Canadian Solar doubles storage shipments in 2022 but expects just c.5% growth in 2023 ‘transition year’

Crimson Energy Storage in California, at 1,400MWh, was the largest single site BESS project to come online in the US during 2022. It was developed by Canadian Solar’s developer division Recurrent Energy. Image: Recurrent Energy.

Canadian Solar doubled its energy storage shipments to 1.79GWh in 2022 although expects significantly lower growth in 2023.

The PV module manufacturer’s energy storage system integrator subsidiary CSI Energy Storage contributed around 6% of total sales, with the rest from solar module shipments. That ratio is likely to grow, however, with significant growth in its battery storage business and a much larger pipeline than for solar.

It grew its contracted battery storage order book to US$1 billion as of the start of 2023, while its overall battery storage development pipeline is 47GWh, compared to 25GW for solar. Based on the ratio of revenue to GWh shipments, that storage pipeline could equate to over US$11 billion in long-term revenues.

However, the company is providing FY2023 guidance of 1.8-2GWh of battery storage shipments in 2023, meaning growth somewhere between 0.5% and 11.7%, of 5% as a mid-point. The wider battery storage market on the other hand is expected to roughly double deployments in 2023.

A lot of this is down to moving from a white labelled utility-scale energy storage product to its own manufactured Solbank product, announced in September, and the long lead times in the sector.

Commenting on this, CSI Solar president Yan Zhuang said: “2023 is going to be a transition year for our battery storage shipments, especially considering the longer order fulfillment lead times for battery storage compared to solar. This is why we expect flat deliveries year-over-year in 2023. However, we have very strong visibilities over our long-term growth.”

Canadian Solar CEO Shawn Qu added that the lower growth reflects “….this year’s transition from white label to our own manufactured products.”

Zhuang later expanded: “So we need to work on certification, bankability stuff. So that’s the pipeline we have today is more towards second half of this year, not first half of this year. So in terms of recognition and shipments, it’s kind of very much skewed to the end of this year. And however, if you look at our signed contract, the signed contract carries about US$1 billion already. And that number is increasing every quarter rapidly. So we’re expanding our total storage SolBank capacity towards 10GWh by [100%]. Reason behind this, we know next year, we’re not going to have enough capacity. So next year will be the real growth. This year is a transition.”

Long-term pipeline

Some 12GWh of the 47GWh pipeline is more advanced with grid interconnections secured, with the remainder described as ‘early-stage’. A third of the advanced pipeline is in North America and South America, each, with 22% in EMEA and the remainder in China and Asia Pacific (excluding Japan).

The 47GWh pipeline overall breaks down geographically as follows: 41% in North America, 10% in South America, 27% in EMEA, 16% in China, with the bulk of the remaining 4.5% in the rest of Asia Pacific and a small amount in Japan.

Just 320MW of the pipeline, all in Asia Pacific, is under construction as of 31 March, 2023, with the remainder of the 12GWh more advanced pipelined described as ‘backlog’ and ‘advanced pipeline’.

CSI Energy Storage recently secured major orders from UBS and Blackstone’s Aypa Power. The developer arm of Canadian Solar, Recurrent Energy, also deployed the largest lithium-ion battery storage project commissioned in 2022, Crimson, in California, at 1,400MWh.

CSI Energy Storage also recently launched its residential battery storage product the EP Cube.

Conference call transcript from Seeking Alpha.

Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA next week, on the 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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Qcells’ Supplier Expands Supply Chain Investment in Georgia

Justin Lee

Qcells says its solar supplier, Hanwha Advanced Materials Georgia (HAGA), will build a new advanced materials manufacturing facility in Bartow County, Ga. 

HAGA will supply Qcells with encapsulant film, which are materials used to encapsulate solar cells and ensure long-term panel durability. This $147 million investment is expected to create more than 160 new jobs and is critical to supporting Qcells’ plans to develop a fully-integrated solar supply chain in America.

“Qcells is doubling down on building a complete, domestic solar supply chain and this recent investment is critical to making that happen,” says Justin Lee, CEO of Qcells. “Working with Hanwha Advanced Materials, our customers will soon be able to confidently know that the solar they buy from us was made right here in America.”

