Scatec begins construction on 1.1GW co-located energy storage projects in South Africa

A 75MW solar PV plant in South Africa built by Scatec in 2013. Image: Scatec.

Renewable energy power producer Scatec has started building three co-located solar projects with 1.1GWh of energy storage in South Africa, after achieving financial close.

Once operational the projects will have a total solar PV power of 540MW and battery storage capacity of 225MW/1,140MWh. The project has been designed to reduce the size of the grid connecion required, with only 150MW of dispatchable power to be provided under a 20-year power purchase agreement (PPA) with the local Kenhardt region.

The launch of construction comes six weeks after the Norway-based company secured PPAs for the three projects in Northern Cape, as reported by Energy-Storage.news. And it comes a year after the company won the tender to deliver them under South Africa’s Risk Mitigation Power Procurement Programme (RMIPPP) programme which is seeking to reduce capacity shortfalls on the grid.

“This project is a first of its kind and will be one of the world’s largest solar and battery facilities. We are now looking forward to starting construction of this unique and exciting project, which will be a major contribution to South Africa’s economy and green energy sector,” said Scatec CEO Terje Pilskog.

Scatec said the project will be the largest investment in its history with a total capital expenditure of ZAR16.4 billion (US$962 million) financed by equity from the owners of the project, which are Scatec with 51% and H1 Holdings with 49%. H1 is the project’s local Black Economic Empowerment partner, as one of the requisite conditions for taking part in the tender was local, black-owned business involvement.

Another ZAR12.4 billion in non-recourse project debt will go towards the project, meaning a total of US$1.6 billion in equity and debt. Lenders included Standard Bank Group and British International Investments.

Scatec is providing engineering, procurement and construction (EPC), long-term operations and maintenance (O&M) and asset management services. The development and EPC contract will generate US$800 million in revenue for the company, Scatec said.

The RMIPPP tender by grid operator ESKOM is one of three programmes which alone will see around 1GW of energy storage power, and several GWh of capacity, come onto the South African grid in the next few years.

There are two others for standalone projects which Energy-Storage.news reported on recently. One is a procurement which will see 199MW/832MWh of standalone energy storage developed at eight sites to provide national peak shaving and ancillary services. The other, which is expected to come later this year, will see over 500MW of storage tendered although details that have not yet been released.

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Energy trader Vitol leads US$100 million funding round for BESS system integrator FlexGen

FlexGen standalone BESS project in Texas’ ERCOT service area. Image: FlexGen.

US energy storage system integration services and software company FlexGen has raised US$100 million in a Series C funding round.

The company said yesterday that the investment will enable it to make progress on its pipeline of large-scale battery energy storage system (BESS) projects for customers across multiple regions. A representative said it leaves FlexGen “well positioned to execute on its large pipeline”.

The round was led by Netherlands-headquartered commodities and energy trading group Vitol which reported US$279 billion annual revenues in 2021 and trades around 7.6 billion barrels of crude oil and products daily. Vitol has also committed US$1.3 billion to global renewable energy projects.

“We will not reach our carbon reduction targets without energy storage, which addresses the intermittency of renewables generation and helps to create a more stable grid for the future,” Vitol’s head of renewables R. Andrew Pass said, describing FlexGen as “the leader in energy storage solutions”.

The energy trader will support international expansion for FlexGen through the Dutch company’s global footprint, Pass said, while Vitol will also provide energy storage optimisation services to FlexGen’s customers which include utilities, independent power producers (IPPs) and cooperatives.  

Also joining the round were some of FlexGen’s existing investors.

It comes less than a year after a Series B funding round which raised US$150 million equity investment from alternative asset management group Apollo Global Management.

Incidentally, in 2021, Apollo-affiliated investors also bought a 50% stake in Broad Reach Power, a clean energy independent power producer (IPP) which is developing large-scale BESS projects in regions including Texas and California, where FlexGen is also active.

FlexGen to date has installed more than 3GWh of energy storage since its founding in 2009, when in its early years it was largely focused on microgrids in remote regions for customers including US military forces.

Today, its pivot towards grid-connected large-scale battery storage has led it to contracts for recent projects that include a 2.1GWh BESS portfolio for California investor-owned utility (IOU) Southern California Edison (SCE) and a deal to put 10 BESS assets totalling 40MW at substation sites for a group of North Carolina electric cooperatives.

