Cleantech Market Intelligence
Utility-Scale Energy Storage: The Next Killer App
In recent years in the power sector, companies like C3 Energy and Space-Time Insight have been introducing groundbreaking applications that can provide powerful data and insights across the utility value chain, from the customer to the independent system operator (ISO). Looking back over the Navigant Research utility transmission and distribution technology forecasts in our syndicated reports—and our 10-year forecasts for those technologies—it’s clear that utility-scale energy storage is among the technologies undergoing the most dramatic transformations, thanks to these applications.
Since 2009, the California Energy Commission (CEC) and the U.S. Department of Energy (DOE) have invested millions of dollars in utility-scale storage through both smart grid demonstration project funds and Advanced Research Projects Agency – Energy (ARPA-E) R&D grants.
In December, Eos Energy Storage announced that it had won a $2 million award from the CEC to deploy and demonstrate a 1 MW grid-scale battery system at Pacific Gas and Electric’s (PG&E’s) Smart Grid Lab in San Ramon, California. The project, called Aurora, was the only advanced battery storage system recipient of grant funding.
According to Eos, its Aurora battery system “can be manufactured at a fraction of the cost of existing energy storage solutions.” The Edison, New Jersey-based company is joining with PG&E, the Electric Power Research Institute (EPRI), Lawrence Berkeley National Laboratory (LBNL), distributed energy storage technology pioneer Stem, and ETM Electromatic to carry out the project.
“This type of project deployment can meet the requirements of California’s utilities and industrial users at a price that will compete with gas peaking plants, providing both peak generation and infrastructure benefits,” said Philippe Bouchard, Eos vice president of Business Development, in a statement.
Strategy for Scale
Eos’ Aurora direct current (DC) battery, power electronics from ETM, and Stem’s real-time data analytics are being implemented at PG&E’s Smart Grid Lab in San Ramon. EPRI is managing interconnection and systems integration requirements. LBNL will employ real-time grid simulation to assess “system benefits under dynamic load and renewable integration use cases.”
The Eos Aurora 1000/4000 battery system delivers 1 MW of electrical power for 4 hours, which is more than enough to mitigate peak power demands, thus avoiding costly investments in transmission and distribution upgrades. It also offers fast-response surge capabilities that can manage the intermittency of solar, wind, and other renewable energy grid assets.
Looking further down the road, so to speak, it’s clear that energy storage will advance thanks to major investment from car makers such as Tesla, which is placing its bets with the new Gigafactory in Nevada. Large volumes of mass-produced batteries will be essential to Tesla and other electric vehicle manufacturers. And this mass production strategy for battery technology also brings increased scale that may reduce deployment costs. With clever engineering, this strategy will help expand residential and utility deployments, as well.