A Stem Inc commercial and industrial (C&I) battery storage installation. Image: Stem Inc.

Connecticut utilities Eversource, UL and a quasi-state bank have together launched the next 100MW tranche of a programme aimed at incentivising 580MW of customer-sited energy storage projects.

Connecticut Green Bank announced the launch of the Energy Storage Solutions Commercial Tranche 2 two years ahead of schedule due to demand yesterday (15 March). The first 50MW of the programme was launched in January 2022, reported by Energy-Storage.news at the time.

The programme provides upfront and performance-based incentives for the installation of battery storage on commercial and industrial (C&I) and residential sites. As well as improving resiliency and reducing bills for the customers, the battery systems pay out for 10 years as the systems send energy to the grid when it’s most needed.

The first tranche has seen 27 C&I projects from six developers approved totalling 46.4MW/139.4MWh of energy storage – 3-hour duration – and another 1MW of residential systems. It is being overseen by Connecticut’s Public Utilities Regulatory Authority (PURA).

“Working with our utility colleagues as co-administrators of Energy Storage Solutions, we look forward to the interconnection and dispatch of these systems around our state,” says Sergio Carrillo, Managing Director of Incentive Programs for the Connecticut Green Bank, which will be administering the programme alongside Eversource and UI.

“We are seeing more and more small businesses and critical community facilities installing battery storage through the program,” he added.

The financial incentives are spelt out in the table below from the Energy Storage Solutions website.

The site also says that deployments must use six pre-approved ESS solutions. The six for C&I projects are specific models from Cadenza, Caterpillar Inc, ELM Fieldsight, Milton CAT, Socomec and Tesla, its Megapack 2. Eligible residential solutions are from Enphase Energy, Generac PWRcell and Sunpower.

The New England state committed to a 1,000MW energy storage deployment target for 2030 back in 2021, which includes projects deployed through this programme.

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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Energy-Storage.news proudly presents our webinar with GridBeyond, focusing on managing utility-scale battery storage assets and their role in the energy transition, in leading markets including ERCOT in Texas, the UK, and Ireland.

Against a backdrop of high gas prices and tighter margins in late-2021, prices for electricity and gas have soared to record highs in many markets across the world.

With the introduction of new frequency response and ancillary services in many markets, this has resulted in a significant commercial appetite for energy storage, but making strategic decisions to ensure maximum return on investment for these assets has never been more complex.

In this webinar, experts from GridBeyond explore:

The role of batteries in the energy sector’s transition to net zero

Commercial perspectives around operating and optimising battery storage assets

Key considerations for securing financing for assets

The importance of market forecasting, revenue stacking, dispatch optimisation, and auction strategies in ensuring that battery storage assets achieve their full value potential

Speakers in this webinar:

Wayne Muncaster, senior vice-president for North America, GridBeyond

Paul Conlon, head of modelling and forecasting, GridBeyond

Seamus King, head of trading at GridBeyond

Moderator:

Andy Colthorpe, editor, Energy-Storage.news

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You can also access the recording for ‘Managing utility-scale batteries in the energy transition‘ on-demand on the site and receive presentation slide deck (registration required), at the link here.

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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Abu Dhabi, the capital emirates of the United Arab Emirates (UAE). Image: Wadiia / WikiCommons.

The UAE should deploy 300MW/300MWh of battery energy storage system (BESS) capacity in the next three years, according to one of its main utilities EWEC. 

The recommendation was made in the ‘Statement of Future Capacity Requirements 2023-2029: Summary Report’ by Emirates Water and Electricity Company (EWEC), the utility for the capital emirate of Abu Dhabi. 

It said the BESS resources would need a one-hour depth of storage and should be deployed to provide operating reserves and other grid services, improve system operability and enhance the overall stability of the electric network.

It also said that the nation should increase its solar PV generation capacity sixfold by 2030, rising to 7.3GW. The capacity addition is necessary because of a rise in power demand and growing supply chain insecurity following the COVID pandemic and war in Ukraine, EWEC said, and solar PV additions were identified as providing “a significant system cost and emissions reduction benefit”.

The report said that gross power demand in the UAE is set to increase by around 30% through 2029 to around 21.6GW. It recommended that, to meet demand, around one third of capacity additions from 2026 onwards should be solar PV.

It also recommended extending or reconfiguring thermal gas generation plants to meet demand, as well as developing two reverse osmosis desalination plants to ensure consistent water supply to the country.

Othman Al Ali, CEO of EWEC, commented: “This report provides a powerful key reference that outlines Abu Dhabi and the UAE’s future needs. Our growing portfolio of renewable and clean energy projects is accelerating the decarbonisation of the country’s energy sector in line with the UAE Net Zero by 2050 strategic initiative whilst supporting the realisation of the Abu Dhabi Department of Energy’s Clean Energy Target 2035.”

