Sunova Partners With LUMA to Enhance Island Grid Stability

William J. Berger

Sunnova, Puerto Rico’s largest residential solar and battery storage services company, is expanding its Sunnova Sentient Virtual Power Plant (VPP) platform through the Sunnova Power Flex Program.

In partnership with LUMA’s Customer Battery Energy Sharing (CBES) program in Puerto Rico, this effort aims to enhance grid stability during peak demand periods while offering customers financial incentives for their voluntary participation.

“As we continue to spearhead the transition towards a cleaner and more robust future, extending our VPP platform will not only help reshape the energy landscape in Puerto Rico but also empower our valued customers to play an integral role in bolstering grid stability,” says Sunova CEO William J. Berger. “We eagerly anticipate the transformative impact this program will have on our customers and the Puerto Rican community at large.”

During periods of grid instability, typically when existing power plants are struggling to meet high demand, Sunnova’s VPP operations team will respond to dispatch signals, dispatch enrolled customers’ batteries using Sunnova’s VPP platform, and deliver energy and resiliency to the grid. LUMA’s CBES initiative makes this possible by sending the correct price signal to Sunnova customers to participate and by also sending the correct dispatch signal to Sunnova to operate its VPP platform.

In return for battery response and contribution, customers will be compensated for the power supplied by their batteries. This approach not only incentivizes customers to embrace renewable energy solutions but also creates a mutually beneficial situation whereby the grid is strengthened, and participating customers receive an additional financial benefit from their systems. A single battery may be able to earn up to $1,000 for this first pilot year depending on how many times a battery is dispatched.

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Treehouse Development Finance Loans Renewvia $15 Million

Seth Stulgis

Renewvia Energy Corp. has executed a $15 million development loan for large-scale utility solar projects with Treehouse Development Finance.

Renewvia is developing a 2 GW pipeline of solar and storage projects, consisting of 150 MW to 450 MW in the TVA, MISO and SERC regions. The partnership aligns with the company’s mission to drive the transition to clean energy solutions, as well as bring economic benefits to rural communities across the U.S.

“Securing a significant capital commitment from a reliable financing partner will accelerate our goal of deploying significant amounts of solar across the U.S.,” says Seth Stulgis, Renewvia’s director of development.

“The Renewvia team has significant experience in the renewable energy sector, including development, construction, and financing. We are excited to support their long-term development strategy and look forward to helping them achieve their business objectives as they develop utility-scale clean energy projects in the southeast United States,” adds John Brown, chief development officer at TDF.

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Michigan Passes Legislation Paving Way for Clean Energy Projects

Winnie Brinks

Michigan Senate Democrats have passed House Bills 5120 and 5121, the Clean Energy and Jobs Act. These bills simplify the approval process for building large-scale renewable energy projects while protecting personal property rights and public input and local oversight.

The bills work in tandem with the Senate’s Clean Energy Future legislation, Senate Bills 271, 273, and 502, which the Senate finalized later that day. Senate Majority Leader Winnie Brinks, D-Grand Rapids, and Sen. Sean McCann, D-Kalamazoo, Chair of the Senate Energy and Environment Committee, spoke in support of the legislation on the Senate floor Wednesday. 

“These bills are an essential component to pursuing and achieving a clean energy future in Michigan, diversifying our economy, supporting workers, farmers and consumers, and making Michigan a national leader on clean energy — all while enhancing personal property rights for landowners who want the freedom to decide what to do with their land while upholding public and community input and authority,” said McCann.

 “The Clean Energy Future plan sets an example for the rest of the nation on how to navigate the deeply complex realm of energy policy in a way that promotes affordability and reliability, drives job creation, and honors the role we must play in mitigating climate change,” said Brinks. “The action we took in the Senate today is a critical step in achieving our bold energy goals in a responsible way that moves Michigan forward.”

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UK: Wholesale trading drives revenue growth for battery storage in October

Overall, monthly average battery storage revenue rose by 22% from September to October to £4.8k/MW (US$5.9k/MW). This follows battery revenues increasing by 19% from August to September.

Graph: Modo Energy.

Average revenue for UK batteries under 1.5 hours and over 2.5 hours in duration stood at £4.3k/MW and £6.2k/MW respectively.