This announcement comes two months after Qcells revealed its plans to invest $2.5 billion into building ingots, wafers and cells, and expanding solar panel manufacturing in Georgia. Qcells also recently announced plans to buy polysilicon from REC Silicon, which is using clean energy to power its facility in Moses Lake, Wash. Soon, Qcells products, from polysilicon to panel, will be sustainably made in America.

This investment comes after years of partnership with leaders in Georgia and following the passage of the Solar Energy Manufacturing for America Act within the Inflation Reduction Act. The demand for American-made solar panels is increasing rapidly driven by the efforts to ensure energy independence, lower energy costs and create new careers in energy. 

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Kore Power deploying 41MWh BESS for Arkansas solar-plus-storage microgrid

Producers Rice Mill’s facility in Stuttgart, Arkansas, which the new microgrid facility will power. Image: Producers Rice Mill.

Vertically integrated energy storage company Kore Power is deploying a 41.2MWh BESS for a microgrid in Arkansas, US, with more downstream projects coming soon, president Jay Bellow told Energy-Storage.news.

Kore will install a 41.2MWh lithium-ion battery energy storage system (BESS) for the solar-plus-storage microgrid project being developed for a facility run by Producers Rice Mill, a co-operative of 2,000 rice farmers.

The microgrid will ensure uninterrupted power to the facility which processes, stores, and ships the harvest to customers in the US and globally, milling some 40 million bushels of rice annually. CS Energy will install the 20MWac solar PV component of the project, which is being developed by Scenic Hill Solar.

No estimated completion date has been provided for the project, which the companies claimed is the largest commercial and industrial (C&I) solar project in Arkansas history and one of the largest microgrid projects in the United States.

Kore is deploying the BESS through its integrated energy storage solutions arm Kore Solutions, formed when it bought system integrator Northern Reliability a year ago.

The microgrid for Producers Rice Mill will allow the facility to continue operating during periods of electric curtailment by the local utility, as well as mitigate power quality issues and intermittent stoppages through its rapid response. It means renewables will provide 67% of the facility’s energy needs.

Kore is also building a KOREPlex lithium-ion gigafactory in Arizona, opening in 2024 with a 6GWh capacity eventually rising to 12GWh, and ramping up its existing China facility from 2GWh to 6GWh.

Jay Bellows, President, KORE Power, provided more details on the company’s microgrid work, other projects and broader developments in these responses to questions from Energy-Storage.news.

Energy-Storage.news: What sort of potential does KORE Power see in the microgrid space, versus the other areas the company is targeting?

Jay Bellows: As with many pieces of the energy storage sector, we anticipate significant growth in microgrid deployment. The C&I market, in particular, and the ability to island facilities is a particular market we see growing. The combination of renewable generation and storage combined to be able to harness the energy for when it’s needed, and, of course it will also be driven by the Inflation Reduction Act incentives. KORE Solutions is well-positioned to support this development building on the decades of experience that Northern Reliability brings to these projects. While we are also focused on utility scale energy deployments and opportunities in EV charging, microgrids will remain a key part of our business.

From a technical, design or installation (or other) perspective, what are the main differences between working in the microgrid space and in other types of stationary BESS projects?

Microgrids offer nuances that add layers of technical and operational benefits and complications. Adding generation to the equation, and the ability to “island” a facility or location, means that the developer has to have the skillset on the control’s side to make all of that happen.

Microgrids make locations self-sufficient and allow them the ability to be completely independent of the grid. Depending on electrical loads, internal equipment and needs, microgrids can be incredibly technical in both design and deliverable. Thus, there can be unique engineering challenges when compared to developing a standalone storage project or bringing BESS to an existing solar or wind project. These challenges can range from site design to ensuring the different parties are on the same page throughout the project. With this project we’re lucky to have a team that works very well together.

Does this work tie in with the acquisition of Northern Reliability in terms of developing the KORE Power system integration capabilities and offering?

Absolutely, in the time since the acquisition, our teams have been working together to develop new products that build on the KORE Power cells. This is one of a number of projects or offtake agreements that we will be announcing in coming weeks and months.

A quick update on KORE Power’s vertically-integrated strategy, from producing cells domestically to supplying complete solutions and further downstream work, as in this project, would be welcome.

