Will Storage Demand in the Electric System Be Smaller than Expected?

Will Storage Demand in the Electric System Be Smaller than Expected?

One of the biggest questions about the future of the utility business is how much energy storage will be required to match the availability of renewable sources to loads on the system.  The conventional view is that a lot will be needed. But it could be the opposite. Here are a couple of views of some experts recently expressed at an energy conference:

“The smarter the grid, the less storage that will be required”

“Rather than using generation and storage to match a variable load, wouldn’t it be better to match the load to the variable generation?

This raises a number of questions about the reality of making the grid that smart and whether users would accept a greater degree of control of loads.  Can that degree of load control be fairly invisible? Or does this just put storage more “behind the meter” rather than as a standalone facility? What new product and service innovations might be stimulated by this kind of development?

This is just one of the provocative topics to be covered at our Tuesday May 7 event:  “The Future of the Utility Business and the Opportunities That Presents.” Come join us for this discussion.  It will run from 9:30 am to 1:30 pm. Lunch will be provided and a small fee is charged to cover it.

Register Here!

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

EPIC Symposium Highlights Directions for Future Contract Funding from CEC

EPIC Symposium Highlights Directions for Future Contract Funding from CEC

On Tuesday Feb. 19, the California Energy Commission held its annual showcase for the technologies and studies it has funded under its Electric Program Investment Charge (EPIC).  EPIC raises about $160 million in funding each year and the CEC uses it to fund early startups (CalSEED), emerging technologies and creative solutions, as well as fostering energy entrepreneurs through business accelerator programs, the most well-known of which is the CleanTech Open – West.  The Symposium featured 15 panel sessions with 60 or so speakers and 35 exhibits from teams funded by EPIC.

Because many of the sessions were running concurrently, we couldn’t get to all of them, but here are some of the most interesting ideas we heard that may drive future EPIC funding solicitations and create business opportunities for you.

  • Broadening storage technologies beyond lithium ion batteries.  The recurrence of fires at large-scale lithium ion battery installations is raising concerns whether these are safe enough.  This concern is driving a look into other solutions–vanadium flow batteries, zinc-water batteries, high temp sulfur batteries, concentrated solar thermal integrated with thermal storage.  But there are more options that were not discussed–kinetic energy storage systems (flywheels), other battery chemistries–that keep the door open for more creativity in this area. One speaker offered the view that we may be just at the edge of a big price drop in storage technology driven by technology maturity and volume production, similar to what happened in solar PV, which may result in a lot more interest in storage of all types.

     

  • Non-battery solutions for matching renewables to demand.  The traditional approach to this problem has been to match supply to a variable demand, and emphasizes storage.  But what if one could turn this on its head and match demand to a variable supply through sophisticated demand management.  One speaker put it this way: “The smarter the grid, the less storage required”. Adding millions of points of control and a very smart management apps might do this.  But how much control would users be willing to surrender? How invisible could someone make it? Is there a way to simplify this approach?

     

  • Getting more from managing the charging of electric vehicles.  There must be at least three dozen entrepreneurs chasing this idea nationwide, most of which seem to be in California.  It could have larger implications for controlling load to avoid the need for storage, as noted above. How much infrastructure could be avoided if charging were better managed?   As the number of electric vehicles become dominant in California, how can complications of congestion at popular charging locations be dealt with? How can we move consumers from the mindset of “filling a tank” for a week of driving to just charging for what they immediately need? Can smaller cheaper level 2 chargers meet demand?   While there are many teams chasing this problem, there still seems room for more.

     

  • Making the energy revolution benefit underserved communities.  This topic has been receiving growing attention over the last two decades. . It seems to be as much about mobilizing underserved communities as it is about new technology. When asked projects and grant recipients acknowledged they struggled to connect with underserved groups. Promoting equitable growth was stressed in most if not all talks.  If you are looking for a demo project, the CEC is launching a tool to help you find an underserved community in which to put it and put some money behind it. They are also soliciting feedback from groups. Do you have a demo that can benefit community groups or are you a community group that has a clean tech need?
  • All of the solutions have a similar issue with adoption is they require behavior change. While we are used to energy on demand, it is not the most efficient or cost effective model. Incorporating AI that engages consumers to accommodate for future demand was identified as important for Electric Vehicle charging and Vehicle to Grid incorporation, grid management of all sizes, storage use, and building efficiency. How do we accelerate adoption faster and overcome human behavior? Do we use a stick and carrot approach, hand over energy control to AI,  or something else?

