Вы находитесь на странице: 1из 51

VOLUME

19

ISSUE

SEPTEMBER/OCTOBER 2016

TRACKING THE

IMPACT

Resi, C&I, Utility?


Whos Making Money?
How Storage is
Unlocking Renewables

Geothermal

Hydropower

Biomass

Wind

Examining the
technological
overlap between oil,
gas and geothermal.

A video look
inside AMPs
new run-of-river
hydropower plants..

The biomass
sustainability
debate heats up.

Understanding
risk for new wind
technology in new
wind markets.

p. 41

p. 46

p. 49

p. 34

1609rew_C1 1

8/30/16 9:59 AM

AHEAD OF THE ENERGY CURVE.


First Solar is a global leader in photovoltaic (PV) solar energy solutions. Our high-efficiency module
technology is outperforming current silicon-based solar panels by producing higher real-world energy
yields and exhibiting best-in-class long-term field reliability.

HIGH EFFICIENCY WITH EXTENSIVE COMPATIBILITY

PROVEN ENERGY YIELD ADVANTAGE

First Solar Series 5 initially offers 360W-375W


per module and a new form factor that
eliminates mounting clips and is readily
compatible with most industry-leading fixed tilt
and tracker mounting systems.

First Solar modules produce up to 10% percent


more annual energy, outperforming multicrystalline silicon solar panels of the same
installed capacity and land area in the most
demanding hot and humid environments.

Partner with the global leader in PV energy.

Visit us at SPI 2016, Booth 745 or firstsolar.com/SPI

For more information, enter 1 at REW.hotims.com

1609rew_C2 2

8/30/16 9:59 AM

contents

HYDROPOWER
The 88-MW
Cannelton
Hydroelectric
Project was the
first of AMPs
four run-ofthe-river hydro
projects.
Credit: AMP.

46

features

25

SOLAR AND STORAGE

Storage Overview and


How it Will Unlock
Renewables
Distributed energy storage
is the next step in balancing
intermittent renewables.
Thomas Houlding

30

STORAGE

Making Money
with Batteries
Battery energy storage
is the hottest emerging
technology in the renewable
energy industry but are
we beyond demonstration
projects yet?

34
WIND

Understanding Risk for


New Wind Technology
in New Wind Markets
How do you insure a billiondollar wind power project?
Very carefully.
Jennifer Runyon

Jennifer Runyon

13
1609rew_1 1

ON THE COVER
Tracking the Impact of
Energy Storage
Image credit: Younicos.
Illustration credit: Chris
Hipp.

RENEWABLE ENERGY WORLD

SEPTEMBER/OCTOBER 2016

8/30/16 9:57 AM

For more information, enter 2 at REW.hotims.com

1609rew_2 2

8/30/16 9:57 AM

features
departments & columns
5 Editors Letter

41

GEOTHERMAL

Examining the Technological


Overlap Between Oil, Gas and
Geothermal
The possibilities for technology exchange
between oil and gas and geothermal are
becoming clear.
Allie Nelson

38 Data Points

What are we going to do


about net-metering?

6 Regional News
From the Global Renewable
Energy Industry

13 Storage Impact
The Storage Impact
Issue Begins

Geothermal Power Plant


Manufacturing Value Chain

47 Advertisers Index
47 Renewable Energy
Resources
48 Last Word
Flytings of Fancy

15 The Big Question


Where will energy
storage have the greatest
impact: Residential, C&I,
or Utility? Why?

46

HYDRO

Video Feature: Inside AMPs


New Run-of-River Hydropower
Plants
2016 should mark the commissioning of
four new run-of-river plants by AMP.
Jennifer Runyon, Video by MWH Global

On RenewableEnergyWorld.com
RenewableEnergyWorld.com and our social
media communities help you stay connected
to news, opinion and technology updates
from the renewable energy industry.
Visit us on the web to:
Follow us on Twitter @REWorld
Tweet your #StorageImpacts on September 14
Read todays featured article
Subscribe to our e-Newsletters
Purchase a market research report
Join our LinkedIn group

RENEWABLE ENERGY WORLD

1609rew_3 3

SEPTEMBER/OCTOBER 2016

8/30/16 9:57 AM

Meet us at
Hamburg
WindEnergy
Booth

IN WIND TURBINES,
YOUR PERFORMANCE STARTS
WITH CABLES

Photos credits: Getty

#B6.282

WINDLINK
INNOVATIVE CABLE SOLUTIONS
AND SERVICES WORLDWIDE.
Because you want to supply electrical generation efciency and not just turbines,
we have developed WINDLINK cable solutions. All our cables, connectors and
accessories ensure maximum reliability and performance for your turbines. Our complete
offer, global presence, engineering services and TCO approach assure your quality
and manufacturing continuity.
www.nexans.com/windlink - marcom.info@nexans.com

For more information, enter 3 at REW.hotims.com

1609rew_4 4

8/30/16 9:57 AM

From t he Editor

PUBLISHER Stephanie Kolodziej


CHIEF EDITOR Jennifer Runyon
ASSOCIATE EDITOR Jennifer Delony
PRODUCTION

ART DIRECTOR Kelli Mylchreest

PRODUCTION DIRECTOR Mari Rodriguez


SENIOR ILLUSTRATOR Chris Hipp
AUDIENCE DEVELOPMENT
MANAGER Emily Martin

AD SERVICES MANAGER Toni Pendergrass

www.pennwell.com
EDITORIAL OFFICES

REW Magazine
61 Spit Brook Road, Suite 401,
Nashua, NH 03060
U.S. Toll Free: 877-650-1782
+1 603-891-0123
Fax:+1 603-891-9351
www.renewableenergyworld.com
ADVERTISING

For information on advertising in future


issues of the magazine, please contact:
LEIF NEVENER +1 918 832 9333

DENNE JOHNSON +1 607 259 0027


MIKE FULTON +1 252 489 1381
E-MAIL: REWSales@PennWell.com

PENNWELL MARKETING SOLUTIONS

For assistance with marketing strategy


or ad creation, please contact:
VICE PRESIDENT Paul Andrews

+1 240.595.2352
pandrews@pennwell.com
CORPORATE OFFICERS

CHAIRMAN Robert F. Biolchini


VICE CHAIRMAN Frank T. Lauinger
PRESIDENT AND CHIEF EXECUTIVE
OFFICER Mark C. Wilmoth

EXECUTIVE VICE PRESIDENT, CORPORATE


DEVELOPMENT AND STRATEGY

Jayne A. Gilsinger

SENIOR VICE PRESIDENT, FINANCE


AND CHIEF FINANCIAL OFFICER

Brian Conway

SUBSCRIBER CUSTOMER SERVICE

Renewable Energy World is circulated free


to professionals in the renewable energy
industry. To start a free subscription visit
www.rew-subscribe.com. For customer
service contact rew@halldata.com.
Professionals outside the renewable energy
industry may start a paid subscription.
For pricing information email us at
rew@halldata.com, call +1 847-559-7330,
or fax +1 847-763-9607.

During Q2 2016, there were 121 policy actions taken in 42 states related to distributed energy resources (DER), according to the North Carolina Clean Energy Technology Center. About a third of the actions were
increases in residential fixed charges, another third were changes to
net-metering, and the remaining third were solar valuation studies,
community solar, residential solar charges, third-party ownership of
solar and utility-led rooftop PV programs. It would be an understatement to say that utilities are grappling with the new energy landscape.
However, I believe that we have the technologies and the brains to figure out what will be the most efficient and cost-effective way to buy, sell
and manage energy using DER. Im pretty sure well need to move ratepayers to time-of use-rates or even real-time rates. Im pretty sure the
solution will incorporate the Internet of Things (IoT) so that our appliances can communicate with the grid and let us know when they should
be turned on or off based on the price of energy at the moment. If we
have PV and/or a battery, Im fairly sure that those will also be internetenabled so they know when to direct the energy they produce to the
home and when to put it on the grid, again, in response to price signals.
While I dont know is if all of these solutions are affordable. And Im
not clear about how we will use them in conjunction with each other.
Utilities and companies are launching pilot projects and studies left
and right to see if they can figure it all out.
All in all, though, Ive got my fingers crossed that once we arrive a
solution, utilities, solar-enabled homes and businesses, and energy
storage providers will all be compensated properly.

Jennifer Runyon, Chief Editor


RENEWABLE ENERGY WORLD

1609rew_5 5

SEPTEMBER/OCTOBER 2016 5

8/30/16 9:57 AM

REGIONAL

news

NORTH AMERICA

US Government
Studies Geothermal

New York Ups Renewables


Target; Nuclear Power
To Aid in Transition
In July, New York Governor Andrew Cuomo announced the

In July, B/E Aerospace announced

New York State Public Service Commissions approval of New

that it had partnered with DOEs

Yorks Clean Energy Standard (CES), which will require 50 per-

Pacific Northwest National Laborato-

cent of New Yorks electricity to come from renewable energy

ry (PNNL) to develop enhanced per-

sources like wind and solar by 2030, with an aggressive phase

formance power generation technol-

in schedule over the next several years. In its initial phase, util-

ogies. Through an existing purchase

ities and other energy suppliers will be required to procure and

order with Viking Heat Engines, a B/E

phase in new renewable power resources starting with 26.31

Aerospace CraftEngine will be mod-

percent of the states total electricity load in 2017 and grow to

ified and used in conjunction with

30.54 percent of the statewide total in 2021.

B/E Aerospace and PNNL hardware

Maintaining nuclear power is critical to achieving New

in order to perform a demonstration

Yorks climate goals, said the governor. Starting in April 2017,

aimed at finding a cost-effective way

the CES requires all New York investor-owned utilities and

of transforming low-temperature

energy suppliers to pay for carbon-free emissions from nucle-

geothermal heat into electricity.

ar power plants by purchasing Zero-Emission Credits. The New

The U.S. has an abundance of geo-

York Power Authority and the Long Island Power Authority are

thermal heat that can be turned into

expected to adopt the requirements. This will allow financial-

electricity to make the country less

ly-struggling upstate nuclear power plants to remain in opera-

reliant on fossil fuels. The challenge

tion during the transition to 50 percent renewables by 2030.

is to transform the more abundant


and easier-to-access low-temperature heat sources into a cost-effec-

EUROPE

tive and reliable energy supply something the new solution may
have the potential to do.
B/E Aerospace and Viking Heat
Engines have performed several demonstrations and tests over

DuPont Industrial Biosciences announced the launch of OPTI-

the past two years on heat recovery

MASH AD-100, a new enzyme product that will help biometh-

applications. B/E Aerospace has also

ane producers improve biogas yields and process robustness,

procured a small number of Craft-

which is expected to ultimately increase their revenue and

Engines for use on emerging oppor-

profitability.

tunities. The CraftEngine technol-

OPTIMASH AD-100 represents DuPont Industrial Biosciences

ogy converts low-temperature heat

first entry into the growing biogas sector. The enzyme has been

sources into electricity.

shown to produce up to a 13 percent increase in biogas yields

1609rew_6 6

New Enzyme Could


Improve Biogas Yields

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:57 AM

in anaerobic digesters. The

backed by decades of expe-

enzyme breaks down organic

rience in the global indus-

matter like food, paper, ani-

trial enzyme business, said


CH4 + CO2

mal and farm wastes resulting in sugars more suitable

Increased
biogas
production

Microbes

for biogas-producing microorganisms, according to the


company. The addition of this

Conrad Burke, global marketing director. Customers


can expect this technology to

Feed
influent

enzyme into the biomethane


process improves the profit-

Complex
substrates

Effluent

increase biogas production,


improve biogas quality, shorten process time and reduce

DuPont
enzymes

mixing costs.

ability for customers and oper-

Methane biogas is primari-

ators by reducing feedstock


requirements and increasing
biogas production.

ly used to generate electricity


DuPont is entering this market with an offering that is

or is compressed and inserted


into the pipeline gas grid.