Civil works at the site of the KOREPLex began late last year and is continuing. Our timeline has us producing cells at that facility in the first half of 2025. Meanwhile, as mentioned above, we are working on a number of exciting products at the KORE Solution’s facility in Vermont. Beyond just deliverable solutions, we also have our state-of-the-art Network Operating Center (NOC), based on over 50 years of industry knowledge, we are able to monitor, maintain, support, manage and operate systems from afar. We can assure that the systems are always working as they should, when they should and ensuring safety at all times. 

How does this differ from the type of work that the NOMAD joint venture will be doing – I expect I know the answer there, but I think readers will want to hear it explained from the company’s perspective.

Obviously, we are very excited about the NOMAD and all of the potential applications for transportable power. But for a project like this, Producers Rice Mill is a single location that operates all year round, with predictable energy usage, so a stationary solution was ideal for this application.

Gigafactory in Arizona moving ahead

The timeline of H1 2025 for the first output of battery cells from the KOREPlex facility in Arizona is slightly later than the previous communicated aim of late 2024. The firm recently closed the first half of a US$150 million fundraising round for the facility.

More recently it contracted Siemens Smart Infrastructure to provide the facility’s critical electrical infrastructure and energy management solutions to automate and digitalise the facility’s operations. Siemens Financial Services led the first part of the aforementioned fundraise round.

Kore’s facility is set to benefit from the tax credit incentives under the Inflation Reduction Act.

Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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Anesco Breaks Ground on 110 MW Solar Projects with Gresham House 

An Anesco solar farm

UK solar and storage company Anesco has broken ground on four solar farms totaling 110 MW as part of a ground mount development and construction partnership with Gresham House. 

The sites are the first to reach the construction stage in the partnership.  

The four sites in the UK are the 50 MW Low Farm in Skegness, 20 MW Beavor Grange in Devon and two 20 MW solar farms located in Derbyshire and Gloucestershire.  

All four sites are planned to be constructed by the end of 2023 and will have a lifespan of 40 years, after which they will be returned to their natural state.  

Each site will benefit from an advanced biodiversity plan and significant ecological enhancements designed to support some of the UK’s most at-risk birds and wildlife, as well as native plant life. This will include the creation of wildflower meadows, planting of additional hedgerows and trees, and the installation of bird and bat boxes. For Low Farm, these enhancements are expected to result in a biodiversity net gain of more than 130%.  

Engineering, procurement and construction of the four solar farms is being handled by Anesco. Each site will be monitored by Anesco’s operations and maintenance team, who will work alongside Anesco’s optimization team to ensure the plants operate at optimal technical efficiency. 

“We’re delighted to see our partnership with Anesco taking this important step forward with construction now officially underway on the first four projects,” says Wayne Cranstone, Gresham House investment director. “All four of the solar farms have been sensitively developed with strong attention to biodiversity, as well as a focus on quality construction to aid their performance and efficiency.”  

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European Commission approves Romania’s €100 million in grants for battery storage projects

A solar project from developer Econergy in Romania. The country’s solar sector is set to grow substantially, which will help the battery storage market kick on. Image: Econergy.

The European Commission has approved a €103 million (US$125 million) package of direct grants from the government in Romania for battery storage projects.

The financial support in the form of direct grants was announced by the government in November 2022, reported by Energy-Storage.news at time, and will go towards at least 616MWh of battery storage projects.

That is based on a maximum grant/MWh of €167,000. Other thresholds under the scheme are a maximum of €15 million per beneficiary and a maximum of 100% of the project’s funding gap.

Projects will be selected by 31 December, 2023, and need to be completed by 31 December, 2025.

The programme will receive €79 million from Romania’s portion of the Recovery and Resilience Plan, the EU-wide scheme to mitigate the negative economic effects of the Covid pandemic, while the government will fund the rest. Finland and Greece are also using the funding pot to support energy storage projects.

Romania is currently targetting 30.7% renewable generation in its electricity mix by 2030. The country hasn’t had many utility-scale energy storage projects in recent years but a booming solar market is set to help the battery storage follow on. As covered in the most recent edition of PV Tech Power, our sister site PV Tech’s quarterly journal, solar developers are moving into Romania ahead of a new contracts for difference (CfD) scheme.

