The series to date, published by the LPO with support from the DOE Office of Technology Transitions, has looked at other areas like clean hydrogen, advanced nuclear and long-duration energy storage (LDES) that offer great promise in increasing the US’ energy security and decarbonisation progress.

The VPP report finds that with US peak demand forecast to rise to more than 200GW by 2030, the deployment of between 80GW to 160GW of VPPs by that time could reduce overall grid costs by US$10 billion per year, save money being spent on peaker plants and support electrification.

Essentially mimicking the role traditionally played by large centralised power plants on the grid, there are an estimated 30-60GW of capacity aggregated into virtual power plants already today in the US. That might seem a lot to people that have been watching the slow rollout of battery storage-backed VPPs at over the past few years, although as report author Jennifer Downing pointed out, the definition of a VPP is broad.

“The market data isn’t great and there’s probably a little bit of double counting of resources at the distribution versus transmission level, or bulk power system level, but we estimate that there’s about 30GW to 60GW of capacity in VPPs,” Downing told Energy-Storage.news in an interview.

“Folks who may be surprised to hear that are discounting the fact that we include in there, some of the more rudimentary demand response systems that have been around for decades. So there’s lots of different types of VPPs that are included in there,” Downing said.

Evolving virtual power plant technologies

That said, VPP technologies are evolving. As early as the 1960s hard-wired switches were being used to automatically turn down water heaters for example, while today, a VPP includes a broad range of DERs that can offer a wider suite of grid services than demand response alone. Meanwhile, VPPs are being dispatched more frequently and more often in times of regular operation of the grid, not just in emergencies.

A lot of that increasing sophistication is unlocked or enhanced by what batteries can do. Forward-thinking utility companies like Green Mountain Power in Vermont – the first to aggregate Tesla Powerwalls into a VPP – have enrolled their customers into programmes that offer big discounts on batteries bought for backup or to integrate home solar PV, in exchange for allowing the utility to dispatch some of the stored energy when peaking capacity is needed.

A few weeks ago Green Mountain Power requested state regulatory approval for an extra US$30 million for customer and community energy storage programmes to be spent in 2025-2026, alongside US$250 million for transmission grid upgrades and hardening.

Just in the past few days, another utility, Puget Sound Energy in Washington struck a deal to expand its VPP partnership with DER controls platform provider Autogrid, and the VPP space is filled with different combinations of utilities, cooperatives and other load-serving entities with third-party technology providers.

One such third-party provider, Swell Energy, which partners with utilities in states including Hawaii, California and New York, announced a partnership earlier this month with another, Shifted Energy, to pool the capabilities of their two distributed energy resource management system (DERMS) platforms.

“Through this partnership, Shifted and Swell are facilitating data-driven operations across the electrified home to enhance customer economics while benefiting grid operations for utilities,” Swell Energy CEO Suleman Khan said.

They will do this by integrating forecasts of energy demand and generation with the management of household loads.

While that includes everything from thermostats and water heaters, pool pumps, EV chargers to solar PV and batteries, it is the battery storage that is the most versatile of those resources, DOE senior advisor Jennifer Downing said.

“I see batteries as a little bit of like the wildcard in VPPs. You can play them any way. You can charge them to avoid the curtailment of clean energy resources, you can dispatch them for energy, similar to how you dispatch energy from a peaker plant, you can do fast frequency response with sub-second fluctuations,” Downing said.

“So they really span the whole spectrum of grid resources and that way I think are particularly valuable to virtual power plants.”

Senior analyst for S&P Global Commodity Insights Susan Taylor recently told Energy-Storage.news that greater adoption of VPPs will be among the long-term drivers for the uptake of residential battery energy storage globally.

Read the DOE’s full ‘Pathways to liftoff for virtual power plants’ report here.

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The funding will go towards new, retrofitted, and expanded domestic facilities for battery-grade processed critical minerals, battery precursor materials, battery components, and cell and pack manufacturing, the DOE said. It is the second phase of a total US$6 billion package, and concept papers are required by 9 January 2024 with full applications due 19 March 2024.

The Biden-Harris Administration wants to reach a net zero economy by 2050 and for electric vehicles (EVs) to make up half of all new light-duty ones by 2030.

It said that batteries are critical for not only electric vehicles (EVs) but also renewable energy and making the US competitive for grid-scale energy storage and for energy resilience.

“With the demand for electric vehicles (EVs) and stationary storage alone projected to increase the size of the lithium battery market by five- to ten-fold by the end of the decade, it is essential that the United States invests in the capacity to accelerate the development of a resilient supply chain for high-capacity batteries, including non-lithium batteries,” its announcement said.

