doing it with their eyes open,” he added.

Nonetheless, UK installations are due to hit almost 600MW in 2019, which would top last year’s tally of 460MW.

The role of battery storage for vehicle charging and the rising number of councils developing projects are key to the UK market.

The country’s near neighbour, Ireland, is about to take its first serious dive into energy storage having merely dipped its toe in recent years. The Delivering a Secure Sustainable System (DS3) tender, due by the summer, is expected to procure more than 100MW of storage for Ireland’s Integrated Single Electricity Market.

In Germany, standalone projects for the primary control reserve market remain king but the country is finally starting to get to grips with how co-located storage can enhance wind sites.

Power-to-gas schemes, meanwhile, are poised to reach the 100MW-plus scale backed by major players such as grid operator TenneT.

The US remains the most advanced storage nation in terms of policy, with California and New York states setting ambitious targets for deployment. renews figures showed around 2GW of US storage on the book as utilities’ procurement programmes and regulatory changes in regional grid markets take effect.

A similar albeit smaller-scale storage boom is happening in Canada, where rising grid charges and demand response programmes are motivating large industrial users to take advantage of peak shaving services.

In the southern hemisphere, Australia is increasingly becoming the land of big batteries, particularly in South Australia where incentives are high amid grid instability.

In Asia, storage is being driven by state-backed and regional programmes to balance renewables output, in particular for solar in India and wind in China. n

Page 3: New Storage spark for renewables · 2019. 3. 8. · market with more sophisticated types of investors who are doing it with their eyes open,” he added. Nonetheless, UK installations

ENERGY STORAGE 03 21 February 2019

UK energy storage developers are having to be more creative to bring battery projects to

fruition as a morass of regulatory uncertainty threatens to slam the brakes on progress.

Industry experts said the sector had been hit by a “triple whammy” of a capacity market suspension by the European Commission, frequency response market price depression and the impending phase-out of embedded benefits by Ofgem.

Figures compiled by renews show a healthy storage pipeline of almost 600MW of 1MW-plus projects due online this year, which would better last year’s total of 460MW.

Many of those projects, however, are based on grid ancillary service contracts such as frequency response and the capacity market, which no longer offers plentiful returns as they did a year or two ago.

One prominent UK storage developer told renews it did not reach financial close on any of its 10MW-plus projects in 2018 and is not expecting to bring anything online until it works out how to make the numbers stack up.

“The model is highly likely to be a combination of merchant revenue in the wholesale electricity market via timeshifting, the capacity market and firm frequency response contracts,” a source said.

Electricity Storage Network policy chief Madeleine Greenhalgh said the storage sector’s prospects would be

hit “significantly” by Ofgem’s Targeted Charging Review minded-to decision last November to remove the financial benefits of transmission and distribution grid charge avoidance.

“Storage has been really useful to avoid importing from the grid at peak times and that has been quite lucrative but that will be disappearing,” she said.

“Moving to a fixed charge from 2021 is a blow to the business model for storage — developers, investors and operators need to be more creative to find their niche in the market.”

Developers are doing just that by exploring market models that put a greater focus on more energy-intensive modes of operation for batteries, such as National Grid’s balancing mechanism (BM), electric vehicle charging, arbitrage and co-location with solar PV and wind.

Storage aggregator Limejump Energy entered the first battery to go

live in the BM last August — the 10MW Breech Farm developed by Anesco, which was followed shortly afterwards with the 6MW Clay Hill.

More aggregated storage sites are expected to follow in the coming years as National Grid adopts the Europe-wide balancing platform TERRE (Trans European Replacement Reserves Exchange).

Everoze partner Felicity Jones said the UK is seeing a “bifurcation” in revenue models for storage.

“On the one hand, some parties focused on energy-intensive models such as the BM and arbitrage, which are location agnostic, more merchant and tend to benefit from economies of scale on a per megawatt-hour basis,” she added.

“The other big strategy is focused on location-specific revenue streams, such as the emerging 04

Developers rethink business models

to make numbers stack up, writes

Tim Probert

renews.biz

Creative surge needed to bring on the batteries

BOXING CLEVER: Stratera Energy’s 50MW Pelham in Hertfordshire Photo: Stratera Energy

Private Networks

Electrical & Civil Balance of Plant

Operations & Maintenance

Energy Storage Solutions

Contestable Works up to 132kV

Bespoke Containerised Substations

Grid Connections

Earthing Design & Installation

g2 Energy, Olney Office Park, Osier Way, Olney, Buckinghamshire, MK46 5FP+44 (0) 1234 482482 [email protected] www.g2energy.co.uk

Balance of PlantGrid Connections

Lloyds NERS ICPContainerised Substations

4358Certificate Number 11675, ISO9001, ISO14001 & OHSAS18001

Page 4: New Storage spark for renewables · 2019. 3. 8. · market with more sophisticated types of investors who are doing it with their eyes open,” he added. Nonetheless, UK installations

ENERGY STORAGE 04 21 February 2019

ACTIVE UK DEVELOPMENTOnline in 2018Project, location Developer MW TechnologyAylesford, Kent BESS 29 Lithium-ion battery

Barnstaple, Devon Philip Dennis Foodservice

3.75 Lithium-ion battery

Batwind, Aberdeenshire Equinor 1 Lithium-ion batteryBreach Farm, Derbyshire Anesco 40 Lithium-ion batteryBroxburn, West Lothian TRIG 20 Lithium-ion battery Burbo Bank offshore wind farm Orsted 2 Lithium-ion batteryCarnegie Road, Liverpool Orsted 20 Lithium-ion batteryClaredown, Essex BESS 29 Lithium-ion batteryDorking, Surrey Grid Battery Storage 6 Lithium-ion batteryEmirates Stadium, London Arsenal Football Club 2 Lithium-ion batteryFell View, Lancashire Anesco 1.2 Lithium-ion batteryGrimsargh, Lancashire Anesco 1.2 Lithium-ion batteryHeywood Grange, Staffordshire Anesco 1.2 Lithium-ion batteryKnottingley, West Yorkshire Barn Power/Eelpower 1.2 Lithium-ion batteryMill Farm, Lincolnshire ESB 7.2 Lithium-ion batteryMilton Court Farm, Surrey Grid Battery Storage 6 Lithium-ion battertNevendon, Essex Foresight 10 Lithium-ion batteryOxcroft, Derbyshire Anesco 2.9 Lithium-ion batteryParc Stormy, Bridgend Kiwi Power 4 Lithium-ion batteryPelham, Hertfordshire Statera Energy 50 Lithium-ion batteryPen y Cymoedd, Neath Port Talbot Vattenfall 22 Lithium-ion batteryPilsworth landfill site, Lancashire Highview Power

Storage, Viridor5 Liquid air

Port of Tyne, Tyne and Wear Foresight 35 Lithium-ion batteryPlessey, Devon Kiwi Power 2 Lithium-ion batteryRock Farm, Shropshire Eelpower 20 Lithium-ion batteryRoosecote, Cumbria Centrica 49 Lithium-ion batteryRoundponds, Wiltshire Gresham House 10 Lithium-ion batteryThrybergh, South Yorkshire Barn Power/Eelpower 1.2 Lithium-ion batteryTynemouth, Tyne and Wear Enel (Element Power) 25 Lithium-ion batteryWest Burton B, Nottinghamshire EDF Energy Renewables 49 Lithium-ion batteryWesthampnett, West Sussex West Sussex County

Council4.4 Lithium-ion battery

TOTAL 460.25MW

Due to go live in 2019AdD HyStor, West Midlands University of Sheffield 1 FlywheelAsfordby, Leicestershire UK Power Reserve 20 Lithium-ion batteryBacton, Norfolk Anesco/Shell 1.25 Lithium-ion batteryBloxwich, West Midlands Arenko 41 Lithium-ion batteryBolton, Lancashire UK Power Reserve 20 Lithium-ion battery

Braco, Perthshire Capbal 10 Lithium-ion batteryCreyke Beck, East Riding of Yorkshire Statera Energy 50 Lithium-ion batery Cricket St Thomas, South Somerset South Somerset District

Council/Opium Power25 Lithium-ion battery

Drumcross, West Lothian Muirhall Energy 30 Lithium-ion batteryEmirates Stadium, London Arsenal Football Club 1 Lithium-ion batteryLarport Farm, Herefordshire Anesco 19.5 Lithium-ion batteryLower Road, Essex Gore Street 10 Lithium-ion batteryHarker, Cumbria Pivot Power 50 Lithium-ion batteryHereford, Herefordshire Gresham House 28 Lithium-ion batteryHill Farm, Leicestershire BESS 10 Lithium-ion batteryNursling, Southampton Pivot Power 50 Lithium-ion batteryPort of Tilbury, Essex Gore Street 9 Lithium-ion batteryRed Scar, Lancashire Gresham House 49 Lithium-ion batteryStagstone,Cumbria Eelpower 8 Lithium-ion batteryThelwall Lane, Cheshire UK Power Reserve 20 Lithium-ion batteryThurcroft, South Yorkshire Gresham House 50 Lithium-ion batteryVarious, England and Wales UK Power Reserve 60 Lithium-ion batteryWalworth Farm, Warwickshire Energy Reservoirs 15 Lithium-ion batteryWinchester, Hampshire Eelpower 10 Lithium-ion batteryWolverhampton, West Midlands Gresham House 5 Lithium-ion batteryTOTAL 592.75MW

Expected online between 2020-22Avonmouth, Bristol Foundation Property &

Capital17 Lithium-ion battery

Brook Street, Lancashire Limejump 20 Lithium-ion batteryCheshire, Cheshire West Storelectric 40 Compressed air

Hill Hall, Essex Lightsource 3 Lithium-ion batteryHolmsleigh, Devon Limejump 4 Lithium-ion batteryLangley, West Midlands Statera Energy 49 Lithium-ion batteryNorton, County Durham Statera Energy 49 Lithium-ion batteryPensnett, West Midlands Arenko 50 Lithium-ion batteryRampisham, Dorset Limejump 3.5 Lithium-ion batteryRoaring Hill, Fife RES 30 Lithium-ion batterySouth Gyle, Edinburgh Arenko 50 Lithium-ion batterySouth Gyle 2, Edinburgh Arenko 20 Lithium-ion batterySouthwark, London Veolia 2 Lithium-ion batteryStanground, Cambridgeshire Cambridgeshire

Council/Bouygues Energies & Services

10 Lithium-ion battery

Sunnydale, Leicestershire Limejump 4.45 Lithium-ion batteryWoodston, Cambridgeshire Cambridgeshire

Council/Bouygues Energies & Services

3 Lithium-ion battery

TOTAL 354.95MW

distribution system operator services, local flexibility markets and

behind-the-meter solutions engaging customers directly.”

