Friday Briefing: The limited BESS talent pool, and the UK market’s response to revenue doldrums

I chatted with him this morning to get some of his observations on the show, but actually, it was a pretext to ask someone with skin in the game what they thought about one of the industry’s biggest challenges.
Hyperion is currently recruiting executive and senior roles across a few geographical markets and technologies. That includes some of the European battery manufacturing startups like Verkor, silicon anode, and other battery materials and component groups, as well as companies further downstream and across different technology sets.
In Europe and in the US’ rapidly growing markets, finding enough of the right people to hire has been widely cited as a major challenge for the industry.
Hunt says a big proportion of the employees and execs he places for clients are sideways moves from other companies within the same sector, with BESS and related areas accounting for roughly 40% of Hyperion’s placements.
That’s great for his company because it means salaries go up, and so does the commission, but it also means that the talent pool is a limited one. There are also many hires coming in from other industries, most likely ones that feel somewhat adjacent, such as telecoms or oil & gas.
Still, for the most part, and perhaps understandably, it’s people with relevant experience that are most sought after. Obviously in a new and scaling industry, that’s a limiting factor.
Some of the more ‘boots on the ground’, blue collar or technical roles are also desperately short of people, with Hyperion finding that project designers in particular are a highly valued human resource.
“Everybody wants the same people. That’s a blessing and a curse for us, because on the upside we know we can place them,” Hunt says.
“On the downside, from a market perspective, everybody’s after the same people and it’s a challenge for companies and for us to help companies to bring some transferable skills into the business.”
The market isn’t getting any smaller while the talent pool isn’t scaling up at the same pace, he said.
“It’s also timing – we know how quickly the market moves. Particularly in the startup environment and smaller companies, they don’t have time or resources to be training people, they just want someone ready and ‘off the shelf’.”
One to watch, and a hard one for the industry to get to grips with. It’s good news if you’re looking for a new challenge that feels familiar, I guess!
Rumours of UK BESS market demise exaggerated
The Energy Storage Summit is almost as old as Energy-Storage.news, with the site’s launch preceding just a year (Happy 10th Birthday to us!) before.
In that time it’s grown from around 300 delegates – which at the time seemed ambitious – to more than 1,500. That’s not as many as the 1,900 figure tweeted by the UK’s climate and energy minister, Graham Stuart immediately after his opening keynote, but it’s still pretty good.
While it began almost exclusively as a UK show, the focus has broadened and the ‘EU’ suffix added to the name. And this year, it really lived up to that. While there was rightly still a major UK focus, it was amazing to see people coming from around the world to share, learn, educate and of course do business.
At the same time, and you will likely have heard already, the UK market has been in a period of low revenues these past few months. One source even suggested ahead of the event that a market collapse is imminent and that the show should be called off for 2025.
That seemed a little premature, and while there are valid concerns over some of the major challenges, like low revenues and slow grid connection queues, we heard that the UK industry is ready to deal with it and the fundamental drivers are in place to overcome.
Germany-based clean energy industry strategic consultant Florian Mayr of Apricum stopped by to speak with Energy-Storage.news and said that while he had expected to find a bearish atmosphere, the venue’s assembled UK folk were a lot more optimistic and ready to do business than that.
So, yes, revenues may be down, and project valuations too, but new business models to meet new opportunities, as well as refinements of the existing ones, mean that rumours of a UK market demise have been greatly exaggerated.
While the show was taking place, the T-1 Capacity Market auction results were revealed by electricity system operator National Grid ESO. Batteries, with just over 650MW of contracts awarded, were the most successful among low-carbon technologies.
And as Georgina Morris, head of capacity market policy – low-carbon technologies at the UK government Department for Energy Security and Net Zero (DESNZ) said at the conference, it will be a nice uplift of contracted revenues for developers and investors.
That’s obviously to be welcomed, but with the UK industry having pioneered revenue stacking across multiple market opportunities, it’s the ability to be nimble and flexibly adapt to all the merchant revenue streams available, that mean the market will drive on forward.
Happy Friday!
This week on ESN Premium

PV Tech Power: included in your Premium subscription.
The Q1 2024 edition of our downstream solar PV and energy storage journal, PV Tech Power, is now available to download. This issue focuses on looming PV module quality issues in the face of an extreme price crunch.
As always, ‘Storage & Smart Power’, the section of the journal contributed by our team at Energy-Storage.news, returns. Subscription to PV Tech Power is included in your ESN Premium subscription package, including access to nine years of back issues of great content.