The company has always emphasised that its technologies, including its Hybrid OS software controls platform are a key differentiator, having been developed over more than a decade. It has enabled diversification into developing digital twins for BESS project design evaluation and the launch of an integrated electric vehicle (EV) charger offering including battery storage and energy management system (EMS) equipment, for example.

The investment also follows the news just a few days ago that rival system integrator Powin Energy has raised US$135 million from its two existing shareholders and Singapore sovereign wealth fund GIC.

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Software, supply chains and non-lithium technology: Wärtsilä’s energy storage VP Andy Tang

A 70MW BESS project the company delivered in 2020 in California. Banner image: a project in Hawaii for Clearway, to be completed this year. Images: Wartsila.

Andy Tang, VP of energy storage & optimisation for global energy technology group Wärtsilä, discusses software, supply chain, non-lithium storage technologies and more in this exclusive interview.

We start off by asking Tang about the second half of his job title: “The software piece is about optimising power flows and that goes hand in hand with the hardware piece, so we decided to add optimisation into into the business unit name,” he says.

Its main energy storage software is the GEMS energy management system (EMS) platform, brought into its portfolio through the acquisition of Greensmith Energy Management Systems Inc in 2017. Wärtsilä provides the platform as a standalone product as well as a way to manage its own energy storage products.

Tang says its AI-enabled optimisation platform for maximising storage revenues, the Intellibidder, is at a slightly earlier stage of maturity than the GEMS platform. In some of its projects like those for Pivot Power in the UK, the customer has opted for the GEMS platform for EMS but a separate provider for the market optimisation system.

“We intend to begin a marketing campaign around that and really change that situation,” Tang adds.

We ask Tang whether its lack of other types of renewable asset projects – Wärtsilä doesn’t develop solar or wind PV – was a problem for developing a market-competitive renewable energy optimisation platform, considering the amount of storage that is going to be co-located in future.

“So I absolutely agree that the next frontier in energy storage is hybridising with all sorts of power plants. I think that where we differ from some of the rest of the community is we define other power plants more broadly,” he says.

“We’re not looking at just deploying it with with solar or wind but we’re looking at deploying with those assets plus geothermal, plus hydro, plus fossil fuel burning assets. And I think it’s the plus fossil fuel burning assets that maybe makes Wärtsilä a little unique.”

He says that thermal plants will have a role to play in flexibility services until 4-12-hour-plus long duration storage technologies reach scale, which provides a nice segue into discussing non-lithium technologies for energy storage.

“There are a host of other technologies competing for long duration. I would like to see flow batteries get there, I really would. On a Powerpoint [presentation] it’s very compelling but it’s just not scalable. None of the companies have been able to produce multi-hour systems at a cost effective price. We’re still talking about 2025 and beyond.”

Tang also discussed supply chains at length, some of which was covered in a news story on the site last week. He says the BESS cost base has increased 25% year-on-year, mainly driven by battery cells which have gone from half of a typical balance-of-plant cost to close to two-thirds (for a basic, one-hour 50MW system).

Battery cells are in general increasing as a proportion of BESS projects’ cost structure as dispatch durations go up. For a four-hour system, battery cells are 70% of a balance-of-plant cost (based on the cost base from a year ago).

Like many others have done, Tang is calling for an investment tax credit (ITC) in the US for standalone storage similar to the one that exists for co-located projects.

“It (the co-location ITC) has some flexibility issues but it’s alive and well. When you look at the various initiatives and goals there are, in terms of hitting our decarbonisation targets, and the recent price increase because of raw materials pricing, I think a standalone ITC makes a lot of sense. It has bipartisan support although, considering our current government, I’m not optimistic about it happening anytime soon,” he says.

Wärtsilä is headquartered in Helsinki, Finland, and primarily provides power solutions in the energy and marine industries. It was the fourth-largest BESS integrator in IHS Markit’s 2021 rankings, after Tesla, NextEra and Fluence (in ascending order).

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Tender for 10MW of battery storage won by Hero Future Energies in Kerala, India

Hero Future Energies hosting an India Republic Day celebration at one of its solar PV plants earlier this year. Image: Hero Future Energies via Twitter.

