Energy Storage

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

Falling technology costs of solar power and heat have sparked a spree of new installations across India. The country now has the sixth largest installed capacity for solar thermal globally, according to IEA figures, however the rapid growth in solar PV deployment with its intermittent supply requires an adequate backup based on flexible gas generation and energy storage.

Pacific Gas and Electric Co (PG&E), together with Texas-based Vistra Energy, have sought regulatory approval to install a 300-MW/1,200-MWh battery storage facility at Moss Landing in California. The project is part of a wider PG&E venture, comprising four projects with a total capacity of 567.5 MW – all due for commissioning before end-2020.

Alan Finkel, Australia’s chief scientist, has highlighted the country’s potential to become a world leader in energy storage, including renewable hydrogen. Large-scale deployment of energy storage, however, requires a smarter electricity grid and mechanisms to empower consumers to manage their costs.

Only large scale and intelligent energy storage can solve the issue of variable renewable electricity generation. There is little political will for a fresh wave of subsidies for storage – as there was for renewables – hence a carefully crafted market design is needed to incentivises flexibility and storage, says Patrick Clerens, Secretary General at the European Association for Storage of Energy (EASE).

Finland’s technology group Wärtsilä has launched an integrated solar PV and energy storage to deliver a true “renewables as baseload” solution that increases resilience and efficiencies. The adaptable Wärtsilä Hybrid Solar can be supported by a power producer’s existing grid infrastructure.

June 14 – Enel Group’s first utility-scale, stand-alone battery energy storage - the 25 MW/12.5 MWh Tynemouth project - is about to start operations, supported by a four-year contract with British System Operator National Grid to provide grid-balancing services. Enel bought the storage venture from Element Power in May 2017, and invested about 20 million Euros in the overall project, including construction.

UK Power Reserve has partnered with Fluence to deliver the first phase of its 120 MW battery storage portfolio to the British power grid. Fluence agreed to provide three 20 MW storage systems at sites in the Midlands and North West using its Advancion technology. All three new sites are due operational during winter 2018/19.

The Swiss arm of MAN Diesel & Turbo and ABB Switzerland have started to jointly develop, produce and commercialize a three-way Electro-Thermal Energy Storage system (ETES). Based on so-called ‘charging cycle,’ the ETES uses surplus renewable-electricity to generate heat and cold for storage in insulated reservoirs. The stored heat and cold can then be converted back into electrical energy on demand.

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

Technology of battery-based energy storage has matured and industry stakeholders in some regions of the United States have gained experience financing, procuring, and operating power storage installations. Lithium-ion chemistries batteries currently make up 80% of large-scale U.S. power storage, and most of the capacity is being installed in California followed by the Pennsylvania-New Jersey-Maryland Interconnection (PJM).

Mexico, the largest buyer of US pipeline gas and LNG, is preparing a tender for strategic storage at depleted oil and gas reservoirs. Cenagas, the Mexican National Natural Gas Control Centre, has already selected four underground sites – Acuyo, Brasil, Jaf and Saramako – from a list of 15 proposed sites. Registering strong bidding interest from foreign players, the Mexican Energy Secretariat (Sener) will hold the tender in September 2018.

Opinions differ widely when it comes to energy storage. Dominion Energy in its new long-term plan for Virginia and North Carolina notes that the price of battery storage showed it wasn’t ready for full consideration. Instead, the utility is looking to intensify the deployment of new gas-fired peaking power plants.

Dry natural gas production in the United States is forecast to reach a new record of 80.5 billion cubic feet per day (Bcf/d) in 2018, up from 73.6 Bcf/d in the previous year. According to the EIA’s latest Short-term Energy Outlook (STEO), the rise in US natural gas production will help replenish storage levels from current lows and support increasing natural gas exports, both via pipeline to Mexico and in the form of LNG.

Technological challenges are “taking root on the grid,” the New York Independent System Operator (NYISO) said with reference to an array of battery storage projects and the first offshore wind project off Long Island. Looking ahead, NYISO expects both baseload and peakload power demand to fall by about 0.14% through to 2028, caused by a rising use of distributed power sources and  energy efficiency measures.

Page 3 of 10

News in Brief

Gazprom seeks to partner with Fortum

June 27 – The heads of Gazprom and Forum, Alexey Miller and Pekka Lundmark, have met in St. Petersburg to discuss a potential cooperation in the field of power generation. The Finish energy company Fortum owns 29.5% of the Russian power plant TGC-1 as well as a 49.99% share in the German utility Uniper. Through the talks, Gazprom could gain Fortum’s support to expand its firm long-term deliveries of Russian gas to Finland and Germany.

Quarrels over contract award

June 26 – Guam Power Authority’s decision to award a contract to finance, build and operate a new 180 MW power station on the island to Korea Electric Power has sparked protest by rival bidders. Four companies had submitted proposals – Korea Electric, Osaka Gas, Powerflex and Hanwha Energy Corp. Declining to comment on the quarrels over the contract awarding process, GPA said the deal with Korea Electric is expected to close by September 9, pending a related impact study.

PTT steps up power sector investment

June 25 – Thailand's state-run PTT Pcl has decided to boost investments in the retail and industrial power sectors to help insulate the energy company against the impact of a global economic slowdown on its oil refining and chemical businesses. Referring to the Sino-U.S. trade war as a global challenge, PTT chief executive Chansin Treenuchagron said the company is looking “how we can survive in the short term.”

APR helps power Libya’s recovery

June 24 – Libya’s state-owned GECOL has asked APR Energy to bring in temporary generators to provide a rapid 450 MW boost. Under the latest contracts, APR provided mobile gas turbines at four key sites in Libya (250 MW) as well as 200 MW of diesel generators at two sites.

