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Utility Helen launching 40MW BESS in Finland

Helen is targeting carbon neutrality across its operations by 2030 and removing fossil fuels from its energy mix by 2040, and increasing the flexibility of the energy system is core to its strategy, CEO Olli Sirkka said. The new BESS will participate in Fingrid’s reserve ancillary services market.

The BESS project will comprise 36 lithium-ion shipping container-sized modules though Helen didn’t reveal the provider.

International conglomerate Siemens has been developing the project together with Evli and will continue as an operation and management partner, Helen said. Siemens and US utility and energy firm AES hold a controlling stake in Fluence, one of the world’s biggest BESS providers (which coincidentally released its latest financial results yesterday evening).

Helen didn’t reveal the energy storage capacity in megawatt-hours (MWh), although it has published an expansion plan for the project, which could ‘double the storage capacity’. However, it isn’t clear if that means the megawatt power or the undisclosed megawatt hour capacity.

New BESS projects in Finland are generally moving to 2-hour durations, including the largest under-construction at 112.9MWh, by IPP Neoen, which optimiser Capalo AI explained in our coverage of that project last week. Essentially, new state-of-charge rules and increasing opportunities in energy trading have driven the business case beyond 1-hour.

Energy-Storage.news’ publisher Solar Media will host the 9th annual Energy Storage Summit EU in London, 20-21 February 2024. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

Fluence sees record order intake but records loss in Q1 2024

Revenue was down around 50% compared to the previous quarter, its Q4 2023, when it reached US$673 million. That period also saw it hit a positive net profit figure, for the first time, of US$4.8 million, which CEO Julian Nebreda called a ‘transformative milestone’.

The quarter-on-quarter revenue fall and slip back into a net loss likely reflects seasonality, with the same phenomenon seen in its Q1 2023 (revenue fell 30% quarter-on-quarter and the net loss widened, while the figures improved year-on-year). Its net loss in Q1 2023 was US$37.2 million, which the Q1 2024 figure bettered by 32%.

Commenting on its latest results, Nebreda said: “We continue to see a very robust market for energy storage, which is enabling the global energy transition to a clean energy grid.

“Additionally, we expect to start our battery module production at our Utah manufacturing facility in the summer of this year, and we expect a gradual ramp up of production over the subsequent quarters. By manufacturing our own battery modules with domestic content, we expect this will further improve our competitive position and allow us and our customers to benefit from incentives under the Inflation Reduction Act (IRA) of 2022.“

The relatively low year-on-year growth (compared to most other recent quarters) may reflect the new approach Fluence has taken since Nebreda took the helm in September 2022 to focus on ‘profitable growth’, with one analyst at the time characterising the company’s earlier growth, under previous CEO Manuel Pérez Dubuc, as more of a ‘land-and-expand’ strategy.

The company is reaffirming its full-year guidance for the 2024 fiscal year, of US$2.7-3.3 billion and adjusted EBITDA of US$50-80 million.

Highlights during the Q1 2024 period include Australian utility Origin Energy enlisting the firm for a 300MW/650MWh BESS in Victoria and a 60MW/80MWh BESS it provided in Taiwan entering commercial operation.

Less of a highlight, but still noteworthy, was the breaking of a story by Energy-Storage.news that the company is in the midst of a claim and counterclaim suit with a US customer (Premium access) for its engineering, procurement and construction (EPC) work on a BESS project in California.

Battery diversity needed for America’s energy storage future

The report outlines challenges and opportunities facing the US energy storage industry, including access to raw and processed materials for lithium-ion batteries, timelines for bringing on new facilities, and the need for a more robust workforce.

But missing from the 13-page report is any acknowledgment of the non-lithium battery chemistries that will make up a large percentage of the global storage mix over the next decade (and beyond). While lithium-ion batteries currently dominate the space, new options are quickly becoming available that, in many cases, have stronger value propositions.

Rethinking lithium-ion

The report from SEIA sheds light on the challenges to establishing a robust energy storage manufacturing sector in the United States. Despite projecting a significant surge in global battery demand from 670GWh in 2022 to over 4,000GWh by 2030, SEIA highlights critical hurdles the US and free trade partners face in boosting the lithium-ion supply chain to provide needed supply.

Concerns about the cost and availability of raw and processed materials, including potential shortfalls in graphite and other processed components, are prompting many utilities and project developers to investigate alternatives as the conversation on the future of batteries continues.

The lithium-ion value chain, largely controlled by a handful of countries in Asia, has become a source of economic and political tension. While the US has reserves of lithium and other metals that could be tapped, new mines and refineries can take 5-10 years to come online, assuming they don’t face regulatory and community challenges.