Large-scale lithium-ion BESS deployments have been few and far between in the UAE but the Middle Eastern nation has been relatively progressive on exploring alternative chemistries at scale. In 2019, Abu Dhabi was the site of a collection of deployments of Japan’s NGK Insulators’ sodium sulfur-based BESS units totalling 648MWh of capacity.

Late last year, Riyadh-based Tdafoq Energy and India-based Delectrik Systems signed a deal for the former to distributed the latter’s vanadium redox flow battery products in Gulf Cooperation Council (GCC) markets.

Also noteworthy is a 250MW/1,500MWh pumped hydro energy storage (PHES) project, which is set to go online near Dubai in 2024.

This story first appeared on PV Tech. Additional reporting by Cameron Murray.

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Rendering of the Waranga electrolyte processing plant. Image: Australian Vanadium.

Australian Vanadium has secured a site and progressed the design and development of a flow battery electrolyte facility in Western Australia.

Australian Vanadium (AVL) is a publicly listed vanadium resource company creating a vertically integrated vanadium redox flow battery (VRFB) energy storage business, as well as targeting supply of the metal into the steel industry.

The company made an announcement to the Australian Securities Exchange (ASX) yesterday regarding its manufacturing facility, which will have a 33MWh annual production capacity. Its selected site is in Wangara, a suburb in northern Perth.

In addition to securing the land, AVL has ordered equipment from suppliers with a long lead time, for which deliveries are expected to begin in the second quarter of this year. AVL did not say in its release when the plant will be up and running, but said site preparation work ahead of the arrival and assembly of equipment will likely begin in April 2023.

Engineering company Primero Group has worked with AVL to design the plant, which will comply with national requirements and standards.

Meanwhile, AVL has licensed key vanadium electrolyte manufacturing technology from US Vanadium (USV), which in addition to the manufacturing IP and tech sells high purity vanadium pentoxide from its own processing facility in Hot Springs, Arkansas, US.

USV currently sources its vanadium feedstock from India, having signed a five-year supply deal for the metal – deemed a Critical Mineral by the US and other governments – with an unnamed producer back in late 2021.

While AVL has ambitions and plans to become a vanadium processor and eventually open and operate its own “flagship” vanadium mine in Australia, firstly through building a processing hub in the Midwest of Western Australia with capacity to produce 13,000 tonnes of vanadium pentoxide flake per year, and then build a mine to exploit a high-grade vanadium deposit near the mining town of  Meekatharra in the state.

The latter has been given Federal Major Project Status by the Australian federal government in 2019, as well as State Lead Agency Status by the Western Australian state government a year later, in recognition of the project’s potential strategic importance to both.

Vanadium flow batteries are considered a suitable technology for providing bulk electrochemical storage of energy for mid to long durations i.e., several hours, and have long expected lifetimes in operation equivalent to roughly 20,000 daily cycles.

However, barriers to adoption include high upfront capital cost versus lithium-ion, despite a potential lower cost of ownership over lifetime and crucially, access to vanadium, both in raw material form and in terms of access to electrolyte processing and manufacturing.

In an interview published this week, the CEO of Lion Storage, a Netherlands-headquartered battery energy storage system (BESS) project developer, said the current VRFB industry ecosystem is not big enough to support massive scale-up of the technology.

Efforts to address this gap are ongoing around the world. Australia has a perceived head start in this respect, holding significant vanadium deposits and being the country incidentally where the technology was invented.

The government of another Australian state, Queensland, is targeting taking a share of that potential market too: its recently published Energy and Jobs Plan outlined that while Queensland has cobalt, nickel and other materials used in lithium-ion batteries and other clean energy tech like LED lights, vanadium, and VRFBs, could be the one area where it holds the most advantage. The state government is helping to fund a processing plant worth AU$75 million (US$53.38 million) in the Queensland coastal city of Townsville.

AVL was awarded a AU$3.9 million (around US$2.88 million at that time) grant from the federal government to fast-track development of its processing capabilities in 2021. Further downstream, the company also has a subsidiary, VSUN Energy, which is focused on developing the VRFB market in Australia.

Energy-Storage.news’ publisher Solar Media will host the 1st Energy Storage Summit Asia, 11-12 July 2023 in Singapore. The event will help give clarity on this nascent, yet quickly growing market, bringing together a community of credible independent generators, policymakers, banks, funds, off-takers and technology providers. For more information, go to the website.

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The inauguration ceremony for the solar-plus-storage unit. Image: Prime Minister’s Office of the Government of the Kingdom of Tonga.

A solar-plus-storage project combining 300kW of PV and a 2MWh battery energy storage system (BESS) has been installed in the Polynesian archipelago nation of Tonga.

The project on the island of Vava’u was commissioned by Tonga Power Limited (TPL), the country’s sole electric utility, on 14 March. It will be integrated with existing diesel generators and will allow TPL to integrate renewable energy into its grid and increase grid reliability.