Equivalent to £57k/MW/year, the 22% increase saw October deliver the fourth-highest revenues this year so far, added market lead analyst at Modo, Wendel Hortop.

Following a dip in August, these figures show a welcome increase in battery storage revenues following the impressive 53% increase seen between June and July.

Graph: Modo Energy.

The increase in trading revenues followed a 32% rise in trading spreads to £100/MWh on average which, Hortop said, was mostly driven by sustained high wind generation in October. This is the second consecutive increase of 32%.

Gas prices also rose by 17% month-on-month in October, contributing to the rise in trading spreads.

Energy trading starting to make up for UK ancillary service saturation

As Energy-Storage.news has previously written, revenues for UK battery storage projects have crashed year-on-year in 2023 after higher-than-expected performance in 2022 as the saturation of ancillary service markets like FFR (Firm Frequency Response) started to have an impact.

Sources in the market recently said this has led to a fall in the prices that developers are getting for early-stage or ready-to-build (RTB) projects while the share prices of the three listed energy storage funds have fallen substantially over the year, as we recently wrote (Premium access).

See the original version of this article on our sister site Current.

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Blackstone’s Aypa secures US$550 million debt and tax equity for 700MWh California and Texas projects

The money will go towards the Cald project, a 100MW/400MWh standalone system in urban Los Angeles, and the Borden County project, a 150MW/300MWh project in Texas. Both are currently under construction and set to enter commercial operation in 2024.

The projects are likely to be those for which Aypa ordered BESS systems from the energy storage arm of Canadian Solar earlier this year: a 487MWh order for an unnamed California project in February and a 363MWh order for an unnamed project in Texas. The larger size is most likely because of the need to overbuild a project to account for energy losses from DC to AC conversion at the inverter.

BESS projects in California are mostly 4-hour systems in order to get the maximum payment under the grid operator CAISO’s Resource Adequacy framework, the basis of the business case for grid-scale storage there. Aypa’s Cald project has secured an agreement under it with utility San Diego Gas & Electric (SDG&E).

In Texas, BESS still mainly get revenues from the state’s large ancillary services market and so have not moved significantly past 1 or 2-hour duration yet. However, the ancillary service market is pegged to start to saturate next year while recent state-of-charge regulations from grid operator ERCOT mean virtually all new projects are at least 2-hour systems.

Aypa has been owned by Blackstone since 2020, before which it was called NRSTOR C&I when it focused on the commercial and industrial (C&I) segment, though it has since pivoted to the utility-scale market. Alongside being active in the US’ two biggest markets for storage (California and Texas) this year it acquired BESS projects in Indiana.

The size of the tax equity portion of the financing package was not disclosed but it represents the latest in a string of large tax equity investments into standalone storage seen in the past few months, including from developer-operators Spearmint Energy, Plus Power, SMT Energy and SUSI, Strata Clean Energy and Eolian (earlier in the year).

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‘EV batteries could be instrumental in integration of renewables’, India’s Central Electricity Authority says

It includes technical analysis and has been created after the body was tasked by the national government with creating draft guidelines around the technology.

Certainly, as regular readers of Energy-Storage.news will know, the need for electricity storage has been well recognised already by India’s government and power sector stakeholders.

With the country targeting the deployment of 500GW of renewable energy by 2030, including 450GW of wind and solar PV, the Central Electricity Authority (CEA) recently modelled a need for about 60.63GW/336.4GWh of energy storage – of which roughly two-thirds would come from batteries and the rest from pumped hydro energy storage (PHES) – by 2029-2030.

This modelling was incorporated into recent guidelines by the Ministry of Power for promoting energy storage’s role in making renewable energy on the grid dispatchable, and blew away previous CEA modelling that estimated a need for 28GW/108GWh of energy storage by the end of this decade.

While much of India’s fleet of grid batteries will likely comprise utility-scale or distributed stationary battery energy storage system (BESS) resources, the CEA said in the new report that “V2G for electric vehicles holds the key to unleash synergies between clean transport and [the] low-carbon economy”.

“Batteries in cars, in fact, could be instrumental to integrate high shares of renewables into the grid. Optimally, EVs powered by renewables can spawn widespread benefits for the grid without adversely impacting the transport functionality,” the report’s authors wrote.