Jones noted a “fundamental shift” in the development of batteries for EV charging in areas of grid constraint and expects a greater role for storage in large-scale, subsidy-free solar.

TLT Solicitors partner Maria Connolly, meanwhile, said she expected a significant rise in the number of multi-technology projects that combine solar and storage to provide “destination charging” EV infrastructure.

Major commercial and industrial users of electricity are also expected to procure behind-the-meter battery storage on a wider scale.

“Large corporates have much greater awareness of how storage can play a big part in their own power

usage and how clean energy can play a role in their day-to-day consumption.”

The law firm is working with developers Thrive Renewables and Aura Power, which joined forces to offer storage to UK businesses free of charge in return for a share of the

resulting ancillary service revenue and energy savings.

Carter Jonas energy specialist Simon Currie said times had been “extremely tough” in the storage market but expected to see positive change in the months ahead.

“With National Grid set to utilise batteries more effectively and distribution network operators to follow suit, revenues from battery technology in the energy market are set to be proven over the coming year,” he said.

“This breakthrough will lead to an inevitable acceleration in deployment, delivered through increased investor confidence unlocking investment finance.” n

03

FIELD DAY: Stratera Energy’s 50MW Pelham Photo: Stratera Energy

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ENERGY STORAGE 05 21 February 2019

Pivot Power accelerates 2GW of driving ambition

Developer gets into first gear with

vehicle charging projects, writes

Robin Lancaster

AT THE WHEEL: Matt Allen Photo: Pivot Power

ON THE BALL: 3MW Tesla battery storage project developed by Pivot Power at Arsenal Football Club’s Emirates Stadium in London Photo: Arsenal Football Club and Pivot Power

Pivot Power will this year bring online the first two of 45 proposed energy storage

projects it hopes will transform electric vehicle charging in the UK.

In total, the company plans to install 2GW of battery storage, with each facility costing about £25m (€29m) to develop and build.

A pair of 50MW projects – one in Southampton in southern England and the other in Carlisle in northern England – are scheduled to start operating in October, according to Pivot chief executive Matt Allen.

The company is in advanced talks with unnamed technology suppliers and expects contracts to be finalised in the next couple of months for delivery in quarter three, he added. Discussions are also ongoing with EPC contractors for the two projects.  

A further three 50MW plants have been granted planning permission at sites in Norwich, Taunton and Braintree – the first of eight Pivot Power plans to commission in 2020. 

The company hopes to secure planning permission for the other five developments in the coming months. 

“Another 10 will be built in 2021 and we will continue with that build-out rate until 2024,” Allen said.

The ultimate aim is for Pivot’s battery projects to be linked to EV charging stations with 40-50 charging bays to create a ‘superhub’ that could be used by individual drivers, by a corporate fleet or for public transport. 

Ideally, Pivot’s EV charging sites will be within a 5km radius of a storage facility. The company is in advanced discussions regarding possibilities for the Southampton and Carlisle initiatives.

“Each site will have different opportunities and we will assess them on a site-by-site basis. We are receptive to councils, private companies and motorway service stations,” Allen added. 

For example, the Southampton battery project at the Nursling electricity substation close to junction three of the M27 motorway could offer opportunities for private car charging. 

“Each site will have different opportunities and we will assess them on a site-by-site basis. We are

receptive to councils, private companies and motorway service stations.”

Allen said there would be a time lag between the batteries coming online and EV charging infrastructure being in place while suitable locations were being sourced for the superhubs.

The Pivot chief could not put a specific timescale on when EV charging would be linked to the batteries. “It could be three months – it could be six months,” he said, without elaborating further.

Once a suitable charging site is chosen and up and running, Pivot Power would benefit from a one-off connection fee, an annual capacity charge and a pence per kilowatt-hour volume rate.  

“We would rather push for large volumes of affordable electricity as opposed to pushing for less, more expensive power.”

Charging sites would be linked to the storage plants via an overhead or underground cable, in what Allen describes as private wire arrangements.

No deals are in place yet as to who will provide the chargers, but companies such as Tesla and German outfit Ionity are potential customers for EV charging.

Allen is unconcerned by fears in some industry quarters that poor car sales could dent demand for EV

charging in the medium term. The Pivot chief believes building more charging stations will make electric vehicles more attractive.

“There is an element of ‘If you build it, they will come’ to this,” he said.

While the main focus of the discussions around Pivot Power’s activities has been on EV charging, Allen maintains the company is fundamentally a battery storage developer.

EV charging would be the “cherry on the top” of the company’s work, Allen added, and provide between 10% and 30% of its revenue over time.

The majority of the company’s revenue will come from traditional energy storage through providing power for wholesale trading, as well as services and frequency balancing to National Grid.

The company has launched a £250m fundraising campaign, which it is hoping to close by May having garnered a great deal of interest, said Allen. UK investment manager Downing has provided financial backing to Pivot Power for the first projects.

Allen believes that, as more renewable capacity is added to the UK network, the company’s projects will become even more attractive to investors.

“The increase in volatility from more renewables boosts the business case for batteries.” n

renews.biz

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ENERGY STORAGE 0621 February 2019

UK developer targets over 1000MW of

sites, writes Tim Probert

Eelpower bullish over decades of delivery

renews.biz

Eelpower is confident it will hit its 1GW target for UK storage deployment by 2022 despite

regulatory headwinds and an uncertain risk appetite in the debt finance market.

The Hampshire developer operates six grid-connected battery projects totalling 34MW and, while it has a further 34MW at least due online by the year-end, it has identified an additional 1160MW of “suitable sites”.

“We have identified a lot of good sites, some of which will be visible to other developers, and we are working through which are the

most expandable,” said chief executive Mark Simon.

The company has an immediate pipeline of 95MW in early-stage development, he added.

“The quality of sites we can wrap up now ensures we can deliver projects for the next 10-20 years.”

Simon is unfazed by the suspension

of the capacity market, the impending phase-out of embedded benefits via Ofgem’s Targeted Charging Review (TCR) and falling frequency response prices offered by National Grid.

“FR remains a healthy revenue stream and I do not worry about the volatility of FR price

CATCH THE WAVE: Eelpower’s 1.2MW of battery storage at Barn Energy’s 260kW Thrybergh hydro power plant on the river Don near Rotherham in south Yorkshire Photo: Eelpower

Gresham House is to step up development with a keen focus

on the co-location with existing wind and solar sites on a merchant basis.“We have built five energy storage sites and we will be building a lot more,” said head of new energy Ben Guest.

The London developer is considering adding storage to its 18.45MW Wathegar 2 wind farm in Wick, Scotland, acquired last year from BayWa, to absorb peak output when high wind speeds drive down power prices.

“Wathegar 2 is a great example of a starting point of how we start to add value to existing sites rather than doing it from scratch,” said Guest. “The spikes could be

absorbed by storage to peak shift and the numbers start to look quite interesting if you know what you are doing.”

The company is exploring how to maximise its 22MW grid connection capacity for Wathegar 2 via storage, which could in turn facilitate new turbines to be added to the site.

“We have nine Senvion turbines of 2.05MW but that is their maximum rated capacity and most of the time we are generating less than that.

“If you want to add capacity you have to have a separate project but you can take advantage of grid capacity by sharing the connection via sub-metering. It requires some paperwork but it is pregnant with value.” n

Co-location shift to stash peak power

07

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ENERGY STORAGE 07 21 February 2019

Orsted on track to access all areas with a 20MW test bed

BACKSTAGE PASS: Orsted intends to take part in all energy markets, with its Carnegie Road site due to be market ready next month Photo: Orsted

Orsted is preparing to use its 20MW Carnegie Road battery storage site in Liverpool as a

test bed to participate in as many UK energy markets as possible.

The Danish developer said it is on track for the site, completed in December, to be “fully market ready” next month ahead of its first provision of firm frequency response (FFR) to National Grid in April.

“We have been working on market access — FFR, the capacity market, the wholesale market and the balancing mechanism — to get us to a stage where we have the flexibility to enter into any market as and when,” said lead origination and investment manager for energy storage Bridgit Hartland-Johnson.

“As the energy market changes, we want to build up a profile of services to be accredited by National Grid to access as many markets as possible and then decide what to offer,” she added.

Ensuring storage sites are prequalified and meet technical compliance criteria such as grid codes for the various markets is no easy task, particularly around the balancing mechanism.

Orsted has acceded Carnegie Road to the balancing settlement code so it can be a balancing mechanism unit, which required a generation licence.

“It requires a great deal of effort to get the full status as a big generating unit to enter the BM. We have done it the hard way but we have created invaluable learning as a team so that we have full flexibility.”

Orsted will run the numbers to see if battery storage units can compete head on with other forms of generation in the BM but Hartland-Johnson is confident in the bigger

picture: “All my instincts tell me there will be a lot more volatility in the market and, even if it is not necessarily viable today it certainly will be in the future.”

Carnegie Road took two years to complete after consent was granted by Liverpool City Council in December 2016. The build programme took around 12 months. It was overseen by EPC contractor NEC Energy solutions with civils and cabling performed by subcontractor G2 Energy.

The site, which has room for an extension, has three containers of lithium-ion batteries provided by Korean manufacturer LG Chem.

The Carnegie Road project is part of Orsted’s vision of a world that runs fully on green energy.

“That does not just mean generation. The whole ecosystem needs to be green until the very last point on the grid,” said Hartland-Johnson.

The “holy grail” for Orsted is co-location of offshore wind with

onshore batteries to mitigate intermittency and optimise trading of power produced, she said.

“We are building a lot more offshore wind and we require balancing services ourselves to balance our production.”

Last year, the company commissioned a 2MW storage unit behind the meter at its 90MW Burbo Bank offshore wind farm in Liverpool Bay.

The lithium-ion batteries enable Orsted to test the theory that storage can improve the performance of Burbo Bank 1.

“We want to test if we can improve production scheduling versus delivery and if the wind farm can provide black start services for the grid.”

The company has no plans to develop further energy storage sites in the UK but is keeping a close eye on how balancing and other service markets evolve.

“We want to prove that Carnegie Road can deliver first but we are involved in a lot of the market consultations,” said Hartland-Johnson.

“National Grid’s Wider Access to Balancing Mechanism that sits behind Project Terre should make it much easier for smaller assets like storage to provide services.”

Although Hartland-Johnson is frustrated by the smorgasbord of evolving market changes, she acknowledges them as a necessary part of a transition towards a smarter energy system.

“The challenge is it is all happening at the same time. I would like it to go a bit faster but obviously there are other issues clouding the horizon.” n

— renewables growth will mean more volatility.”

Eelpower sees promise in National Grid’s move towards week-ahead auctions for FR. “We think batteries will be rewarded more under FR auctions,” said Simon.

The company expects the capacity market, said to account for around 10% of revenue for storage projects, will be reinstated. “I think it will be exactly the same — supportive but not a game changer.”