Renewable energy project developer and independent power producer (IPP) Hero Future Energies has won a tender to construct grid-scale battery storage in the Indian state of Kerala.

The company announced via Twitter yesterday that it had “emerged as a successful bidder” in Kerala State Electricity Board’s (KSEB’s) tender for 10MW/20MWh of grid-connected battery energy storage systems (BESS).

The tender was launched towards the end of last year, with the board inviting Expressions of Interest (EOI) for 10MW of storage with up to 50MWh capacity. Although the EOI suggested three locations for the assets, to host 5MW, 3MW and 2MW of BESS, two at substation sites and another at a hydropower plant, it was also open to bidders suggesting suitable locations.

Hero Future Energies, a subsidiary of Indian conglomerate Hero Group, best known for its automotive manufacturing – particularly scooters and bikes – said it must commission the battery storage within 15 months of signing contracts.

What will perhaps be most interesting for regular readers of Energy-Storage.news about the tender is that KSEB said it was set up in accordance with the example of and guidelines used for a tender for 1,000MWh of energy storage launched by Indian state-owned power company NTPC.

With India’s energy storage market described widely by everyone from industry experts to the country’s government itself as poised for major takeoff, tenders such as NTPC’s and the 500MW/1,000MWh pilot solicitation launched by the government-run Solar Energy Corporation of India (SECI) are considered to be exemplars that will continue to inform market development activities.

For Hero Future Energies (HFE), which has a portfolio of more than 1.6GW of renewable energy assets in India and is targeting expansion into international markets, it marks a first foray into the battery storage space.

Experience from this maiden battery project will “enable us to execute similar projects with more states likely to issue storage tenders in the days ahead,” the company said.

With India targeting 500GW of non-fossil fuel energy on its grid, including 450GW of wind and solar PV, by 2030 and already having surpassed the 150GW line, the national Central Electricity Authority (CEA) has modelled a need for 27GW of storage with four-hours’ duration (108GWh) by that time. Industry group India Energy Storage Alliance (IESA) said recently that the figure could be more than 160GWh in its VISION 2030 strategy.

“We believe that storage will be integral to the next phase of growth of renewables in India and as such will continue to be a key thrust area for HFE,” the company’s official account tweeted.

Watch our recent webinar with Clean Horizon, with guests from SECI and IESA: “Learn about India’s current and future business models for energy storage,” here.

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Tigo Energy Brings New Solar Rapid Shutdown Technology to Market

Tigo Energy Inc., a Flex MLPE (module level power electronics) supplier, has launched its Pure Signal technology for Tigo RSS Transmitters. Designed to enhance powerline communication (PLC) signal quality, Pure Signal technology reduces the impact of electromagnetic interference in large-scale solar systems. Built on patented advanced rapid shutdown technology, Tigo RSS Transmitters with Pure Signal technology pair with a list of third-party solar inverters, deliver a new level of design and installation flexibility for solar installers and EPCs, and enable significant reductions in balance of system (BOS) and labor costs.

The Tigo RSS Transmitter with Pure Signal technology is designed to serve Tigo customers who deploy increasingly large and complex systems for the commercial and industrial solar markets. Disturbances in PLC signals, often referred to as ‘crosstalk,’ can result in reduced effectiveness of system communications functions in large-scale systems. With Tigo Pure Signal technology, cable runs from different circuits or adjacent inverters will no longer risk PLC signal disruption.

“The Pure Signal technology helped us avert a significant amount of rework after a design review showed that some of our cable runs could be at risk of crosstalk issues,” says Mike Ulanski, director of construction at Catalyze. “Without the ability to put the new Tigo RSS Transmitter into play quickly, the timeline and profitability of the project would have taken a hit. The installation guidelines and design review from Tigo have been extraordinarily helpful, but this Pure Signal technology gives us much more flexibility at both design and install phases.”

Tigo RSS Transmitters with Pure Signal technology are UL PVRSS certified with hundreds of inverter models from manufacturers. The new generation of RSS Transmitters with Pure Signal technology are compatible with the company’s TS4-A-F and TS4-A-2F rapid shutdown product family and can be easily integrated into new projects or retrofitted into existing installations.