The first large-scale battery storage system was inaugurated back in 2018 by Portuguese utility EDP’s renewables arm EDP Renováveis while local reports said a 7MW unit started construction in Spring 2022 from Austrian firms Core Value Capital, Gerdan Real Estate and Green Source.

Energy-Storage.news’ publisher Solar Media will host the inaugural Energy Storage Summit Central Eastern Europe in September this year. This event will bring together the region’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place, as the region readies itself for storage to take off. Visit the official site for more info.

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Nevados Chooses SYSPRO ERP

Scott Troy

SYSPRO, a global provider of ERP software, says Nevados, a solar power equipment manufacturer, has chosen SYSPRO ERP to automate its supply chain processes and provide a financial management system of record.  

The Nevados technology platform pairs all-terrain solar trackers with a comprehensive software suite to optimize solar performance and improve PV plant reliability while respecting the natural landscape. The company’s solar trackers are ideal for sloped and rolling terrain. 

“As a young company, we were seeking an ERP vendor that would help us scale our business,” says Scott Troy, VP of supply chain at Nevados. “We needed to move away from tribal knowledge and manual processes to a system that everyone can follow. It was essential to implement an ERP that had the capacity to grow.” 

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Standard Solar Acquires Project Portfolio from New Leaf Energy

Michael Streams

Standard Solar, a developer of commercial and community solar assets, has acquired a planned 21 MW of solar projects in New York and Massachusetts from New Leaf Energy.

“Community solar projects like these will generate clean, reliable energy needed by residents and businesses and are integral in helping New York and Massachusetts reach their renewable energy and climate goals,” says Michael Streams, chief development officer for Standard Solar. “We’re excited to partner with New Leaf Energy, a like-minded leader in clean energy, as we expand our presence in the state.”

According to the Solar Energy Industries Association, New York ranks ninth in the U.S. for installed solar, while Massachusetts ranks tenth.

The Copicut project in Freetown, Mass., is a single-axis tracker solar plus battery storage project with over 12 MW of solar and 22-megawatt hours of storage. Upon completion, it will produce 17,924-megawatt hours of energy annually. The project received an award from the state’s Solar Massachusetts Renewable Target program, which provides solar and storage project incentives.

The almost 3 MW Main Street Newbury system is located in Byfield, Mass., and is fully subscribed to commercial and residential subscribers in Byfield and the surrounding area. This project is expected to produce 3,571-megawatt hours of clean energy annually.

The Saunders Settlement project in Sanborn, N.Y., is over 6 MW and is expected to produce approximately 8,861 MWh annually.

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Enel Partners With Nestlé For Investment in Ganado Solar Project

Paolo Romanacci

Enel North America, a North American clean energy company, has partnered with Nestlé to be the sole tax equity investor for its 208 MW DC Ganado solar-plus-storage project in Jackson County, Texas. Nestlé will also purchase the renewable energy attributes from the output of the solar plant.   

“Customers of all sizes are seeking clean energy projects to help reduce their emissions and use more renewable energy, whether through PPAs, direct retail electricity purchases, upfront tax equity investments or other tailored agreements,” says Paolo Romanacci, head of Enel North America’s renewable energy business, Enel Green Power. “Enel’s flexible portfolio of solutions scale to meet the needs of each customer, leveraging the business demand for clean electricity to build momentum toward a zero-carbon economy.”

In addition to its direct investment, Nestlé will purchase 100% of the renewable electricity attributes generated by the project’s energy production, estimated to be an average of 333,000 megawatt hours per year for 15 years. 

The annual carbon emission reduction is expected to be about 126,294 metric tons of CO2, which is equivalent to the emissions of more than 27,200 cars per year. Nestlé is committed to sourcing 100% renewable electricity across its sites globally by 2025.

Enel’s Ganado solar-plus-storage project is expected to become operational in Q2 2023.

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Spearmint Energy buys 900MW BESS portfolio in ERCOT

A two-hour, 190MW/380MWh battery storage project in Texas owned by Qcells. The market has recently moved past one-hour durations. Image: Qcells USA.

Developer Spearmint Energy has acquired a portfolio of battery energy storage system (BESS) projects totalling 900MW in the ERCOT, Texas market, set to come online in 2025.