Cars typically spend 80% to 90% of their lifetime stationary and parked, and their batteries could be used for V2G and other bidirectional applications through centralised control architectures – where a centralised aggregator pools the resources of numerous EVs in a fleet – or in decentralised or local control architecture, where offices, factories or apartment blocks could leverage the stored energy.

For the centralised model, CEA found that at least 1MW to 2MW of power to trade would be required to make the use of EVs as a source of grid flexibility viable at a wholesale level, which equates to around 500 electric cars and charging points.

India’s EV fleet projected to reach 10 million cars by 2030

CEA identified several applications V2G could be used for, including ancillary services to balance the grid, load levelling, peak shaving, congestion mitigation and more.

However while the technology could be hugely beneficial, the Central Electricity Authority pointed out numerous challenges or barriers to adoption and successful operation. For example, without V2G resources being able to provide multiple flexibility services at system and local levels and therefore to stack multiple revenue streams, V2G business models “may not materialise”, according to the report.

Other interesting observations include fast or rapid chargers being less suitable for V2G than overnight or trickle charging, given the shorter length of time the EV sits idle in a fast-charge scenario, and the possible degradation impacts of V2G charging on a car’s battery cells.

Nonetheless, with India cited as the world’s third-biggest automotive market, targeting for 30% of all new vehicles sold by 2030 to be electric and forecast to see a 49% CAGR in EV sales to reach 10 million vehicles by the end of this decade, according to government survey figures cited by another national agency Invest India, the potential for V2G is being looked at closely.

This is in line with other high-growth EV markets such as California, where legislation to make bidirectional charging technology mandatory is being considered. Recent announcements of moves into the V2G space from the likes of Volvo Cars, Renault, Volkswagen and other automakers implies that V2G’s time may not come immediately, but is on the horizon.

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Enershare talks affordable, safe energy storage, and educating customers on what to expect

Energy-storage.news: How are you approaching the market?

Adam Hancock, Director UK & Europe, Enershare: “Our preference is probably utility-scale first, because the bigger systems work in exactly the same way as the smaller systems, but the bigger the system the lower the price per kWh. So as we build our reputation in the UK, probably utility-scale, then commercial, then residential is the way that we would go. Also, residential is more difficult. For example, to sell one MW of solar or storage to a customer probably takes less time than selling a system to ‘Mrs. Jones’, so as a business model you need to have the right organisation.

For commercial and industrial, for example, we have Enershare’s EnerBank containers, which use a 20-foot container and modular design. Each module is 215KWh and the system can hold up to 8 modules. The maximum capacity is 1.72MWh. The maximum output power is 800KW. It’s a good choice for C&I ESS.

“For C&I systems, I think there are a lot of businesses who are paying a lot of for electricity and a lot of commercial applications where you can genuinely save them money. We also have a professional R&D team and mature project cases in large-scale BESS, which is our advantage. Now Enershare is testing the latest outdoor high voltage ESS cabinet and container solutions for 1C charging and discharging, and plans to launch them on the market in February next year.

What are the advantages of installing a battery storage system alongside solar?

AH: “It can provide a solution in terms of energy security, which isn’t so much of a concern in the UK as in other parts of the world,  but nevertheless if you’ve got your battery system with a solar system you can actually manage your cost of electricity. Also, some of the electricity companies are offering different tariffs at different times of the day…so you could download [from the grid] at a particular time, fill your battery up from the grid and then use that electricity to charge your car or other items.

“Having energy security is important, being able to manage and fix the cost of electricity that you’re paying, but also if you imagine: the grid has a maximum capacity, so if every new house suddenly has solar panels that can export to the grid, the grid is going to collapse. So you actually need batteries to help balance the grid, even if you consider each house to be a micro-system at peak times that storage facility will help balance the grid.”

Energy-storage.news note: An example of this principle can be seen in the legislation around residential solar and storage systems in California, known as the Net Energy Metering (NEM) policy. The most recent iteration of the legislation incentivised residential batteries by cutting the repayments due to customers from exporting solar power they don’t use back to the grid, and instead rewarding the purchase of battery storage systems to reduce the draw on the grid at peak times.

What about financing a residential system?

AH: “I think that every house could have a battery system in it, and the price per kWh of storage systems now has become such that it is actually really affordable. But what’s important is that banks can actually lend against the systems; my personal feeling is that banks or building societies should help to support the purchase of these so that it really is affordable to everybody. Enershare’s policy of making systems affordable for all is something that we want to help promote in the UK.