GE supplies SCADA to New Zealand

June 21 – GE’s Renewable Energy Grid Solution’s business has won an order from two New Zealand utilities to upgrade their traditional Supervisory Control and Data Acquisition (SCADA) systems with GE’s Advanced Distribution Management Solutions (ADMS). The orders were placed by Top Energy Ltd with some 31,000 customers and Northpower serving over 60,000 customers, though the contract values were not disclosed.

Top 5 OEMs to rule two thirds of global wind market

June 20 – After a decade of fragmentation, the top 5 turbine OEMs are consolidating again and Wood Mackenzie anticipates key players will surpass a combined market share of 68% by 2020, up from 47% five years ago. Vestas, SGRE and GE remain the top 3 wind turbine producers wwhile the Chinese leaders, Goldwind and Envision, are becoming increasingly popular due to their product reliability and track record.

Keane to merge with C&J Energy

June 19 – Oil- and gasfield service providers C&J Energy Services and Keane Group have agreed a merger-of-equals in a $746 deal that will give the two companies the necessary uplift in an industry burdened by budget cuts of hydrocarbon producers. The 50:50 merger will create a company will create a company with a combined enterprise value of $1.8 billion, including $255 million in debt. The deal is expected to close in the fourth quarter of this year.

Evol LNG helps power Australian gold mine

June 18 – Kirkalocka Gold Mine in Western Australia will use Evol LNG to fuel Zenith Energy’s 14.5 MW power station with regasified natural gas starting from September 2019. The mine is run by Adaman Resources and had been relying on diesel to cover its energy needs. Based on the current diesel price, Adaman Resources expects to reduce fuel costs by more than A$13 million (US$9 million) during the first six years of operation of the new onsite LNG-to-Power plant.

Shell Energy ordered to refund overcharged UK customers

June 17 – UK energy regulator Ofgem has ordered Shell Energy Retail to refund around 12000 customers who were overcharged after the Government’s cap on gas and electricity prices came into force in January. Shell Energy Retail s agreed to refund these customers by paying £29,000 in compensation (£5 per fuel), and also pay an additional £200,000 into Ofgem’s voluntary redress fund.

BASF enters battery market

June 14 – German chemical company BASF is using NGK Insulators’ sodium sulfur batteries as its entry point into the energy market. The Japanese manufacturer NGK is currently the only maker of the large-scale sodium sulfur (NAS) batteries, capable to store several hours of energy. A joint project in northern Germany uses NAS batteries that store energy for five hours, while a recently completed project in Abu Dhabi using 108MW / 648MWh of the systems with a full six hours storage duration.

CNPC boosts domestic gas production

June 13 – China National Petroleum Corp (CNPC), the largest Chinese oil and gas company, has announced plans for domestic natural gas output to reach 55% of overall domestic supply by 2025. Last year, CNPC managed to boost production by 5.9% to reach 138.02 billion cubic metres, while also increasing imports of pipeline gas and LNG.

Gazprom taps new gas deposits for Nord Stream 2

June 12 – Gazprom is fast-tracking hydrocarbon production in northwest Russia to boost reserves for export through the Nord Stream 2 pipeline (55 Bcm/y), currently being built through the Baltic Sea. At a meeting with Nord Stream shareholders, Gazprom noted that its Yuzhno-Russkoye field has yielded about 276 Bcm of natural gas, including 0.9 Bcm of hard-to-recover Turonian gas, since the start of operations. Turonian gas reserves, consisting of about 99% methane with no heavy residues, lie at a depth of 800–850 meters in reservoirs with low permeability. Commercial production at the Turonian deposit is scheduled to start in late 2019.

PG&E turns off electricity to avoid wild fires

June 11 – Pacific Gas and Electric Company (PG&E) has turned off electricity for some Californian communities at risk of a wildfire during the lastest heat wave. The authorized blackout started on Saturday in Napa, Solano and Yolo counties, with electricity being gradually restored over the course of Monday. Approximately 16,000 customers have been affected.

Gazprom to build power plants in Serbia

June 10 – Gazprom Energoholding has signed an Agreement of Intent (AoI) to build an upgrade several gas-fired power plants in Serbia. Together with Novi Sad, Gazprom Energoholding is already building a CCGT with some 200 MW capacity near a refinery in the Serbian town of Pancevo.

U.S. fund splashes out $4bn to buy El Paso Electric

June 7 – Infrastructure Investment Fund (IIF), a private investment vehicle within J.P. Morgan Inc., has agreed to acquire the U.S. utility El Paso Electric Co for $68.25 per share in a cash transaction. The enterprise value on the transaction is estimated at $4.3 billion. El Paso Electric customers will receive a total $21 million in bill credits over three years.

Caterpillar gensets back up Finnish data center

June 6 – The Swedish telecom giant Telia has ordered 12 Caterpillar gensets to provide standby emergency power to back up operations at its new data center in Helsinki. The Cat dealer Witraktor figured a system which includes eight Cat 3516B and four 3516E generator sets. The Telia Helsinki Data Center is the largest such facility in Finland, and its primary electric power supply comes from a combination of wind, hydroelectric and biomass.

Capstone wins orders in Iraq

June 5 – Micro-turbine producer Capstone has secured an order for two C600 Signature Series microturbines to provide 1.2 MW of energy to power a triethylene glycol (TEG) dehydration facility near Basra, in southern Iraq. The contract also includes Capstone’s new self-cleaning pulse filtration system, allowing the turbines to better withstand hot and sandy conditions with minimal maintenance.