Energy Storage

Closure of the large Rough storage has left the UK in a “precarious position” and “vulnerable” to gas supply shortages, Wood Mackenzie finds. Spot LNG cargoes can help cover demand at a short notice – but it would be imprudent to rely on flexible gas imports through the Interconnector, particularly as UK gas demand is bound to increase due to the government’s coal phase-out policy.

Dynamics of the global energy transition are driven by the speed of electrification and the competition between flexible gas power plants and renewables plus energy storage. Margins in the downstream power market are becoming more attractive, as price discrimination allows for better value capture downstream than in the generation business.

French utility ENGIE has deployed a 150 kW/90 kWh energy storage system in Rotterdam that is made up entirely by second-hand batteries from Renault electric vehicles. The E-STOR system, developed by Connected Energy, is supporting the Tennet electricity distribution grid.

Striving to roll-out battery storage, Duke Energy has announced to invest $500 million in several projects spread across North and South Carolina over the next 15 years. In total, the storage projects will have a combined capacity of 300 MW.

Risk of gas supply shortages this winter keeps growing in the U.S. because inventories are at record lows due to a late start of the gas storage refill season and high withdrawals. According to EIA’s Short-Term Energy Outlook (STEO) gas inventories will reach 3,263 billion cubic feet (Bcf) at the end of October – the lowest end-of-October level since 2005.

UK Power Reserve (UKPR) has awarded the second phase of its battery-based energy storage contracts to Fluence, a Siemens and AES company. The 120-MW project is underpinned by capacity contracts secured in 2016, and UKPR is now tapping Fluence technology to enhance grid flexibility with all new storage projects scheduled to be in operation by winter 2020.

ENGIE and Holyoke Gas & Electric have started operations at a 3 MW/6 MWh power storage system connected to a solar farm near Boston. Massachusetts has been one of the first U.S. states to enact an energy storage target, which helped renewables plus energy storage installations to spread and become increasingly cost competitive with fossil-fuelled power plants.

Wärtsilä has delivered and commissioned its first engine plus storage hybrid installation worldwide for Sinergy Kft, a subsidiary of ALTEO Group, in Budapest. Sinergy’s existing engine-driven plant is now optimized with a power storage solution that also incorporates GEMS, an energy management system from Greensmith Energy.

MIT researchers have developed a novel battery, based on sodium/nickel chloride electrodes and a new type of metal mesh membrane. Costs of this battery type are significantly lower due to its stronger and more flexible material that can better withstand the rigors of daily use for industrial-scale energy storage.

The U.S. Energy Information Administration (EIA) has developed an interactive dashboard showing daily and weekly updates on Lower 48 and regional storage activity, as well as market fundamentals that affect underground gas storage activity. Updates are published online and in the Weekly Natural Gas Storage Report (WNGSR).

The U.S. Department of Energy’s blue-sky research program APRA-E has handed out $28 million in R&D grants for ten projects aimed at delivering long-duration energy storage systems. The grants are funded by ARPA-E's “Duration Addition to electricitY Storage (DAYS),” targeting the development of applications with 10 to approximately 100 hours of continuous operation.

The Finish technology group Wärtsilä has delivered its first engine plus storage hybrid installation worldwide to Sinergy, part of ALTEO Group, in the Hungarian capital Budapest. The upgraded plant, running on three W34SG engines, was commissioned earlier this week and has a total output of 6 MW / 4 MWh.

Deployment of large-scale battery storage is rapidly increasing across the United States, but capital costs of energy storage systems vary greatly, dependent on the technology uses. Energy-oriented batteries systems, used for peakload shaving, are designed for longer durations and consequently have higher average costs per kilowatt and lower costs per kilowatthour. This type is mostly used in the California Independent System Operator (CAISO) area.

Energy SRS and partners have secured £727,000 in funding from Innovate UK to develop phase-2 of a gravitational energy storage. Dubbed GENSSIS, this prototype bundles the knowledge of industry and academia to deliver a gravitational storage prototype, ready for testing in 2019.

India, home to the world's sixth largest solar PV capacity, needs backup to mitigate intermittency risks. Over $200 billion would have to be spent on energy storage, considering the IEA's Technology Roadmap ‘breakthrough scenario’ where capital costs for storage are assumed to be $1 200/kW and $30/kWh in 2050.

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News in Brief

MAN to maintain power plant in Benin

Oct 23 – PrimeServ, the after-sales brand of MAN Energy Solutions, has signed a service agreement with BWSC for the Maria Gleta power plant near the city of Cotonou, Benin. The 127 MW plant is powered by seven MAN 18V51/60DF engines. The ten-year contract covers the supply of spare parts and the provision of technical services for scheduled maintenance.