We catch up with the president of Canada-headquartered Hydrostor, Jon Norman, about the firm’s advanced compressed air energy storage (A-CAES) tech, current projects, future plans and being a developer versus system integrator.
Hydrostor is deploying projects in the US and Australia using advanced compressed air energy storage (A-CAES) technology utilising “off-the-shelf” components. Goldman Sachs Asset Management committed to investing US$250 million in the company in 2022, and Hydrostor is the investor’s “global LDES (long-duration energy storage) play”, Norman says.

We caught up with James Li, European energy storage director of inverter and BESS provider Sungrow, at the Energy Storage Summit EU 2024. Li was a speaker on Day 1 of the two-day event put on by our publisher Solar Media in London this week (20 and 21 February).
In this interview conducted on-site, he discusses last year’s challenges, what is happening with battery energy storage system (BESS) prices and the company’s priorities for future technology improvements.

The inverters at an upcoming 300MW/600MWh battery energy storage system (BESS) project in Scotland, UK, will enable the asset to deliver inertia that is “essential for the grid to function efficiently”.
Referring to the company’s latest contract award from repeat customer Zenobe Energy, Andy Tang, head of Wärtsilä Energy Storage & Optimisation (ES&O), told Energy-Storage.news Premium that the South Kilmarnock BESS will provide stability services including “true synthetic inertia” and Short-Circuit Level system voltage management.

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PV Tech Power 38: BESS pricing in focus, solar module quality and managing market volatility

As always, ‘Storage & Smart Power’, the section of the journal contributed by our team at Energy-Storage.news, returns. 
Just like the main PV Tech Power journal, our dedicated coverage includes in-depth looks at the US market post-IRA, asking what the industry has learned so far, and what might be expected going forward. Articles in this edition include:

What goes up must come down: A review of battery energy storage system pricing

Despite geopolitical unrest, the global energy storage system market doubled in 2023 by gigawatt-hours installed. Dan Shreve of Clean Energy Associates looks at the pricing dynamics helping propel storage to ever greater heights.

Li-ion BESS: Look-back and lessons for the future

Two years of volatility in the lithium-ion battery storage industry have seen prices tumble and a host of supply-chain complexities come to the fore. As Swetha Sundaram of RWE Clean Energy writes, the winners in this fast-changing market will be those who are best prepared.
You can download your digital copy of PV Tech Power 38 via our subscription service.
Energy-Storage.news Premium subscribers receive every copy of PV Tech Power as part of their subscription as soon as they are published, as well as exclusive content on Energy-Storage.news.
Find out more on Energy-Storage.news Premium, including how to subscribe.

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ROUNDUP: Energy Vault hydrogen project, Mitsubishi Power spins out BESS division, Tesla launches Powerwall 3

The Calistoga Resiliency Center project is being built in the city of Calistoga for the Pacific Gas and Electricity Company (PG&E) utility and will be completed by the end of Q2 2024. It will replace diesel generators currently used to energise the Calistoga microgrid when there are Public Safety Power Shutoffs (PSPS), increasingly common in California in light of high wildfire risk.
In an interview with Energy-Storage.news in June last year (Premium access), Energy Vault CEO Rob Piconi explained that the BESS would provide some ancillary power for the site while the hydrogen in tanks with a fuel cell would provide the main backup power.
“Their requirement was to be able to charge 8.5MW over 48-96 hours, so the system is designed to support up to 700MWh of capacity. Although the primary use case is for 293MWh,” he said at the time.
The project will be owned, operated and maintained by Energy Vault under a long-term tolling agreement with PG&E.
Mitsubishi Power Americas spins out BESS division into new entity Prevalon
Mitsubishi Power Americas, part of Mitsubishi Heavy Industries (MHI), has spun out and rebranded its battery energy storage system (BESS) division into a new wholly-owned entity, called Prevalon.
The company has been deploying BESS projects in North and South America over the last few years with over 30 projects and 3GWh installed to-date, and the new standalone and legally separated entity will be a pure-play BESS company into which the projects and pipeline will be rolled into.
Bill Newsom, president and CEO, Mitsubishi Power Americas, said: “With the establishment of Prevalon, we are confident its dedicated focus on battery energy storage solutions and services will unlock more value in this business to keep pace with this hyper-growth battery energy storage market.”
The new business does not appear to include Mitsubishi Power America’s green hydrogen activities, most notably the ACES Delta project in Utah, a 300GWh green hydrogen project that will primarily help power a new combined cycle power plant.
Thomas Cornell will head up Prevalon as CEO after leading Mitsubishi Power Americas’ storage activities as VP for energy storage solutions. In an interview with Energy-Storage.news in April 2022 he discussed the company’s technology, deployments and future plans in the sector.
Tesla launches latest residential BESS, Powerwall 3
EV and BESS company Tesla has launched its latest residential energy storage product, the Powerwall 3, which has an energy capacity of 13.5kW and a continuous output power capacity of 11.5kW.
It has a fully-integrated solar inverter and DC-coupled battery expansion units with Storm Watch and Heat Mode features for extreme weather protection, the firm said.

