Despite new records being set in consecutive quarters, the tally could have been much higher. The research firm warned that 82% of grid-scale projects expected to be completed in the period ending September were delayed to later dates.

Wood Mackenzie has also lowered its deployment forecast through 2027 by 5%, with lead analyst Vanessa Witte noting that “multiple headwinds” emerged during 2023 which have dampened expectations in an otherwise booming industry.

Those headwinds have resulted in a “volatile” near-time pipeline as well as “difficulty in bringing projects to mechanical completion”.

“Grid-scale declines were more focused on challenges not only with supply and permitting, but also with the backlog of applications in most ISOs interconnection queues that are preventing projects to move through the development process,” Witte said.

It was a similar story in this year’s second quarter, which with 1,680MW/5,597MWh of deployments across all segments including 1,510MW/5,109MWh of grid-scale, held the title for biggest on record for an extremely short time. Wood Mackenzie said then that 1.7GW of front-of-the-meter (FTM) projects scheduled for completion in Q2 had been pushed back to later dates and 308MW cancelled entirely with supply chains, permitting and lengthy or uncertain waits for interconnection typically to blame.

Back then, Wood Mackenzie had said it expected to see 67GW of installations across all scales between 2023 and 2027, 55GW of which would be grid-scale. That has now been revised down to an approximate 63GW of installs.

Still, despite these challenging dynamics, the firm said 2023 and 2024 will be huge growth years for the grid-scale segment, and there have already been more installs in the first three quarters of 2023 (4,225MW) than the entirety of last year (3,966MW).

Texas, California level on megawatts but not megawatt-hours

The two leading US grid-scale markets by state continue to be Texas and California. In Q3, the pair were almost neck-and-neck for deployments in megawatt terms, with California on 694MW and Texas on 758MW.

However, due to the emphasis in California’s CAISO market being increasingly on 4-hour duration assets and Texas’ ERCOT market still seeing durations at around 2-hour, California was well ahead in megawatt-hour terms with 2,722MWh deployed in Q3 to 1,506MWh in Texas.

In fact, for the entire US, Wood Mackenzie found average grid-scale battery energy storage system (BESS) duration installed in the quarter to be 3.1-hours – projects outside of Texas averaged out at 3.8-hour, while projects within Texas’ average duration was 1.9-hour.

Material costs decline

As with recent reporting from rival S&P Global Commodity Insights, Wood Mackenzie noted that lithium battery raw materials costs have declined again in 2023, after 2022 saw the first reversal in the trend of falling prices in around a decade.

Both S&P and Wood Mackenzie said lithium carbonate prices have fallen to their lowest since 2021. Wood Mackenzie said this has contributed to a 23% quarter-on-quarter decline in the median cost of grid-scale battery storage systems.

Recent market analysis from BloombergNEF found that battery pack prices (including the electric vehicle and stationary BESS markets) fell 14% from 2022 to 2023, reaching an average of US$139/kWh, a record low.

However that good news is tempered with findings that balance of plant (BOP) and engineering, procurement and construction (EPC) costs are rising, partly due to high demand for labour and the need to meet requirements on wages and apprenticeship numbers. Various sources Energy-Storage.news has spoken with have remarked additionally that while getting hold of battery cells and packs is not as challenging in 2023 as it was in the past couple of years, it is now long lead-time equipment, particularly transformers, that are becoming scarce.

California’s grid-scale, residential lead to extend to CCI segment

The third quarter saw 166.7MW/381.4MWh of residential segment deployments and just 30.3MW/92.9MWh of community, commercial and industrial (CCI) energy storage.

For residential, this was a rebound from a quiet Q2, while the level of CCI deployments is broadly in line with what Wood Mackenzie typically expects to see in a segment which enjoys very few if any state-level policy incentives.

California dominates the residential segment by far, with 78.4MW of installs, versus 88.31MW across all other US states. The state is expected to open a community solar-plus-storage programme next year, which will likely make it a leader in the CCI segment too, with the scheme predicted by Wood Mackenzie to result in a doubling of CCI deployments across the US for the year.

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.

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While the vast majority of lithium-ion battery energy storage systems (BESS) online today have been deployed in just the past few years, dealing with the battery cells at end-of-life (EOL) through either recycling or reuse will become a significant challenge in the coming years and decades.

The pause in construction by Li-Cycle last month came nine months after the company received a US$375 million conditional loan commitment from the LPO for the facility.