The Eelpower chief is encouraged by Energy Secretary Greg Clark’s “After the trilemma” speech last November in which he said smart technologies such as storage were essential.

“What I see is government clearing the decks to put in place compensation for flexible assets, which will motivate us to build the 1GW-plus of storage we need in the next few years,” said Simon.

While he believes TCR and other grid charge changes are the “presage of a better future”, Simon hopes Ofgem replaces the existing benefits for storage with “compensations to encourage flexibility”.

Until then, Eelpower is grappling with how to make the numbers work for standalone storage in an uncertain regulatory environment. “The two anchors for projects are arbitrage trading in the day-ahead and intra-day markets and FR/grid services.”

The ability for such projects to attract debt finance, however, is a concern in an “unproven market”.

“We are very focused on developing a business model that attracts the lowest cost of capital, recognising there will not be any subsidy and nor should there be.

“It is a very profitable business showing good returns but not long-term contracts and that requires senior debt providers to take a different view.”

Eelpower is building two standalone schemes — the 8MW Stagstone in Cumbria and 10MW Winchester in Hampshire — both due online by July. It also aims to bring online a further two unnamed sites by the year-end at least, one in Yorkshire and one in Teesside, with a combined capacity of 15.8MW.

The company commissioned three storage projects in 2018, including two 1.2MW schemes co-located with small hydro plants in Yorkshire.

“The battery allows us to procure power cheaply to dispense at peak times, sometimes as much as 80-90% of power feeding the battery is from the hydro.” n

CARNEGIE HAUL: Liverpool living laboratory Photo: Orsted

06

Page 8: New Storage spark for renewables · 2019. 3. 8. · market with more sophisticated types of investors who are doing it with their eyes open,” he added. Nonetheless, UK installations

ENERGY STORAGE 08 21 February 2019

Councils hop on battery wagon to boost coffers

Local authorities are turning to storage to

make more money from their land, writes

Robin Lancaster

renews.biz

South Somerset District Council will join the small but growing club of UK local authorities to

own operational storage sites when it flicks the switch on the 25MW Cricket St Thomas project next month.

The scheme near Taunton, which consists of lithium-ion batteries supplied by Chinese maker BYD, is in the final stages of installation ahead of testing and operation by contractor BSR Connect.

South Somerset said the impetus behind the £9.8m development is a need to make the most of its land to generate new income streams, as its central government grant funding has fallen by 70% since 2010.

“The council is operating in a complex financial climate, where between 2018 and 2022, it needs to deliver savings rising to £6m per year,” a spokesman said. Once operational, the storage facility will provide an

internal rate of return of around 14% by delivering grid balancing services to National Grid, he added.

South Somerset co-owns the 25MW battery with project manager Opium Power, which has hired storage aggregator Kiwi Power to prepare it for bids for future energy contracts.

Cambridgeshire County Council is also considering energy storage to make a better return from its assets.

The local authority is in the early stages of developing two projects in partnership with Bouygues Energies & Services: a 3MW standalone facility at Woodston and a 10MW scheme co-located with the 2.25MW Stanground solar farm.

The council has yet to submit planning applications but expects the projects to break ground in the second half of 2020.

Around £2.5m would be invested in Woodston and £9.7m in Stanground, with internal rates of return expected to be 12.5% and 13.1% respectively, the council said.

Cambridgeshire Council said part of the motivation behind the projects is to reduce carbon dioxide emissions.

Regen chief executive Merlin Hyman said local authorities are set to play an increasing role in energy storage development as the market becomes more cost competitive.

This could include leasing land or being more actively involved through owning and operating sites like South Somerset and Cambridgeshire.

“Local authorities have extensive land and building assets and many still have social housing that could potentially see a role out of domestic batteries,” he added.

Energy storage could also provide opportunities for local authorities to

retrofit existing council-owned wind and farm assets with batteries, Hyman added.

West Sussex County Council is to pilot a project later this year to evaluate whether small battery installations can work with existing solar systems at corporate buildings and schools.

The council did not provide any further details at this time, adding only that feasibility studies had been carried out at a number of sites.

It also has larger projects planned, including the up to 36MW Halewick Lane facility on top of 4MW operational scheme at the 7.4MW Westhampnett solar farm.

Swindon Borough Council has set up a wholly owned subsidiary company called Public Power Solutions (PPS) to help the public sector develop innovative power and waste projects, including energy storage.

The council is the only shareholder in the initiative, which generates about £700,000 a year in Swindon alone for the council, said PPS head of power solutions Steve Cains.

The company has worked on an under-development 50MW storage plant at Mannington, which is in the final stages of being sold to an undisclosed third party, he added.

“When construction has been completed, Swindon Borough Council will benefit from receiving a long-term land rental on the project, which is expected to have a lifespan of 30 years.”

PPS is working on other potential storage projects in the Swindon area linked to electric vehicle charging and solar, but Cains declined to give further details.

Regen’s Hyman said some of the local authorities the organisation has worked with are interested in developing local energy markets that provide peer-to-peer trading and local network balancing.

“It is a way of retaining greater value locally and storage is likely to play a key role in any such more local approach to energy.”

Regen is also aware of local authorities in Cornwall, Devon and Bristol considering or developing storage projects, he added. n

WIRED UP: South Somerset District Council’s battery scheme Photo: South Somerset District Council

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ENERGY STORAGE 09 21 February 2019

Caves worth their salt for EU-backed demo site Highview runs with liquid asset

Compressed air energy storage developer Storelectric plans to kick off construction of its

EU-backed 40MW Cheshire demonstration project this year.

The Preston outfit is negotiating a grant of around €10m from Brussels to fund the up to €20m development phase of the scheme near Middlewich.

Storelectric director Tallat Azad said it hopes to get the award next month before submitting a planning application to Cheshire West Council in May. If the company is successful, the Connecting Europe Fund will cover phase two of the demonstrator, including front-end engineering design work plus consenting, offtake and lease arrangements.

The project will use existing salt caverns that offer a naturally hermetic seal for storing compressed air. It is the prelude to a 500MW full-scale

scheme earmarked for operations in the mid-2020s.

Storelectric wants the 40MW demo to be shovel ready by the autumn but whether building starts this year will depend on not only planning consent but also a separate grant for construction. Azad said the company is

preparing to submit a bid in the summer for funds covering up to 75% of the around €50m capex cost for construction, which is expected to take 18 months.

The grant application for the Cheshire scheme, which has been named as a project of common interest by the EU, is being supported by EY.

Civil engineer Costain and Finnish utility Fortum carried out a technical validation of the concept, while Mott MacDonald has been tasked with evaluating the larger 500MW scheme.

German geotechnical engineer KBB Deep is studying potential compressed air flow rates and pressure of the Cheshire salt caverns for the demo. Siemens has modelled the system for how it could supply air compression, expansion and generation equipment.

Storelectric estimates the round trip efficiency of the demo will be in the region of 63-64% and pegs the 500MW scheme at 67-68%.

Azad is confident compressed air energy storage can play the same revenue stacking game as batteries and is targeting four main areas: the capacity market; ancillary services; the balancing mechanism; and arbitrage in the wholesale market.

“The market is moving towards a merchant play – even in ancillary services – but, as time goes by, we will make the numbers work purely from arbitrage,” he said. “Right now it cannot be done but, as more renewables come online and more fossil plant comes off, the off-peak power price will naturally reduce to the marginal cost of renewables, which is around £10/MWh.”

The company is also discussions with EDF over collaborating on a similar project at the latter’s Hole House salt caverns in southern Cheshire.

“EDF is interested because it wants to repurpose its salt caverns otherwise stranded due to gas storage being in the doldrums,” said Azad. n

Highview Power is looking at developing “a handful” of liquid air energy sites of around

50MW providing five to 10 hours of storage. “We have three projects at early stages of planning in the UK and we believe two of them will move quite fast,” said chief executive Javier Cavada. Details are being kept under wraps until later this year, he added.

The London developer inaugurated its 5MW/15MWh per-commercial, grid-connected demonstrator at the Pilsworth landfill site near Bury in Lancashire last June. It is looking to

develop “gigawatt-scale” projects in the US, Spain, Italy and the Middle East and “fully commercialise” the technology.

“We are not waiting around – we are coming to the market to help solve issues of intermittency and lack of active power when relying on wind, solar and batteries,” said Cavada.

Elsewhere, Newcastle University has turned on its 150kW/600kWh grid-scale pumped heat energy storage system, the first in the UK, and the University of Sheffield expects its 1MW flywheel at its battery in Willenhall to go online next month. n

FLOW GO: Highview Power’s 5MW/15MWh Pilsworth liquid air energy storage demo in Lancashire Photo: Highview Power

TALLAT AZAD: Storelectric is negotiating a £10m EU grant Photo: Storelectric

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Page 10: New Storage spark for renewables · 2019. 3. 8. · market with more sophisticated types of investors who are doing it with their eyes open,” he added. Nonetheless, UK installations

Energy storage developers in Ireland are set to compete in the country’s first Delivering a Secure

Sustainable System (DS3) tender by the summer after lengthy delays.

The tender is due to take place in quarter two, having been pushed back from last September to enable more consultation with industry and simplify the framework.

The volume-capped DS3 pay-as-bid tender will procure between 91MW and 140MW of energy storage for Ireland’s Integrated Single Electricity Market.

Successful bidders will be offered six-year contracts for a bundle of frequency response and balancing services. Project size is capped at 50MW with projects expected to go live by September 2021.

Partner at energy consultants Everoze Felicity Jones said Ireland’s system operators and regulators have been working on tailoring the complex

DS3 architecture to fit storage technologies.

“The DS3 framework is overengineered so a lot of the effort has gone into simplifying it to come up with something that works for storage and is intuitive for developers and investors,” she added.

The lengthy six-year contracts are designed to provide investors with revenue certainty and encourage the use of new technologies in Ireland, according to the Single Electricity Market Committee.

The 50MW project size cap has forced developers to sharpen their pencils to participate in the DS3 tender as several projects in the pipeline eyeing the juicy state-backed contracts exceed 100MW in capacity.

Those included two 100MW batteries proposed by Lumcloon Energy and backed by Korean firms Hanwha Energy and LSIS in Offaly and a 100MW site in Carlow proposed by Engie.

Other projects that needed a shave were two 110MW projects proposed by Greener Ideas, a joint venture between Centrica-owned Bord Gais Energy and Mountside Properties, at Suir in Tipperary and Nore in Kilkenny.

The Nore project has been scaled back to 40MW and is one of 15 battery energy storage projects registered under the Republic of Ireland’s new ECP grid connection process.

Data from system operator Eirgrid show that these 15 projects total 338MW. DS3 projects have been given priority under the ECP process and grid connection offers are expected to be disclosed in the coming weeks.