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Trina Storage launches new BESS solution at Energy Storage Summit EU

As with the previous iteration of Elementa, which has been deployed in projects mainly in China and the UK, it is liquid-cooled and is compliant with international certifications, including UL1973 and UL9540A thermal runaway testing.
The company claimed Elementa 2 is highly integrated and flexible, to offer reduced Capex and Opex requirements over the lifetime of the system.
Fire safety components include fire resistant enclosure, and four levels of threat detection including a fire panel with heat and smoke sensors and integration of the Honeywell Li-ion Tamer gas detection technology, and an automatic aerosol-based fire suppression system as standard with an optional water-based suppression system which can also be added.
In an exclusive interview with Energy-Storage.news, to be published in the coming days via ESN Premium, Trina product manager Helena Li said that of more than 4GWh of shipments of the first Elementa since its launch two years ago, the UK has accounted for around 1GWh, in other words the vast majority of installations outside China where the company is headquartered.
Having announced the first commissioned project for Elementa in East England at the Energy Storage Summit in 2022, it made sense to come back for this year’s edition with the new model’s global debut, Li said. It follows a preview late last year at All-Energy Australia.
Additionally, within the UK, Trina Storage has served as system integrator as well as technology provider on most of those projects. Working at that detailed level in one of the world’s leading markets meant Trina Storage picked up a lot of know-how and understanding of what customers want, Helena Li claimed.   

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Advanced inverters ‘push boundaries’ of how batteries can replace fossil fuel plants on power grid

As mentioned in Energy-Storage.news coverage of the project last week, the project’s main applications include enabling the growth of renewables in the region and reducing curtailment of resources, particularly offshore wind, which provides the bulk of the UK’s renewable generation.
However, South Kilmarnock has also been selected as one of the Stability Pathfinder projects supported by the electricity system operator National Grid ESO. The ESO manages the real-time flow of electricity on the grid, including wholesale and grid services markets, as opposed to the operation of the transmission system, which is done by National Grid TSO.
‘Pushing technical boundaries of support types batteries can provide’
While the proportion of energy generation from fossil fuels on the grid is going down and the proportion from renewables going up, there are also numerous other applications traditionally provided by fossils (and other thermal generation like nuclear) that need to be replaced.
Those include the main ancillary services like frequency regulation, which battery storage is adept at providing due to its millisecond response times and ability to deliver bursts of power to correct supply-demand mismatches that can cause the grid’s operating frequency to deviate.
That has been extremely well documented and is more often than not the first application BESS assets are built to provide, as seen in the UK with its 2016 enhanced frequency response (EFR) tender, the PJM market in the US, or in Germany’s early BESS boom.
However, the role thermal generation plants have traditionally played in contributing stability services, most prominently inertia, is trickier to replace.
Inertia comes from the motion of turbines in thermal generation. The rotating mass of those synchronous machines can, however, be mimicked by the operation of advanced inverters.
“The inertia will be provided through the inverters,” Andy Tang said of the project in Scotland.
“The battery system will provide stability services to the National Grid ESO including short-circuit level and true synthetic inertia, which are essential for the grid to function efficiently as fossil fuel plants phase out.”
Tang said that the project will couple Wärtsilä’s new BESS solution, GridSolv Quantum High Energy (HE), with inverter technology. He said the combination is “an innovative solution that pushes the technical boundaries of the types of support that batteries can provide to the grid”, with the company’s GEMS Digital Energy platform energy management system (EMS), controlling the energy storage system.
The software-driven platform will also “leverage historic and real-time data analytics to optimise operations, while easing network constraints by importing electricity at times of peak renewable generation,” enabling customer Zenobe to put the batteries’ stored energy into the most valuable energy market opportunities available.
Often described as a grid-forming capability, this provision of inertia could be done from any inverter-based energy technology.
Grid-forming battery storage assets have been prominent in Australia recently, with the country’s official renewables agency, ARENA, supporting at least 4.2GWh of projects with direct financial assistance for adding advanced inverters – at both new-build and retrofitted sites.
ARENA last April also supported the implementation of ‘first-of-a-kind’ grid inertia measurement tools provided by Finland’s Reactive Technologies at the 300MW/450MWh Victorian Big Battery (VBB).
There are other technologies that can provide inertia to the grid, such as synchronous condensers. These are basically large rotating machines that don’t have a shaft attached to any equipment to drive it.
Synchronous condenser projects have also been supported by National Grid ESO’s pathfinder programme. A project in Ireland that recently broke ground includes a hybrid pairing of a 170MWh BESS and synchronous condenser technologies.
At this week’s Energy Storage Summit EU, hosted in London, UK, by our publisher Solar Media, Energy-Storage.news heard from the chief operating officer (COO) of a long-duration energy storage (LDES) startup that inertia could also be provided by its proprietary technology.
Ben Potter of Energy Dome, designer, and maker of the novel CO2 Battery as well as developer of projects that use the technology, said that while the thermomechanical battery is not a source of greenhouse gas (GHG) emissions – the CO2 stays in the domed bubble from which the company gets its name – it does drive turbines to generate electricity.
You can read more about the technology and the principles behind its development here, but in short, Potter said, the CO2 Battery doesn’t have to create inertia synthetically as with advanced inverters and is not a single-application solution like synchronous condensers.
“We do provide natural inertia because of the rotating masses, which is incredibly valuable for the grid and will increasingly be compensated going forward,” Potter said in a full interview to be published on the site soon.
Energy Dome’s technology is now commercial and in the scale-up phase, with the first large-scale iteration in construction in Sardinia, Italy, building off a commercial demonstrator that has been in operation for two years in the same region.
It seems likely that BESS with advanced inverters or synchronous condensers will be the market’s go-to replacement for spinning mass for the time being if South Kilmarnock and other early projects can prove the case for them, but it will be interesting to see if Energy Dome’s technology, or other new energy storage tech, can also play a part.