GEV Group Launches Safety


Initiative for the Offshore Oil,
Gas and Wind Industry

Solar Silicon
Factory Opening
in Iceland

GEV Group has launched a new 1st4Safety initiative; the latest devel-

Silicor Materials announced

opment for the business following the opening of its U.S. office. This

that it signed a US $8.9M con-

builds on an already exemplary Health and Safety record, established

tract with AM Technical Solu-

over almost a decade of working in the harshest of environments such

tions to manage the building of

as Oil and Gas and Offshore Wind.

Silicors first commercial-scale

Since the companys inception in 2008, GEV Group has accumulated

plant in Grundartangi, Iceland.

over 650,000 working hours without a lost working time incident (LTI).

The 121,000 square-meter facil-

The company said that the GEV Group injury rate is less than one per

ity isexpected to break ground

100,000 working hours.

before the end of 2016 and be

st

The 1 4Safety initiative, certified in compliance with OHSAS 18001,

fully operational by 2019.

promotes continuous assessment, monitoring and improvement of crit-

The plant will supply PV

ical processes. The company will implement 1st4Safety across all divi-

cell and module manufactur-

sions, providing each member of the workforce with the skills, aware-

ers with at least 19,000 metric

ness, training and equipment to carry out their duties to the highest

tons of solar silicon each year.


This news comes on the

possible safety standards.


GEV Wind Power entered the renewables market in 2012 and has

heels of Silicors equipment

recorded blade maintenance work on more than 4 GW of installed

contract withSMS Siemag

capacity, equating to more than 1,200 wind turbines across Europe,

and its construction contract

Asia and the U.S.

withMT Hjgaard.
RENEWABLE ENERGY WORLD

1609rew_7 7

SEPTEMBER/OCTOBER 2016

8/30/16 9:57 AM

REGIONAL

news
ASIA PACIFIC

Myanmar Villages Receive 11 Solar Mini-grids


Sunlabob Renewable Energy Ltd., the venturebacked company specializing in decentralized

of the battery-backed solar power systems.


To support long-term sustainability, Sunla-

renewable energy and clean water solutions,

bob is providing seven years of after-sales service

recently finalized the turnkey implementation of

and maintenance for each system. The company

eleven solar-powered mini-grids in remote communities of Myanmar.


The Japanese government funded the minigrids, which provide clean electricity to nearly
1,000 households throughout Shan State and Chin
State, Myanmar.
Andy Schroeter, Sunlabob CEO, stated: Decentralized renewable energy, whether providing firsttime energy access to rural communities or offering on- and off-grid businesses a reliable, affordable
and cleaner electricity supply, is a key component
to the countrys development.
Sunlabob, which has implemented renewable

also delivered hands-on training for local main-

energy projects in more than 25 countries through-

tenance technicians, household end-users and

out Southeast Asia, Africa and the Pacific region,

township-level employees of the Department of

provided material supply, design, and construction

Rural Development.

36 Megawatt 13-MWh Energy Storage


System To Aid South Korean Grid
South Koreas largest utility, Korea Electric Power
Corporation (KEPCO) has hired battery solution

cessfully deployed for KEPCO two Ultra High Power

provider Kokam to develop a 36-MW/13-MWh Ener-

NMC ESSs a 24-MW / 9-MWh system and a

gy Storage System (ESS) for frequency regulation at

16-MW / 6-MWh system along with a 16-MW

the Non-Gong substation in South Korea, accord-

/ 5-MWh Lithium Titanate Oxide (LTO) system.

ing to an announcement from Kokam. The project

Together these systems currently provide KEPCO

will use a combination of two Kokam Lithium Ion

with 56 MW of energy storage capacity for frequen-

battery technologies its Ultra High Power Nick-

cy regulation. When the new 36-MW ESS project

el Manganese Cobalt (NMC) battery technology and

is completed, Kokam will have deployed 92 MW of

its NANO battery technology. Work on the project

energy storage capacity for frequency regulation

began in June 2016 and is scheduled to be complet-

for KEPCO, and the total worldwide capacity of ESSs

ed by December of 2016.

using Kokam batteries will be 132 MW.

1609rew_8 8

In March, Kokam announced that it had suc-

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:57 AM

Bankable Quality Value Pricing

Genius Tracker

Max-Span

Changing the Game for Single Axis


Solar Trackers

Industry's Best Quality and Value Pile


Driven System

Grid-Lite

Pour-in-Place

A Cost Eective Ultra-Low Weight Ballasted


Roof System

Industry's Fastest Installing Ballasted Ground


System with Self-Leveling Technology

Ground and Roof Fixed Tilt Racking & Tracker Leader


Wind Tunnel Tested by Industry Leader CPP, ETL / UL 2703
Independent Assessment by Black & Veatch, 20 Year Warranty

Sept 12-15 Las Vagas Booth 1939

Contact us
P : 212-388-5160
For more information, enter 4 at REW.hotims.com

GamSol_REW_1609 1

8/19/16 4:19 PM

1609rew_9 9

8/30/16 9:57 AM

REGIONAL

news
AFRICA AND MIDDLE EAST

120-MW Wind Power Project in Northern


Morocco Closer to Completion
In July, ACWA Power Khalladi confirmed final

positioning as a major player in the countrys

orders to suppliers and contractors for the con-

renewable energy sector, said Rajit Nanda, Chief

struction of its Wind Power Project in the North of

Investment Officer, ACWA Power. Our investment

Morocco, following all conditions precedent for its

in Morocco is for the long run and with our part-

landmark project financing being satisfied.

ner ARIF we will be contributing even further to

ACWA Power Khalladi (formerly UPC Renewables) is 75 percent owned by ACWA Power a

the transformation of the energy sector Morocco is


undergoing in alignment with its national strategy.

developer, investor, co-owner and operator of a

Once operational, the Khalladi project will

portfolio of power generation and desalinated

directly supply the industrial clients connected

water production plants, and 25 percent owned by

to the high voltage network. The project has been

the ARIF Investment Fund.

under construction since November 2015 and rep-

This 120-MW wind farm, located in Jbel SendouqKhalladi in the north of Morocco, is the first proj-

resents a global investment of 1.7 billion dirhams.


The Moroccan National Renewable Energy

ect to be developed by ACWA Power and ARIF under

Strategy/Wind Power plan aims for 2,000 MW

the Moroccan Renewable Energy Law (13-09).

Wind Power capacity by 2020, representing 14

This new wind energy project reinforces our

pecent of the national installed capacity.

Off Grid Electric Scores US $18M in Add-on


Funding to Bring Solar to Africa
In August, Off Grid Electric

capital raising, importantly open-

investments across sectors and

announced that it had received

ing the industry to institution-

geographies.

$10 million from Helios Invest-

al and more traditional capital

Last year Off Grid Electric

ment Partners and $8 million in

sources. To date, Off Grid Elec-

added more solar homes than

debt financing from a lending

tric is growing rapidly and servic-

the Tanzanian utility compa-

group led by responsAbility. Total-

es more than 100,000 households

ny added to the grid, noted Bill

ing $18 million, this funding will

and businesses in Tanzania and

Lenihan, CFO & Head of Busi-

enable Off Grid Electric to con-

Rwanda.

ness Operations, Off Grid Elec-

tinue on the path to solving the

Helios is one of the few inde-

tric. Our objective is to bring

energy access problem in Africa,

pendent pan-African private

industry leading partners to our

providing millions with clean and

investment firms founded and

company. SolarCity, EDF and oth-

sustainable solar energy.

led by Africans, and has built a

ers are now joined by Helios and

reputation as a partner of choice

responsAbility. Were privileged

on the continent with successful

to have their capital support and

Since its 2012 launch, Off Grid


Electric has led the industry in

10

1609rew_10 10

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

unmatched continent knowl-

of Off Grid Electrics line of

business in a box solution is

edge, relationships and operating

solar appliances for rural entre-

designed to give self-starters in

expertise. We are now stronger

preneurs, announced at Presi-

Rwanda and Tanzania the tools

and able to further our mission

dent Obamas Entrepreneurship

they need to run a business

and expand our reach.

Summit in Palo Alto, Califor-

whether a barbershop, charging

nia.Called Kazi na Zola (Work

shop, bar, or restaurant com-

with Zola in Swahili), the

pletely on solar.

This add-on funding news


comes on the heels of the launch

LATIN AMERICA

Latin America on Track


to Install 2.7 GW of Solar
PV Capacity in 2016
A recent spike in new solar installations in Latin America is
putting the region on track to reach 2.7 GW of installed photovoltaic (PV) module capacity this year, according to analysis
firm IHS Markit.
Chile accounts for 44 percent of new additions this year. The
second largest market in the region, Honduras, has approximately 0.5 GW of installed PV capacity, the result of a boom
in 2015, according to the firm. This year, Honduras is set to be
overtaken by Mexico.
After Brazil, Uruguay, Mexico and Peru, the next market to
announce tenders is Argentina, where the World Bank plans
to step in with guarantees for a 1 GW renewable power tender,
of which 300 megawatts (MW) will be supplied by PV. Recent
record-low bid prices as low as $48 per megawatt-hour in
Mexico are attracting the interest of governments, said
Josefin Berg, senior analyst, solar demand, IHS Markit. Meanwhile, these bid levels raise the pressure on suppliers, as the
procurers will be squeezing the total system costs to make the
projects viable.
While tenders spur optimism regarding market growth, actual project deployment often takes longer than initially planned,
as developers struggle with administrative barriers, or simply
seek to postpone construction to benefit from declining component prices. Planned tenders also risk delays, as most recently
shown in Brazil where the power auction scheduled for July 2016
has not yet been set.