The schemes range in size from a 3MW battery at the Shranakilla Energy Park in Mayo proposed by ESB Solar to a 60MW battery at Lisdrumdoagh in Monaghan developed by Highfield Storage.

Highfield also has a 33MW battery project at Ardagh South in Meath

going through ECP, while RES Storage Ireland has four projects: the 9MW Gorey in Wexford; the 8MW Moatstown in Kildare; the 16MW Avonbeg in Wexford; and the 50MW Gorman in Meath.

Jones expects several projects to take slices of the DS3 cake rather than a few large schemes gobbling up the bulk of the up to 140MW.

“There is a technical resilience argument — Eirgrid and SONI (System Operator for Northern Ireland) will be keen to have a distributed set of

projects in case of, for example, a plant breakdown,” she said.

“Although this is not explicitly stated, you are also more likely to create a market if you have a larger number of providers.”

Jones believes the DS3 tender, the first of its kind in Ireland, will be oversubscribed but competition will be rationed by the ability to secure a grid connection to meet delivery milestones.

“Access to grid is a primary constraint for the competition but there is no shortage of interest, plenty of developers are keen to get a contract,” she added.

Meeting milestones is not the only challenge; projects will have to meet the world-leading speed of response specification of three milliseconds.

“This really is a very striking feature of the regime and is without global precedent. The technical challenge is significant.” n

ENERGY STORAGE 1021 February 2019

As the DS3 tender is finally set to start, developers scale schemes to fit its

50MW cap, writes Sian Crampsie

“Although this is not explicitly

stated, you are more likely to

create a market if you have a

larger number of providers”renews.biz

IRISH BATTERY RUNNERS AND RIDERS FOR DS3 TENDERLocation Developer MW

Ardagh South, Meath Highfield Storage 33

Avonbeg, Wexford RES Storage 16

Gardnershill, Dublin Flexilis Power 8.5

Glencloosagh Phase 3, Kerry Glencloosagh Energy 30

Gorey, Wexford RES Storage 9

Gorman, Meath RES Storage 50

Kilmannock, Wexford Grid System Services 30

Knocknagoum, Kerry TBC 8

Lisdrumdoagh, Monaghan Highfield Storage 60

MCB Battery Storage, Mayo PWWP Developments 12

Moatstown, Kildare RES Storage 8

Nore, Kilkenny Greener Ideas 40

Porterstown, Kerry Grid System Services 30

Rhode, Offaly Schwungrad Energie 20

Shranakilla, Mayo ESB Solar 3

TOTAL 357.5MW

Sharp approach needed for Irish tender

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ENERGY STORAGE 11 21 February 2019

Flagship project to tap into German high winds

12

Italian developer Enel Green Power is creating what it believes is a blueprint for siting battery storage in

areas with high wind capacity at its 22MW Cremzow project in Germany.

The project in Brandenburg state, co-developed by Enertrag, is connected to a transmission line owned by Enertrag Netz, which hosts hundreds of megawatts of Enertrag-operated wind capacity.

The scheme, commissioned last month, was instigated by battery supplier and system integrator Leclanche, which approached Enel and Enertrag with the idea of developing storage in a network with a high penetration of wind.

Enel and Enertrag will explore the storage plant’s ability to reduce wind generation imbalance and curtailment, and to store surplus power for injecting into the grid during peak demand times.

The project is also providing frequency regulation service to the primary control reserve market.

Enel Green Power head of energy storage innovation Gianluca Gigliucci said: “This is our first project exploring the stacking of frequency regulation services and the integration of wind generation with storage, enhancing our knowledge and expertise in the field of ‘renewables-plus-storage’.

“It is also applicable to other projects Enel is developing globally.”

Enel and Enertrag will also use the battery to identify other services it

could offer from the Cremzow site. “Then we will identify specific business models for each service and we will decide together which services are really worth implementing,” Gigliucci said. He believes other potential

services are likely to be inhibited by legal requirements but Enel “will try to be prepared for rapidly changing regulations”.

“This is possible by implementing all the identified ‘renewable-plus-storage’ functions into Enel’s supervisory control and data acquisition (SCADA) system from the outset, so the battery is able to perform services as soon as the market develops,” he added.

Up to 60MW of wind capacity has been identified as suitable for operation with the energy storage system.

The SCADA system can both perform PCR services and manage the battery in concert with the wind farms “connected” to it, added Gigliucci. Integration will involve coupling wind speed information with the battery storage control systems and by trading wind and storage capacity on different energy and service markets.

The battery is also

REDT looks towards a future that lasts longer than lithium A deal signed by flow battery

supplier REDT indicates a new German market opportunity to provide storage for a longer duration than traditional lithium-ion batteries.

The company’s exclusivity agreement, signed last summer with a subsidiary of German developer WWF Solar, will deliver two grid-scale energy storage projects to supply secondary control reserve (SCR), each roughly 40MWh in capacity.

The first 40MWh project will be built in an unnamed location in central Germany and there are plans to roll out a further 690MWh of projects

in the coming years. Construction of the first of the two 40MWh projects is expected to start this year once a final investment decision has been reached.

SCR, also known as automated frequency response reserve, is usually provided by ramping up generation from coal-fired power plants. The service, which needs up to four hours to charge or discharge, is intended to maintain equilibrium between demand and supply on the electrical network.

According to REDT chief executive Scott McGregor, the 80MWh deal is equivalent to supplying 1% of the potential market for SCR. n

FOUNDING FUEL: Enel Green Power is to use its 22MW Cremzow project in Brandenburg to maximise wind output Photo: Leclanché

Enel Green Power, Enertrag and

Leclanche scheme aims to reduce

curtailment and store surplus, writes

Sara Verbruggen

[email protected] | +44 (0)208 879 1900

Containerised Smart Energy ReefersSmart energy storage solutions for optimised energy consumption and reduced costs.

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ENERGY STORAGE 1221 February 2019

11 integrated into Enertrag’s control systems. The 22MW

project builds on a 2MW/3.2MWh pilot built for proof of concept, which has been operational since April 2018.

German renewables developers are looking increasingly closely at retrofitting projects with batteries to capitalise on rising wholesale power prices, according to RES.

Energy storage outfits noted strong interest from renewables project owners as prices have climbed above €60 per megawatt-hour, levels that have not been seen for more than six years. “We are seeing more requests for quotes in Germany and some interesting concepts from potential customers wanting to capture full use of renewable energy,” said RES Germany storage head Mattias Leuthold.

“They know energy storage can help them achieve this,” he added.

Demand for co-located storage is also being driven by falling battery costs spurred by growing demand for electric vehicles.

RES installed its first grid-scale battery in Germany earlier this year

for local utility Versorgungsbetriebe Bordesholm in Schleswig Holstein.

The 10MW project is providing primary control reserve and will also demonstrate black-start functionality, a service hitherto provided by conventional power stations.

The primary control reserve market continues to be the bread-and-butter revenue source for big grid batteries. The largest of these — a 48MW system developed by Eneco and Mitsubishi in Jardelund, Schleswig-Holstein, which came online last year — is set to be bettered by the LEAG Group’s 50MW BigBattery at the Schwarze Pumpe coal plant in Brandenburg.

The €25m project in Lausitz, due online in 2020, will provide frequency control in the PCR market as well as arbitrage trading in wholesale market,

German grid operators are set to place a rocket under efforts to

move power-to-gas projects from the demonstration stage to commercial reality.

TenneT and gas industry companies Thyssengas and Gasunie Deutschland are to build a 100MW P2G plant to turn renewable power into gas for industrial use in Ruhr in Lower Saxony.

The facility will be connected to the grid in phases starting from 2022. It will convert surplus power from wind farms and other sources into hydrogen

to be fed into the local natural gas grid to supply hydrogen filling stations and for storage in underground caverns for industrial use.

German grid operator Amprion and gas grid outfit Open Grid Europe have plans to build P2G plants of between 50-100MW.

According to local development agency Cluster Nordrhein-Westfalen, P2G plants with a total capacity exceeding 21MW are in operation in Germany, with at least a dozen more projects under construction. Also on

the books is a 2MW electrolyser that is part of a hybrid wind-storage power plant in Haren. The hydrogen will be fed into the city‘s gas network, and will also be supplied to filling stations.

The project is supported by the NEW 4.0 – Norddeutsche EnergieWende (Northern German Energy Transition) initiative, a network of 60 partners in Hamburg and Schleswig-Holstein, covering the energy industry’s entire value chain.

The Federal Ministry of Economics and Energy is funding NEW 4.0 to the

tune of around €125m. Haren is one of two projects using P2G funding under NEW 4.0. The other, Haurap H2, is building a 1.25MW electrolyser to convert surplus wind power into hydrogen for the local gas network.

In North Frisia, GP Joule is developing a 1MW P2G project comprising five electrolysers at separate wind farms that will convert surplus generation into hydrogen for two filling stations. Energiedienst has installed an electrolyser in Grenzach-Wyhlen Baden-Württemberg. n

Power-to-gas lift-off to commercial reality

GERMAN GROWTHOnline in 2018

Project, location Developer MW Technology

Bergedorf, Schleswig-Holstein Vattenfall 1 Lithium-ion battery

Bremen heat reservoir, City of Bremen Swb, AEG 20 (battery) 230MWh heat Hybrid lithium-ion, power-to-heat

Bruck, Bad Hindelang, Oberallgau Enesto, Allgauer Uberlandwerk 1 Lithium-ion

Brunsbuttel, Schleswig-Holstein Wind to Gas Energy 2.5 (battery), 2.4 (electrolyser) Lithium-ion, power-to-gas

Dresden heat reservoir, Saxony Drewag, Stadtwerke Dresden 40 Power-to-heat

EnspireME, Jardelund, Schleswig-Holstein Eneco, Mitsubishi 48 Lithium-ion battery

Hafenbatterie, various Vattenfall, BMW, Bosch 1 Lithium-ion battery

Herdecke, North Rhine-Westphalia RWE, Belectric 7 Lithium-ion battery

Grossenhain, Meissen Frankfurt Energie 1 Lithium-ion battery

Karoline, Karolinenviertal, Hamburg Vattenfall 45 Power-to-heat

Leipzig, Saxony Belectric 14 Lithium-ion battery

Reuters, Berlin Vattenfall, SaltX 10MWh Thermal storage

Schwabisch Hall, Baden-Wurttemberg Siemens 1 Lithium-ion battery

Stromspeicher Heilbronn, Baden-Wurttemberg EnBW, Bosch 5 Lithium-ion battery

Varel, Niedersachsen EWE Group, Hitachi, NGK 11.5 Lithium-ion, sodium-sulphur batteries

Wunsiedel, Bavaria SWW Wunsiedel, Siemens 6 Lithium-ion battery

Wyhlen, Baden-Wurttemburg Energiedienst Holding 1 Power-to-gas

Due to go live in 2019

Cremzow, Brandenburg Enel, Enertrag 22 Lithium-ion battery

TBC, eastern Germany Vestas 5 Lithium-ion battery

eFarm project, North Frisia GP Joule 1 Power-to-gas

Hamburg, Hamburg Hamburg Energie, Siemens Gamesa 30MWh Thermal storage

TBC, Schleswig-Holstein RES, Versorgungsbetriebe Bordesholm 10 Lithium-ion battery

Slated for 2020

BigBattery Lausitz, Brandenburg LEAG, Siemens 50 Lithium-ion battery

TBC, central Germany WWF Solar, REDT 40MWh Vanadium redox flow battery

Haurup, Schleswig-Holstein Energie des Nordens 1.25 Power-to-gas

Heat Reservoir Berlin-Spandau, Berlin Vattenfall 120MWh Power-to-heat

On the books for 2021 and beyond

Ruhr, Lower Saxony TenneT 100 Power-to-gas

storing surplus output from renewable generation in the region. Leuthold said the PCR market is shrinking as more battery outfits participate; about two-thirds of the market is now accounted for by storage.