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Arevon lands US$1.1 billion package for California solar PV and 600MWh BESS project

Located in Kern County, California, the Eland 2 solar-plus-storage project is under early-stage construction and is expected to come online in the first quarter of 2025. Arevon Energy signed a long-term power purchase agreement (PPA) with Southern California Public Power Authority for the project, providing 200MWac of electricity to Southern California.
The project will also use Tesla’s Megapack 2 XL for the battery energy storage system (BESS) portion. US engineering, procurement, and construction (EPC) contractor SOLV Energy will be the project’s EPC contractor.
To see the full version of this article go to PV Tech.

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‘UK project size sweet spot somewhere between 200-500MW’

Semih Oztreves, director of network infrastructure at BESS developer-operator Zenobē, said that economies of scale, improved supply chain, and the lack of difference in revenue streams regarding how many megawatts a developer deployed drove the increase in project size.
Hugh Scott, chief technology officer of US-headquartered system integrator FlexGen, added: “I think from a physical size standpoint, there is no limit on a big project. Some customers are even asking for augmenting the size of their BESS projects.”
But Oztreves said there is a “sweet spot” in terms of project size, which is “somewhere probably between 200-500MW”. 
“As the size gets bigger, the balance of plant challenges, and the amount of work you need to carry out to have a clear layout become much more challenging and costly,” he added.
Adding extra comments about the increase in BESS size, Lucie Kanius-Dujardin, executive VP global markets and development at EV infrastructure and BESS provider NHOA Energy, said developers have to manage project degradation and deploy a project in an optimised way. Therefore, not every developer can go for projects with a large capacity.
Speaking of the workforce of managing a project, she said that it remained “almost the same number” regardless of the capacity.
According to Sam Wilkinson, director of clean energy technology at S&P Global, who was also the moderator of the panel discussion, 30% of planned energy storage projects in Europe are 300MW or larger. 
Revenue streams and grid connection
Sandra Baruh, vice president of climate infrastructure investments at investment firm BlackRock, said when considering investing in BESS projects, the projects’ ability to generate long-term cash flow is important. 
“The revenue streams will be similar within a specific market regardless of the size of the projects. So the answer (of changes in revenue streams for a project growing in size) is dependent on the market. There are some markets today which are more mature than others. So we plan to invest in markets where we can contract a portion of the cash flow for projects,” she said. 
The panellists also discussed how scaling projects could impact the availability of grid connections. 
Oztreves said: “I think from a network standpoint, whether 200MW or 500MW, it doesn’t make a huge difference. Right now, the reason for a lot of grid connections being delayed is the lack of capacity and also no resources to deliver the grid connection.”

