Energy Storage

ABB has successfully commissioned Denmark’s first urban energy storage system. The Lithion-ion based battery energy storage system (BESS) will be integrated with the local electricity grid in the new harbour district of Nordhavn, Copenhagen.

Feb 8 - Italy's Enel has partnered with storage systems provider Aton Storage in order to expand its portfolio in the sector.

The deal follows agreements reached by Enel in recent months with Tesla, BYD and LG Chem.

Enel has also incorporated the Aton storage system in its commercial offering of photovoltaic panels combined with energy storage systems “which will launch shortly” it said.

ABB is to provide an “innovative” microgrid, combining battery and flywheel based storage technologies, designed to test scalability and improve power stability for around 300,000 people in Anchorage, Alaska, USA.

Italy's industry ministry has ruled strategic gas storage volumes in the country for storage year 2017-2018 should remain unchanged year on year at 4.62 billion cubic meters, or around 48,846 GWh.

Pacific Gas and Electric Company (PG&E) has successfully completed a technology demonstration project to explore the performance of battery storage systems participating in California's electricity markets.

One of the key factors that will determine the amount of gas used in power generation over future years is the cost and effectiveness of energy storage. The cheaper the storage, the more intermittent renewables will be able to be introduced to grids, and the less gas that will be required; especially in higher latitudes where solar is not available part of the year.

France's Engie has signed an agreement with Ukraine's gas transmission system operator UkrTransGaz aimed at further developing the company's presence in Ukraine's wholesale gas market.

Russia's Gazprom is ready to face the heightened natural gas demand of the winter period, starting the season with some 72.1 billion cubic meters of gas reserves in storage, according to the head of Gazprom, Alexei Miller.

Responding to California’s Aliso Canyon gas supply constraints, the key power provider Southern California Edison (SCE) has decided to install a battery energy storage system from Current, powered by GE’s LM6000 Hybrid EGT package.

Oct 5 – Working with the utility Hamburg Energie the Technical University Hamburg Harburg (TUHH), Siemens is developing a thermal storage solution to be paired with wind energy, which it hopes “will set a future standard in efficiency.” Excess wind energy is used to heat rock-fill, protected by an insulated cover – when stored electricity is needed a steam turbine converts the heat energy back to electricity. Tests in spring 2017 will evaluate the energy conversion of a 36 MWh test bed based on a container holding approximately 2,000 cubic meters of rock-fill. 

The world’s largest lithium-ion battery power storage – a 20 MW/80 MWh Tesla Powerpack – will be put in place at SoCal Edison’s Mira Loma substation in an effort to better harness renewable energy sources. California Public Utilities Commission (CPUC) had mandated an accelerated procurement of power storage to counteract energy shortages following the Aliso Canyon gas leak.

Aug 30 – EDF Energy Renewables, the UK renewables arm of the French utility, will install a 49 MW battery power storage at its West Burton CCGT in Nottinghamshire. The final decision was made after EDF won a contract as part of a 200-MW Enhanced Frequency Response (EFR) tender by the UK's National Grid.
A total of eight projects secured contracts in the EFR tender; other winners include Vattenfall, Low Carbon, RES, Element Power, E.on UK and Belectric.

Aug 25 – Southern California Edison has selected a subsidiary of AltaGas to build a 20 MW storage project with a discharge capacity of 80 MWh east of Los Angeles. AltaGas Pomona Energy Storage will build, own and operate the project, which is estimated to cost up to $45 million and is meant to be operational by December. State regulators urge utilities to procure storage to avoid power outages.

Aug 25 – More than 20 days after Malta’s Prime Minister Joseph Muscat attended the ‘Sail-away Ceremony’, the gas storage ship destined to support power stations in Malta is still docked in Singapore. No fixed date has been set for its departure – so it is unclear whether will reach Malta as planned in mid-September.

Affordable storage is seen as the missing link between intermittent renewable power and reliable energy supply. McKinsey research anticipates costs could fall to $200 per kWh in 2020 – half of today’s price, which would help transform the energy mix of many nations. By 2025, costs of power storage are expected to fall to $160 kWh or less, making it affordable to use for utilities and grid operators.

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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.