And that assumes that these materials can be sourced at prices that make finished batteries cost-competitive with low-cost imports from Asian companies.

From mining and processing raw materials to manufacturing components and assembling the final product, the complexity of the lithium-ion battery value chain dictates substantial investment and strategic planning.

The SEIA report analyses each input, and acknowledges that even if the US can secure resources for certain components, such as cathode active material, securing resources for other components comes with different challenges.

Battery manufacturing processes also raise environmental issues, and meeting stringent environmental and regulatory standards will slow down development at each stage of the process and extend the cost reduction curve.

Lithium-ion batteries do an amazing job of providing maximum energy in minimal space, with flexible discharge rates and high capacity retention. They have made electric vehicles an option for millions of people and make it possible to carry tiny computers in our pockets.

But as these batteries find their way into large-scale applications, downsides are becoming more apparent. Safety concerns and the increasing incidence of thermal events and fires are also omitted from the SEIA report but warrant scrutiny.

Lithium-ion fires present challenges for first responders due to their ferocity and duration, and because they expose first responders and nearby residents to potentially hazardous gases. A number of fires over the past year exemplify the dangers associated with lithium-ion BESS incidents.

If the US is going to meet its ambitious decarbonisation goals, the industry needs to acknowledge that lithium-ion may not be suitable for every application and ensure that other viable options are readily available.

Reassessing the battery landscape

While the SEIA report singularly focuses on lithium-ion, the storage technology landscape is much more dynamic. Contrary to the assumption that there’s just one type of battery on the market, alternative battery chemistries are gaining momentum.

Options available today include flow batteries, liquid metal batteries, zinc-based chemistries, and nickel-hydrogen (to name a few). Others will be available in the next 2-3 years. In most cases these options are safer and more sustainable than lithium-ion, and some have service lives ranging from 20 – 40 years.

When siting a storage plant in a remote or rural area, fires may pose little risk to people or property. In these situations, lithium-ion may be the best option. But when siting storage in cities and urbanised areas, primary emphasis should be on battery chemistries that are not only cost-effective, but also non-flammable.

Several communities in the US have already enacted moratoria on lithium-ion storage, and others are considering code and zoning changes that would restrict where such systems can be installed. In these situations, alternative chemistries may be the only options available.

Many of the alternative battery chemistries available today rely on established value chains and infrastructure, which minimises geopolitical concerns and the need for new development. This is a more sustainable approach, maximising the potential of existing resources while addressing concerns about the ecological costs of digging new mines and building new processing plants.

Shifting to alternative chemistries can offer utilities and project owners other financial benefits. The SEIA report outlines the US’s proactive steps to bolster domestic manufacturing through expanded federal incentives, encompassing tax credits, grants, low-cost loans, government procurement initiatives, and research and development support.

Specifically within energy storage, the Inflation Reduction Act (IRA) provides incentives for producing key components like electrode active materials, battery cells, and battery modules—incentives that will soon become unavailable to systems that rely on imported lithium-ion batteries. Many non-lithium options are already being manufactured in the US using domestically-sourced materials.

Giving alternative chemistries a boost

While tax credits may help to make non-lithium batteries more attractive in some cases, many of the companies making them are constrained by production capacity.

Much of the money available via the Inflation Reduction and Infrastructure Acts has already been allocated to companies building lithium-ion plants (many as joint ventures with Asian companies) in hopes of jump-starting domestic production.

And while this is understandable to some degree, it’s also a short-term solution to a long-term problem, and gives an advantage to the technology that already dominates the market.

To help ensure that Americans have a range of options, non-lithium battery companies and start-ups need backing from the public sector and industry as well—especially those in the early research, development, and scale-up stages that typically rely on VC funding.

Addressing the crucial needs at these pivotal stages is paramount for fostering development of new technologies that help promote battery self-sufficiency and support the domestic economy.

When considering battery technologies, the energy industry should keep in mind the old adage, “don’t put all your eggs in one basket”.

Lithium-ion is not a one-size-fits-all solution, and giving attention to new, non-lithium battery chemistries and expanding the range of options is essential to ensuring battery self-sufficiency and promoting a clean energy future that is safe and sustainable for everyone.

About the Author

Mukesh Chatter is the CEO of Alsym Energy, a technology company developing a low-cost, high-performance rechargeable battery chemistry free of lithium and cobalt.

Lightsource BP switches on first battery project from ‘multiple-gigawatt global pipeline’ in UK

Lightsource BP disclosed that the solar and battery assets share grid connection infrastructure and will participate in both traded markets and the provision of ancillary services. The developer did not confirm who had supplied the BESS for the project.