“Positioning the United States front and center to meet the growing demand for advanced batteries is how we boost our global competitiveness, maintain and create good-paying jobs, and strengthen our clean energy economy” added US Secretary of Energy Jennifer M. Granholm. 

The funding opportunity is on top of generous tax credits for the production of clean energy technologies brought in by the Inflation Reduction Act, which was signed into law a year after the Infrastructure Law.

The Act includes a direct payment of US$35 per kWh of batteries produced in the US which has seen investments in the country’s battery supply chain soar in the past year, with the payment playing a big part in making US-made batteries and battery energy storage systems (BESS) more cost-competitive with China.

Knock-on effect on Europe’s battery industry

This has also made building batteries in Europe much less economical, compared to the US or China, according to Norway-based company Freyr which last week announced it was pausing new investments in all European projects and only scaling in the US. The company’s flagship Giga Arctic battery plant in Mo I Rana, Norway, is one of those which has been paused.

CEO Birger Steen, talking to Energy-Storage.news for an interview which will be published in the coming days, said project level financing for battery manufacturing in Europe was now much harder: “Most of these pools of capital are global, why would they do it in Europe when you can do it in the US for 35% cheaper?”

The current situation is a significant 180 degree turn from 18 months ago when Europe looked like it had done a much better job in fostering the growth of a domestic battery supply chain. Spurred by the Inflation Reduction Act, US investment announcements in the space started to outpace Europe’s late last year and it overtook its Atlantic neighbour for planned capacity earlier this year.

Just recently Energy-Storage.news reported that US firm American Battery Factory had started building its Arizona lithium iron phosphate (LFP) gigafactory while in September China-based Gotion announced plans for a US$2 billion gigafactory in Illinois.

A trade body for Europe’s transportation sector said in March that two-thirds of the continent’s battery manufacturing projects were at risk of delay or cancellation, though Freyr’s recent announcement suggests the situation may actually be more severe.

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However, despite the big leap, there could have been much more added: the number of new megawatts deployed in the third quarter was only around half of what was expected, with delays to major projects such as a 169MW phase of developer Terra-Gen’s Edwards Sanborn project and CIM Group’s 228MW Westlands Solar Blue project, both in California.

Both of those have been pushed back from commercial start dates in Q3 to Q4 2023 instead, in which S&P expects to see around 4.5GW of new additions in total. If all of those are added to the grid successfully, the US’ installed base would exceed 19GW by the end of this year.

S&P also found that prices of key raw materials lithium carbonate and hydroxide have continued to decline during 2023. Having reach all-time highs in 2022, prices for both are at their lowest since October 2021, with S&P’s commodities reporting group Platts finding a 70% drop in the price of lithium carbonate and a 72% drop in lithium hydroxide cost since the start of this year.

ERCOT back after quiet Q2

According to S&P, ERCOT led US deployments in the first quarter of this year, but reported after the second quarter that there were no new grid-scale battery energy storage system (BESS) facilities brought online in its service territory in that three-month period.

In Q3, ERCOT came top among US regions, with 763.4MW of new BESS, representing 40% of the total new capacity, while California’s CAISO – still the single biggest region now with close to 7GW installed – took a 30.6% share.

In Q4, S&P said CAISO has a 42.2% share of planned additions, while in second place are the Western US states (and parts of Canada and Mexico) that comprise the Western Electricity Coordinating Council (WECC) which has a 27.9% share. That’s similar to WECC’s 27.8% share of Q3 additions of 531MW. ERCOT meanwhile would contribute 24.5% of new additions in Q4, with about a gigawatt expected.

Of the top five biggest projects to come online during the third quarter this year, two are in California, two are in Texas and one in Arizona, with the biggest the 325MW/1,300MWh Desert Peak Project by NextEra Energy Resources in California.

NextEra Energy Resources ranks top for operating battery storage

NextEra Energy Resources actually had three out of the top five biggest new projects according to S&P. That contributed to the wholesale power generation company being top for operating battery storage by megawatts in the country.

The company added 980MW during the quarter, and now has an operational fleet of 2.814GW. Vistra Energy, the second biggest by total operating capacity, with 1,023GW, made no additions during the period.

Conservative by comparison

S&P’s compiled Q3 figures are more conservative than those released at the beginning of this month by the American Clean Power Association (ACP), which said 2,142MW/6,227MWh of new large-scale battery storage facilities came online in the quarter (S&P did not provide megawatt-hour numbers). ACP found that 2023 installations had already exceeded the 2022 total by the end of the first nine months of the year.