Both the solar and storage portions were built by New Zealand-based renewable energy firm Infratec with the support of local contractors JH Electrical and Clay Energy.

The project is the third phase of the first lot of the Tonga Renewable Energy project (TREP). Phase one involved two BESS projects, one for load shifting and one for grid stability and together totalling 16.5MW/29.2MWh, which were commissioned on the main island of Tongatapu last year by developer Akuo.

Then at the start of this month (2 March) the Éua Solar and BESS project, with 1.8MWh of capacity, was turned online. The next phases of TREP will see solar and storage projects deployed on the island groupings of Ha’apai and Niuafoóu.

The projects have been funded by Green Climate Fund (GCF), Asian Development Bank (ADB), Government of Australia with contributions from the Government of Tonga and Tonga Power Limited. ADB first announced its involvement back in 2019.

The announcement is the latest in a flurry of solar-plus-storage and microgrid projects on island nations around the world, aiming to reduce dependency on fossil fuel imports and diesel generators and improve grid reliability. Just this week, Energy-Storage.news has reported on three major ones.

Global system integrator Fluence and a subsidiary of its parent company Siemens completed a renewable energy microgrid with 15MWh BESS on Terceira, a Portuguese Azores island; an 82MWh system was proposed in Cyprus; and a French company won contracts to provide four solar PV projects with attached BESS in Mauritius, near Madagascar.

Read more Energy-Storage.news coverage renewable energy projects on islands utilising energy storage here.

Energy-Storage.news’ publisher Solar Media will host the 1st Energy Storage Summit Asia, 11-12 July 2023 in Singapore. The event will help give clarity on this nascent, yet quickly growing market, bringing together a community of credible independent generators, policymakers, banks, funds, off-takers and technology providers. For more information, go to the website.

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A render of Northvolt Dreit, the Swedish company’s third planned gigafactory, in Germany, which it recently said may be delayed due to high energy prices. Image: Northvolt.

More than two-thirds of the planned lithium-ion battery production capacity in Europe is at risk of delay, downsizing or cancellation mainly due to the Inflation Reduction Act (IRA), according to a new study.

The study by European Federation for Transport and Environment AISB found that 68% of the planned annual production capacity on the continent was at risk. Significant volumes of this are at risk of being lost to the US as companies consider capitalising on the incentives provided by the Inflation Reduction Act, which went into effect on January 1.

The study, titled ‘How not to lose it all’, corroborates anecdotal evidence of companies launching gigafactory projects switching interest over the Atlantic reported by Energy-Storage.news earlier this year. Its publisher is a continent-wide non-profit umbrella organisation promoting sustainable transport solutions.

Of the 1.8TWh of planned lithium-ion production capacity in 2030, the study designated 16% or 288GWh as at ‘high risk’, 52% or 936GWh as medium risk and the remaining 32%/576MWh as low risk. See the country breakdown below.

It didn’t define each category but said it was based on a calculation looking at the following factors:

Secured funding

Secured location

Construction status & permits

Investments from European OEMs or support from the EU institutions

Already planned projects in the US

Cooperation with the US OEMs.

It said the biggest risk was for those projects which have not yet secured financing or permits, started construction, secured offtakers or, in some cases, even chosen their battery chemistry, because these can be cancelled entirely.

“The simplicity, volume and bankability of the production credits available to battery cell, module and component manufacturing, as well as metals processing makes the US a highly attractive destination to build battery factories in,” the study said.

The projects most at risk of losing volumes to the US identified by the study are Tesla in Berlin, Northvolt in northern Germany and Italvolt near Turin. Northvolt said its Germany plant, the Dreit gigafactory planned in the town of Heide, was at risk of delay due to high energy prices late last year.

Energy-Storage.news meanwhile spoke to an analyst in August who said that all projects would be delayed to some extent.

The study assessed the risk by individual project too, assessing how much of each’s volumes are at risk. See the chart below and access the full study here.

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Rebecca Groundwater

Over 30% of utility-scale renewable projects globally between 2013 and 2023 were solar photovoltaic (PV) projects, according to a new report from the Energy Industries Council (EIC), an energy trade association.

The global solar insights report also shows that current global utility-scale PV capacity is around 154 GW. The cost of solar is a key driver of industry investment, with the levelized cost of electricity of newly operational utility-scale solar PV projects declining by 88% between 2010 and 2021 on a global average, says the report. 

Solar PV’s versatility has also contributed to its popularity, as it can be installed on rooftops, floating or ground-mounted. Once intermittency issues are solved through energy storage, solar PV can enhance grid capacity, especially in poorly connected areas, according to the report.