     

The CEC will be issuing new solicitations from the EPIC funding and other money it receives to advance clean fuels and alternative transportation.  If you want to get timely alerts, be sure to add your name to their notification list.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

Analyst More Bullish on Stationary Electricity Storage

Analyst More Bullish on Stationary Electricity Storage

In a new report, Bloomberg New Energy Finance (BNEF) has upgraded its view on the amount of battery-based stationary energy storage systems that may be installed through 2040, reaching 7% of all global installed generating capacity.  BNEF now sees that over 900 GW may be installed representing $1.2 trillion in investment. Part of the reason is that BNEF sees battery costs falling by half over this period. Most of the installations will be utility-scale but will be overtaken by on-site, behind-the-meter systems near the end of the period.  As large as this market for batteries maybe, it will still be much smaller than the market for batteries in vehicles.

The increased investment is good news for regional startups SPIN, Renergage, and Empower.  A summary of the report is available here if you want to learn more.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

Profile: SPIN – Kinetic Storage

Profile: SPIN – Kinetic Storage

Storing electricity has always been a huge problem and one now that is commanding a great deal of attention as more and more of the power available on the grid from renewable sources is hard to control.  There are two ways to store energy. Chemical and kinetic. Most of the excitement today has been around chemical storage like lithium-ion batteries. But with a fourth-generation design, a small company that has been working on a very new design that could put flywheels back in the race using kinetic energy storage.  SPIN Storage Systems off Del Paso Road has spent 7 years and $5 million to perfect a design for a 30 kWh storage device and is ready to launch its product to the market. Put power in and the system acts like a motor to spin up a heavy wheel. Connect it to a load, and the spinning wheel becomes the rotor in a generator.  It’s reversible just like a battery.

Two decades ago, before the breakthroughs in battery technology, there was a lot of attention on storing energy in flywheels.  At the time, it looked like flywheels were going to be vastly superior to batteries in the amount of energy they could store, in how compact they were, and how little degradation they had over tens of thousands of charging cycles.   At least five companies pursued flywheel based systems. Only one has survived, and that one only barely. Active Power Systems was purchased by Piller Power Systems in 2016, after formerly NASDAQ-listed Active Power saw its sales and stock price falter.   

The primary problem was in taming the tendency for the flywheel to distort at high speeds make its center of rotation wobble. The amount of kinetic energy in a rotating flywheel is a function of the square of the velocity.  So there is a strong incentive to make the wheel spin as fast as possible. But the faster the rate of spin, the greater the forces trying to pull the flywheel apart, leading to the distortion. To have the flywheel as strong as possible, stronger-than-steel fiberglass composites were often used, but the distortion continued.  All manner of solutions were tried to keep the axle of the flywheel from wobbling, from using magnetic bearings to using high-strength, oil-cooled mechanical bearings. None worked well enough to allow speeds up to the 60,000 rpm originally desired. As a result, speeds in composite flywheels were limited to 25,000 rpm. Adding complex bearings and reducing the speed upped the cost per kWh substantially. Active Power took the approach of using a cheap steel flywheel limited to 10,000 rpm in an effort to keep costs low, but the reduced capacity at the slower speed meant the cost per kWh was still high.

 

Over the same period, there were a number of breakthroughs in battery capacity and life.  The cost of storing a kWh in a battery plunged. The result was that flywheel systems were no longer economic.  

It is against this backdrop that SPIN has come up with some clever–even brilliant–solutions to the problems that have bedeviled others.   As SPIN CTO John Garber says, “Companies have been very good making speedy spinny things that break apart spectacularly.” He and SPIN think they have solved this problem with a “Virtual Axis”–they eliminate the axle altogether.  SPIN magnetically levitates its carbon fiber wheel between two magnets and lets the wheel find its own natural center of rotation. Subtle magnetic adjustments nudge the wheel to keep the wander in its center of rotation fairly small.  This innovation alone cuts costs dramatically.