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Sungrow’s Europe ESS director on deployments, pricing and technology: ‘pricing becoming more important’

In this interview conducted on-site, he discusses last year’s challenges, what is happening with battery energy storage system (BESS) prices and the company’s priorities for future technology improvements.
Deployment delays
Last year was clearly a good year for the ESS (energy storage system) division of Sungrow, with the company soaring to the top of the global energy storage deployment leaderboards according to data from Wood Mackenzie, slightly ahead of Fluence and Tesla.
Energy-Storage.news reported on notable projects using Sungrow BESS last year in South Africa, Texas, UK, Israel and Chile. The company launched its latest grid-scale product iteration the PowerTitan 2.0 last year.
But the year was not without its challenges. Li said that originally the company was set to ship 1.3GWh of BESS to Europe and Israel in 2023 but 30% of that was delayed and held in its China headquarters, due to various geopolitical challenges, particularly in the Middle East like the Red Sea shipping attacks and the Israeli-Palestinian conflict.
A BESS cannot simply be warehoused in the way a solar PV module can, as it needs to be kept at a 50% state of charge (SOC) to minimise degradation, so charging solutions need to be found when shipments are held back.
BESS pricing
Alongside those transportation challenges, 2023 also saw the global average price of BESS fall back down from the highs of 2022, and that is expected to fall further this year. That has been driven by the fall in lithium-ion battery cell prices which itself was driven, in large but thought not entirely, by falls in raw material prices (primarily lithium carbonate).
We ask Li what the implications of this fall in BESS price are for a company like Sungrow, as well as the importance of pricing in the energy storage market generally.
“First, we need to be really transparent to the customer, everyone can see the raw material pricing, and we don’t want to take advantage of anyone on pricing. But the main thing is we want to the show the customer our quality and diversity of cell supplier as a system provider,” Li says.
“Before it was all CATL batteries and now with these prices falls we have many qualified cell suppliers that can offer the same warranty. It’s good to have more options, otherwise you’d just get another industry bottleneck.”
Li said that while price is clearly not everything, the influx of new companies into the space means it is becoming more important:
“The price is getting more important for the client side, because the clients are getting more diversified. They aren’t just traditional energy or industrial companies like before, now they are finance companies and even pension funds who are entering the sector because it’s been very profitable in the last few years. Those types of companies are more focused on the financial model so pricing is very important for them.”
Technology improvement priorities for Sungrow
The discussion moves on to the technological improvements to its BESS product that Sungrow is focusing on. Safety is the biggest one, followed by grid compliance and the finally the electro-chemistry of the cells that go into the BESS, Li says.
“We are also trying to set up our own cell manufacturing soon because that is the really key thing to the storage of the energy and the long-term life of the BESS, and controlling quality. Next year we’re hoping to have a production line producing our own lithium-ion battery cells.”
“We’re also looking at sodium-ion battery technology, but the energy density is still very different to lithium-ion and the pricing is also uncertain.”
Energy density is a technical aspect of BESS which has been looked into by Energy-Storage.news recently, with a developer source recently telling us that increasing energy density has potential downsides while EPC firm Burns & McDonnell wrote about it for the most recent edition of Solar Media’ quarterly journal PV Tech Power.
Sungrow’s PowerTitan 2.0 is one of several in the industry to pack 5MWh of energy storage capacity into a 20-foot container.
On the topic, Li says: “Energy density is a key thing for us. The sector is facing more land-constrained sites, but for us a more energy-dense product reduces our supply chain risk by being able to transport more capacity more efficiently.”
“But of course it’s a balance and you need to invest in the cooling and heat dissipation technologies of the BESS alongside that. Our system has also become less noisy while doubling energy-density compared to the first generation.”