Construction of
Brazils Largest
Solar Plant Ahead
of Schedule
Work on Enel Green Powers 254MW solar plant in northeastern
Brazil is exceeding expectations
according to EPC contractor Enerray. The company plans to complete the plant in seven months
with the help of its 423-person
crew.
Enerray said that the 254-MWp
solar plant is one of the largest in
the world. The project is located
in city of Ituverava in the state of
Bahia, in northeastern Brazil and
has an estimated annual energy
production of approximately 500
GWh. Construction is expected to
be completed by 2017. The PV panels feature single-axis trackers to
allow the modules to change positions during the day depending on
the position of the sun to maximize
output.
Enerray is a wholly owned subsidiary of Seci Energia (Gruppo
Industriale Maccaferri), through
Enerray Usinas Fotovoltaicas.

RENEWABLE ENERGY WORLD

1609rew_11 11

SEPTEMBER/OCTOBER 2016

11

8/30/16 9:58 AM

November 9-10, 2016


Hilton Chicago
Chicago, IL

PV CONFERENCE
& EXPO-CHICAGO
Powered by:

re
A
s
e
t
a
dR
arly Bir

lable
i
a
v
A
Now

Solar Power PV Conference & Expo - Chicago is


coming to the Midwest for the rst time.
The event will feature 50+ exhibitors who make an
impact in the Midwest solar market, or are hoping
to increase business in the region.
Join 1,500 of your colleagues for two days of
networking and a robust education program
featuring two tracks: business and policy.

Expand your business.


Gain insights from
industry experts:
Community Solar
Customer Acquisition
Utility Business Models
Rate Design
Grid Integration
Finance
...and more!

Learn more and register at www.events.solar/pvchicago


For more information, enter 5 at REW.hotims.com

1609rew_12 12

8/30/16 9:58 AM

The Storage
Impact Issue
Storage is experiencing incredible growth globally. Our storage
impact issue looks at the particularly hot topics right now.

15
25
30

Our Big Question asks where energy storage


will have the greatest impact: Residential, C&I, or
Utility. We want to know where the industry sees
energy storage making the greatest impact and why.
Responses come from experts across the energy
storage value chain

Distributed energy storage is hailed as the


next step in reducing the requirement for centralized
dispatchable fossil fuel plants, which are currently
needed to balance the intermittent supply on the grid
from renewables. Our Battery Storage Overview
shows how batteries may unlock the full potential of
renewables.

Is anyone making money with batteries?


We explore the market for battery technology in
this feature and try to figure out if the industry has
moved beyond demonstration projects yet.

Dont forget to check RenewableEnergyWorld.com for up-to-date news and


information about the global solar industry. Want the news delivered to
your inbox? Subscribe to our weekly storage e-newsletter and check out our
other e-newsletters here.
Image Illustration: Chris Hipp

RENEWABLE ENERGY WORLD

1609rew_13 13

SEPTEMBER/OCTOBER 2016 13

8/30/16 9:58 AM

No Boundaries
When it comes to deep-cycle batteries, no one goes
to the extremes of performance like Trojan Battery
Company. Our full line of deep-cycle flooded, AGM
and gel batteries are ideal for all of your energy
storage needs.

Well keep breaking the boundaries.


Where you go after that is up to you.
Renewable
Energy

Remote
Telecom

Inverter
Backup

Off-Grid Solar

Mini-Grids

C-MAX

TECHNOLOGY

Available World Wide through Trojan Batterys Master Distributor Network


www.trojanbattery.com
800.423.6569
+ 1 562.236.3000

For more information, enter 6 at REW.hotims.com


1609rew_14 14

8/30/16 9:58 AM

The Big Question

Key executives weigh in on worldwide renewable energy issues

Where will energy


storage have the greatest
impact: Residential,
C&I, or Utility? Why?
Energy storage is poised to make a huge impact on the global
renewable energy industry and, similar to solar, geothermal and
bioenergy, the technology can be applied at the residential level,
commercial and industrial (C&I) level and at utility-scale. We
want to know where the industry sees energy storage making
the greatest impact and why. Read the responses below to
hear from experts across the energy storage value chain explain
on which segment of the market will energy storage have
the greatest impact: residential, C&I, or utility and why?

It will be with utilities. The reason is cost/


pricing. Bulk-scale energy storage (> 100
MW), like Compressed Air Energy Storage
(CAES) is very cheap and efficient. When
combined with wind power at night to
charge the CAES compressors, CAES proJoe Spease
duces electricity at prices below the costs
CEO, WindSoHy
of coal and gas power. This low price will
enable the unlimited development of wind
and solar power. For this reason, energy
storage at utility scale will have the greatest impact on the
energy industry.

A site with storage and smart inverters may be capable of providing a number of key services that will support BOTH the customer and the utility. Some of these are:
Backup power and peak demand management for the
customer

AES Energy Storages 10-MW


project in Cumberland, Maryland,
provides frequency regulation
for the PJM market. Credit: AES
Energy Storage.

RENEWABLE ENERGY WORLD

1609rew_15 15

SEPTEMBER/OCTOBER 2016

15

8/30/16 9:58 AM

The Big Question

Peak demand reduction for the utility


Local distribution voltage management for the utility
Provision of reserve and flexibility capacity for the
utility
The actual location at an industrial, commercial or
residential site may not be so important as the characMalcolm S.
teristics of the load and intermittent generation that are
Metcalfe
connected nearby. In the case of voltage management,
CTO, Enbala Power utilities find themselves using old substation equipment
Networks
(LTCs) to manage reactive power, and this is not optimal. Reactive power delivered to a customer causes real
power losses in distribution, so the best place to locate
devices that can supply or absorb reactive power to manage local voltages
is as close as possible to any source that causes this need. It could be an
industrial site, or at the other end, it could be a residential site with large
vehicle chargers.
This is a technology with potential real value for the future. Getting the
best economic value from the storage will require that it be used to meet as
many needs as possible, and with new technology in communications, optimization, and control, it should be fully capable of delivering an outstanding
service that will improve power quality for everyone, while reducing costs
at the same time.

Commercial scale battery storage will be appealing for


corporations looking to increase self-consumption of their
solar photovoltaic systems. Storing energy for self-consumption has its own obvious benefits such as cutting
energy costs during peak operational times or at night,
and helping to reduce any potential carbon levies. Battery
storage could also act as a backup in the event of grid failLewis Wilde
ure, which in a manufacturing scenario could be cataMarketing & IT
Coordinator, SOLFEX strophic. The cost of implementing these systems is easily
justified in such situations and this is where battery storage will be most beneficial.
However, there is still something to be said for self-consumption in domestic households. Allowing PV systems that would otherwise only be useful during the day to power your home during peak times at night, and increased
reliability in areas with grid stability issues are both strong points for residential battery storage and an attractive feature to system owners.

16

1609rew_16 16

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

The Big Question

Residential storage is where the sweetspot is, because


homeowners increasingly want a sense ofcontrol over
their energy whileutilitiesneed those distributed energy sources to help not hurt grid stability.Distributedstorage resourcesat the end of distribution feeders
are far more effective in improving power quality than
Greg Wolfson
deployed centrally at the substation.
SeniorDirector
While traditional residential storage markets were for
Storage Product Line, off-grid or backup use, we see strongest initial growth in
Enphase Energy
grid-tiedresidentialmarkets where homeownerswant
solar yet are already being asked to cooperate with limits
onexporting power: areas such as Hawaii and someareas
inAustralia.Energy storage is a need to have, not anice to have, for new
solar homeownersin those markets.
Currently,C&I and utility scale lead in terms of MWh installed, but the resi
market, where there needs to be real-time interactions between highly localized demand, supply, and storage (with the intelligence going down to predictive weather and individual appliance control), will lead in the innovation of
intelligent, integratedenergystorage systems. The challenge will be creating
solutions thatcompletely integrate the production and consumptionwith the
control and optimizationso that homeowners can fully leverage their system
and benefit from all of theuse cases for storage.

I believe the greatest impact for energy storage with be


with residential. The reason being that the energy market
will see the biggest impact, growth and volumes to support
the smart storage in microgrids in support of the new technology globally.
Think back to the PC revolution, the telecom revoluScott A.
tion (Internet), and cellular phone markets. This is definiteCameron
ly the next revolution or milestone for our power market in
Business Development direct support of the smart grid market. I have been lucky
Manager, Precision Inc. enough to have been involved with all the previous technology advancements and know of the volumes associated with
each that were higher than most pioneers had ever believed
possible. I can remember during my FAE days working on and receiving my
first purchase order for a smart meter project before anyone had heard the
term; it was for 800,000 units! When I asked about the volume the energy provided, they laughed and said this is only for a beta site in south Florida.
Think about the microgrids needed to support residential homes and small
business that will be soon required.
RENEWABLE ENERGY WORLD

1609rew_17 17

SEPTEMBER/OCTOBER 2016

17

8/30/16 9:58 AM

The Big Question

Because energy storage has so many benefits, the answer


will vary depending on the region. Globally IHS Markit predicts that half of future additions in the next decade will
take place behind the meter. This trend is part of a major
shift towards decentralized power generation, with individuals and businesses producing their own energy as
Marianne Boust
equipment costs fall.
Principal Analyst,
In developed countries, households will lead the way
Energy Storage, IHS
and we expect strong residential growth in Australia,
Markit
Japan and Germany owing to high retail electricity prices,
favorable legislation and incentives. This will have implications on the utilities business models and were already
seeing the impact in Australia where local utilities have started offering solutions that include solar and batteries.
In developing economies where grid reliability is uncertain and load shedding occurs daily, we anticipate that businesses and industrials will turn
to hybrid diesel-storage and solar solutions. The role of utility-side of meter
energy storage is currently driven by ancillary services but is uncertain in
the long-term. For this segment to become mainstream it will require changes in power market designs to create a level playing field with gas, demand
response and transmission. The role of gas-fired power plants, dictated by
gas prices and utilization rates, will also determine the ultimate cost-competitiveness of batteries.

Energy storage will have the biggest impact on the residential sector, which could in turn transform the utility sector.
Nowhere is this more apparent than in Arizona, where residential customers are facing mandatory demand charges
for the first time and are concerned about resulting higher electricity costs. Residential storage offers customers a
Harumi McClure
clear pathway to reducing or avoiding demand charges and
President/COO of
similar fees.
Tabuchi Electric
As greater numbers of cost-conscious residential customers seek out energy storage, utilities are primed to join
in and reap their own benefits. Grid-friendly residential
storage solutions (especially when paired with DERs) provide flexibility and
control to utilities that allow for grid stabilization and peak shaving, which is
beneficial to both parties.
Recent data shows that residential solar is the fastest-growing category
by number of installations. Even a modest share of residential adopters opting for grid-friendly storage would lay the foundation for a more flexible and
18

1609rew_18 18

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

SE PT EMBER 10-13, 2017


M AN DALAY B AY C ONV EN TI ON C EN TER
L A S V EGA S , N V

J O IN

US N EX T Y E A R

SPI brings the full range of industry ideas, experts, professionals,


and information together in one comprehensive eventand its
the best week of networking the solar industry has to offer!
This is the only solar event you need to attend to expand your
business in the growing $16.3+ billion U.S. solar market.
Learn more at
www.solarpowerinternational.com

P O W E RE D B Y:

For more information, enter 7 at REW.hotims.com

1609rew_19 19

8/30/16 9:58 AM

The Big Question

resilient grid and more effective and efficient utilities. Meanwhile rate structures and policies on distributed energy will continue to change as utilities
work to stabilize the grid. These changes will make residential storage more
attractive, which will lead to wider adoption and increase accompanying benefits for the utility segment.