Miguel Vega, director of business development, EMEA, at Lightsource BP suggested that energy storage can “help renewable energy take a central role in the world’s electricity network”, adding that it is “imperative that renewables, with solar at the forefront, are established as the backbone of low-carbon energy systems”.

It has been a busy few months for Lightsource BP, with the company fully acquired by oil and gas giant BP in late November 2023 via the acquisition of the remaining 50.03% stake.

To read the full version of this story, visit Solar Power Portal.

BESS prices in US market to fall a further 18% in 2024, says CEA

The consultancy and market intelligence firm provided the update in a long-form article by Dan Shreve, VP of market intelligence, which will be published in the next edition (38) of PV Tech Power, Solar Media’s quarterly journal for the downstream solar and storage industries, later this month.

It means the price for a BESS DC container – comprising lithium iron phosphate (LFP) cells, 3.7MWh and 4-hour duration, delivered with duties paid from China to the US – will have nearly halved by the end of 2024 compared to the highs of 2022, when it hit US$270/kWh.

That year saw supply chain shocks across global industries as the world emerged from Covid-19 lockdowns, which increased demand for battery services, while Chinese manufacturing’s ramp-up was limited by further lockdowns.

Within energy storage, fears of critical raw material shortages in the face of soaring EV demand (with growth rates of 60%) led to “irrational buying behaviour”, Shreve said, leading to a 270% increase in lithium carbonate costs from Q3 2021 to Q4 2022.

The fall in BESS pricing since then is down to a confluence of factors, he explained: “The removal of China’s New Energy Vehicle incentive in 2023, lingering range anxieties among western consumers and a global increase in interest rates cast a pall on the EV market, resulting in a ‘disappointing’ year-on-year growth rate of 31%. As demand slipped, suppliers were left sitting atop mountains of inventory, and thus moved aggressively on price to bring their balance sheets back in order.”

However, there are numerous other factors driving a continued fall in BESS pricing, including new automation at gigafactories and significant competition by China-based suppliers in the US market, something highlighted by Wood Mackenzie at the tail-end of last year. The fall in lithium carbonate prices from the highs of 2022 is only a small factor, CEA said.

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.

Xcel Energy targets 600MW of energy storage in Midwest US

A core component of the plan is the extension of work at the company’s two nuclear plants in Minnesota, the Monticello and Prairie Island plants, which have a combined capacity of 1.7GW.

The firm’s Upper Midwest region encompasses Minnesota, Wisconsin, North Dakota, South Dakota and Michigan.

The use of renewable power, BESS and nuclear will also enable the utility to contribute to Minnesota’s plans to meet 100% of its energy demand with what the state government calls “clean electricity” by 2040.

While the reliance on nuclear power alongside renewables, as opposed to investing exclusively in renewable power, has led to some criticism – including Xcel being fined US$14,000 last year by Minnesota regulators relating to leaks of radioactive tritium from the Monticello plant – the utility’s leadership is optimistic about Xcel’s direction amid the Minnesota energy transition.

Energy-Storage.news readers may know Xcel Energy for its relatively bullish approach to procuring novel, non-lithium long-duration energy storage (LDES) technologies. It is deploying two 100-hour duration 1GWh projects using Form Energy’s iron-air battery in Minnesota and Colorado, as well as a 300kWh pilot system using Ambri’s liquid metal battery.

See the full version of this article on PV Tech.

Galp and Powin to deploy 5MW/20MWh BESS at PV plant in Portugal

The 4-hour BESS will shift the solar PV plants production into periods of higher demand and lower production, maximising its value.

It will be Oregon-headquartered Powin’s first project in Europe, having to date mainly been deployed in the US, Asia, and Australia, and it recently set up an office in Madrid. VP Danny Liu talked to Energy-Storage.news a year ago about opportunities in the UK’s BESS market but no announcements have been made as of yet.

The firm’s grid-scale BESS product is the Stack750E, a lithium iron phosphate (LFP) based 750kWh modular unit that, when stacked with others, comprises its Centipede platform.

Georgios Papadimitriou, Galp’s executive director in charge of renewables, new business, and innovation, commented: “As Galp keeps growing its renewable energy capacity aiming to transform its industrial base to produce green fuels and sell renewable energy to its clients, storage solutions are key to ensure a steady supply of electrons to our businesses.”

“Batteries also add to the competitiveness of our renewable energy portfolio by making solar and wind power available when they are most needed.”