“Our mission is to provide high-quality, reliable, and flexible MLPE solutions to meet customers’ needs for different system configurations. Pure Signal technology delivers on that mission,” comments Jing Tian, chief growth officer at Tigo Energy. “With Pure Signal technology we open a new universe of solar installation design possibilities and provide cost savings in BOS and labor.”

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GAF Energy Builds Second Solar Shingle Manufacturing Facility in Texas

GAF Energy, a Standard Industries company and a provider of solar roofing in North America, is building a new 450,000-square-foot manufacturing facility in Georgetown, Texas, to meet growing demand for the Timberline Solar roof.

“The response from both consumers and roofers to our Timberline Solar roof has been tremendous and we’re thrilled to be expanding capacity to meet that growing demand. Georgetown has a long track record as a clean energy leader, so it is the perfect home for us to build the future of solar,” says Martin DeBono, president of GAF Energy. “We launched Timberline Solar because we believed that more consumers would choose solar if they had a more reliable, durable, and attractive option. The market has confirmed our belief – now we’re turning that belief into reality and building the future of clean energy here in the U.S.”

The new facility, the company’s second, will increase its capacity by 500% and bring total production of its solar shingle to 300 MW annually. Timberline Solar features a nailable solar shingle and a roof system that directly integrates solar technology into traditional roofing processes and materials.

“We are pleased GAF Energy selected Georgetown as their destination for their facility,” adds Georgetown Mayor Josh Schroeder. “Their innovative product is one that will change the market as we know it, and we are excited that it will be developed here in our backyard.”

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Iberdrola inaugurates 40GWh Tamega pumped hydro plant in Portugal

The project has taken eight years to build. Image: Iberdrola

Spanish utility Iberdrola has inaugurated its ‘Tâmega Gigabattery’ in northern Portugal, a renewable energy complex including pumped hydro with an energy storage capacity of 40GWh.

Iberdrola has invested €1.5 billion (US$1.54 billion) in the facility which combines two run-of-river hydroelectric plants and an 880MW PHES unit (Gouvães), with a total combined hydroelectric power of 1,158MW. That will increase the electrical power capacity on the Portuguese grid by 6%.

The Tâmega electrical power production system can store 40GWh (40 million kWh), which makes it one of the largest energy storage systems in Europe.

The Portuguese prime minister António Costa and Iberdrola chairman Ignacio Galán inaugurated the project yesterday (July 18) morning, although a press release did not clarify exactly which parts of the complex are fully operational and grid-connected yet.

When the company turned on the first of Gouvães’ four 220MW turbines online in February, as reported on Energy-Storage.news, it said that Gouvães and one of the two run-of-river units would come online in mid-2022 while the second would start in mid-2024.

At full operations, the complex will also have 300MW of wind power, which will help power the PHES plant when it is pumping water up into the upper reservoir (i.e. charging).

Iberdrola has described the project as the “the largest clean energy project in Portugal’s history”.

It comes just a few weeks after Switzerland turned on its own large PHES project. The Nant de Drance plant cost CHF2.2 billion (US$2.3 billion) to build and has an energy storage capacity of 20GWh.

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BayWa r.e. Promotes Jodi White to CEO, Increases Executive Leadership

Jodi White

BayWa r.e., a renewable energy developer, services and systems provider, is expanding its executive team following the acquisition of Beacon Solar, the former solar distribution division of roofing distributor Beacon, to continue expanding its U.S. distribution network.

BayWa r.e. Solar Systems LLC has promoted Jodi White to CEO. White brings 20 years of experience in the renewable energy industry with roles in mergers and acquisitions, and as a finance and operations executive. She co-founded BayWa r.e.’s distribution business in the U.S. in 2008 and previously served as co-CEO alongside Boaz Soifer. Soifer, former CEO, will now focus on his regional role as director of solar distribution for BayWa r.e. in the Americas, which currently includes active operations in Canada, the United States, Mexico and the Pacific Islands.

Under White’s oversight of all U.S. operations, Charles (Chuck) Ellis will lead supply chain management and fulfillment as COO following the acquisition to ensure planning and fulfillment services for solar contractors. Ellis joins the team with leadership experience in sales and distribution strategies from his years at SMA America and in the building industry with his experience touching IT, product strategy, procurement and logistics as well as successful vertical integration.