“If you’re looking at £0.30-0.40 (US$0.36) per kWh, you could be looking at two to three years for a return on investment, whereas when we first started this you would’ve been struggling to look under 10 years. But the cost per kWh is dropping…market demands, over-production, it has been forcing the price down, and this actually benefits the consumer. But you need some sort of cheap financing to help make it happen, that could open the doors to make it truly affordable for everybody. Even if it’s one kWh of storage, if every house had a small battery it would relieve the pressure on the national grid.

“Though battery systems seemingly might cost a lot of money now, in 10 years time your electricity rates are going to be far lower – you will be able to say ‘my electricity cost for the next year is going to be 30 pence per kWh.’”

What are Enershare’s targets for the coming years, in the UK and elsewhere?

AH: “Our targets are very much built around our policy of affordable energy storage. Enershare’s passion is about making energy storage affordable for all, that really is what we want.

“We work with only one or two partners in every country: we don’t want to ‘control’ the price, but without having too many middlemen all adding their 20 or 30%, we try and work so we can get as close to the end customer as possible.

“Another target is safety. Enershare only provides the highest quality energy storge solutions, and our battery cells use new EV-grade batteries from manufacturers such as CATL, Gotion, and BYD. We also use the best battery management systems (BMS) that help maintain and protect the safety of the battery [from things like] overheating. So safety has to be a key part of rolling this out into the future. But we’ve actually gone one step further and we’ve designed VOC (volatile organic compound) circuit breakers that work in conjunction with our batteries, helping to protect families’ homes from fire.”

Energy-storage.news note: VOC detection is part of off-gas detecting in battery systems, a safety protocol that pre-empts or prevents thermal runaway and overheating in a system and alerts users to the risk. Enershare were exhibiting its new Blade wall-mount battery at Solar & Storage Live 2023, a 51.2V, 135Ah Powerwall  with a BYD blade battery, which the company said was “the safest wall-mounted residential battery”. Another of Enershare’s exhibits was the 2U 51.2v 100ah LFP battery. Using the newest BMS, it cancels DIP, reduces communication interfaces, and makes battery use easier. When used in parallel, BMS will automatically identify the master battery and slave battery. It can be installed in a number of ways including stackable, wall-mount, and rack-mount.

Should consumers co-locate with solar?

AH: “When we were first working with solar panels they were something like £1.50/watt peak, now you can but a solar panel for £0.20/watt peak. So, the more solar you put down, the lower the price per kWh of the system that you employ. We always say to people ‘put as much solar down as you can afford’, because it because it will make your total system price more affordable.

“But, we think that solar and batteries need to be sold realistically, sold with the consumer in mind so that mis-selling is impossible. By that token, Enershare are happy to talk about education; we’ll tell you what the price is, we’ll tell you how long it will last, we’ll tell you that in 10 years’ time you might need to change your batteries. The only thing that’s likely to fail in the first 10 years is the inverter, so the people who buy the systems need to know that, just like you maintain your car, the inverter is a working piece of equipment and might need maintenance in the future.

“And actually in 10 years’ time, the next system will probably last 15 years or so because the technology is getting better and better every year.

“Looking into the future, definitely focus on education, not over-selling, concentrating on giving people the truth along with affordability.”

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Vikings Solar-Plus-Storage Development Nets Financing

Kevin Smith

Arevon Energy Inc. has closed financing on the Vikings solar-plus-storage project with a combination of debt financing and tax credit transfer.

Arevon secured a commitment with J.P. Morgan to purchase $191 million of investment tax credits and production tax credits, among the nation’s first transactions announced to date that leverage the Inflation Reduction Act’s transferability provision.

The additional $338 million debt facility was financed with MUFG, BNP Paribas, Sumitomo Mitsui Banking Corp., and First Citizens Bank, who acted as coordinating lead arrangers. National Bank of Canada also participated as a lender. Stoel Rives represented Arevon as legal counsel; Milbank LLP served as transfer counsel; and Winston & Strawn LLP served as lender counsel.