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The session will discuss the deployment of flow battery systems totalling approximately 6MWh on two outer islands of the South Asian archipelago, as well as energy management system (EMS) technology. The scope of the project will be for the design, supply and installation of the systems.

The online session is being held to gather information and feedback from interested parties and the ministry said in an announcement that it “does not constitute a formal procurement process” at this stage.

The flow batteries would be deployed as part of the Maldives’ Accelerating Sustainable System Development Using Renewable Energy (ASSURE) Project, for which the largest share of funding, US$41.5 million, is being provided by the Asian Development Bank (ADB).

While the flow battery procurement is on a pilot or demonstration project basis, a procurement for around 40MWh of lithium-ion battery energy storage system (BESS) capacity and EMS for deployment on 18 islands was launched in August through the project, as reported by Energy-Storage.news.

ADB said in September as it approved its financing package for ASSURE, which totals US$50.5 million including an US$8.5 million concessional loan from ordinary capital resources and US$500,000 from the Climate Change Fund, that the installation of grid-scale energy storage will help attract private sector investment and enable the local deployment of rooftop, ground mount and floating solar PV.

Meanwhile Japan’s government, contributing US$6.2 million in grant funding to ASSURE through its Japan Fund for the Joint Crediting Mechanism (JFJCM) trust fund within the ADB, said it would be directly funding the flow battery systems as part of microgrids on the islands of Dhidhdhoo and Nilandhoo. In addition the JFJCM funding would also go towards an ocean-based renewable energy (presumably tidal) installation.

The ADB noted in official projects documents that the Maldives is an extremely climate-vulnerable nation, with more than 80% of its land area less than a metre above mean sea level. With its many islands, the country is unable to have a centralised power grid, and instead relies on about 320MW of individual diesel generator-run power plants on 186 of the inhabited islands, and presently about 37MW of solar PV.

That means fuel and therefore electricity costs are high, between US$0.30 and US$0.70/kWh and both the cost of fuel and electricity generation require government subsidies. In 2021, around 1% of the Maldives’ gross domestic product (GDP) was spent on those subsidies, while the cost of diesel itself was equivalent to 7.8% of GDP.

See the government announcement of the sounding session on 20 November, with link to join, here.

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Harry Benson

Standard Solar has acquired a 12 MW community solar project portfolio from New Leaf Energy.

The three projects, based in Chatham and Kilmarnock, mark the company’s debut in Virginia’s community solar market and symbolize a step forward in the commonwealth’s journey toward a solar-powered future.

“These community solar projects are more than just an important addition to our portfolio; they represent our unwavering commitment to expanding access to solar for all,” says Standard Solar’s Harry Benson.

“By providing localized job opportunities and significant allocations for low- and moderate-income customers, these projects embody our vision of a cleaner, more equitable energy future. Beyond that, they strengthen our long-standing partnership with New Leaf Energy, underscoring our joint dedication to advancing renewable energy solutions in the communities we serve.”

The Kilmarnock projects, with a combined capacity exceeding 7 MW, are exclusively allocated to low- and moderate-income customers. Once completed, the single-axis tracker systems are expected to generate an estimated 19,811 MWh of clean energy annually. 

“New Leaf Energy’s mission is to accelerate the transition to a world powered by renewable energy,” adds New Leaf’s Brendan Neagle. “Community solar projects are an integral piece of that world, and we’re so proud to partner with Standard Solar as they invest in that mission in Virginia.” 

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Enbridge has signed an agreement to participate in the construction and operation of the Fox Squirrel solar project, through a 50% joint venture interest with EDF Renewables.

Fox Squirrel is a ground-mounted solar facility under construction in Madison County, Ohio. Its initial phase is expected to generate approximately 150 MW of solar energy and be in service by year-end, says Enbridge. The project will be constructed in three phases and is designed to ultimately deliver up to 577 MW by the end of 2024.

Enbridge will invest $149 million in the first phase and plans to reach a final investment decision on the following phases throughout 2024. The project has 20-year fixed-price power purchase agreements with an investment-grade counterparty for the full generation capacity.

“This partnership expands Enbridge’s strategic relationship with EDF Renewables while driving accretive renewables growth in North America,” says Enbridge’s Matthew Akman.

“Fox Squirrel solar project will benefit the surrounding communities by adding local jobs, generating additional tax revenues for Madison County and will ultimately power approximately 118,000 Ohio homes with renewable energy.”

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Minnesota Power is advancing its EnergyForward vision for 100% carbon-free energy with the issuance of an RFP for up to 300 MW of regional solar energy to come online by 2027.