Large-scale energy storage projects in Portugal have been relatively small in number, although 2022 saw the inauguration of a 40GWh pumped hydro energy storage (PHES) project by utility Iberdrola.

On the BESS side, system integrator Fluence deployed a 15MWh project in Terceira and a 16.4MWh one in Madeira, two of Portugal’s islands, while developer and IPP Greenvolt is in the midst of commissioning a 5MWh one at a biomass plant in Coimbra, on the mainland.

New York governor’s working group on BESS safety recommends changes to state Fire Code

Those fires, which happened between May and July 2023, were found in the group’s initial findings to have not caused harmful toxins to be released, nor have any injuries been reported.

They have nonetheless seriously dented the public perception of battery storage safety, not helped by a much larger number of incidents that have occurred due to defective or incorrectly used lithium-ion batteries in micromobility devices such as scooters and e-bikes.

The situation around micromobility devices – which do not have the same safeguards and multiple layers of protection that BESS units must be equipped with – has even led to prominent fire experts describing it as a “crisis” in New York, particularly in the densely packed urban areas of New York City.

“The battery energy storage industry is enabling communities across New York to transition to a clean energy future, and it is critical that we have the comprehensive safety standards in place,” Governor Hochul said as the Inter-Agency Working Group’s recommendations were announced yesterday.

The group comprises agency staff from the New York State Division of Homeland Security and Emergency Services, New York State Office of Fire Prevention and Control, New York State Energy Research and Development Authority (NYSERDA), New York State Department of Environmental Conservation, Department of Public Service and the Department of State.

Those agencies have been joined in the group by fire safety and battery subject matter experts from the energy storage industry. The group examined recent fire and system failure events and inspected every BESS installation in the state, before producing its recommendations.

A total of 15 have been proposed and a public consultation period on them has opened up until 3 pm EST on 5 March. Input and comments should be directed towards NYSERDA which is handling that process.

15 recommendations for the Fire Code of New York

The group and subject matter experts that collaborated with it studied the Fire Code of New York State (FCNYS) to identify “gaps in codes and best practices,” the governor’s office said yesterday. It’s recommendations therefore are aimed at being codified as part of the FCNY.

New York had already been ahead of the curve among US states in its approach to safety, having adopted the regulations of the draft 2021 International Fire Code which was the first to include detailed regulations around the treatment of lithium-ion (Li-ion) batteries.

It also already has very stringent regulations prohibiting battery installations inside buildings in NYC. The new recommended changes to the code will be applicable to systems of 600kWh capacity and above.

The recommendations can be found in full via the NYSERDA website, but broadly speaking fall into three categories of recommendations to update the FCNY, recommendations for additions to the code and some additional considerations.

They include a proposed requirement that industry stakeholders in projects pay for peer reviews of all projects by subject matter experts. This is aimed largely at helping authorities having jurisdiction (AHJs) to evaluate BESS projects in development without having to also become experts in the field themselves.

There are also proposals that BESS cabinets be fitted with explosion control equipment as mandatory, where previously this was only required for ‘enterable’ BESS units in rooms or walk-in areas.

Other recommendations include mandatory signage and closed-circuit television (CCTV) security, 24/7 monitoring and access to battery management system (BMS) data, the putting in place of emergency response plans and periodic inspections of BESS units to be required.

Presently, battery storage units in New York that are owned by utilities are exempted from the Fire Code. The Working Group recommended a removal of this exemption.

An industry-led initiative from the American Clean Power Association (ACP) recently published a battery safety incident guide for first responders, while in California, the state passed legislation last year that requires BESS owners to put in place safety and communications protocols with first responders and other key stakeholders.

Energy-Storage.news’ publisher Solar Media will host the 6th 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.

Video: Safer battery storage and JinkoSolar’s vision for utility-scale BESS

The pressing question of battery lifespan further complicates decision-making, requiring deeper exploration of sustained value than we might see for other clean energy technologies. And at the forefront are concerns around safety issues and fire risks, particularly associated with lithium-ion batteries, demanding robust and innovative safety measures.

In the broader context, battery storage systems globally are advancing safety through multifaceted solutions including the implementation of cutting-edge Battery Management Systems (BMS) which monitor and regulate cell performance, as well as ongoing R&D to enhance the safety profile of lithium-ion batteries. Rigorous testing and certification processes plus fire-resistant enclosures have become industry standards.

In this webinar, we learn about JinkoSolar’s comprehensive approach to addressing safety challenges in battery storage. JinkoSolar product development manager for utility-scale storage Neill Parkinson helps us to unravel the complexities of battery storage safety, joined by Jürgen Möllmann of Honeywell Fire, who talks about the requirements and innovations shaping the fire detection, prevention and suppression aspects of BESS design.