Storage technology is particularly important to residential


PV systems as energy production does not typically match
consumption. Combined PV and storage solutions allow
homeowners to shift excess energy produced to the time of
use. By placing energy production and storage at the same
location as the load, a decentralized model of mini-powLior
er stations is created. This model can offer utilities many
Handelsman
more possibilities than the traditional network in which
VP of Marketing & power generation is built on large, single-source energy
production that requires costly transmission. This could
Product Strategy
unlock solar energys grid parity potential and provide a
and Founder,
more dynamic grid with minimal outages.
SolarEdge
With that being said, storage solutions for C&I is still at
its infancy and there are many opportunities yet to be seen.
Potential C&I applications include addressing demand response, reducing
peak demand, and providing emergency backup power. As natural disasters
escalate due to climate change and grid instability increases due to the growing energy demand, power outages are on the rise, which cause severe business disruptions. Storage can also provide significant cost savings for businesses to avoid peaks in consumption that are particularly costly.
The greatest impact will be if these different sectors leverage PV plus storage systems in an interconnected manner.

Chris Thompson

Grid Power
Business Unit
Manager, Eaton

20

1609rew_20 20

SEPTEMBER/OCTOBER 2016

Energy storage ispositioned to have the greatest impact


onthe utility segment.In this segment, sophisticated customers are able to layer many functional abilities that are
unique to this technology. For example, utility scale energy storage can defer expensive T&D upgrades, provide ramp
rate control and frequency regulation services, manage load
and generation profiles and regulate voltage and power flows
at the distribution level.This wide range of applications generates real value and benefits the grid in multiple ways.
Utility-scale projects are also better able to manage the
risks associated with the design and operation of these

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

The Big Question

types of plants with high energy density. Like solar, we also find that the perunit costs are significantly lower at the utility scale. So when you factor in
the three key attributes of functional usage of energy storage, risk management, and cost of deployment, utility scale projects enjoy the most benefit.

Energy storage will have the greatest impact on the utility sector. First storage will transform how utilities manage frequency regulation and ancillary services on the
grid. This will improve stability of our transmission system and it will fundamentally shift how power generators
manage their generation portfolio. Instantaneously deployJeremy Bedine
able stored power will reduce utilities reliance on spinning
Managing Director, reserve and allow much of the inefficient and environmenBedine Consulting tally questionable non-spinning reserve to retire. Second,
it will significantly change the grids carbon footprint and
stabilize the price of electricity. By eliminating the need to
curtail generation from resources like wind and solar, and eliminating frequency issues from intermittency, storage removes the main obstacles to
expanded renewable generation. Since LMP is tied to the marginal-cost dispatch model, RE generation will shift the supply curve to the right, stabilizing
the cost of energy and ensuring long-term energy security.

Similar to digital data storage, which supports a variety of


tasks from web streaming on smartphones to enterprise
computing in large data centers, energy storage will have a
significant impact across the entire electric grid.
As a recognized alternative to traditionalinfrastructure
investments (i.e, peaking power plants, transmission lines,
distribution network upgrades), progressive utilities and
Brian Perruse
utility commissions agree that energy storage can comVP, AES Energy
pete against these other investments without subsidies.
Storage
And as more planning processes are allowing companies
to offer both in-front-of and behind-the-meter solutions, I
believe well see both the utility and C&I markets scale rapidly. Modular solutions that scale and operate at any size, from 100 kW to over 100 MW, are key
to enabling economies of scale and providing a proven track record that utilities can trust, while making the grid smarter and stronger byincreasingthe
number of visible, controllable sources.
Residential energy storage will likely be the last segment to develop. To be
a viable market, utility rates will have to include demand charge and time
RENEWABLE ENERGY WORLD

1609rew_21 21

SEPTEMBER/OCTOBER 2016

21

8/30/16 9:58 AM

The Big Question

of use rates atthe residential level, business models must evolve to reduce
acquisition costs, and homeowners will have to see the value of a standalone
system in addition to the large battery housed in their electric vehicle.

When considering future trends, especially in such a transient and interconnected world, utilizing a ten-year window approach is useful. In other words, look five years
back to predict five years forward. Given this approach, I
believe the future direction of storage (i.e., expected cost
declines, market segment growth opportunities, and preNeil Placer
ferred technology options) can most adequately be defined
by using solar PV as a proxy. Solar PV also creates a marPlacer Consulting
ket pull for future storage adoption, a type of market foreServices
runner, which solar PV itself never had. If you viewed
this relationship as a word picture, solar PV would be the
lead cyclist that drafts a lower resistance path for energy storage. As energy storage matures, both technologies will work in tandem to utilize energy more intelligently (e.g., intermittency with load balancing) resulting in an
increased pace of complementary market adoption.
I believe storage, like solar, will first be deployed were it is most cost-effective, which usually means at a bulk or utility-scale. However, given battery
storages inherent limitation to transfer large amounts of instantaneous energy, a natural market begins to open in the mid-size C&I space. Eventually, as
the cost differential between mid-size and small-scale projects decrease and
the general public becomes more energy savvy, more activity will occur at the
residential scale.

Elaine Greig

Director, The
Renewables
Consulting Group

22

1609rew_22 22

SEPTEMBER/OCTOBER 2016

The answer is clearly utilities, though many people might


not see this.The reason is because storage at all levels,
whether residential, commercial and industrial, or directly utility connected, affects utility power flows. All are
part of an important change to how utility systems will
be operated, from largely passive to much more active
networks. Whilst the most visible impact is undoubtedly
the most widespread, that is, residential, just because you
dont see it, doesnt reduce how fundamental the impact
of this ongoing change is going to be to utility systems.

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

17-19

MAY

Renewables | Fossil Fuels | Nuclear

PRAGATI MAIDAN,
NEW DELHI, INDIA
www.power-genindia.com

SAVE THE DATE

FOR INDIA'S LEADING CLEAN ENERGY EVENT


India is looking meet rising energy demands and to secure a lower carbon sustainable
future. Against this backdrop, there is no better time to participate at Indias leading
clean energy event

LEARN
about the latest
challenges and
solutions for the Indian
power generation
industry

SHOWCASE
your companys
products and services
to the Indian
power generation
industry

EXPERIENCE
first-hand the latest
technology for the
Indian power
generation
industry

ATTEND AS
A DELEGATE
SIGN UP AS
AN EXHIBITOR
JOIN AS A
VISITOR

5,000+

200+

75+

20+

16

Attendees

Exhibitors

Speakers

Conference Sessions

Annual Event

th

Event Organizers:

For information on how to participate visit www.power-genindia.com

For more information, enter 8 at REW.hotims.com

1609rew_23 23

8/30/16 9:58 AM

North Americas Most-Attended Solar Event


Moscone Center, San Francisco
Hear it here first! Be part of the first major U.S. solar event of the year
18,000 visitors connect with 550 international exhibitors
The perfect match! Intersolar is co-located with ees (electrical energy storage)

co-located with

Exhibit now!
For more information, enter 9 at REW.hotims.com

1609rew_24 24

8/30/16 9:58 AM

S O L A R A N D S TO R AG E

Battery Storage Overview and


How It Will Unlock the Full
Potential of Renewables
Distributed energy
storage is hailed
as the next step in
reducing the need for
centralized dispatchable
fossil fuel plants, which
are currently required to
balance the intermittent
supply on the grid
from renewables.
THOMAS HOULDING, SgurrEnergy

Renewable energy is being installed globally at an everincreasing rate and is driving opportunities for energy
storage across all global markets. Here are some key considerations, challenges and use-cases for this important
new technology.
For the purpose of this article, energy storage refers to
lithium-based battery energy storage systems (BESS), due
to the low levelized cost of lithium-based technologies compared to other technologies.

Challenge: High Costs


The cost of battery technology needs to come down considerably for mainstream adoption in all markets. Recent published cost trends project reductions in battery cell cost as
a function of the ramping-up of production scale, combined
with higher efficiencies. This is
broadly analogous to cost trends
that impacted (and are still impacting) the levelized cost of electricity supply from photovoltaic (PV)
power plants. As modules become
more efficient and module manufacturers scale up, costs drop.
However, there is a chicken and
egg syndrome at play with energy
Laclanch provided the battery energy
storage solution and Younicos provided
the energy management software
for the worlds first megawatt-scale
renewable energy plus storage system
on the island of Graciosa in the Azores.
Credit: Younicos.
RENEWABLE ENERGY WORLD

1609rew_25 25

SEPTEMBER/OCTOBER 2016

25

8/30/16 9:58 AM

S o l a r a n d S to r ag e

Renewables integration (ramping support)

Grid support (Frequency response)

PV

Power
output
(kW)

04:00

PV

Power
output
(kW)

PV + Storage

08:00

12:00
Time of day

16:00

20:00

04:00

PV + Storage

08:00

12:00
Time of day

16:00

20:00

Examples of a PV plant power output curve modified by installation of a BESS for ramping support (renewables
integration) and frequency response (grid support). Credit: Sgurr

storage in which the surge in


demand required to ramp up
battery cell production and
bring down costs may not
take place as rapidly as anticipated because costs remain
too high for mainstream
adoption. Further because the
industry is anticipating lower
costs in the future, large scale
investment in storage technology is relatively limited.
The development of batteries for the electric vehicle
market may be set to break
the chicken and egg conundrum for stationary energy storage, due to developments in battery technology,
increasing manufacturing capacity and eventually the secondary use of car
batteries.

support in small or isolated grids, and grid support services for


larger distribution or transmission grids. Developers are looking
to make use of spare grid capacity available at renewable plants,
made available by the intermittent nature of the generation.
In both these cases BESS can provide more value than merely the time-shifting of renewable generation from wind and
solar PV. The value comes from the ability to support stable
grid operation through being able to respond to the intermittency of renewable generation much more quickly than is possible
through conventional means, providing services such as frequency response, voltage regulation and ramping support.
This enables much greater integration of renewables onto a
grid and reduces reliance on conventionally fueled thermal baseload and flexible generation sources to provide spinning reserve
and other grid balancing services. The application of BESS for
the provision of grid balancing services provides a vital stepping stone on the route to mainstream adoption through the bulk
time-shifting of renewable generation.
Potential applications and revenue streams vary widely on a
country-by-country basis, due to the large variations in regulatory frameworks, grid codes and balancing service provisions.
This makes it important for other storage applications to exist
such as behind-the-meter storage for system charge management
over and above more common applications.