German energy storage association

BVES wants to encourage greenfield and retrofit storage. It is calling for a cut in grid connection fees for plant in so-called grid-friendly locations and believes projects hooked into existing transmission and distribution networks at substations should pay less. BVES is

awaiting the outcome of a proposed amendment to the 2017 Renewable Energy Act.

This could bring in innovation auctions that would facilitate hybrid plants with both renewables and storage. n

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France is entering a new battery era with storage-only tenders being held in its overseas

territories and the first multi-megawatt projects springing up on the mainland.

French developer Neoen will this month commission the 6MW Azur Stockage project in the southwest department of Landes.

Turnkey contractor Nidec ASI is in the final stages of installing the lithium-ion batteries, control systems and switchgear for the scheme that will provide primary reserve to help balance the French grid. The Italian company is also in charge of operation and maintenance of Neoen’s project.

Another French developer, NW Groupe, is thinking bigger. It aims to install 200 1MW lithium-ion batters across the country to provide balancing services.

Commissioning of the batteries at as-yet undisclosed locations on

mainland France will be spread out over the next three years.

NW Groupe has signed deals with grid operator RTE for roughly half of the projects and is hoping to secure the remaining contracts before the

end of June. It is choosing a battery provider and will be investing between €200m and €300m in the projects.

A first 1MW demonstrator, called NWJ Box (pictured), was

ENERGY STORAGE 13 21 February 2019

Major activity for France at home and overseas

Mainland gets its first multi-megawatt project and territory

tenders pick up pace, writes Lisa Louis

14

renews.biz

THINK BIG: NW Group’s 1MW NWJ Box battery storage demonstrator in Jonzac Photo: NW Group

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ENERGY STORAGE 1421 February 2019

13 FRENCH CONNECTIONSOnline in 2018

Project, location Developer MW Technology

Batrun/Saint Leu, Réunion EDF SEI 5 Lithium-ion battery

Giurone, Corsica Corsica Sole 7.5MWh Lithium-ion battery

GPMDLR, Réunion Albioma 1.3 Lithium-ion battery

NWJ Box, Jonzac, Charente-Maritime* NW Groupe 1 Lithium-ion battery

Due to go live in 2019

Azur Stockage, Les Landes* Neoen 6 Lithium-ion battery

Cayenne, French Guiana Genergies Antilles Guyanes 1.1 Lithium-ion battery

Casaperta, Corsica Corsica Sole 2.2MWh Lithium-ion battery

Carriere Giuncaggio, Corsica Corsica Sole 7.5MWh Lithium-ion battery

Eole La Montagne, Guadeloupe Quadran Groupe Direct Energies 2 Lithium-ion battery

Fonds Caraibes, Guadeloupe Quadran Groupe Direct Energie 5 Lithium-ion battery

Gress, Martinique NW Groupe 4 Lithium-ion battery

Gua 1 – St Francois, Guadeloupe NW Groupe 1 Lithium-ion battery

Gua 2 – St Francois, Guadeloupe NW Groupe 1 Lithium-ion battery

Guy 1 – Remire-Montjoly, French Guiana NW Groupe 1 Lithium-ion battery

Kiss/Baie Mahault, Guadeloupe EDF SEI 5 Lithium-ion battery

La Perriere 2, Reunion Quadran Groupe Direct Energie 3.3 Lithium-ion battery

La Perriere 3, Reunion Quadran Groupe Direct Energie 3.8 Lithium-ion battery

LGDG SUN, Guadeloupe Systeko, Urbasolar 1.12 Lithium-ion battery

LGDM SUN, Martinique Systeko, Urbasolar 1.4 Lithium-ion battery

Mana Report, French Guiana Voltalia 5 Lithium-ion battery

Mana Reserve, Guadeloupe Voltalia 5 Lithium-ion battery

Mascareignes 1 & 2, Reunion Quadran Groupe Direct Energie 1.4 Lithium-ion battery

Nordev, Reunion Quadran Groupe Direct Energie 1.4 Lithium-ion battery

Novagrid/Le Lamentin, Martinique EDF SEI 5 Lithium-ion battery

PAI SUN, Martinique Systeko, Urbasolar 1.13 Lithium-ion battery

P3I SUN, Martinique Systeko, Urbasolar 1.3 Lithium-ion battery

Pancheraccia, Corsica Corsica Sole 6MWh Lithium-ion battery

Pascialone, Corsica Corsica Sole 2.2MWh Lithium-ion battery

Pierrefonds 1, Reunion Quadran Groupe Direct Energie 3.5 Lithium-ion battery

Pierrefonds 2, Reunion Quadran Groupe Direct Energie 1 Lithium-ion battery

Pierrefonds 3, Reunion Quadran Groupe Direct Energie 3.3 Lithium-ion battery

Petit Canal, Guadeloupe EDF Renouvelables 2.8 Lithium-ion battery

Sainte-Rose (solar), Guadeloupe Albioma, Energipole 3.3 Lithium-ion battery

Sainte-Rose (wind), Guadeloupe Valorem 5.5 Lithium-ion battery

Savanes des Peres,French Guiana Voltalia 2.6 Lithium-ion battery

Stade de l’Est, Reunion Albioma 1.3 Lithium-ion battery

SCEA Isabelle, Reunion Apex Energies 1.6 Lithium-ion battery

Segur, Martinique Apex Energies 1.5 Lithium-ion battery

Terre de Bas, Guadeloupe Quadran Groupe Direct Energie 3 Lithium-ion battery

Slated for 2020

Cratere, Reunion Corsica Sole 5 Lithium-ion battery

Desvarieux, Guadeloupe NW Groupe 4.2 Lithium-ion battery

La Piemontaire, Reunion NW Groupe 1 Lithium-ion battery

Madinina, Martinique Akuo Energy 12 Lithium-ion battery

Montjoly 2, French Guiana NW Groupe 4.35 Lithium-ion battery

Pernicaggio-B, Corsica NW Groupe 1.5 Lithium-ion battery

Prato, Corsica Corsica Sole 5 Lithium-ion battery

Toucan 2, French Guiana EDF Renouvelables 3.3 Lithium-ion battery

* Projects in mainland France

recently connected to the grid in Jonzac municipality in the

department of Charente-Maritime.Battery storage development in

France’s overseas territories, meanwhile, continues apace.

Last October, the French government selected 11 lithium-ion battery projects from 46 in the country’s maiden storage-only tender.

The bulk of the projects will be commissioned this year but some, including Corsica Sole‘s 5MW Prato in Corsica and 5MW Cratere in Réunion, will be online in 2020. The schemes in Corsica, French Guiana, Guadeloupe, Martinique and Réunion will be run for up to 25 years and receive a total of €80m in public funding.

Energy watchdog CRE estimates the country will save a total of €450m, with the batteries connected to the islands‘ grids to balance intermittent renewables generation.

A second storage-only tender was launched last July for the island of Mayotte in the Indian Ocean. The government is expected to select projects with a total capacity of around 50MW. Bidders have until 17 April to submit offers, which need a grid connection offer to be eligible. They will be ranked by cost effectiveness.

An additional round for Mayotte is planned for the second half of 2020.

The tenders will boost storage development in France‘s overseas territories where battery projects with a total capacity of at least 90MW are scheduled to go online this year.

Corsica Sole, which won France‘s first storage-only tender, is planning on bidding in all upcoming tenders.

“The government finally seems to have realised what a good solution storage devices are to level out electricity prices over time,” said its director general Michael Coudyser.

The company has in the past been selected with several projects in France‘s three bidding rounds for the co-location of solar and storage.

Storage-only tenders speed up development as it is easier and cheaper to construct battery projects than co-located sites, he added.

Montpellier-based Apex Energies is also taking part in the Mayotte tender and the solar-storage tender for the overseas territories, which is due to be launched within weeks.

“There is clearly a storage boom in the pipeline – even if it has not fully kicked off just yet,” said head of innovation and performance Alexandre Volpato.

“People now understand that batteries can reduce renewables projects‘ grid connection costs and primary reserve storage devices can stabilise the main grid,” he added. n

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ENERGY STORAGE 1521 February 2019

Italy leads on large schemes in bid for reliable electricity

Italy has emerged as a pioneer of large-scale energy storage in Europe as national grid operator Terna

launches a series of pilot programmes to combat growing system instability.

Terna has implemented three schemes that aim to integrate energy storage into the grid to provide frequency control and other ancillary services.

The UVAP programme, which kicked off last year, allows small-generation and storage units to participate in the ancillary services market.

A second scheme, UVAM, which began last month, creates virtual power plants through aggregating small distributed generation, energy storage systems and electric vehicle batteries.

The third project, UPI, which also started at the beginning of the year, enables power generators with integrated storage capacity to supply primary frequency control to the grid.

National electricity association Elettricità Futura said UPI should result in at least 60MW of energy storage installations by 2022.

The capacity will go live at Enel’s Torrevaldaliga Nord coal-fired power plant in the city of Civitavecchia. This started with a 10MW battery

installation that went online late last year. Enel intends to add a single 10MW extension this year, followed by two more 20MW battery installations at the same site within the next three years.

Adding batteries to the coal-fired power plant optimises its ability to respond to fluctuations in the grid and improve financial performance, said Enel, which has installed a similar project at its Carboneras coal power station in Spain.

Finnish gas engine maker Wartsila believes installing batteries at fossil fuel plants allows operators

to future-proof the assets against regulatory change.

“One of the biggest risks in the energy business is political risk and regulatory changes but energy management systems can accommodate changes very quickly through software upgrades,” said Wartsila director of energy storage and integration Risto Paldanius.

He added: “This prevents assets from becoming stranded.”

Wartsila delivered its first gas

engine-plus-storage hybrid installation last year in Budapest in Hungary (pictured).