But SPIN has gone further.  One other issue with using composites in the flywheel is that they usually “out-gas”–they leak vapors from the glue that holds them together.  To spin a wheel at high speed requires the wheel be in a vacuum to avoid drag that would sap energy. Because of the out-gassing in most composites, a vacuum pump is need to get rid of the vapors that could slow the wheel down.  SPIN has solved this problem by using a carbon fiber composite that out-gasses so little that no vacuum pump is needed. This breakthrough comes as a part of its collaboration with Spencer Composites, a long-time NASA and military contractor in Sacramento.  The result is another big cost savings, and a reduction in complexity.

After many years of testing and design, SPIN is now ready to launch its first product that can store 30 kWh and deliver 6 kW of power.  It will be about the size of a washing machine, storing enough energy to run a home for a full day. And have only one moving part, a rotor spinning in a vacuum, suspended on magnets. With no physical contact, there will be no wear, so it can run for a projected 30 year life with full power.   

This model can be used for small installations, or grouped for larger projects. Eventually they will offer additional products tailored for market segments that may require more power or storage..  Their target Total Cost of Ownership (TCO) would be more than 50% lower than the cost of a system that uses new lithium batteries today. They believe this is a significant advantage over batteries, but in cost, and in the improvement in operational efficiency.

owever, it is still a race between chemistry and physics, between electrochemical energy storage and kinetic energy storage.  Several companies are pursuing battery-based products that have the identical cost-cutting target in view. Flywheels have a great advantage in their projected lack of degradation in each charging cycle.  But that may not be a permanent advantage. There are teams now showing battery systems with over 10,000-cycle lifetimes, up from just a few thousand ten years ago. The lead in the race has been shifting back and forth.  SPIN has made some dramatic process that may give them lasting slice of the market. The challenge is to the battery companies to match their strides.

SPIN is a world-class leader in this technology and has a great horse in the race.  A great company right in our backyard.

A great company right in our backyard.

Thomas Hall

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

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Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

Energy Storage of The Future

Energy Storage of The Future

        Empower Energy is a new venture just established in Davis, but with roots in Australia.  It is an energy solution company aimed at pursuing the energy storage market, but also targeting an emerging need for micro grid management. It was founded in 2010 by Ezra Beeman, a professional in the energy industry with close to 20 years’ of experience in the electricity supply industry, and a native son of Yolo County. Over the years Beeman recognized inefficiencies in the grid that could be solved by strategically placed storage. The inefficiencies come from losses and low utilization of assets like transformers and power lines. Transmitting and generating power is roughly only 40% of the cost of power, while distribution poles and wire infrastructure make up the rest. Beeman has been able to identify where storage could make the biggest difference in avoiding costs to expand or replace parts of the distribution grid.  Avoiding these costs can actually be worth more than using storage. The trick to capturing these grid savings is in having a device which can interact with the grid and be managed directly or through price signals to provide support to the grid at the right times. All this can be done thanks to Empower Energy’s patented “smart” energy storage device, the ElektroBank. The ElektroBank is a 7 kWh lithium-ion battery-based energy storage device that includes a hybrid inverter, capable of powering rooftop solar PV panels.

        The challenge for the business model is in getting the utilities to pay for these avoided costs in order to pay much of the cost of the ElektroBank.  The structure is in-place for utilities to do this in Australia now, and Beeman is targeting his first sales there to prove the concept. Empower Energy is partnered with Kokem co. Ltd, a South Korean company that provides Empower Energy with lithium-ion batteries that enable the ElektroBank to discharge and recharge double the number of times as most storage devices currently on the market. The patented storage device also makes a separate solar inverter unnecessary, saving customers who install solar a portion of their costs.

        Ultimately, Empower sees units of this type as an essential backbone device to managing power flows in, out, and within micro grids.  Ezra sees the future of the utility as the manager of roadways between a collection of traditional distribution system, a concept much talked about in the US, but not yet implemented.  Empower believes its timing will be good to prove its product’s value in Australia and then to introduce it into evolving markets here in California and select other states such as New York as they adopt third party access approaches comparable to Australia’s.  

ABOUT THE AUTHOR

CleanStart has a new face supporting the region’s Entrepreneurs.  Renonedo Williams is a CSU Sacramento Mechanical Engineering Student who is the newest intern at CleanStart.   He is entering his final semester at Sac State and is looking forward to connecting with as many clean tech startups as possible and understanding each of their value propositions, to connect his enthusiasm of building things to his goal of being his own boss. Renonedo has a background in design and material selection