Use Case: Renewables Integration and Grid Support

Key Concept: Capacity, Power and Time Matter

Both installed capacity and


investment in battery storage
are increasing in two main
areas: renewables integration

For the sake of simplicity, this article assumes that charging


and discharging power are equal, and thus abbreviated as (dis)
charging. In reality these could be different depending on the
application, although this is not common for utility-scale BESS.

26

1609rew_26 26

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

S o l a r a n d S to r ag e

Adequately sizing both the


energy storage capacity and
(dis)charging power is a key
requirement when determining the technical specifications of any battery system.
Experience suggests that
power is often overlooked in
energy storage, even though
these two values are inherently linked by the time that
it takes to fully (dis)charge a
battery system.
The battery capacity (in
kWh) expresses the amount of
energy stored in the battery
cells and broadly depends on
the number of battery cells

in the system. The (dis)charging power on the other hand, (in


kW), expresses the rate at which the battery can be (dis)charged
by the power conversion system (PCS). The time it takes to fully
(dis)charge the battery system can be determined by dividing the
capacity by the power.
The optimum ratio of capacity and power varies for different
storage applications. Frequency response, voltage regulation
and ramping support services all have in common that the (dis)
charge time requirement is small; typically, less than an hour.
Therefore, the ratio of (dis)charge power is relatively high compared to storage capacity. In contrast, BESS (dis)charge time
requirement for bulk time-shifting services is much larger;
typically, in the order of several hours. For this case, the ratio
of storage capacity is relatively high compared to (dis)charge
power.
This fundamental principle of capacity, power and time is
key to understanding the technical specifications needed to
obtain the benefit of a range of revenue streams, as well as the

THERES A
LOT OF LIFE
IN ONE
BATTERY.
Series 5000 Heavy-duty
modular dual-container
construction.

Find a distributor at rollsbattery.com or


give us a call at 1.800.681.9914

Visit us at Booth #1777

For more information, enter 10 at REW.hotims.com

WIDEST RANGE OF SPECS AVAILABLE / 15-YEAR AVERAGE LIFE / 10-YEAR WARRANTY ROLLSBATTERY.COM

1609rew_27 27

8/30/16 9:58 AM

S o l a r a n d S to r ag e

implications on BESS costs.


BESS technical specifications
should always be considered
using at least two of these
three parameters, although

The Revenue Stacking A Crucial Piece of the Puzzle

The ability to use a single or multiple aggregated BESS to provide


multiple services is referred to as revenue stacking. With revenue stacking, developers can extract more value from the BESS
and grid connection, because they now have two or more sources of income based on their project.
However, understanding the reve2.0
nue stack is difficult and comes with
2 MW 0.5 h = 1 MWh
relatively little understood contrac1.5
1 MW 1 h = 1 MWh
tual and financial risks, as well as
0.5 MW 2 h = 1 MWh
additional technical and operational
(dis)charge
1.0
complexity.
power (MW)
The relative power and storage
capacity requirements have impor0.5
tant cost implications. These are
often overlooked as quoted bat0.0
tery cell or BESS costs only consider
0.0
0.5
1.0
1.5
2.0
(dis)charge time (h)
the costs per unit of energy storage
capacity ($/kWh) or per unit of power
Examples of three combinations of BESS (dis)charge power and
($/kW). The cost of the battery cells
time. The shaded areas represent the energy storage capacity, all
(per unit of energy storage capacthree equivalent to 1MWh.
ity) and the PCS (per unit of power)
should both be considered, as well
information that has been
as the Balance of Plant costs. Although this adds a layer of comwidely disseminated typically
plexity, this is crucial in gaining a full understanding of the reladoes not go into detail about
tionships between the intended services, technical specifications,
this key concept.
capital costs and revenue streams.
This differentiation is
The technical and commercial aspects of relative power and
reflected in the financial drivstorage capacity need to be considered in order to derive a busiers for these two contrasting
ness case for energy storage that provides optimal return on
types of services. Frequency
investment. When adding storage behind-the-meter using an
response services are comexisting grid connection, at a wind farm, PV plant or large indusmonly remunerated based on
trial consumer, storage can provide additional revenue or cost
the number of hours over a
reduction opportunities. Grid support services such as frequency
given period that (dis)chargresponse will allow a higher proportion of renewable energy to
ing power is available for
be connected to a grid.
providing response, with a
Diligent specification, evaluation and optimization of these
minimum (dis)charge time
arrangements, as well as compliance with relevant permitting,
requirement. In contrast,
regulatory and subsidy frameworks, are key to manage risk and
bulk time-shifting services
increase investor confidence in this emerging market.
are generally paid based on
Thomas Houlding is a renewable energy consultant in
the energy delivered.
SgurrEnergys solar team and is based in Glasgow.
28

1609rew_28 28

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

ASIA POWER WEEK

3 DAYS

3 SHOWS 1 VENUE

20-22 SEPTEMBER 2016

KINTEX, SEOUL, SOUTH KOREA

BE PART OF ASIAS PREMIER


POWER INDUSTRY
CONFERENCE & EXHIBITION
WWW.ASIAPOWERWEEK.COM

JOIN THE LARGEST POWER INDUSTRY PLAYERS - PLAN YOUR PARTICIPATION TODAY

24

8Attendees
,000

250
International
Exhibitors

130
Industry Expert
Speakers

50
Conference
Sessions

7
Conference

th
24
Annual Event

Tracks

FREE

EXHIBITION
ACCESS
MUST PRE-REGISTER
BEFORE 18 SEPETMBER

PRELIMINARY EVENT GUIDE


NOW AVAILABLE AT
WWW.ASIAPOWERWEEK.COM

COAL

SOLAR

GROWTH
MARKETS

GAS
TURBINES

WIND

FINANCE

POWER
PLANTS

BIOENERGIES

OPERATIONS &
EMERGING
TECHNOLOGIES MAINTENANCE

ENERGY
STORAGE

PANEL
DISCUSSION

LEARN HOW TO PARTICIPATE AT THIS PREMIER EVENT: WWW.ASIAPOWERWEEK.COM


Owned and Produced by:

Official Publications:

For more information,


enter 11 at REW.hotims.com

Supporting Publications:

1609rew_29 29

www.asiapowerweek.com

8/30/16 9:58 AM

S TO R AG E

Making Money with Batteries


Battery energy storage is the hottest emerging
technology in the renewable energy industry
but are we beyond demonstration projects yet?
JENNIFER RUNYON, Chief Editor

Venture capital investments in the energy storage sector


topped $175 million in the first half of 2016, according to Mercom Capital Group, whose analysis shows that lithium-ion and
sodium-based batteries received the lions share of that money.
There is no doubt that batteries will be a large part of the
renewable energy future because they enable greater amounts
of renewables to be connected to the grid. However, that
future may be farther away than one might think, especially
after visiting energy storage conferences and trade shows and
talking to vendors.
What you are up against is the wishful thinking that this
is right around the corner but theyre just not, said Andy Skumanich, founder of SolarVision Consulting and author of a
recent report on energy storage.

Skumanich was referring


to the residential energy storage technology vendors that
were on display at Intersolars
EES North America in July.
Resi solar really isnt a
real market and the reason
for that is because a diesel
generator is just so cheap,
he said.
He added: To some extent
if you are getting repeated
blackouts, you buy this capital equipment that sits there
for 99 percent of the time and
then for one percent of the
time you use it. So to me, it
just doesnt make a compelling business prospect.
Skumanich believes that
in the developed and industrialized world, where we
already have a fairly robust
grid, energy storage such as
batteries will not be economically viable until storage
costs come down considerably or grid power becomes
overly expensive.

Redflows LSB [large-scale


battery] product installed at
an office building in Adelaide,
Australia. Credit: Redflow.
30

1609rew_30 30

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

Money-making Markets
There are some markets where energy storage
does make economic sense,
according to Skumanich who
said the military is always
willing to look at new technologies that could save the lives
of soldiers in the field who
have to carry fuel.
The military is definitely
interested in mobile electric
capability and they dont want
to be hauling diesel around.
They dont mind paying extra
for batteries, he said.
In addition, in places
where the grid is unreliable
or non-existent, batteries are
well-suited to solve problems
of electricity supply.
Mio Dart, Systems Integrator Engineer with Redflow,
an Australian company that
manufactures a zinc-bromide
flow battery, said that she
sees a lot of promise for battery manufacturers to make
money in markets where the
grid is unstable.
A lot of cities in the developing world only get power 6
or 8 hours a day and you have
to deal with not having grid
power the rest of the time and
thats just part of everyday
life, she explained.
There is a way [for battery
manufacturers and vendors]
to make money simply by
promising 24/7 or even near
24/7 power, she added.

A standing-room-only audience attended the NAATBatt workshop,


Making Money with Storage that was held during ESS North
America.Credit: Solar Promotion International GmbH.

From Redflows perspective, these markets are the lowhanging fruit said Dart. She said in these cases, people use
the Redflow battery to charge when there is grid power and discharge where there isnt. Simple.
Dart said Redflow also does business in the Caribbean, which
relies on diesel for a lot of its power generation. She said that
companies in island nations might spend upwards of US $10,000
a year on, for example, one telecommunications site. Dart said
that they could buy a storage system that will suit the site for
much less than that.
Now you wont be completely eradicating the diesel but youll
be greatly reducing it, maybe 50 to 80 percent, she said adding
that payback periods can be as low as 2.5 years and that Redflows battery is designed to last 7 to 10 years.
Dart said that outside of the Caribbean, Southeast Asia and
Africa also hold promise as markets for energy storage.
In the developed world where the grid is robust, Dart agrees
with Skumanich that people who are purchasing energy storage
solutions today are the early adopters who may not be driven by
economics. Dart described these folks as people who want the
newest technology in their homes, who bought electric vehicles 5
years ago and went solar 10 years ago.
They are people who have a really green/environmental attitude and they really want to be maximizing their solar. They
RENEWABLE ENERGY WORLD

1609rew_31 31

SEPTEMBER/OCTOBER 2016

31

8/30/16 9:58 AM

S to r ag e

dont mind spending more money as long as its going to reduce


their carbon emissions, she said.