The 6MW/4MWh LG Chem batteries were integrated at an existing Sinergy Kft plant comprising three Wartsila engines.

The installation enables the plant’s operator to participate in Hungary’s primary and secondary frequency regulation markets.

Other efforts to integrate storage technology into existing generation include a €3m project to install a 5MW/6.2MWh battery at Fortum’s Forshuvud hydro plant on the Dalalven river in Sweden.

The battery will be the largest in the Nordic region to date and will provide frequency regulation services.

Construction of the battery is scheduled to start by summer this year, said Fortum head of hydro asset management Martin Lindstrom.

“The battery’s very quick response time improves the speed and precision of the Forshuvud hydropower plant, so we are able to provide an even better service to grid companies,” he added. n

EUROPEAN EXAMPLESOnline in 2018

Project, location Developer MW Technology

Budapest, Hungary Alteo 6 Lithium-ion battery

Carboneras, Spain Endesa 20 Lithium-ion battery

Cars Den Stadium, Netherlands

Alfen 0.75 Lithium-ion battery

Puurs, Belgium Eneco 2 Lithium-ion battery

Sello, Finland Sello Mall 1.6 Lithium-ion battery

Seraing, Belgium CMI 2.2 Lithium-ion, flow batteries

Terhills, Belgium LRM 18 Lithium-ion battery

Torrevaldaliga Nord, Italy Enel 10 Lithium-ion battery

Tudela, Spain Acciona 1 Lithium-ion battery

Due to go live in 2019

Bystra, Poland Energa 6 Lithium-ion, lead acid batteries

Caravaca, Spain Iberdrola Distribucion 1.25 Lithium-ion battery

Forshuvud, Sweden Fortum 5 Lithium-ion battery

Torrevaldaliga Nord, Italy Enel 10 Lithium-ion battery

Expected online in 2020

University of Cyprus, Cyprus University of Cyprus 10 tbc

Pilot projects to address rising

instability in the energy system, writes

Sian Crampsie

renews.biz

Demand for battery storage in the continent is set to explode, according to Swiss lithium-ion

battery maker Leclanche, due to a coming need for balancing services to manage renewables output flow.

The company said Europe will reach a “tipping point” as the portion of renewables in the power generation mix grows and as coal and nuclear power plants are retired.

“Countries like Germany cannot continue to borrow baseload from Poland and pretend to be green,” said Leclanché chief executive Anil Srivastava.

He added: “When German offshore wind capacity reaches 20GW,

Germany will reach its tipping point, probably in 2021-22, and the rest of Europe will follow soon after.”

At present, however, the company is “not very bullish” about the European market owing to the lack of opportunities for balancing services.

“On the continent. there are strong grid ties and the resilience of the grid is much greater than it is in the UK, for example, and so there is not the same need for energy storage when it comes to balancing the market,” he added.

“In addition, the generation mix is well balanced, with hydropower, coal and nuclear.” n

Leclanche ready for high life

MARKET OPENER: Wartsila’s 6MW LG Chem battery storage system with the Sinergy Kft gas plant in Budapest, Hungary Photo: Wartsila

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US developers are gearing up for a major regulatory change that is expected to unlock several

gigawatts of utility-scale storage in key wholesale markets.

Regional grid operators have until 3 December to comply with the Federal Energy Regulatory Commission’s Order 841, which aims to standardise participation of energy storage in the bulk power system.

Massachusetts consultancy Brattle Group said the change could open up around 7GW of storage potential on the energy and ancillary services markets run by the six FERC-regulated grid operators in the US.

Those include the California Independent System Operator and the New York Independent System Operator (NYISO).

Mike Wietecki, general counsel at US energy storage system provider Powin, said Order 841 is significant as it recognises energy storage is no longer a minority component of the grid.

“Commercial deployments are increasing in size, multiple megawatt plants are happening in California and

Arizona, and FERC Order 841 will give these types of utility-scale storage facilities an equal footing with any other power plant,” he added.

Powin is targeting 150-200MWh of commissioned projects in North America this year, mostly in Ontario and California.

Developers were said to be preparing for the rule change by reserving interconnection queue

positions and planning projects based on what they see coming out of regulatory filings.

“There is a high level of expectation that PJM Interconnection, NYISO, and ISO New England (ISO-NE) will remove barriers and level the playing field, so as not to obstruct the policy objectives of the states they serve,” said US Energy Storage Association research and programs director Tom Simchak.

Simchak pointed to another national-level win for storage: the National Association of Regulatory Utility Commissioners recently passed a resolution for storage to be included in power sector forward planning.

“Since NARUC’s membership is made up of the state commissioners who review utilities’ plans, it is a big deal,” he added.

“Not only does it show that they see energy storage as an important and viable part of the electricity network but also that utilities should be considering storage as they plan to meet future energy needs.”

California continues to lead the US pack with its energy storage ambitions in the short term, which include 500MW of behind-the-meter storage, in addition to its 1325MW by 2020 target.

New York State is catching up with the Golden State, however, by setting a 3GW target by 2030 backed by a $350m incentive programme. The Empire State is also examining the role of energy storage to replace retiring peaking generation.

Massachusetts, meanwhile, has set a target of 1GWh by 2025 and has included a storage incentive in its new Solar Massachusetts Renewable Target (SMART) incentive programme.

Earlier this month, the Massachusetts Department of Public Utilities issued two orders, one for net metering for solar-plus-storage projects and another that clarifies capacity ownership rights of such projects.

For developers, having capacity ownership to dispatch a generator or storage resource allows access to a new revenue stream in the ISO-NE capacity market.

New Jersey recently signed into law a 2GW by 2030 goal, while

ENERGY STORAGE 1621 February 2019

SKY’S THE LIMIT: Eon has integrated its 20MW Texas Waves battery projects with its Pyron and Inadale wind farms Photo: Eon

US regulatory shift gives go-ahead to gigawatts

FERC recognises growing role for

storage in energy markets, writes

Sara Verbruggen

renews.biz

17

“Not only does it show state

commissioners see energy

storage as important and

viable, it also shows utilities

should be considering

storage as they plan to meet

future energy needs”

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ENERGY STORAGE 1721 February 2019

16

GROWN IN THE USAOnline in 2018

Project, location Developer MW Technology

Alpha, New Jersey Ormat Technologies 20 Lithium-ion battery

Beacon Solar, California LADWP/Doosan Gridtech

20 Lithium-ion battery

Buck-Byllesby, Virginia Greensmith/AEP 4 Lithium-ion battery

Charlotte County, Florida NextEra 10 Lithium-ion battery

Colony Farm, Kalamazoo, Michigan Doosan Gridtech 1 Lithium-ion battery

DeSoto County, Florida NextEra 4 Lithium-ion battery

East Hampton, New York NextEra 5 Lithium-ion battery

Firestone, Colorado United Power/Engie 4 Lithium-ion battery

Iowa Powin 1 Lithium-ion battery

IPP project, California RES 40 Lithium-ion battery

Kingsbery, Texas Austin Energy 1.5 Lithium-ion battery

Lemoore, California Convergent E&P 10 Lithium-ion battery

Marengo, Illinois Glidepath 20 Lithium-ion battery

Mt. Tom, Massachusetts Engie 3 Lithium-ion battery

Orange County, California Convergent E&P 35 Lithium-ion battery

Otis microgrid, Massachusetts Raytheon 1.6 Lead-acid

Pinal Energy Center, Arizona NextEra 10 Lithium-ion battery

Plumsted Township, New Jersey Ormat Technologies 20 Lithium-ion battery

Punkin Center, Arizona Fluence 2 Lithium-ion battery

Redstone Arsenal, Alabama Sunpower 1 Lithium-ion battery

Sterling, Massachusetts Origis Energy 1 Lithium-ion battery

Texas Waves, Texas Eon 20 Lithium-ion battery

Upton County, Texas Luminant 2 Lithium-ion battery

Scheduled to go live in 2019

Asheville, North Carolina Duke Energy 9 Lithium-ion battery

Barking Sands PMRF, Hawaii AES 14 Lithium-ion battery

Camp Atterbury, Indiana Doosan Gridtech 5 Lithium-ion battery

Chandler, Arizona Fluence, Salt River Project

10 Lithium-ion battery

Fort Carson, Colorado AECOM 4.25 Lithium-ion battery

Hot Springs, North Carolina Duke Energy 4 Lithium-ion battery

Knoxville, Iowa MidAmerican Energy 1 Lithium-ion battery

Lawai, Hawaii KUIC 20 Lithium-ion battery

Miramar, California SDG&E 30 Lithium-ion battery

Montauk, New York NextEra 5 Lithium-ion battery

Mueller, Austin Austin Energy 1.75 Lithium-ion battery

Nabb, Indiana Duke Energy/Doosan Gridtech

5 Lithium-ion battery

Newbury, California Powin 2.6 Lithium-ion battery

New York Peak Power Energy 5.64MWh Lithium-ion battery

New York Powin 1 Lithium-ion battery

North Carolina Powin 1 Lithium-ion battery

Palm Springs, California Powin 4.5 Lithium-ion battery

Salisbury, Maryland Convergent E&P 1 Lithium-ion battery

San Antonio, Texas CPS Energy 10 Lithium-ion battery

San Diego Zoo, California EDF 1 Lithium-ion battery

San Juan Capistrano, California SDG&E 4 Lithium-ion battery

Saratoga, New York Key Capture Energy 20 Lithium-ion battery

Slated for 2020

Acorn, California EsVolta 6.5 Lithium-ion battery

Bethel, Texas Apex 317 Compressed air

Calstor BTM, California EDF for PG&E 10 Lithium-ion battery

Desert Harvest 2, California EDF 35 Lithium-ion battery

Escondido, California Powin 2.6 Lithium-ion battery

Henrietta, California Convergent E&P 10 Zinc air

Johanna, California Hecate Energy 15 Lithium-ion battery

Moss Landing Power Plant, California

Vistra Energy 300 Lithium

New York Peak Power Energy 2.82MWh Lithium-ion battery

Quarantina, California EsVolta 10 Lithium-ion battery

San Diego Airport, California San Diego Airport/DH Green Energy

2 Lithium-ion battery

Stanton, California Stanton Energy Reliability Center

20 Lithium-ion battery

Wildcat, California EsVolta 3 Lithium-ion battery

Wilmot, Arizona Tucson Electric 30 Lithium-ion battery

Coming in 2021 and beyond

Alamitos, California SCE 100 Lithium-ion battery

Big Beau, California EDF 40 Lithium-ion battery

Cascade, California PG&E 25 Lithium-ion battery

Diablo, California PG&E 50 Lithium-ion battery

Escondido, California SDG&E 6.5 Lithium-ion battery

Fallbrook, California SDG&E 40 Lithium-ion battery

Hale Kuawehi, Hawaii Hawaiian Electric 30 Lithium-ion battery

Hoohana, Hawaii Hawaiian Electric 52 Lithium-ion battery

Hummingbird, California esVolta and Powin 75 Lithium-ion battery

Joint Base, Texas Ameresco 4 Lithium-ion battery

Kingston, California PG&E 50 Lithium-ion battery

Kuihelani Solar, Hawaii Hawaiian Electric 60 Lithium-ion battery

Maricopa County, Arizona First Solar 50 Lithium-ion battery

Mililani I Solar, Hawaii Hawaiian Electric 39 Lithium-ion battery

Paeahu Solar, Hawaii Hawaiian Electric 15 Lithium-ion battery

Phoenix, Arizona Salt River Project 25 Lithium-ion battery

Poway, California Enel for SDG&E 3 Lithium-ion battery

Santa Barbara, California Powin for SCE 10 Lithium-ion battery

Sierra, California PG&E 10 Lithium-ion battery

tbc, California PG&E 20 Lithium-ion battery

Waiawa Solar, Hawaii Hawaiian Electric 36 Lithium-ion battery

Waikoloa Solar, Hawaii Hawaiian Electric 30 Lithium-ion battery

Nevada has determined a target is in the public interest

and is now in the process of developing it.