“China is still dominating the global solar PV supply chain, leaving regions like Europe heavily reliant on low-cost Chinese imports,” says Rebecca Groundwater, EIC’s head of external affairs. “But Russia’s war on Ukraine coupled with forced labor concerns and logistics disruptions during COVID-19 highlighted the risks of relying on imports. In the U.S., the Inflation Reduction Act is expected to give domestic manufacturing a boost. As a result, we could see a real opportunity for first movers in the solar supply chain throughout Europe and the Americas.”

While some regions have been slower to adopt solar PV technology, major investments are being funneled into the industry to ensure renewable energy goals can be achieved. According to EICDataStream, North America and Europe have the highest number of projects. The Biden administration aims to reach 40% electricity demand with solar power by 2035, and the Inflation Reduction Act provides tax credits and incentives for renewable energy adoption.Spain is also a leading market for solar PV globally, contributing to the European Commission’s increased renewable energy target of 45% by 2030, according to the report. The region is responding to the energy crisis as a result of Russia’s ongoing invasion of Ukraine.

The Asia Pacific region is at the forefront in terms of estimated capacity, with India alone having over 120 GW of solar PV capacity planned or in development. India has announced plans for 500 GW of total non-fossil capacity and net-zero emissions by 2070.

Read the report here.

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Samantha Buechner

Leeward Renewable Energy (LRE) has closed approximately $75 million in construction to term financing from MUFG Bank Ltd. and an approximately $105 million tax equity commitment from Wells Fargo for its Horizon solar facility located in Frio County, Texas.MUFG served as the green loan structuring agent, coordinating lead arranger and administrative agent for the construction to term financing, arranging financing commitments from eight financial institutions and Export Development Canada. The debt was issued under the green loan principles, which aim to facilitate and support environmentally sustainable economic activity.The financing for the Horizon solar facility is an extension of LRE’s previously announced financing for its Big Plain and Oak Trail solar projects. This will be LRE’s fifth solar project in the country and the second solar project in Texas, after Barilla Solar in Reeves County.“We’re pleased to provide tax equity financing for the Horizon Solar facility as Leeward continues to expand its solar portfolio,” says Samantha Buechner, director for Wells Fargo Renewable Energy and Environmental Finance. “Wells Fargo has committed to deploy $500 billion in sustainable financing by 2030 to support the transition to a secure, resilient, and sustainable future, and projects such as Horizon align with those same goals.”The Horizon solar facility is currently under construction. Once completed, it will generate enough electricity to power over 42,000 U.S. homes annually, providing 200 MW of renewable energy to Verizon Communications under a long-term power purchase agreement. The project is expected to reach commercial operation later this year.

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Suvi Sharma

SOLARCYCLE, a tech-driven recycling company focused on producing sustainable materials at scale for the solar industry, has raised $30 million in Series A funding, bringing the company’s total funding to $37 million since its inception a year ago.The funds will be used to scale the company’s growth in solar panel recycling capacity and expand materials remanufacturing capabilities. The round is led by Fifth Wall, an asset manager, and HG Ventures, the corporate venture arm of The Heritage Group.The round also included participation from Prologis Ventures, as well as existing investors Urban Innovation Fund and Closed Loop Partners. The announcement follows the initial $6.6 million seed round raised in May 2022. The infrastructure financing, led by Fifth Wall Infrastructure and Special Situations Partner Alok Sindher, provides asset-level equity capital for SOLARCYCLE’s Odessa, Texas, factory.Solar adoption is expected to accelerate over this decade, increasing from 150 GW installed in 2021 to 650 GW installed per year in 2030. SOLARCYCLE has developed proprietary technology that can cost-effectively return more than 95% of all the valuable materials, like aluminum, glass, copper, silver and silicon, back into the solar value chain.“This Series A funding will allow us to further advance our patented technology, grow partnerships with industry leaders, and rapidly build recycling infrastructure in the United States and beyond to mine old solar panels for making new solar panels,” says Suvi Sharma, CEO and co-founder of SOLARCYCLE. 

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Chris White

Parks Associates‘ latest report has found consumers are concerned about high energy prices but still have low familiarity overall with solar power.More than 60% of U.S. internet households report their electricity costs are too high, but only 17% are very familiar with solar, according to the “Solar and Storage: Opportunities in the Smart Home” report.“Consumers are concerned about energy costs and are also interested in solutions that would make them independent of their local provider, so market conditions could lead to strong growth in solar adoption, provided consumers become more familiar with these solutions,” says Chris White, research director of Parks Associates.U.S. households still have low familiarity with solar and other home energy management solutions, but adoption has increased slowly the past few years. Parks Associates research shows 7% of U.S. internet households have a solar panel.Climate awareness, energy uncertainty, economic incentives and technological innovation have contributed to the growth of the solar panel industry. Recent popularity surges in the electric vehicle industry and the rise of connected devices are helping grow familiarity with solar and storage solutions.Access the report here.

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