The role of LPO director Jigar Shah in that process has been questioned by Republican lawmakers in separate letters to the LPO and Shah in November and December, with senator John Barosso calling some specifics of his involvement “extremely concerning”.

He pointed to Shah’s account in the Wall Street Journal of an exchange between him and Li-Cycle CEO Ajay Kochhar which appears to contradict a previous statement to a Senate Committee about how central a figure he is in the LPO loan applications process.

Barosso alleged that Shah “….personally recruited and facilitated a federally-backed loan of US$375 million to a company that is on the brink of collapse (referring to Li-Cycle).”

The DOE has since responded to the November and December letters though the responses are not publicly available.

In a statement provided to Energy-Storage.news yesterday, an LPO spokesperson said: “As with every conditional commitment issued by the Department of Energy, prospective borrowers must fulfill conditions precedent ahead of a loan closing, which can include legal, technical, commercial, contractual, and financial requirements.”

“The Department of Energy Loan Programs Office is continuing to work with Li-Cycle with respect to the previously announced conditional commitment for a US$375 million loan for the project.”

The LPO is a huge part of the US governments’ drive to kickstart a domestic clean energy manufacturing sector, with 189 active applications seeking US$174.7 billion in financing as of the end of October.

The director of the LPO however does does not make individual decisions regarding whether an application gets through the evaluation process, or whether an applicant ultimately gets issued a loan.

Shah has given interviews to Energy-Storage.news this year, in January and September (Premium access). In the latter he discussed the Li-Cycle application saying:

“We’re very proud of Redwood and Li-Cycle; don’t me wrong, but we’re not saying as a result that of the 443 recycling companies [out there], these are the two best ones.”

“We’re saying that they are the two that applied to the Loan Programs Office, we reviewed them, we think that they have a solid business plan, and they’re likely to pay back the loan.”

A source familiar with the matter told Energy-Storage.news that any loan comes with some risk and that Congress – the legislative arm of the US government – has anticipated potential risks and losses with loan issuances and has provided considerable ample credit subsidiary appropriations to budget for expected losses.

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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As of 30 September, a total operational portfolio of 291.6MW of battery energy storage system (BESS) projects is managed by the fund, which trades under the ticker GSF, while the total capacity including projects under construction is 1.17GW.

GSF originally only invested in projects in the GB (UK excluding Northern Ireland) before diversifying into Ireland and then Germany and the US last year. A notable highlight of its results is that its BESS assets in GB generated £7.54/MW/hour whereas those outside GB generated nearly three times more, at £19.66/MW/hour.

Meanwhile GSF’s NAV per share decreased by 2.3% to 112.9p compared to 115.6p as of 31 March, 2023. It attributed this decrease to the adjustments made in light of the macroeconomic landscape. An increase in base interest rates has hit the wider clean energy sector, as Energy-Storage.news has reported previously, especially in the US and UK (both Premium access).

Its only currently operational US assets are distributed-scale systems in the ERCOT, Texas market (9.9MW and under) which has seen notably high revenues in the last few months – the revenue/MW/hour in ERCOT for GSF was a whopping £39.08, five times higher than GB. A 200MW/400MWh system in California is set to come online in the second half of 2024, for which GSF secured a US$60 million loan in October.

GSF said that during the period it changed route-to-market (RTM) providers in various markets including Germany and ERCOT “…enabling access to additional value from ancillary services and wholesale trading markets”. RTM is one of the services provided by BESS optimisation firms (Premium access).

It also said that merchant trading opportunities in the US, German and Irish markets has increased, notably not mentioning GB. Merchant opportunities in the UK have failed to make up for saturation in the ancillary service markets as previously reported by Energy-Storage.news.

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.

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Prashanth Prakash

Aggreko’s Energy Transition Solutions (Aggreko ETS) has acquired a portfolio of nine New York community solar projects. 

The installations are set to total approximately 59 MW of generating capacity when construction is complete, says the company. Along with the acquisition’s closing, Aggreko ETS has connected the first of the nine projects to the grid, a 5.9 MW project in the town of Vernon.

Aggreko ETS is now overseeing the construction of the community solar projects to ensure they reach commercialization and grid connectivity within the next year. The opportunity to acquire the projects on a bilateral basis was made possible through Aggreko ETS’s existing relationships with the seller, engineering, procurement and construction provider, as well as its financing parties. 