Utilities in more than a dozen states are now eyeing storage sites through their long-term procurement

planning, sources said. The biggest procurement announcements so far include Xcel Colorado with 275MW of four-hour duration storage and Hawaiian Electric with 255MW of four-hour duration storage.

Nevada Energy is to develop 100MW of four-hour duration storage

while Northern Indiana Public Service Company is to build 92MW.

Hawaiian Electric said solar-plus-storage now outcompetes technology that is based on fossil fuels for providing dispatchable power.

A recent tender saw seven solar-plus-storage projects,

comprising 1048MWh of batteries, secure contracts ranging at prices of $0.08-0.12 per kilowatt-hour.

Electricity from fossil plant on the islands of Hawaii islands costs around $0.15/kWh, according to Hawaiian Electric spokesman Peter Rosegg. n

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Peak shaving opportunities for storage are booming in the Canadian province of Ontario as

businesses look to avoid rising demand charges imposed by the regional grid operator.

The Independent Electricity System Operator’s global adjustment (GA) charges, a levy on commercial and industrial (C&I) energy users’ bills, have roughly doubled in recent years to become the most expensive in North America.

However, the demand spike coincided with the provincial government’s extension of eligibility to participate in IESO’s Industrial Conservation Initiative.

Energy users with a minimum of 500kW monthly average peak load can now participate in the ICI, which was set up to allow very large energy users to opt into demand response programmes, reduce their demand in peak hours and avoid GA charges.

The expansion of IESO’s ICI has opened the floodgates for behind-the-meter storage, industry sources said.

Peak Power business development manager Lucy Fan said the company has a pipeline of around 116MWh of storage projects out to 2020, some

108MWh of which is C&I installations solely in Ontario with the rest over the border in New York state.

Convergent E&P brought online its first customer-sited battery for GA mitigation/peak shaving in Ontario last year. The system comprises a 4.2MW/8.5MWh installation at Husky Injection Molding Systems, a large industrial plant.

The developer followed that with a second Ontario project installed last summer: a 10MW/20MWh battery at a petrochemical company in Sarnia to reduce GA charges.

Canadian developers continue to develop and commission energy storage projects that qualified for IESO’s 50MW grid energy storage procurement programme earlier this decade.

The first 33.54MW phase of the programme, launched in 2014, contracted for the provision of frequency regulation, reactive support and voltage control services in Ontario.

Hecate Energy and battery storage system provider Powin together won over 14MW of capacity and last year commissioned the 8.8MW Stratford and 2MW Kitchener.

Phase two of the programme,

launched in 2015, resulted in some 16.75MW of capacity being awarded. One of those projects, a 1.75MW compressed air energy storage system supplied by Hydrostor and developed by NRStor, is due in service this year.

In Latin America storage is still finding its feet but the rise of renewables to

supply the power-hungry needs of growing economies is offering opportunities.

Notable projects in the region include Mexico’s first major battery storage plant installed at a microgrid serving an international automotive company’s factory near Monterrey in 2018.

The microgrid uses a 12MW/12MWh battery storage system supplied by Powin to provide a stable power supply should its on-site gas generation suffer an outage.

GE said that it is working on early-stage microgrid projects in Mexico.

The country has set ambitious goals for reducing carbon emissions, targeting 35% of energy from clean energy sources by 2035 and 50% by 2050.

Chile leads the region in terms of installed energy storage capacity with the 110MW Cerro Dominador molten salt solar thermal project expected to enter operation this year.

Small-scale renewables projects incorporating batteries have been a feature of Chile’s mining sector in recent years but the utility-scale

projects are slower to get off the ground except for those in the most remote sites and communities.

In Brazil, NEC Energy Storage has supplied a battery system for a small microgrid on the diesel-dependent islands of Fernando de Noronha off the north-east coast.

In the Caribbean, Fluence is providing a 5MW battery for a floating

power plant in the Dominican Republic developed by Siemens and ST Engineering.

The Fluence battery will be integrated into Siemens’ hybrid gas generation and energy storage system to provide frequency regulation and enable the plant to operate at full capacity at high fuel efficiency.

Siemens will provide a combined cycle power plant with a 145MW capacity, with ST Engineering building a floating barge to host it. The Estrella del Mar 3 project is due to go online in Santo Domingo in spring 2021. n

ENERGY STORAGE 1821 February 2019

“Mexico has set ambitious

goals for reducing carbon

emissions, targeting 35% of

energy from clean energy

sources by 2035 and 50%

by 2050”

STEERING GROUP: Powin Energy supplied Mexico’s first major battery storage plant Photo: Powin Energy

Peak shaving gain for Ontario businesses to bring boost to behind-meter batteries

CANADA QUEUEOnline in 2018

Project, location Developer MW Technology

Basin 1 & 2, Ontario Deltro Energy, Leclanché 28 Lithium-ion battery

Bolton, Ontario Convergent E&P 4.2 Lithium-ion battery

Guelph, Ontario Convergent E&P 5 Flywheel

Kitchener, Ontario Powin/Hecate Energy 2 Lithium-ion battery

Ontario C&I BTM Peak Power Energy 1.88MWh Lithium-ion battery

Ontario C&I NRStor 2 Lithium-ion battery

Sarnia, Ontario Convergent E&P 10 Lithium-ion battery

Sault Ste Marie, Ontario Convergent E&P 7 Lithium-ion battery

Stratford, Ontario Powin/Hecate Energy 8.8 Lithium-ion battery

Toronto, Ontario Hecate Energy 4 Lithium-ion battery

Due to go live in 2019

Berry Global BTM, Ontario Enel 5 Lithium-ion battery

Goderich, Ontario NRStor 1.75 Compressed air

Milton, Ontario Baseload Power 2 Flow battery

New Market, Ontario Ameresco 4 Lithium-ion battery

Ontario Peak Power Energy 4.82MWh Lithium-ion battery

Slated for 2020

Loyalist, Ontario Hecate Energy 30 Lithium-ion battery

Ontario Peak Power Energy 103.67MWh Lithium-ion battery

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ENERGY STORAGE 1921 February 2019

Governments set out policy to put batteries on Asia energy map

India, China, Japan and South Korea opening door to

storage, writes Sian Crampsie

renews.biz

India is in the final stages of approving a National Energy Storage Mission to help it keep pace with

renewables growth, grid access targets and expected demand for electric vehicles.

The NESM will help India develop an indigenous battery industry as well as spur innovation and the use of energy storage in several industries, according to the India Energy Storage Alliance.

Deployment of grid-scale energy storage in India has yet to take off but IESA believes the market will grow to more than 300GWh over the next seven years.

Battery deployment in India has been held up by falling wind and solar costs, a key factor in a number of renewable energy tender cancellations in the past 12 months.

The Solar Energy Corporation of India, however, issued a tender last September for its first solar-wind hybrid project with battery storage, a 160MW project at Ramagiri in Andhra Pradesh.

The tender followed publication of India’s National Wind-Solar Hybrid Policy, which sets an ambitious target of achieving 175GW of installed capacity from renewables by March 2022, including 100GW of solar and 60GW of wind.

Developers bidding for hybrid projects can include storage in their

proposals to reduce variability in output and optimise project designs.

The Ministry of New and Renewable Energy plans to put 60GW of solar and 20GW of wind out to tender by March 2020.

National and regional policies are also helping to drive growth of

large-scale energy storage capacity in China.

At the end of 2017, Beijing issued a national policy document providing guidance on energy storage, including policy framework proposals and key development tasks.

Several regional energy storage policies have emerged since then, including for the Jiangsu province as well as for grid areas in southern and northern parts of China.

Projects to come forward to

address grid instability and renewables curtailment include plans for a 100MWh storage facility in Jinjiang in Fujian Province by CATL, which has the potential to be expanded to 500MWh and 1GWh.

CATL said it had completed a 100MWh lithium-ion battery last month at the 650MW Luneng Haixi Multi-Mixed energy demonstration project in Golmud.

Chinese regulators in Gansu province, meanwhile, have approved plans for a 720MWh lithium-ion battery due for completion in 2019. The plant could be expanded depending on the needs of the grid, regulators said.

Lithium-ion batteries accounted for 99% of new installations in 2018, according to the

ADVANTAGE ASIA

Online in 2018Project, location Developer MW TechnologyChungchoeng, South Korea Korea Midland Power 13 Lithium-ion batteryGunsan, South Korea OCI 51MWh Lithium-ion batteryJinjiang, Fujian Province, China CATL 100MWh Lithium-ion batteryTokunoshima Island, Japan Mifune 2 Lithium-ion batteryTomakomai, Japan Green Power Development 10MWh Lithium-ion battery

Due to go live in 2019Andaman & Nicobar Islands, India NLC India 28MWh Lithium-ion batteryDalian, China UniEnergy Technologies 200 Vanadium flow batteryChangsha, China BYD 10 Lithium-ion batteryGansu demonstration, China tbc 720MWh tbcGolmud, China CATL 100MWh Lithium-ion batteryHubei Zaoyang demonstration, China

Hubei Pingfan 3 Vanadium flow battery

Rohini, India Tata Power 10 Lithium-ion batterySeosan, South Korea Hyundai 130MWh Lithium-ion batterySuzuran Kushiro-cho, Japan Green Power Development 25MWh Lithium-ion batteryUlsan, South Korea Korea Zinc 150 Lithium-ion battery

Slated for 2020Tbc, Andhra Pradesh, India IL&FS Energy Development 10 tbcChangwon, South Korea SK E&S 70MWh tbcGoesan, South Korea Macquarie 35MWh tbcGonghe, China Huanghe Hydropower 45 tbcKaza, India SECI 1 tbcKushiro-cho, Japan Smart Solar 14MWh tbcLakshadweep Islands, India SECI tbc tbcRamagiri, India SECI tbc tbcWulan, China Huanghe Hydropower 10 tbcYakumo solar park, Japan SoftBank 27MWh Lithium-ion battery

Scheduled for 2022Magat hydropower plant, Philippines

SN Aboitiz Power 20 tbc

Saemangeum, South Korea SDIA 100 tbc

Proposed for 2023Hokkaido, Japan North Hokkaido Energy

Transmission240 Lithium-ion battery

20METAL HEAD: South Korea’s Hyundai Electric 150MW lithium-ion battery system for metal smelter Korea Zinc in Ulsan Photo: Hyundai Electric

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21 February 2019

MIDDLE EAST/AFRICA ENTRANTSOnline in 2018

Project, location Developer MW Technology

Mohammed bin Rashid Al Maktoum solar park, Dubai, UAE

DEWA 1.2 Sodium sulphur battery

Due to go live in 2019

Abu Dhabi, UAE Dept of Energy 108 Sodium sulphur battery

Al Badiya solar park, Jordan Philadelphia Solar 12.6MWh Lithium-ion battery

Ma’an, Jordan MEMR 30 tbc

Melilla, Africa Endesa 4 Lithium-ion battery

Various, South Africa Eskom 200 Various

Middle Eastern nations are making increasing forays into grid-scale energy storage to

reduce reliance on fossil fuels, meet energy demand and improve energy security.