Explore the industry landscape, understand general solutions, and delve deep into JinkoSolar’s innovative and comprehensive approach, ensuring safety at every stage of battery storage.

Speakers:

Neill Parkinson, Europe product development manager for utility-scale storage at JinkoSolar

Jürgen Möllmann, business development manager, Honeywell

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You can also register to watch the webinar from the on-demand section of the site, which will also enable you to access presentation slide deck, as well as all other Energy-Storage.news webinars.

New Jersey Senators seek to remedy state’s slow progress on energy storage deployment

The bill, S-225, would establish incentives for energy storage systems which could support New Jersey’s transition from centralised fossil fuel generation to a more distributed and localised system which could integrate more renewable energy while enhancing the stability of the grid.

The bill therefore is at a relatively intermediate or even early stage of passing through the state legislature, with both Houses having to vote on the bill and pass it with or without amendments before it goes to the desk of the state governor to be signed into law.

However, it can certainly be seen as progress from the stalled position New Jersey finds itself in when it comes to energy storage deployment.

Back in 2018, it became one of the first states in the US to adopt any sort of energy storage target policy or goal, introduced as Governor Phil Murphy signed the New Jersey Clean Energy Act. It not only committed the state to 100% clean energy by 2050 but also put in place storage procurement goals of 600MW by 2021 and 2GW by 2030.

2021 came and went, and as of late 2022, when a drafted straw proposal for an incentive programme was floated by New Jersey Board of Public Utilities staff, the Garden State still had only 497MW of grid-connected large-scale storage, 420MW of which was contributed by a single pumped hydro energy storage (PHES) facility.

The slow progress was explained in a 2020 interview with then-policy director at the Energy Storage Association (ESA), Jason Burwen, who discussed the difference between the states that have set energy storage targets as policies with follow-through mechanisms in place to make them happen, and what could be called aspirational goals without those mechanisms.

Burwen, now with battery energy storage system (BESS) developer Gridstor, was speaking at a time when New Jersey was one of seven US states with any sort of storage target or goal in place and needless to say, Jersey was among those in the latter category, of those lacking follow-through mechanisms.

There are now at least 10 states with such goals, and even some states without explicit policy support, notably, Texas, are seeing far more storage deployed than utilities or developers in New Jersey are. Recognising it was falling behind, the Board of Public Utilities opened a Request for Information (RFI) on its proposals in August last year.

Senator Bob Smith said as the bill passed the committee vote that energy storage systems “are an absolutely essential component of our transition to clean energy, and we should do everything we can to support their deployment”.

“This bill will help incentivise their implementation and expansion, and in doing so help us accomplish our wider clean energy goals,” vice-chair Linda Greenstein said.

‘Benefits cannot be understated’

S-225 would direct the Board of Public Utilities (BPU) to create a pilot programme offering both upfront incentives for storage systems and performance-based incentives. Upfront incentives as proposed would be provided in dollars per kilowatt-hour (kWh) and not exceed 40% of the all-in cost of the project.

Performance incentives meanwhile would be paid based on the value the storage resources provide across various metrics and to different stakeholders. This would include supporting the transmission and distribution (T&D) network and mitigating peak demand, increasing resiliency by adding backup and enabling the further deployment of distributed energy resources (DERs).

These would apply to both behind-the-meter (BTM), customer-sited storage and front-of-the-meter (FTM) utility storage and to standalone storage facilities as well as those paired with renewables.

Storage systems would connect to the grid and wholesale markets of PJM Interconnection.

The BPU would have to direct at least US$60 million a year in funding towards the programme for the duration of the pilot, and within a year of its establishment, the regulators would have to send information to the legislature and governor about the incentives and the programme’s cost, as well as an evaluation of its effectiveness in supporting energy storage deployments.

The bill describes encouraging the adoption of energy storage as “fitting, proper and in the public interest,” and supporting it with incentives until barriers to free market deployment have come down.

The pre-filed text of S-225 can be viewed here at the state legislature’s website (online PDF).

“The benefits of energy storage systems cannot be understated,” Smith said.

“They enable wider application of clean, renewable energy, they can be used to protect from power disruptions at hospitals or personal homes, and they can reduce energy costs by charging during low-demand, low-cost hours and discharging when demand on the wider electrical grid is higher.”

Greenstein noted that storage systems “have a litany of benefits, and represent a promising way to reduce energy costs as we transition away from fossil fuels.”