Control Systems Will Unlock Battery Potential in the Future


Outside of purchasing a standalone energy storage system for
standby power, another real potential for energy storage suppliers to make money is in the future grid scenario that was laid
out in a recent Navigant/Renewable Energy World webcast titled
The Integrated DER Ecosystem: DER, Network Orchestrators and
Platforms for Growth in the Energy Cloud.
By Navigants definition, distributed energy resources (DERs)
consist of distributed generation (solar PV, small wind, microturbines, fuel cells, natural gas and diesel gen sets); energy storage systems (batteries and the like); microgrids; EV charging
loads; and demand response. With such a large array of resources, the linchpin will be the software that controls the assets.
Redflows Dart explained that software providers, such as Geli
and the Greensmith, will help grow the energy storage market.
In the simplest terms, she explained that you can have a battery
there but if its not being operated correctly its not going to make
you any money.
If it is operating at the wrong time; if it is charging at peak
time and discharging at off-peak thats exactly the opposite of
what you want, said Dart.
Further, there are models being proposed in which a utility
might lease a battery storage system to a homeowner with a provision that the utility is able to operate that battery up to 5 percent of the time during peak demand.
In this scenario, the control system needs to determine when
those peak events are happening, charge or discharge accordingly in order to prepare for those peak events, operate during
that peak event, and then after the peak event make sure that
the system isnt creating a new peak event by recharging right
away, said Dart.
So you have to have pretty robust communications and control systems in place to be able to speak to the utility in a comprehensible way, explained Dart.
SolarCity is one potential utility partner that is hoping to
provide these types of grid services to utilities, according to
Ryan Hanley, VP of Grid Services, and a speaker on the Navigant webcast.
Hanley explained that SolarCity sees itself profiting from
32

1609rew_32 32

SEPTEMBER/OCTOBER 2016

deploying assets, it also can


come from pay-for-performance in providing grid services and from software
licenses, he said, adding If
we are providing the ability
for operators to dynamically control these assets there
could be software-as-a-service plays either for us or
other folks that are providing
these platforms.
SolarCity is participating in several pilot projects
with utilities in California
to study how to dynamically control grid assets that
include batteries in hopes
of understanding how to be
profitable in a market that
uses energy storage, solar
and other DERs. New York
is also paying close attention to this new energy paradigm as are other states.
But at this point, almost all
of the projects out there are
studies and it will likely be
many years before we have
real clarity on the value of
energy storage. Further, its
important to note that neither
Redflow nor SolarCity are
profitable companies yet.
Andy Skumanich offers
what might be a realistic
timeline.
Simply as a value proposition, energy storage is not
there and thats kind of the
bottom line. It wont be there
for another decade.

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

CONFERENCE EXHIBITION

18-20 JULY 2017

SANDTON CONVENTION CENTRE, JOHANNESBURG, SOUTH AFRICA

END TO END POWER


TECHNOLOGY AND KNOWLEDGE
3,000+
Attendees

100+
Speakers

75+
Exhibitors

32
Sessions

60+ Sub Saharan


Africa VIP Delegation

Free Networking
Receptions

Targeted B2B
Matchmaking Service

Sub-Saharan Africa is richly endowed by energy resources, yet these assets are largely undeveloped. Further economic and social
advancement hinges critically on fixing the energy sector, eliminating power outages and providing universal electricity access.
POWER-GE & DistribuTECH Africa is the platform for industry experts and key players to come together to exchange knowledge
and encounter technology capable of creating a brighter future for African power. The event covers the entire power
generation spectrum, renewable, fossil fuels, nuclear and addresses the technology needs of utilities and power distributors.
End-to end, it is the must attend event for all those generating and delivering power as well as large scale users of electricity.

DISCOVER
the latest in energy
efficiency from leading
industry experts

REGISTER AS A DELEGATE
Owned & Produced by:

Presented by:

EXPERIENCE
new product launches, demos
and innovative technologies
first hand

REGISTER AS A VISITOR
Supported by:

Supporting Association:

SHOWCASE
your products to key
decision makers from
around the globe

REGISTER AS AN EXHIBITOR
For more information,
enter 12 at REW.hotims.com

www.powergenafrica.com

1609rew_33 33

8/30/16 9:58 AM

WIND

Understanding Risk for


New Wind Technology in
New Wind Markets
Four experts explain how insurance companies
measure risk and therefore set premiums
for new projects and new technologies.
JENNIFER RUNYON, Chief Editor

Building a wind farm is no small undertaking. With costs


ranging from US $2 million to $5 million per MW installed,
the financial backing of a strong insurance partner is a must
in order to put stakeholders minds at ease.
But how do insurance companies evaluate risks and determine premium pricing for projects that are firsts such as the
first U.S. offshore wind farm or the first use of a new MW-class

turbine? We asked four insurance experts to weigh in. Our


roundtable discussion follows. [Editors note: A longer
version of this article appears
online on RenewableEnergyWorld.com. Please click the
link at the end of the article to
read the piece in its entirety.]

The Block Island


Wind Farm under
construction. Credit:
Deepwater Wind.

34

1609rew_34 34

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

Runyon: How does an insurance


company go about insuring a new
project, such as the first offshore
wind farm in the U.S., which is being
built in Rhode Island?
Haynes: Arthur J. Gallagher & Co.
is the appointed broker to the Block
Island Wind Farm so we are very
familiar with this project as well as
various other wind farms in Europe.
[note: Alesco is a wholly-owned speciality business subsidiary of Arthur
J. Gallagher & Co.] Project-specific information is the starting point in
the underwriting process. Insurers
look for a clear breakdown of project elements and costs and want to
understand the construction methodology and allocation of responsibilities between project partners.
Insurers set considerable store in
the experience of project developers
and principal contractors. However,
the offshore wind industry is young,
especially in the U.S., so insurers may
need to look beyond specific experience and assess based on broader
indications of competence and transferable skillsets.
Mulder: Insurers start off with
studying the project information
available and will ask questions
when information is incomplete or
missing. For offshore wind construction projects, it is essential that the
project developers and contractors
are experienced in marine contracting, that the ships they use are fit
for purpose and that the technology
installed is proven and not prototypical. Any possible lack of experience
of the project management should

be compensated by the use of experienced consultants and execution


of the project should be secured by a
Marine Warranty Surveyor.
Kauffman: One of the first steps
in insuring a new project is to obtain
every possible piece of information
on the project from the sea bed
conditions, movement of the water,
background on vessels, and the list
of suppliers for all of the component
parts. Do the contractors have good
risk mitigation and safety procedures
in place? The foundation design is a
huge element we assess through the
partnership of our in-house engineers. One of the most important factors is to assess the experience of
those working on the project. Have
they been engaged in building and
operating offshore wind energy projects in the past? We also ask for a
copy of the O&M contract to see what
is covered and what isnt.
Allen: First, we engage with the
project team at an early stage, particularly those responsible for risk
management and technical due diligence.This is an opportunity to give
our opinion on risk practice, technology choice and aspects of the construction rollout that may affect provision of insurance coverage and risk
premium. We then provide comprehensive analysis of the typical hard
and softrisk factors to understand
the risk profile of the project.
Second, we communicate extensively with the projects insurance
broker to elicit the exact risk appetite
of the client and investigate which
insurance options may be available
RENEWABLE ENERGY WORLD

1609rew_35 35

Murray Haynes,
Partner, Alesco
Risk Management
Services

Maarten Mulder,
Head, Renewable
Energy, Sompo
Canopius

Eileen Kauffman,
Head, Global
Renewable Energy,
Travelers

Jonny Allen,
Offshore
Underwriter, GCube
Underwriting Ltd.

SEPTEMBER/OCTOBER 2016

35

8/30/16 9:58 AM

Wind

from GCube.First-in-market
insurance requests, such as
offshore wind in the states,
bring a particular set of challenges, and it is imperative
that all parties agree on the
extent of the risk transfer that
is being negotiated.
Runyon: What about the
first of a piece of new technology, i.e. a brand-new 8-MW or
10-MW wind turbine that is
being placed in service for the
first time? In other words,
how do you figure out the risk
of failure on something that
has no track record?
Allen: From an insurers perspective, the technical due diligence required
for a new turbine is similar to that which is carried
out by financiers, but we will
also look at the whole lifecycle of risk, especially from a
property damage or mechanical breakdown perspective.
It is unusual for an OEM to
produce such a large capacity wind turbine from scratch;
this type of machine is usually developed by drawing on
the evolution of smaller turbine models, where insurers
have a wealth of claims information to hand. This allows
for a focus on changes related
to the size and output of the
turbine, enabling us to develop an understanding of how
these modifications affect
technology risk.
36

1609rew_36 36

SEPTEMBER/OCTOBER 2016

Kauffman: We are currently involved in some projects under


construction that are using 8-MW turbines, but there arent any
operating with this new technology offshore at this time. There
are, however, prototypes that have been installed onshore. To
understand the risk of technology that doesnt have the benefit of a track record, we work closely with our engineering staff.
The new technology can be a re-engineered version of an existing turbine. We also take a close look at the top-tier suppliers
who are making the components. While its difficult to assess
the full spectrum of risks, we can assess the design risk which is
assumed by the turbine supplier.
Haynes: Insurers are naturally cautious of new technology and
the more revolutionary, as opposed to evolutionary, that technology may be the more cautious their stance towards premiums
and conditions of coverage. However, they have a vested interest in meeting the requirements of their customers and the key to
all informed underwriting decisions is an understanding of the
technology. For this reason, it is common for technical workshops
to be held by manufacturers in order that key design details
of new products may be explained and for interested parties,
including insurers, to ask questions. Indeed, this practice was
followed by GE (Alstom) during the launch phase of their Haliade
150-6 MW offshore turbine, the model currently being installed
at the Block Island site and for which the project will be the first
commercial deployment.
Ultimately, where an insurer is unable to get comfortable with
a new technology, the option remains open to impose coverage
restrictions that exclude or limit losses directly arising from the
most prototypical aspects of a new product.
Mulder: Wind turbines are usually tested extensively by their
manufacturers before they are brought to the market. It is also
common that independent third parties carry out a type certification, where the overall concept of the turbines is assessed (safety,
design, construction, workmanship, quality) in accordance with
a certain wind turbine class. Once the testing period has been
successfully concluded and a certificate is issued, insurers might
consider providing cover for this new turbine, although the track
record is limited and technology not fully proven. Needless to say
the scope of the manufacturers warranty is also of great importance here. The extent of the insurance cover, the deductibles
and/or the premium will in the end reflect all these factors.
Runyon: What is the ballpark amount that a developer should

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

Wind

expect to pay for basic insurance on a new project? Is


there a cost-per-megawatt
range you could offer?
Mulder: The different projects are unique and they all
have their specific risk profiles and there are simply too
many factors that need to be
taken into account. So there
is no such thing as a ballpark amount for insurance
Im afraid. But it is safe to
say that insurance costs for
a comprehensive CAR insurance are usually well below 1
percent of CAPEX.
Kauffman: Insurance rates

are set by looking at each project on its own merit. We assess


many factors including the main contractor, turbine technology,
location, CAT environment and warranty periods. We also look at
cable, pipeline and technology line crossings below the sea bed
to assess the type of third party damage that could be caused.
Haynes: A lot of variables feed into the premium modelling exercise that will guide an insurer towards the premium
charged for a given project. Aside from the actual value of a project these will include technology choice, contractor experience,
location, environmental conditions and project duration.
Understandably, some care is required in offering ballpark figures and as broker to the Block Island project we obviously need
to respect client confidentiality. However, insurance premiums
for the construction phase of commercial scale offshore wind
farms will usually be in the seven figure number range.
A longer version of this article is online. Click here to read
about declining rates, the most error-prone aspects of wind projects and how to insure against unknowns like policy changes.