As the chief revenue officer, Harry Payne will drive integration and alignment between all revenue-related functions of the entity. He started in renewables at Sunrun more than a decade ago and has a track record of building sales channels and developing cost-effective solutions while improving the digital customer experience.

“BayWa r.e.’s U.S. distribution business passed an inflection point in 2021 and has entered a new stage of scale and complexity,” says Soifer. “Bringing in experienced executive leadership into our already amazing team gives us a stronger foundation to manage our continued growth and will help ensure we continue providing customers with the products and services they need to manage their businesses effectively. Congratulations to Jodi, Chuck, and Harry – your leadership will be a great asset to us for the journey ahead!”

“With the acquisition of Beacon Solar, we increased our market share and added new talent, resources and product lines,” states White. “Chuck’s and Harry’s leadership will keep the organization aligned and focused on customer experience as we continually improve delivery quality and continue our expansion.”

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Southwest Public Power Signs PPA with BrightNight for 300 MW of Solar Power

Following a competitive solicitation, the Southwest Public Power Agency Inc. (SPPA) has signed a power purchase agreement (PPA) with a BrightNight joint venture (JV) for the delivery of 300 MW of solar energy and 600 MWh of battery storage power. This is the largest renewable power purchase in SPPA’s operational history and will supply 21 of SPPA’s constituent members.

Power will be supplied from BrightNight’s Box Canyon project located in Pinal County, Ariz., held jointly with BrightNight’s JV partner, Cordelio Power. The project recently completed its final major permitting milestones and is expected to begin operation in 2025.

“SPPA is proud to supply its members with safe, reliable and affordable electricity from an industry-leading renewable power project,” says Dennis Delaney, SPPA’s project manager. “BrightNight was able to understand our long-term goals and propose a solution to meet the needs of our members and their customers, while remaining cost-effective.”

BrightNight specializes in utility-scale dispatchable power and leveraged its in-house optimization technology to assess SPPA’s needs and deliver a value-creating solution that goes beyond the technology configuration in the original RFP. BrightNight developed the Box Canyon project as part of their joint venture with Cordelio Power, which owns and develops renewable power facilities across North America and is wholly owned by the Canadian Pension Plan Investment Board.

“Our partnership with SPPA is emblematic of our customer-centric approach that delivers solutions that go beyond customer expectations,” states BrightNight CEO Martin Hermann. “We’re excited to deliver reliable, dispatchable, renewable power to SPPA and applaud SPPA for their leadership in providing cost-effective, long-term, clean power to its members and their customers.” The Box Canyon project is expected to provide approximately one-third of SPPA’s peak capacity needs and 19-21% of SPPA’s energy needs.

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With Acquisition, Polar Racking Adds Axsus Solar’s Single-Axis Tracker to Offerings

Vishal Lala

PV mounting systems company Polar Racking has acquired Axsus Solar, Magna Closures Inc.’s solar division. With this acquisition, Polar adds the Axsus Sol-X, a single-axis tracker, to their product line. With its tracking capabilities, the Sol-X offers a solution with a simple design that includes fewer components, a quick installation process and less ground preparation on site.

“The addition of Axsus Solar to Polar Racking advances our strategy to bring differentiated solutions to our customers, supports our mission to provide clients with cost-effective, high-quality solar racking solutions, and supports the exponential growth of our business,” says Vishal Lala, managing partner at Polar Racking. “We welcome the Axsus Solar team and suite of products to Polar, and we are confident that together, we will deliver innovative solutions for clients across North America and the Caribbean.”

In addition to the Sol-X, Axsus brings a management team and workforce to complement Polar’s team, with a strong proficiency in engineering, quality control and project management, as well as additional product offerings.

“I’m delighted to be joining Polar and am looking forward to working collaboratively with the team in driving Polar’s strategy forward,” says Robert Souliere, the newly appointed director of operations and construction at Polar Racking, and formerly a member of the Axsus team. “The Sol-X is a great addition to the Polar product line and will expand our potential by giving us access to a market that’s increasingly choosing trackers over fixed-tilt systems as a result of their higher revenue generation.”

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