Spearmint Energy, which was formed recently and bought its first project in mid-2022, has acquired the portfolio from “one of the largest developers and operators of clean energy projects in the United States”.

The portfolio is called ‘Nomadic’ and comprises three projects of 300MW each located in the counties of Cooke, Galveston, and Brazoria. The projects may reach a combined energy capacity of 2,000MWh of an average duration of 2.2 hours.

The Spearmint team will now complete the remaining development work for the portfolio and the first project is set to reach notice to proceed in early 2024 and with a commercial operation date (COD) some 12-18 months later.

It builds on the firms purchase of a Revolution, a 150MW/300 MWh project in West Texas, on which engineering, procurement and construction (EPC) contractor Mortensen began construction in November 2022 with an estimate COD in mid-2023.

Andrew Waranch, Spearmint CEO and recent author of a guest blog for Energy-Storage.news said: “A collection of state-of-the-art energy storage projects, Nomadic will enable Spearmint to continue to execute our mission of facilitating the clean energy revolution through the delivery of renewable power to the grid efficiently, safely, and where communities need it most.”

Texas is the second-largest BESS market in the US with around 2.7GW operational as of the end of 2022. The interconnection queue is in the high double-digit of gigawatts and growing.

BESS projects in the state mainly provide ancillary services RRS (regulation reserve service) and RRS-FFR (fast frequency response) as well as energy trading around the most congested nodes of the grid. The state has a highly deregulated energy sector with no centralised capacity auctions and relative freedom to set up generating units to play into energy markets.

The devastation of Storm Uri in February 2021, which saw millions of people go days without power and directly or indirectly led to several hundred deaths (or more), provided a stark reminder of increasing the grid’s resiliency and reliability.

ERCOT is effectively an islanded grid, with no interconnections to either the Eastern or Western Interconnections, the US’ two large grids within which its several ISOs (CAISO, PJM, MISO etc) operate different territories.

Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, next week on 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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ESS Inc. gets UL1973 certification for flow battery modules

Jennifer Granholm (left), the US Secretary of Energy, visited ESS Inc.’s Wilsonville, Oregon factory last year. Image: Business Wire.

ESS Inc. has received UL1973 certification for the battery modules in its utility and industrial flow battery energy storage systems.

The company, headquartered in Oregon, US, said earlier this week that the S200 modules powering its Energy Warehouse commercial and industrial (C&I) products and Energy Center large-scale utility and grid battery storage have received the key certification.

ESS holds the IP for its proprietary flow battery technology, which is based on an iron and saltwater electrolyte. Not only is it safer from a fire risk perspective than lithium batteries, but is also non-toxic, unlike the electrolyte used in some other flow batteries, according to ESS.

UL1973 concerns the safe operation of battery energy storage system (BESS) technology, including evaluation of the systems’ ability to withstand simulated abuse conditions within the charge-discharge and usage parameters specified by the manufacturer.

As such it is considered important if not essential in making technologies bankable, as well as making it far easier or quicker to get site-level permitting, commissioning and negotiate other obstacles in the early lifecycle of a BESS project.

This was explained in an interview with Energy-Storage.news by Matt Harper, the president of Invinity, another flow battery company, which achieved UL1973 certification last year for its VS3 modules.

Furthermore, recent updates to UL1973 as well as an overview of the certification and how it works were given in a webinar hosted by Energy-Storage.news with experts from standards organisation CSA Group in October last year.

Meanwhile ESS, which went public in late 2021, claiming to be the first long-duration energy storage (LDES) provider to do so in the US, ended 2022 with 800MWh annual production capacity for its flow battery.

The company has claimed some big orders, including a 2GWh multi-year deal with California municipal utility SMUD, and has licensed its tech to a partner in Australia, but only banked US$894,000 revenues for the whole of last year, and will be looking to start realising the revenues from those and various other deals. Representatives claimed in an interview with this site last year that ESS is receiving significant interest from major players across the energy space.

Watch the webinar: ‘Assessing the impact of updates to UL 1973 for stationary energy storage systems’, presented by Energy-Storage.news with CSA Group, on our YouTube channel here. You can also register to view it from Energy-Storage.news’ on-demand page.

Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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