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Queensland launches battery strategy, vanadium flow factory announced in Australian state

The Australian federal government will put AU$100 million towards that sum. The investment will be split across three key ‘themes’: ‘Innovate and commercialise’ (AU$275 million), ‘invest, integrate and grow’ (AU$92.2 million) and AU$202.5 million to ‘position and promote’.
The 36-page plan was published yesterday and can be read in full here (PDF).
The backstory is that the then premier, Annastacia Palaszczuk unveiled Queensland’s Energy and Jobs Plan in September 2022 in tandem with a commitment to the state reaching 70% renewable energy by 2032 and 75% by 2035.
The entire plan would require investment of AU$62 billion, but perhaps more importantly, the premier – since replaced by Labor Party colleague Steven Miles – also oversaw research work to identify potential competitive advantages Queensland could have in the battery and energy storage value chain.
Reports produced on behalf of the government found advantages in the value chain for lithium-ion (Li-ion) batteries in terms of raw materials, but it also found that Queensland’s reserves of vanadium could be leveraged and that this was the area where the state stood out against potential domestic and international rivals.
The paper, written by consultancy Accenture, said the battery industry ecosystem could drive AU$1.3 billion investment and create 9,000 jobs by 2032.
Japanese corporates in Townsville factory collaboration
The state has already committed to supporting a vanadium redox flow battery (VRB) electrolyte factory, under construction by locally headquartered manufacturer Vecco Group.
Yesterday, it was announced that plans to build complete VRB systems locally are also afoot with two major Japanese corporations signing a non-exclusive agreement with Vecco to develop a factory in the city of Townsville in North Queensland.
Premier Steven Miles attended a Vecco facility as Idemitsu Australia and Sumitomo Electric Industries signed their collaboration agreement to build a complete manufacturing supply chain from raw materials to finished products.
Vecco has secured a site for its factory already. Idemitsu, an energy company best known in the oil and gas sector, will market and deploy the batteries, while Sumitomo Electric, a diversified company which has been one of the world’s predominant vanadium flow battery makers to date, will make them with Vecco, the Queenland company’s managing director Tom Northcott said.
Northcott noted that according to some analyst’s estimations, there are currently more than 7.4GWh of VRB projects in construction or that have been announced in the last 12 months.
“We are taking vanadium from Julia Creek – one of the world’s biggest and best vanadium resources – and turning it into batteries here creating more local jobs,” state premier Steven Miles said.
“We know those batteries will provide deep storage into our own grid, but today we are taking it a step further. This means manufacturing the vanadium flow batteries needed in Australia to transition to renewable energy and supplying vanadium electrolyte to the world.”
There is also a factory in development for another flow battery technology in Queensland, using proprietary iron electrolyte flow battery technology licensed from US maker ESS Inc, while Redflow, a zinc-bromine hybrid flow battery company, is headquartered in Queensland.  
Other companies are also pushing to establish flow battery manufacturing value chains in Australia, including Australian Vanadium Limited (AVL), which is pursuing a vertical integration model. AVL completed construction of its own electrolyte production plant in Western Australia last December ahead of its official opening in January.
Vanadium flow battery companies are targeting the extraction of resources from Western Australia as well as Queensland, with Australia holding a significant percentage of the world’s primary vanadium resources, which are largely untapped. The manufacture of and access to electrolyte, meanwhile, will be a key determinant of success in the industry, AVL marketing manager Samantha McGann wrote in a guest blog post for this site last year.
The VRB was also invented in Australia at the University of New South Wales (UNSW) off the back of initial work by US space agency NASA.
Energy-Storage.news’ publisher Solar Media will host the 1st Energy Storage Summit Australia, on 21-22 May 2024 in Sydney, NSW. 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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Strata secures US$559 million debt and tax equity for 1GWh Arizona BESS project

The banks involved were J.P. Morgan, Nomura, The Korea Development Bank, Norddeutsche Landesbank, CoBank, Siemens, Regions and and U.S. Bancorp Impact Finance, which was also the primary tax equity investor. Standalone energy storage become eligible for the clean energy investment tax credit (ITC) at the start of last year as part of the Inflation Reduction Act.
Scatter Wash will come online in April 2025 and provide power and energy to utility Arizona Public Service under a 20-year tolling agreement signed in May 2023.
Long-term tolling agreements – where developer-operators own the project but all its energy is provided to another company or companies under the agreement – have driven the large-scale storage market in Arizona, for both standalone and solar-plus-storage projects. While California and Texas continue to be the leading state for storage deployment, Arizona is not far behind.
In the past 12 months, Energy-Storage.news has reported on projects from other developer-operators such as Enlight (940MWh and 824MWh projects), Longroad Energy (1,200MWh), NextEra (400MWh) and Recurrent Energy (1,200MWh), to name just a few.
All are four-hour duration systems to help shift solar generation into the evening hours, and all have secured long-term tolling or power purchase agreements (PPAs) with Arizona utilities.
Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, 19-20 March 2024 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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