“Vikings has been a landmark project from its inception. It is one of the nation’s first solar peaker plants, and today it is one of the first utility-scale solar-plus-storage ITC and PTC transferability transactions to close since the Inflation Reduction Act passed in August 2022,” says Kevin Smith, Arevon’s CEO.

Located in Imperial County, Calif., the Vikings power plant features a unique configuration of 157 MW DC of solar coupled with 150 MW/600 MWh of battery energy storage. Vikings is contracted to provide resource adequacy and renewable energy to San Diego Community Power, helping to support grid reliability beginning next year.

The project showcases key U.S. manufacturers, with PV module supply from Arizona-based First Solar, along with solar trackers from Nextracker, whose headquarters are in Fremont, Calif. Tesla is supplying the facility’s utility-scale batteries, which allow the solar energy generated to be directed to the grid during peak demand.

Construction of the facility is well underway, with commercial operations scheduled for the third quarter of 2024. San Diego-headquartered SOLV Energy is performing the construction activities.

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PVEL Enhances Product Qualification Program for PV Modules

Tristan Erion-Lorico

PV Evolution Labs (PVEL), an independent test lab for the solar industry, has upgraded the company’s suite of extended reliability and performance tests, the Product Qualification Program (PQP).

PVEL established the PQP in 2012 to provide empirical data for PV module benchmarking and project-level energy yield and financial models, and to help recognize top-performing PV modules. PQP testing also helps inform the company’s annual PV Module Reliability Scorecard, which provides actionable insights for PV module procurement based on data from PVEL’s testing.

“The module buying landscape has changed dramatically in recent years with advancements in module technology and new players entering the market, and in response, PVEL has focused our globally-acclaimed test program on addressing these changes,” said PVEL’s Tristan Erion-Lorico.

“The improvements we’ve made in this PQP update incorporate critical feedback from our downstream partners, research institutes, module and component manufacturers, and our own test results, keeping the PVEL PQP at the forefront of the growing demand for PV module procurement due diligence,” he adds.

Notable updates to the PQP include the following:

a new test to address concerns around Ultraviolet Induced Degradation (UVID);

refocusing the Hail Stress Sequence (HSS) on identifying the threshold of glass breakage;

modifying the Mechanical Stress Sequence (MSS) to target module mechanical durability concerns; and

streamlining processes for Light Induced Degradation (LID), Damp Heat (DH), Light and Elevated Temperature Induced Degradation (LETID), and Backsheet Durability Sequence (BDS) testing.

Participation in PVEL’s PQP is voluntary for manufacturers, and only top-performing module model types are named in the annual PVEL Scorecard. To date, PVEL has tested over 600 BOMs from more than 70 manufacturers for the PV Module PQP.

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Redwood Materials to decommission, recycle 4.6MWh BESS on Kaua’i, Hawaii

From its base in northern Nevada, USA, Redwood’s mission is to create a circular supply chain for lithium-ion batteries, recycling materials from decommissioned batteries for use in new storage products.

Having so far focused predominantly on recycling batteries from electric vehicles, Redwood Materials’ collaboration with KIUC marks one of the company’s first significant step into the world of grid-scale battery recycling.

In a statement on the project, Redwood said: “More than just a utility-scale solar venture, [Anahola Solar] represented KIUC’s foresight into the next era of energy and stationary storage. As this site reaches its end-of-life, Redwood is managing its sustainable and responsible decommissioning, transport and our northern Nevada facility.

“The energy storage landscape has seen remarkable growth, with the United States deploying 4.8GW last year along. These numbers are only expected to increase every year going forward, underscoring the imperative of overseeing these systems responsibility throughout their entire lifecycle, from initial deployment to eventual decommissioning.”

Redwood Materials has caught the eye of some significant backers, not least the US Department of Energy, whose Loan Programs Office earlier this year offered a conditional US$2 billion loan to the company for the construction and expansion of its facility in McCarran, Nevada.

The company is aiming to play a central role in the creation of a domestic supply chain for lithium-ion batteries products in the US, with ambitions to produce up to 100GWh worth of anode and cathode in materials in the US. Until now, much of the production of these critical materials has taken place in Asia.

The reshoring of the supply chain will allow battery and automotive manufacturers to meet the stringent critical mineral and battery component requirements for consumers to qualify for EV tax credits introduced under President Joe Biden’s Inflation Reduction Act.

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