The United Arab Emirates is leading the way with some of the largest battery projects in the world, including a giant 108MW/648MWh scheme developed by Abu Dhabi Water and Electricity Authority.

The state utility flicked the switch last month on the scheme, which is dispersed over 10 locations, to create a virtual power plant capable of providing grid balancing services and backup power.

The sodium sulphur batteries, provided by Japanese manufacturer NGK, are able to operate at higher temperatures more efficiently than lithium-ion cells.

Dubai Electricity and Water Authority, meanwhile, completed a pilot project to test a 1.2MW/7.2MWh sodium sulphur battery last year at the Mohammed bin Rashid Al

Maktoum solar park, the largest single-site PV project in the world.

Jordan has entered the storage fray to complement its growing solar PV capacity, currently at 800MW and forecast to rise to around 3.6GW by 2021. Philadelphia Solar told renews it has started commissioning a 12.6MWh lithium-ion storage system at an 11MW solar extension of its 12MW Al Badiya PV farm in Jordan (pictured).

The Jordanian government, meanwhile, has launched bidding for the construction of 30MW/60MWh of storage at a substation in Ma’an.

Energy consultancy Wood Mackenzie expects solar-plus-storage to play a major role in the region’s market due to falling equipment costs.

The company forecasts solar-plus-storage will be competitive with combined cycle gas turbine capacity on a levelised cost of energy basis by 2023 in some of the region’s major power markets, including the UAE, Jordan, Morocco and South Africa.

Solar-plus-storage is already competitive with gas alternatives in Morocco and Jordan, it said.

In South Africa, Eskom is planning a mass implementation of battery storage capacity with assistance from the African Development Bank and World Bank. The 1.44GWh roll-out will see 800MWh installed alongside 60MW of distributed PV at more than 40 sites by the end of this year.

A second phase is due to follow with the remaining 640MWh of storage deployed with 60MW of distributed solar PV by the end of 2021.

Eskom intends to deploy both solid state and flow batteries under the storage programme. n

China Energy Storage Alliance, which puts the country’s total

operational battery storage at 650MW.

The Chinese government has, however, recognised the value of flow batteries, which can provide power for a longer duration than the one-to-four hours typical of lithium-ion chemistries.

VRB recently commissioned a 3MW/12MWh vanadium redox battery in Zaoyang, Hubei, the first phase of a proposed 10MW/40MWh that could be ultimately expanded to 100MW/500MWh as part of national energy storage targets.

In the city of Dalian in Liaoning province, UniEnergy Technologies is building a 200MW/800MWh vanadium flow battery system.

In Japan, the Fifth Strategic Energy Plan has committed the country to

making solar PV a mainstream power source and is set to drive the uptake of large-scale storage technology.

In December, Chiyoda Corporation said it was going to build a 240MW/720MWh lithium-ion battery for Hokkaido Wind Energy Transmission Corporation.

Chiyoda will carry out EPC, while GS Yuasa will design and supply the batteries for the project due online in 2023, which will be located at a substation in Toyotomi-cho in Hokkaido prefecture.

“This battery energy storage system project will contribute to solving power system restrictions in the area and provide a stable power supply for further development of wind power generation,” the company said.

Energy storage in South Korea is being driven by the country’s renewable energy policy, which sets out targets for renewable generation of reaching 20% by 2030 and for battery systems to expand from 400MW in 2017 to 1GW in 2030.

Planned projects in the country include Kokam’s 13MW/40MWh system divided between two sites in Chungchoeng region.

OCI, meanwhile, is planning to install a 51MWh battery in Gunsan-si in Jeollabuk-do province.

Korea Zinc’s $45m, 150MW lithium-ion battery installation in Ulsan is in the final stages of construction and is due online by the end of next month.

The batteries are supplied by Hyundai Electric, which is making a 130MWh storage system that will be co-located with a 65MW solar farm in Seosan. n

ENERGY STORAGE 20

United Arab Emirates is leading the way as

region shifts to renewables

renews.biz

Middle East makes move to storage for stronger security

STORAGE TO COME: Al Badiya solar plant in Jordan Photo: Philadelphia Solar19

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Simec Zen Energy is set to join Australia’s big battery club with the 100MW Playford project in

Port Augusta, South Australia, due online by the middle of 2020, writes Sarah Verbruggen.

The company is scheduled to take a final investment decision on the site near its under-construction 280MW Cultana solar farm in Whyalla by the year-end. As an energy retailer, Simec Zen will negotiate off-take agreements for firm solar output by combining the PV output with the battery.

The developer, which is majority owned by steel magnate Sanjeev Gupta’s GFG Alliance, sees South Australia as one of the most lucrative storage markets in the world, not least because of high prices paid by the grid operator for reserve capacity.

Playford will also take part in each of the Australian Energy Market Operator’s eight frequency control ancillary services markets and earn revenues from arbitrage in the wholesale market.

Simec Zen also plans to offer demand response services from the giant storage site to third-party clients based on their load profiles.

“There are really good opportunities that can be tapped when optimising the battery in different ways, not just its operation but in relation to the solar farm and customer load,” said chief executive Marc Barrington.

South Australia continues to lead the battery charge Down Under. According to data compiled by renews, the area has almost 400MW of capacity due online between 2018 and 2020. It is followed by Victoria with 155MW and Queensland with 126MW.

Others aiming to bring 100MW-plus sized storage projects online in Australia include Neoen. The French developer wants to add a further 250MW of capacity between now and the start of 2021 to its 100MW Hornsdale Power Reserve project.

Those include the 130MW Crystal Brook Energy Park in South Australia, a hybrid project with solar, wind and storage, and the 100MW Kaban Green Power Hub in Queensland.

Australia’s first hybrid project, Windlab’s Kennedy Energy Park in Queensland featuring a 2MW battery, was commissioned late last year and more are set to follow.

CWP Renewables is due to start construction of the 200MW combined solar and battery Sapphire Renewable Energy Hub near Inverell in New South Wales later this year. The site, near the 170MW Sapphire wind farm, is to be fully operational in 2020.

Lyon Group also has big storage

ambitions. It is planning to commission 180MW by 2020 in Queensland, South Australia and Victoria as part of a three-way partnership with Fluence and Japan’s Chubu Electric.

While supersized batteries are

booming, regulatory changes could pose challenges to storage developers. Jill Cainey, an independent expert on Australian storage regulatory issues, said a potential requirement for all synchronous generators to deliver inertia could limit opportunities for batteries to offer fast frequency response.

“Frequency services are in a state of flux and caution is needed since speed of service alone will not deliver significant income,” she said.

“If conventional generators pick up their game, or are made to, then the need for batteries is less immediate.”

In Cainey’s view, locational frequency services are becoming a critical need but market rules could put storage at a disadvantage. n

ENERGY STORAGE 2121 February 2019

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France Lisa Louis +33 676 930 784 [email protected]

Germany Ross Kelly +49 151 6327 3847 [email protected]

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Coming next in our series of in-depth market reports:

SCOTLANDTo advertise contact:

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South Australia charges ahead

CATCH AND STASH: Edify Energy’s 25MW Gannawarra battery-plus-solar plant in Victoria Photo: Edify Energy

DOWN UNDER TALLYOnline in 2018Project, location Developer MW TechnologyAlice Springs, Northern Territory Territory Generation 5 Lithium-ion battery

Ballarat Terminal Station, Victoria Spotless, AusNet Services 30 Lithium-ion battery

Gannawarra, Victoria Edify Energy 25 Lithium-ion battery

Garden Island, Western Australia Carnegie Clean Energy 2 Lithium-ion battery

Kennedy Energy Park, Queensland Windlab, Eurus 2 Lithium-ion battery

Scheduled to go live in 2019Bulgana Green Power Hub, Victoria Neoen 20 Lithium-ion battery

Cape York, Queensland Lyon Group, Fluence, Chubu Electric

20 Lithium-ion battery

Dalrymple, South Australia ElectraNet 30 Lithium-ion battery

Granny Smith gold mine, Western Australia

Aggreko 2 Lithium-ion battery

Kalbarri, Western Australia Carnegie Clean Energy 5 Lithium-ion battery

Lake Bonney, South Australia Infigen 25 Lithium-ion battery

Lincoln Gap, South Australia Nexif and Fluence 10 Lithium-ion battery

Nowingi, Victoria Lyon Group, Fluence, Chubu Electric

80 Lithium-ion battery

Riverland, South Australia Lyon Group, Fluence, Chubu Electric

80 Lithium-ion battery

Snowtown, South Australia Tilt Renewables 21 Lithium-ion battery

Solar River Project phase 1, South Australia

Solar River 120MWh Lithium-ion battery

Townsville, Queensland Energy Queensland 4 Lithium-ion battery

Slated for 2020Crystal Brook Energy Park, South Australia

Neoen 130 Lithium-ion battery

Darwin-Katherine, Northern Territory

Territory Generation 45 Lithium-ion battery

Kaban Green Power Hub, Queensland Neoen 100 Lithium-ion battery

Port Augusta, South Australia Simec Zen Energy 100 Lithium-ion battery

Sapphire Renewable Energy Hub, New South Wales

CWP Renewables tbc Lithium-ion battery

Terramin Angas Zinc Mine, South Australia

Hydrostor 5 Compressed air

Solar River Project phase 2, South Australia

Solar River 150MWh Lithium-ion battery

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