Solar for every


roof.

Snow or Sun.
Tile, Comp Shingle,
Metal or Flat.
EcoX is the rail-less
choice for solar
on any roof.

740-249-1877 www.ecolibriumsolar.com

Visit us at Solar Power International Booth#2913


For more information, enter 13 at REW.hotims.com

1609rew_37 37

For more information, enter 14 at REW.hotims.com

8/30/16 9:58 AM

dat
a
poi
nt s

GEOTHERMAL

POWER PLANT TURBINES

FIRST LOOK AT THE MANUFACTURING VALUE CHAIN

Iceland

France
I
United States
Portugal

Mexico

Guatemala

Guadeloupe

El Salvador Nicaragua
Costa Rica
Binary Cycle (2005-2015) Manufacturing Countries

& Total Turbine Capacity (MW)


Country
Manufact. Exports Imports Installed
Israel
1,240.0 1,240.0
United States
309.8
137.8
558.0
730.0
Italy
102.2
101.2
1.0
Germany
12.7
1.0
42.9
54.6
China
6.7
4.4
2.3
Japan
2.9
11.8
14.7
Dry Steam/Flash Cycle (2005-2015) Manufacturing Countries &
Total Turbine Capacity (MW)
Country
Manufact. Exports Imports Installed
Japan
2,201.4 2,199.5
1.9
Italy
240.0
240.0
United States
121.0
121.0
50
50.0
Mexico
53.4
53
106.4
India
45.6
45.6
France
11.0
11.0
China
12.2
11.3
0.9
Russia
5.4
5.4
38

1609rew_38 38

SEPTEMBER/OCTOBER 2016

Trade Flow
Turbine Capacity (MW)
1,200
600
300
150
50
1

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

The global geothermal market has significantly


grown over the last decade. In the 10 years
ending in December 2015, 118 binary cycle, 58
flash cycle and 14 dry steam geothermal power
plants were installed around the world. The
additions increased global geothermal power
capacity by 4.4 GW to 13.3 GW.

The market for geothermal technology is


expected to reach about 18.4 GW by 2021.
Based on developing projects and forecasts,
there will be high demand for a diverse mix of
geothermal turbine types from Europe and the
United States, East Africa, South East Asia and
the South Pacific.

Russia
Germany

Italy

Romania
Turkey
China

Japan

Israel
Taiwan
India
Philippines

Kenya
Indonesia

Papua
New Guinea

Geothermal Markets
in Order of
Installed Capacity
United States
New Zealand
Turkey
Indonesia
Kenya
Iceland
Italy
Mexico
Nicaragua
Philippines
Germany
El Salvador
Papua New Guinea
Costa Rica
Guatemala
Japan
Portugal
China
Russia
France
Australia
Romania
Taiwan

Australia

Turbine Type and Trade Status


Exporter Importer

New Zealand

Binary Cycle
Dry Steam/Flash Cycle

CREDIT: Sertac Akar, National Renewable Energy Laboratory


RENEWABLE ENERGY WORLD

1609rew_39 39

SEPTEMBER/OCTOBER 2016

39

8/30/16 9:58 AM

REGISTER BEFORE OCT. 7 TH TO SAVE BIG!

December 13-15, 2016 | Orlando, Florida, USA


Orange County Convention Center North / South Halls | REW
W
OWNED & PRODUCED BY:

PRESENTED BY:

SUPPORTED BY:

.com | #PowerGenWeek
MEDIA SPONSOR:

For more information, enter 15 at REW.hotims.com

1609rew_40 40

8/30/16 9:58 AM

G E OT H E R M A L

Examining the Technological


Overlap Between Oil,
Gas and Geothermal
The possibilities for the exchange of
technologies between oil and gas and
geothermal are becoming clear as creative
applications, such as geothermal fluid extraction
and advanced drilling, are being put to the test.
ALLIE NELSON, Contributor

The intersection of the oil and gas and geothermal industries is one that is rich in unexpected ways, be it in drilling
technologies or the new frontier of co-production of both fossil fuels and geothermal power from the same well. The revolutionary drilling technology oil and gas companies employ
while creating critically-deep wells has migrated over to geothermal, allowing new, difficult to access renewable resources to be harnessed. Meanwhile, in Canada and the U.S., the
potential of geothermal energy coproduction at scores of previously existing oil and gas drilling sites is a hot topic a
potential way for oil and gas companies to diversify their

energy portfolios and invest


in clean baseload energy.

Geothermal in Oil and Gas


Fields
Maria Richards, head of
Southern Methodist Universitys (SMUs) Geothermal
Lab and a lead researcher
on the intersection of oil and
gas and geothermal, views

Oil rig in a field.


Credit: Pixabay.

RENEWABLE ENERGY WORLD

1609rew_41 41

SEPTEMBER/OCTOBER 2016

41

8/30/16 9:58 AM

geothermal as an opportunity for oil and gas industry workers to eventually


transition to. Indeed, following layoffs in the oil and
gas industry after fossil fuel
prices plummeted, Richards
observed many industry
professionals reaching out
to SMUs lab about opportunities in the geothermal
field due to similar technical skillsets. At SMUs annual Power Plays: Geothermal Energy in Oil and Gas
Fields conference, many
players in the oil and gas
industry were represented,
including major oil companies like Shell.
However, for a smooth
transition in areas like
coproduction, certain criterion must be met, Richards explained. Technology
at the surface must evolve,
and for the next five years,
Richards believes the oil
and gas industry will be a
resource for collecting data
and lithology. Research into
the occurrence of geothermal resources overlapping
fossil fuels will be a focus.
Their intersection, including coal plants like President
and Chief Technology Officer
at AltaRock, Susan Pettys,
area of expertise must be
further explored, Richards
stressed. In Pettys assessment, currently, 50,000 MW
42

1609rew_42 42

SEPTEMBER/OCTOBER 2016

of aging coal-fired generation needs to be repowered or shut


down as they fail current emissions standards. Repowering with Enhanced Geothermal Systems, or EGS, would take
advantage of existing infrastructure, producing zero emissions with very low cost to operate and keeps jobs.
Their synergies are still being recognized. Richards highlighted Will Gosnold of the University of North Dakotas (UND)
demonstration site in the Williston Basin, where Gosnold developed a concept known as waterflooding. At a significant depth,
fresh hot water is pulled out alongside oil without mixing. Following that, eight cooling fans on the oil and gas pad cool the
water and then reinject it into the rock formations. This lubricates the oil, allowing it to flow, while Access Energys two turbines generate a gross 250 kw of power, creating a hybrid of
geothermal and oil technology. This system is applicable for the
oil and gas industrys future utilizing already existing geothermal fluid at fossil fuel sites.
Richards views the future of oil and gas and geothermal overlap as lying in EGS, where geothermal fluid is
pumped into cracks in the ground to create a geothermal
system. Unfortunately, Richards noted, from 2004-2006 the
U.S. Department of Energy (DOE) didnt allow for EGS studies in sedimentary basins the geology for most oil and gas
resources. Richards explained there is a missing opportunity
for EGS/sedimentary basin geothermal projects at sites where
the oil and gas industries are already creating EGS-suitable
environments. Richards characterized this as frustration and
disappointment from the research side, but believes that if
payoff issues are overcome and economic incentives for geothermal development at oil and gas sites are created, more
hybrid technologies like Will Gosnolds waterflooding can be
created and instituted on a permanent basis.

New Technologies from the Department of Energy


As highlighted by a DOE spokesperson, the DOE division of geothermal expertise, the Geothermal Technologies Office (GTO),
has long been involved in exploring innovative links between
fossil fuels and geothermal and promoting technologies like
EGS through the FORGE program. The GTO is currently exploring opportunities to partner with industry to deploy binary geothermal power systems in operating commercial oil and gas
fields and also exploring coproduction.

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

G e ot h e r m a l

A hot topic is the search


for in demand mineral resources such as lithium. Mineral recovery activities within the GTO program
are exploring approaches to
remove the dissolved valuable, strategic or critical
materials from elevated temperature fluids. Once demonstrated, these advancements

commercial enterprise to co-produce electricity from geothermal resources at an oil and gas field. With support from GTO,
researchers including Will Gosnold at UND successfully generated geothermal power from hot water that flows from wells in
the Williston Basin in western North Dakota. This technology
can offset the need for costly transmission construction and
reduces energy costs at remote oil fields. The facility started generating electricity for the first time in late April, with a
nameplate capacity of 250 kW.
Additionally, the project received the Geothermal Energy
Association Honors award for Technological Advancement.
This award recognizes the
Green machine
development of a new, innovative, or pioneering techHeated,
pressurized vapor
nology to further geothermal
Generator
development. The DOE and
Evaporator
Expander
Work out
UND partnership earned this
(electricity)
award for launching the first
Condenser
Low pressure
commercial project that proHeat in
vapor
duces geothermal power from
Heat out
Pump
an oil and gas well.
High pressure
A final area of overlap
Low pressure
liquid
liquid
between oil and gas and geothermal, the DOE spokesperson explained, is in technolLoy Snearys Green Machine. Credit: Gulf Coast Green Energy.
ogy. A significant number of
subsurface technologies utimay enable the recovery of
lized by O&G industries can and are utilized by the geotherresources from the produced
mal industry for EGS, but technological advances in either
fluids from oil and gas. The
sector accrue benefits to both, as the subsurface challengDOE program is also cones and needs facing both the oil and gas and EGS industries
ducting an evaluation of eleare similar. As an example, high temperature tools develvated temperature fluids to
oped by industry, with operating parameters that allow those
assess the potential for these
tools to be deployed in extremely hot subsurface conditions,
dissolved minerals withcan be utilized by the oil and gas industry as they expand to
in geo-fluids and oil and gas
deeper and hotter commodity extraction, as well as the EGS
fluids to establish a resource
industry as they develop hot geothermal reservoirs. Simiestimate for the U.S.
larly, stimulation and drilling technologies are used by both
As touched on in Will
industries, so advancements in this area benefit both sectors.
Gosnolds project, in May
Finally, improved wellbore integrity technologies, zonal iso2016, DOE announced the
lation technologies, and lower cost fiber optic cables would
launch of the nations first
profit both industries.
RENEWABLE ENERGY WORLD

