Energy storage for ancillary services will surpass USD$3.8bn in annual revenue by 2023, forecasts Navigant Research. Ancillary services, such as frequency regulation and voltage support, are required to maintain safe, reliable and secure transmission of electricity on the grid. As the technical need for ancillary services grows over the next 10 years, the corresponding demand for energy storage systems that support these services will grow as well.
The US Department of Energy’s Federal Energy Regulatory Commission Order 890 holds a lot of interest for energy storage. Amongst its provisions is the demand for generators to reduce the imbalances between scheduled and actual delivery of energy.
Whilst not explicitly mentioning it, the Order implies that, given the increasing importance of variable output renewable energy resources, energy storage is going to become a must for grids everywhere. This, according to Lux Research, will propel grid storage to a USD$10 billion annual market.
It is clearly a wonderful opportunity… and one which will mostly be taken up by European concerns, according to Lux analyst Steve Minnihan. Speaking to MSN Money, Minnihan said European system integrators such as ABB, Siemens and Schneider Electric, plus GE of America, will take the lion’s share of the market by evolving their current custom-engineered installations to standardised systems for simple deployment.
A123 Energy Solutions yesterday announced the first commissioning of its Long Duration grid storage system in Hawaii for the Maui Electric Company (MECO). The energy storage installation can provide 1MW for up to one hour and will perform services to increase electric grid operational efficiency, stability and power quality.
Installed at an existing MECO substation, the 1MWh energy storage system was packaged in a 20-foot container and shipped to the site fully assembled and tested. A123 Energy Solutions provided the engineering, procurement, construction, installation and testing.
A key component of the Maui Smart Grid Project, the battery will provide peak-load shifting, voltage regulation, reactive power support and wind curtailment relief. “This installation is the second site we’ve commissioned on the island of Maui in the past five months,” said Bud Collins, President of A123 Energy Solutions.
“But while the 11MW commissioned in December of last year was comprised of our widely deployed High Rate systems, this is the first time we’ve commissioned the Long Duration product. We’re very happy with how smoothly the installation went. The entire process took about five weeks from start of construction up to the completion of commissioning.”
Diversified industrial manufacturer Eaton has worked with Portland General Electric (PGE) to develop an energy storage system for the Salem Smart Power Center, a 5MW energy storage facility unveiled today in Salem, Oregon, USA.
The smart grid site will allow PGE to demonstrate how the integration of renewable energy sources, including wind and solar, and demand-response technology can increase the reliability and efficiency of energy for business and residential customers, says Eaton.
“Eaton’s collaboration with this important project will help Oregon and the nation learn how to build intelligent energy resources for the future while continuing to deliver long-term value for customers,” said Jim Piro, PGE president and chief executive. “Eaton’s power system expertise helped make the project possible and we appreciate the dedication to excellence they brought to this project.”
With supergrid developments forming an interesting backdrop to the development of energy storage in Europe, you might like to make space in your diary for a Friends of the Supergrid panel debate at the European Parliament in Brussels on June 26.
The afternoon debate will be hosted by Sir Graham Watson, MEP at the European Parliament and Chairman of Climate Parliament in the framework of the European Union Sustainable Week, and will be followed by a cocktail.
The New York Battery and Energy Storage Technology Consortium (NY-BEST) and the Pace Energy and Climate Center will explore the current policies and markets for microgrids in a special forum on June 11 at Pace University’s New York City campus.
Speakers at the event will include professionals from AES Energy Storage, the Pace Energy and Climate Center, Consolidated Edison of New York, Demand Energy, DNV KEMA, S&C Electric, the New York Energy Policy Institute, the Smart Grid Consortium and others.
The European Electricity Grids Initiative (EEGI) has conducted a mapping of all storage projects currently taking place all over Europe, highlighting intense activity. The mapping is a major input towards the European Commission’s Horizon 2020 funding programme, so its findings will soon be translated into actions.
Peter Verboven, innovation developer, Smart Grids of EnergyVille, Belgium, will present an overview of the major developments and investments on the continent and will highlight the gaps that still need to be addressed during European Utility Week. In his opinion, we have finally seen real progress in the development and rollout of smart grids.
Although there are many challenges that still remain, the technology that underpins it all is in place, except for one area. The one area that still needs substantial development is storage technology and solutions. The current generation of solutions is not always cost-competitive, suffers from limited energy density or capacity, and grid integration may prove problematic.
Europe will only be able to fully balance and manage its grids and all the renewables connected to it if there is sufficient buffer capacity available, according to Verboven. Fortunately the interest in storage has surged over the past two years and lots of exciting developments are taking place. To hear more, register for European Utility Week’s track on Renewable Energy Integration & Energy Storage.
The topics addressed include technology development, business models, regulatory aspects and grid services rendered by storage and financing. Energy Storage Report readers get a 10% discount on the conference fee or have FREE entrance to the exhibition, so register now to make sure you don’t miss out.
Many new microgrid projects are still under the radar and many local projects originate organically without official designations or titles, making them very hard to track, according to a new report from Navigant Research. As a sector, however, microgrids are beginning to move into the mainstream, with a greater focus being placed on viable business models.
More than 480 microgrid projects are proposed, planned, under construction, or operating worldwide, representing nearly 3.8GW of capacity. The report, Microgrid Deployment Tracker 2Q13, details the rated capacity, duration and types of energy storage for each project.