The RFP follows Minnesota Power’s 2021 Integrated Resource Plan, approved by the Minnesota Public Utilities Commission, with procurement of solar through this RFP potentially growing Minnesota Power’s solar portfolio tenfold.

As part of its EnergyForward strategy, Minnesota Power seeks cost-effective solar resources that are within its service territory with direct interconnections to the company’s transmission system. Preference will be given to projects in communities that have generation resources impacted by the company’s decarbonization plans.

The RFP strives to maximize the regional economic benefits of solar development, including preferences for diverse bidders and requirements for using union labor, local labor for construction and permanent staffing and the development of apprenticeship programs.

“As we demonstrated with our three recent regional solar projects, this RFP reflects our commitment to creating opportunities for our communities during the clean-energy transformation,” says Minnesota Power COO Josh Skelton.

“We’re seeking projects that will create local construction jobs and tax base in communities, train people for the future and generate renewable energy for our customers. Getting this energy transformation right means building a truly sustainable future where everyone can thrive.”

Minnesota Power will consider multiple power supply options to meet its customers’ solar resource needs, including build-own-transfer and power purchase agreement projects along with self-build projects.

Proposals will be accepted through Jan. 5, 2024. Click here to learn more or to file a proposal.

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Manasij Kar

Enact Solar has added a major update to its Solar Design software platform, aimed at optimizing the installer experience.

The Solar Design Installer software is an all-in-one cloud platform designed to assist sales and installation professionals, offering remote design using high-resolution satellite imagery as well as generating proposals with pricing and energy analytics.

The company says the software’s aim is to enable quicker sales pipeline growth and seamless project management. The platform’s 2024 update includes features such as 3D modeling and automatic height and pitch detection.

“Our newly enhanced Solar Design software for solar installers transforms how solar and storage projects are planned and executed,” says Enact’s Manasij Kar. “By harnessing cutting-edge data-driven analytics, installers can now discuss design plans with homeowners and businesses confidently, minimizing errors. This means faster, more accurate implementation for installers, and greater transparency for customers.”

“As solar energy continues to proliferate rapidly across the world, we anticipate a significant surge in homeowners, businesses and local communities adopting solar as a source of clean and affordable energy,” adds Deep Chakraborty, Enact’s CEO and co-founder. “This new upgrade of our Solar Design software is part of our ongoing commitment to improve the solar and energy storage experience, from purchase to ownership, for customers and installers.”

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GAF Energy has completed the construction of the company’s manufacturing facility in Georgetown, Texas.

Full operation is planned for the end of the year, when the facility will produce the Timberline Solar Energy Shingle, which is meant to integrate with traditional shingles. The new manufacturing facility is the company’s second and is set to increase its capacity by 500%, bringing total production of its solar shingle to 300 MW annually. 

“We’re thrilled to be building the future of solar here in Georgetown. The community has welcomed us with open arms, confirming everything we thought when we made the decision to expand to Texas,” says Martin DeBono, GAF Energy’s president.

“We’ve begun hiring and already have dozens of people ready to make the best solar roofing on the market right here in Georgetown. We firmly believe that manufacturing in America speeds the innovation cycle and allows us to deliver the best product for our customers,” he adds.

The company began hiring earlier this year and has brought on more than 75 people in manufacturing, supply chain, logistics and other associated roles. At full capacity, GAF Energy plans to employ more than 240 people in Georgetown. The company’s first manufacturing facility, in San Jose, Calif., was completed in 2021.

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Solar tracker manufacturer Soltec has introduced SFOne USA, its latest innovation in solar tracking technology designed for the U.S. market.

With a unique vertically aligned dual-row design, SFOne maximizes solar energy generation efficiency while reducing the costs and complexity associated with the installation and maintenance of solar systems. Specifically tailored for projects in the United States, SFOne eliminates the complexity of conventional configurations with its pre-assembled sets, reducing costs and expediting the installation process. The connected system of SFOne also cuts the number of motors and electronic systems by 50%.

SFOne adapts to various terrains, from slopes to irregularities and diverse soil types. Additionally, SFOne’s design includes a wiring system that avoids unnecessary parts, reducing both the number of tracker components and their total cost.

SFOne’s electronics feature complete wireless communication and are designed to withstand low temperatures, ensuring optimal performance in various weather conditions. Furthermore, the SFOne tracker uses cutting-edge algorithms to maximize production: TeamTrack minimizes shading losses between rows, Diffuse Booster maximizes gains on cloudy days, and Dy-WIND ensures plant protection against adverse weather conditions.

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