1609rew_43 43

SEPTEMBER/OCTOBER 2016

43

8/30/16 9:58 AM

G e ot h e r m a l

The Future of Coproduction


Loy Sneary, president and
CEO of Gulf Coast Green
Energy, partnered with ElectraTherm, SMU, and the
DOE in 2011 at a site in Denbury, Mississippi, to demonstrate the power of geothermal coproduction at oil
and gas sites using the aptly-titled Green Machine. Oil
and gas companies typically separate oil and hot, briny
water that comes up with the
fossil fuels and pump them
into separate wells. In other
countries, companies produce electricity from the hot
water, Sneary explained.
At the Denbury demonstration site, the water was
funneled into a separator tank from the oil and,
using Electratherms Green
Machine, the diverted hot
water had its heat removed
to generate 32 kWh and was
then reinjected. The water
temperature at Denbury was
not as hot as other oil and
gas areas, which can generate more (65 kw) when
there is hotter water, enough
to power about 60 homes.
There are even potential
wells with 500 kW in certain
geologic areas.
We are offsetting electric consumption on the
site with power generated from hot water, said
Sneary during the time of the
44

1609rew_44 44

SEPTEMBER/OCTOBER 2016

demonstration. It has been talked about for a long time, people


have been researching it and there have been a lot of concepts
tested this is the first time its really been done with a modular solution, installed in 50 hours and with the entire system
mounted to a tractor-trailer skid.
Halley Dickey, Vice President of Industrial Builders, Inc. said
of coproduction: It is feasible wherever there is existing oil and
gas infrastructure, and we may see more applications utilizing
existing infrastructure in the future, particularly as electricity
prices rise over time.
However, there is a question whether coproduction is currently profitable, Dickey noted: Is it economically viable to pursue coproduced fluids as a viable business model for (coproduced) geothermal developers or O&G companies? Dickey
concluded that as we see electricity prices rise over time, these
alternative approaches to geothermal such as utilizing coproduced fluids or geopressured resources will potentially become
economically viable. Eventually, it may be possible to have
many small coproduced projects that can be economically justified, if offtakers utility or corporate would get some special rate/tariff that shifts their economics to positive similar
to initiatives that have spurred off-grid solar.
The potential for new development at the intersection of geothermal and fossil fuels is substantial, and the opportunities
are plentiful. Just one coproduction could add substantially to our energy supply with DOE estimating that an average of
25 billion barrels of hot water are produced annually from oil
and gas wells within the U.S. But in the final analysis, Dickey
would say it really is all about the money.
The geothermal industry is entering a brave new world of
technological exchange with the oil and gas industry and pulling in many existing technologies to create innovations or build
upon the geothermal fluid already extant in oil and gas fields
with systems like the Green Machine. Advanced drilling technology is allowing geothermal players to access richer resources, and there is a major opportunity for oil and gas corporations looking to expand into renewables like geothermal. In the
wake of COP21 and a shifting energy landscape, the overlap of
geothermal and oil and gas may prove a ripe ground for both
industries looking to move forward in new and creative ways.
Allie Nelson is the geothermal news and communications specialist with the Geothermal Energy Assocation.

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

The Photovoltaic Manufacturer Shipments: Capacity,


Price and Revenues report provides an analysis of quantitative shipment, capacity, and module price data for
the supply side of the terrestrial photovoltaic industry. This report has been published annually since 1975.
It focusses on the most recent two years of supply side
activity also forecasting the next five years of crystalline and thin film shipments. The manufacturer shipment section updates long-term regional shipment
history, crystalline and thin film shipments and market shares, cumulative manufacturing histories, and
manufacturing capacities useful in management analysis of the industry. The subject of industry price behavior is covered in a separate chapter. The report also
includes a chapter with analysis on the leading manufacturers in terms of shipments for 2014 and 2015.
Manufacturers covered in this report produce technology as
cells, cells to modules, and thin film panels. Module assemblers that buy cells from technology manufacturers and assemble into modules are considered demand side participants and though shipments for this group are not analyzed
in this report, the
chapter on price
include a discussion
Unmatched
&will
Unbiased
about the pricing and buying behavior of this population.
Analysis for Solar Professionals.
It is well known that the PV industry has been experiencing a
Good work
is hard
to find.
period of consolidation.
Table
1.1
provides examples of the
c-Si cell and thin
n film pane
p
panel
el manufacturers whose shipment
in-formation was used to prepare this report, some of which
may no longer be producing technology in 2016. This list
is not exhaustive and is meant to provide a representative
overview of cell and thin film manufacturing participation.
For more information, enter 45 at REW.hotims.com

1609rew_45 45

8/30/16 9:58 AM

H Y D RO P OW E R

Inside AMPs New


Run-of-River Hydropower Plants
JENNIFER RUNYON, VIDEO COURTESY MWH GLOBAL

It is not that often that the U.S. celebrates new hydropower facilities
but 2016 should mark the commissioning of four new run-ofriver plants by AMP. Learn more in the video feature below.
According to the National Hydropower Association, one of the best power sources to tap in
the United States are non-powered dams. Because they are already built, there is little to no
disturbance to the environment when adding hydropower technology. It is estimated that
only 3 percent of dams in the country are equipped to produce hydropower today and if all of
the existing dams were fitted with hydropower technology the total hydropower generation
capacity would increase by 12.1 GW.
In Ohio, American Municipal Power (AMP), a nonprofit energy provider, worked with MWH
Global to design run-of-river hydropower facilities adjacent to four existing dams along the
Ohio River, adding more than 300 MW of clean electricity generation capacity.
The AMP projects, which include Willow Island, Cannelton, Meldahl and Smithland, make
up three-quarters of the hydropower projects currently under construction in the U.S. Check
out the video to learn more about this exciting technology.

The Cannelton

CLICK TO PLAY THE VIDEO

Hydroelectric Project
was the first of AMPs
four run-of-the-river
hydro projects currently
under construction to
break ground, in 2009.
The 88-MW Cannelton
plant is located on
the Ohio River near
Hawesville, Kentucky.
Credit: MWH Global.

46

1609rew_46 46

SEPTEMBER/OCTOBER 2016

RENEWABLE ENERGY WORLD

8/30/16 9:58 AM

Renewable Energy World Resources


Online educational classes and market research for the
renewable energy industry.

Educ at ion a nd Tra ining

Solar for every


roof.

Learn with Renewable Energy World Experts


Renewable Energy World offers courses through our partner
Heatspring. Chris Lord offers an online course that shows
students how to create financial models for PV projects.
Know anyone who wants to break into the industry? Check out
Scott Sklars Solar 101.
All courses can be found online here.

Resea rch
Solar Industry Research and Reports
Renewable Energy World offers solar industry reports
by expert Paula Mints. Her annual Global Analysis
of Markets for Solar Products and Five-year Forecast
2015-2020 was just released in August.
Get your discounted copy here.

Snow or Sun.
Tile, Comp Shingle,
Metal or Flat.
EcoX is the rail-less
choice for solar
on any roof.

740-249-1877 www.ecolibriumsolar.com

Visit us at Solar Power International Booth#2913


For more information, enter 17 at REW.hotims.com

Adver t iser s Index


For more information on the products and services found
in this issue click here.

Distributech 201748
Ecolibrium Solar37, 47
First Solar Inc.CV2
Gamechange Solar9
Hammond Power Solutions47
KBS Media2
Nexans4
Power-Gen Africa 33
Power-Gen India & Central Asia 201723
Quickscrew International37
Renewable Energy World Asia29
REW.com45
REW International40
Solar Energy12, 19
Solar Promotion International GmbH24
Surrette Battery Co.27
Trojan Battery Company14

HPS has developed a reputation as one of the most


capable manufacturers of standard and custom dry-type
magnetics in the world. With multiple manufacturing
facilities located throughout North America, Italy and India,
HPS offers a broad range of products for many demanding
and diverse industries.
Our extensive and durable line of VPI and Cast Resin
transformers and reactors provide you with a complete
magnetic solution for all your renewable energy needs.

The Adveritsers Index is published as a service. The publisher


does not assume any liability for errors or omissions.
www.hammondpowersolutions.com

For more information, enter 18 at REW.hotims.com

1609rew_47 47

8/30/16 9:58 AM

San Diego Convention Center

energy

Innovation

DistribuTECH.com
DistribuTE
#DTECH2017

January 31February 2

2017

Savings Up To $200 Was NEVER Easier.


Register Today For Early Bird Prices BEFORE IT IS TOO LATE!
DISTRIBUTECH.COM/REGISTER

For more information,


enter 19 at REW.hotims.com
OWNED &
PRODUCED BY:

OFFICIAL PUBLICATION
OF DISTRIBUTECH:

SUPPORTED BY:

HOST UTILITY:

1609rew_48 48

8/30/16 9:59 AM

Last
the

WORD

Flytings of Fancy

Joel Stronberg ,

Esq., of The JBS Group


is a veteran clean
energy policy analyst
with over 30 years
experience, based
in Washington, DC.
Stronberg recently
returned to private
practice after serving
as the Executive
Director of the
Biomass Thermal
Energy Council.

49

1609rew_49 49

Temperatures were not the only


thing rising this summer. The debate
between some members of the biomass
sector and the environmental community has been heating up as well.
In one corner is a self-styled consortium of organizations whose members represent every facet of the
forest products industry: from owners of forests both large and small,
to wood suppliers, to major manufacturers of wood, pulp, and paper
goods. www.biomass101.org. In
the other corner is the self-acclaimed
Biomess101 a project ofPartnership for Policy Integrity(PFPI) and
friends. www.biomess101.org.
I use the word debate advisedly, however. Never known as a pollyanna possessed of rose-colored
glasses, a debate to me conjures
up images of a respectful and honest presentation of opposing points
of view. What is occurring on the
Internet, in the media and on Capitol Hill is more akin to a series of
yo momma riffs.
Would the argument be about
someones make-believe mamma, it
might be entertaining. As it is about
a valuable natural resource that must
be preserved but that holds promise
to be used in the battle against climate change, I am not laughing. Nor
should you.
I can appreciate what motivates

SEPTEMBER/OCTOBER 2016

each of the sides. Industry feels


that both their livelihoods and their
integrity is being attacked. The environmentalists are attempting to protect a natural resource that is incapable of defending itself and has
suffered at the hands of those who
would exploit it.
Does that mean that the right and
wrong of this argument are clear?
Far from it. There are credible studies
on both sides that speak to the potential of forests to suck up CO2, serve as
a source of heat and power and to do
so in a sustainable manner. There are
equally credible concerns and studies that say this cannot or perhaps
more rightly is not being done in
the real world.
The current battle royal was set
off by the biomass industrys effort
to legislate the resources carbon
neutrality. As a wise person once
said: why legislate it, when you can
prove it? Good question. To answer
that question, I call upon not just the
combatant creators of the websites,
but to the larger industry and environmental communities, university researchers and most of all
Congress and such federal agencies
as the Departments of Agriculture
and Energy and the Environmental
Protection Agency to come together
and actually address this issue in a
reasoned and rational manner.

RENEWABLE ENERGY WORLD

8/30/16 9:59 AM

Вам также может понравиться