“We’re thrilled to complete this important transaction, which reinforces Aggreko’s capabilities as an experienced renewable energy developer, owner, and operator that can deftly structure and execute complicated asset acquisitions to scale its business,” says Prashanth Prakash, Aggreko ETS’s CCO.

“The acquisition of these projects strategically supports the growth of Aggreko ETS’ community solar segment, which includes a complementary portfolio of assets under development in New York and several other states,” adds Jerry Polacek, Aggreko ETS president. 

“Not only does this acquisition expand the scale of our ambitions to provide clean energy to all New Yorkers, but it also establishes relationships with several anchor commercial and industrial subscribers to align with our growing focus as an energy transition solutions provider for C&I customers.”

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Todd Michaels

Correlate Energy has begun construction on its Reading, Pa. solar project which originally started at 3.8 MW and has grown to 5.2 MW.

Upon completion, this project will rank among the largest corporate solar installations in Pennsylvania, says the company. 

“We are thrilled to be building our largest corporate campus project to date, marking a significant milestone for our company and further addressing the growing demand for resilient, clean energy solutions in the United States,” says Todd Michaels, CEO of Correlate. “This project demonstrates once again clean energy remains both economically attractive and more reliable than the traditional grid.”

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Raúl Morales

Soltec has reached an agreement with Repsol to supply 300 MW of its SFOne trackers for three projects in Spain, located in the provinces of Palencia, Teruel and Guadalajara.

All plants will have the company’s trackers. For the Palencia PV project, a total of 1,542 trackers and 172,704 modules will be installed. The Teruel project will have 1,575 trackers and 182,700 PV modules. For the Guadalajara project, 1,895 trackers and 177,248 modules will be supplied.

“We are very pleased to work with Repsol on these three projects in Spain,” says Raúl Morales, CEO of Soltec. “Repsol is a key customer for the energy transition in the country, and the synergy between large companies is the only way to decarbonize the economy while protecting biodiversity and supporting local communities.”

The supply of the solar trackers will begin this month and is expected to continue through the first quarter of next year.

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A joint venture (JV) between the two Chinese companies will deliver the 54MW/54MWh Ombuu battery energy storage system (BESS) project in Namibia’s Erongo Region, at the existing Omburu Substation. Construction is expected to take around 18 months for the project to come online in the latter part of 2025.

At a signing ceremony for the EPC contract, Wilhencia Uiras, executive director of Namibia’s National Planning Commission said the battery storage project represented a “crucial step” towards “embracing innovative and ecofriendly solutions”.

“This project not only signifies our dedication to modernising our energy infrastructure but also underscores our responsibility towards future generations,” Uiras said.

As reported by Energy-Storage.news in December 2021, the Omburu BESS project is supported by a €20 million (US$21.58 million) grant from the German government through national development bank KfW. That represents about 80% of the total cost, with NamPower financing the remainder.

According to a fact sheet produced by NamPower and KfW, the BESS will store surplus renewable generation as well as electricity imports from the Southern African Power Pool (SAPP) to supply electricity at peak times and offset the use of the local Van Eck coal power plant.

In addition to providing local grid stability services, the BESS will enable Namibia to trade energy more effectively in the SAPP and reduce the country’s need to make expensive emergency imports from the Eskom grid in South Africa.

BESS to reduce reliance on burning coal and importing electricity

Namibia currently imports up to 70% of its electricity from neighbours, predominantly generated by coal. Against that backdrop, the country is targeting for renewables to be 70% of the generation mix by 2030, more than double the 30% it is today. It is also targeting for domestically-produced energy to represent an 80% share by the end of this decade.

That expansion of renewables, which will include 100MW of generation NamPower itself intends to add to the grid by 2025, and a further 500MW of solar and wind which could come from liberalisation of the energy market, means there will be a growing need for energy storage to balance fluctuations in supply and demand.

The BESS will use Narada Power’s lithium iron phosphate (LFP) cells, and will perform a number of ‘stacked’ applications: peak shifting, energy arbitrage, emergency backup power, ramp-rate control and reactive power control. Peak shifting will be the main use case, with the applications stacked in order of priority so that the system performs the most economically valuable service at any given time.

NamPower will develop, own and operate the Omburu BESS, and it is hoped that as a first-of-its-kind project in Namibia, it will provide benefit for subsequent projects that follow.