Gas saves Virginia over $14bn

Oct 22 – Virginia’s businesses and families saved more than $14.2 billion between 2008 and 2018 thanks to low-cost natural gas and expanded energy infrastructure, according to a new Consumer Energy Alliance (CEA) report. Almost 60% of power generation relies on natural gas and a third of its households use gas for home heating.

Energy storage for LNG-powered vessels

Oct 21 – Louisiana-based Harvey Gulf has asked Wärtsilä to retrofit its energy storage system (ESS) on four LNG-fuelled platform support vessels. Once upgraded in early 2022, all vessels will be of full tri-fuel operation.

Mott McDonald starts construction on ALCP6

Oct 20 – US construction firm Mott McDonald has started building the ALCP6 waste to energy project in Krabi province, southern Thailand. The plant will incinerate 144,000 tonnes per year of municipal solid waste, and the heat obtained will be converted into 6 MW of electricity to be exported to the Thai national grid.

Brace for EU sustainable finance rules

Oct 19 – Sustainable finance practices, drawn up by the European Commission, could create a "bureaucratic monster" that smaller companies and energy investors would find overbearing, the Munich-based Institute for Economic Research (ifo) warned. The regulation should hence prioritise closer scrutiny of large and listed companies.

UK could become net power exporter

Oct 16 – Increased interconnection could provide a route for excess offshore wind power in Britain to be consumed elsewhere in Europe. National Grid Interconnector Register shows up to 16 GW of interconnection could be operational by 2025 and up to 25.4 GW by 2030.

Wärtsilä to deploy GridSolv in US city

Oct 15 – AEP OnSite Partners has contracted Wärtsilä to deploy its GridSolv Quantum energy storage in the city of Martinsville, Virginia. The system includes an UL9540A limiting 2-hour battery firewall and will help lower the city’s energy costs.

Rolls-Royce spends $13.9m in Mankato

Oct 14 – Britain’s engine maker Rolls-Royce has decided to invest nearly $14 million in its Power System business to build a new R&D centre at its MTU manufacturing plant in Mankato, Minnesota, US. The expansion will see 28,000 square foot added to the facility’s existing hall, making room for the production of high-power MTU gas gensets, enhanced product testing and the creation of 20 new manufacturing positions.

Clarke commissions Vitalait power unit in Tunisia

Oct 13 – Clarke Energy and INNIO Jenbacher have completed the commissioning of an onsite power plant of a milk producer in Tunisia. The installation of another Jenbacher gas engine has increased the plant’s output to 4 MW of electricity as well as 1,100 kW of hot water and 800 kW of steam.

Secondary battery market to top $55bn

Oct 12 – Technavio expects the secondary battery market to grow by $55.62 billion through 2024, rising at an 11% rate over the forecast period. Falling costs for lithium-ion batteries as well as growing demand in Asia Pacific allowed the market to grow 2.01% this year, despite adverse effects of the pandemic. Top battery suppliers are Tesla, Clarious, Exide, LG Chem, GS Yuasa and Samsung.

Shift to sustainable tech

Oct 9 – Three quarters of utilities, surveyed by EIT InnoEnergy, are considering adopting sustainable technology over the next 12-18 months. However, over one third of the respondents found it hard to recruit the skills they need.

Generator rentals slow

Oct 8 – The rental market for power generators has slowed down due to the pandemic, with genset rentals from the oil and gas industry forecast to grow by just $153.87 million this year. However, Technavio expects the market will return to a 3% annual growth rate by 2024.

GE upgrades Italian CHP

Oct 7 – GE has completed an axial fuel staging upgrade on its 9E gas turbine at an onsite combined heat and power (CHP) plant at the Milazzo refinery in Sicily. The entire electricity needs of the refinery, over 780 GWh in 2019, will soon be supplied by the upgraded and more flexible gas turbine.

Operating assets ‘from anywhere’

Oct 6 – GE Digital’s latest software gives electric utilities remote and mobile control over their power stations for remote start-up, external monitoring and operational fine-tuning. The goal is to safe cost through autonomous operation from any location.

Chart wins order from New Fortress Energy

Oct 5 – Chart Industries has secured a second leasing order, worth $7.7 million, for ISO containers for LNG applications from New Fortress Energy for a project in the Caribbean. The US equipment maker sees double digit near-term growth in its repair, service and leasing business, notably from growing demand for LNG equipment for infrastructure.

Siemens energises Togo

Oct 2 – Siemens Energy has delivered a SGT-800 gas turbine and other components for the Kékéli Efficient Power plant project. Located in the Togolese capital Lomé, the 65 MW plant will cover almost 40% of country’s expected electricity demand.

Batteries get cheaper

Oct 1 – Cost for battery production is falling rapidly as manufacturers bring large Gigafactories on-line. By 2030, Bloomberg New Energy Finance anticipates battery pack prices to drop to $73 per kilowatt-hour, down from a current volume-weighted average of below $270/kWh.