The NamPower-KfW report noted that while it is largely grant-funded, economic modelling was carried out which found that in power terms, the BESS could provide ancillary services to the grid much cheaper than is currently done through NamPower’s Van Eck and Anixas power plants and Eskom imports. Meanwhile energy from the BESS would be cheaper than current NamPower tariffs and energy imported via SAPP.

It also has further economic benefits in reducing congestion on existing transmission infrastructure, which could alleviate the need for costly grid upgrades, and reduction in the hours the Van Eck coal plant runs will also bring down power costs in the region.

At recent COP28 climate talks, a group of 11 countries, including eight from Africa, signed up to a new global effort to deploy 5GW of energy storage in low- and middle-income nations, as a means of reducing energy poverty.

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Logan Duran

Pivot Energy has announced it is developing six Illinois community solar projects totaling 33 MW with Tapestry, a house of designer accessories and lifestyle brands that include Coach and Kate Spade. 

Tapestry has committed to purchasing 15 years of Impact Renewable Energy Credits (RECs) produced by the projects, which will produce more than 50,000 MWh per year. Additionally, the two companies will invest $2,000 per MW built, or $66,000 total, in local community organizations.

Traditional REC purchases typically come from existing wind farms, while Impact REC agreements are structured to put clean energy resources in areas primed to build new solar while simultaneously investing in local communities. 

The new community solar projects are expected to generate an average of 51,760 MWh of clean electricity per year, equivalent to powering over more than 6,000 average households annually, says Pivot.

“At Tapestry, we know that sustainability is a business imperative. As part of our 2025 corporate responsibility goals, we committed to procuring 100% renewable electricity in our own stores, offices and fulfillment centers globally by 2025,” says Tapestry’s Logan Duran. “We also recognize the power of partnerships to drive meaningful change in key environmental and social areas which is why we are thrilled to join with Pivot Energy in implementing these projects in Illinois.”

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Eric Partyka

Standard Solar has acquired Bluebonnet, a 9.9 MW behind-the-meter solar project from EDF Renewables, to power part of an industrial process load for Messer Americas in Texas. 

EDF Renewables’ distribution-scale power team developed the project and will continue to perform the role of EPC contractor throughout construction, with Standard Solar the long-term owner and operator. 

“This project represents a significant milestone for Standard Solar as we expand our footprint into the Texas renewable energy market,” says Eric Partyka, Standard Solar’s director of business development. “This marks the fourth collaboration between Standard Solar and EDF Renewables in the past two to three years, including projects such as Lawsbrook, Knox and Lehigh University. We firmly believe in nurturing enduring partnerships founded on strong customer relationships, as well as with partners like EDF Renewables, who excel in constructing projects we can all take pride in.”

The Bluebonnet project features bifacial modules on single-axis trackers and is being developed on a greenfield site in McGregor, Texas. The project is expected to yield approximately 25,000 MWh of clean, renewable energy annually, says Standard Solar.

“This project is exciting for EDF Renewables, having been in the works for quite some time,” adds EDF Renewables’ Lincoln Lande. “We are fortunate to have cultivated a strong partnership with the Messer team, all while collaborating with our longstanding partner, Standard Solar. It is gratifying to play a pivotal role in facilitating Messer’s expansion in Texas through renewable energy sources.”

The Bluebonnet project is slated for completion in Q2-2024, with construction efforts underway.

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Christina Conrad

Adapture Renewables has acquired three MISO territory solar projects in Illinois and Arkansas from TED Renewables. 

Together these projects will generate enough clean energy to power more than 72,000 homes annually, says the company.

This is Adapture Renewables’ second major acquisition this year, and the company’s first projects in Illinois and Arkansas. All three of the newly acquired projects are currently in the pre-Notice to Proceed stage, with anticipated commercial operation dates slated for 2025 and 2026.

“These project acquisitions bolster our company’s mission to expand clean energy solutions and drive sustainability in the power generation sector,” says Christina Conrad, Adapture Renewables’ senior director of M&A. “As we continue to grow, expanding into new markets presents an exciting opportunity to serve new communities, meet the need for clean energy, and deliver affordable electricity.”

Once constructed and operational, the projects will add capacity of 333 MW to the company’s existing portfolio of assets, says Adapture, bringing its total portfolio of operating assets to approximately 800 MW.

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