CHARGING THE FUTURE WELCOME TO THE NEW ENERGY WORLD

Transcription

1 CHARGING THE FUTURE WELCOME TO THE NEW ENERGY WORLD STORAGE AT THE HEART OF NEXT GENERATION SOLAR AWARD 2016: HONORING THE GREAT AND THE GOOD SOLAR+STORAGE TO TAKE NORTH AMERICA BY STORM RIDE THE BOOM: JOB OPPORTUNITIES AWAIT

2 ELECTRICAL ENERGY STORAGE (EES) EUROPE ees Europe Europe s largest exhibition for one of the fastest-growing markets Charging the future Innovative storage solutions form the basis of a sustainable power supply from renewable sources. They decouple power generation from consumption and make an intelligent and sustainable energy system possible from the stabilization of power grids through to e-mobility. From May 31 June 2, 2017, ees Europe, the continent s largest and most visited exhibition for batteries and energy storage systems, will create a professional platform for manufacturers, suppliers, distributors, research institutes and users of stationary and mobile storage solutions for electrical energy along the entire value chain of battery and energy storage technologies. ees Europe grows by 40% Even after the great success of 2015, ees Europe recorded substantial growth again in The exhibition space expanded by more than 40% to over 12,000 sqm, and 212 battery and energy storage manufacturers showcased their products and services at ees Europe an increase of 35% from the previous year. Together with Intersolar Europe, which takes place at the same time, an impressive 369 of the total 1,077 exhibitors presented innovative energy storage services, products and solutions. And the success story continues: An exhibition space of sqm and around 270 exhibitors are expected at ees Europe EXHIBITION SPACE AT EES EUROPE (GROSS, IN SQM) ENERGY STORAGE EXHIBITORS AT EES EUROPE An exhibition space of sqm and around 270 exhibitors are expected at ees Europe 2017 Quick facts: 2017 exhibition data Dates May 31-June 2, 2017 Hours 9:00am-6:00pm Wednesday, May 31, :00am-6:00pm Thursday, June 1, :00am-5:00pm Friday, June 2, 2017 Venue Messe München Munich, Germany Hall B1-B2 Exhibitors 430 (expected, including energy storage exhibitors of Intersolar Europe) Visitors 40,000+ (expected total number of ees and Intersolar Europe visitors) 32 ENERGY STORAGE JOURNAL Summer 2016

3 ELECTRICAL ENERGY STORAGE (EES) EUROPE Packed halls, excitement and a dynamic atmosphere: ees and Intersolar Europe 2016 A fantastic atmosphere and perfect solar-weather: Together with the parallel event Intersolar Europe, ees Europe sent the market a positive signal. Even in the run up, both exhibitions were already seeing considerable success, with exhibition space booked out two months in advance. The two exhibitions greeted over 44,000 visitors from 160 nations over 66,000 sqm. Again it proved to be a must-attend event for those driving forward the energy storage industry, smart renewable energy supply and sustainable mobility solutions. it proved to be a mustattend event for those driving forward the energy storage industry ENERGY STORAGE JOURNAL Summer

4 ELECTRICAL ENERGY STORAGE (EES) EUROPE Welcome to the new energy world The worldwide energy market is undergoing a transformation, enabling increasing numbers of new players to move into the spotlight. Rather than large-scale, centralized nuclear and fossil fuel power stations that supply consumers with energy, in the future, the energy supply will be secured by decentralized renewable energy plants, storage systems and consumers as so-called prosumers. Intelligent networks are the next step In this decentralized landscape, concepts and technologies need to be developed to sensibly integrate clean energy into the grid. It is essential that energy supply and demand are flexibly coordinated, as renewable energy sources such as sun and wind are not always available. In the future, intelligent power grids, known as smart grids, will control and monitor the generation, storage, distribution and consumption of electricity. To facilitate flexibility in balancing energy supply and demand, the energy, heating and transportation sectors are becoming increasingly interconnected. Energy storage systems play an essential role in this respect, as they can provide positive or negative balancing power to assist in maintaining frequency stability. 34 ENERGY STORAGE JOURNAL Summer 2016

5 ELECTRICAL ENERGY STORAGE (EES) EUROPE Products and solutions for the new energy world at ees and Intersolar Europe The restructuring of the energy system continues to progress around the world, and many countries are enjoying success on this front. In fact, on May 8, 2016, Germany was able to cover 87% of its energy needs with energy generated by renewable sources (see diagram). While this is a milestone for the energy transition, it represents a challenge for grid operators. As old power plants are difficult to regulate, the availability of large amounts of renewable energy for a short time causes a surplus of energy in the grid. To overcome this challenge, power generation, storage and energy management must be more closely connected in the future. Smart technology plays a central role in this, as it enables generation and consumption to be analyzed, optimized and controlled. High share of renewables: Power generation and consumption in Germany The energy storage and renewables industry surges forward Numerous new digital services, products and solutions are currently being developed. They control the decentralized energy market of the future efficiently, flexibly and safely, and in doing so, optimally coordinate generation and consumption. With the renewable energy industry experiencing a wave of innovations, many companies are presenting the results of their intensive research and development. Connecting players and achieving the highest possible degree of automatic analysis and optimization of energy systems and electricity storage is key. ees Europe together with Intersolar Europe forms the central platform which supports these changes and lays the groundwork for the global energy transition. Both exhibitions pay homage to the new energy world by dedicating a special thematic focus to smart renewable energy. In addition to highlighting technologies, challenges and international markets, the accompanying program and the exhibition segments of these two events showcase various aspects of this topic and feature presentations and discussions of current approaches and solutions with exhibitors, experts and partners. ENERGY STORAGE JOURNAL Summer

6 ELECTRICAL ENERGY STORAGE (EES) AWARD Honouring the great and the The winners of the ees AWARD 2016 were announced at ees Europe, Messe München on June 22. This year, Ferroamp Elektronik AB, LG Chem Ltd, and SMA Solar Technology AG received the highly coveted prize for the best technological innovations, the highest benefits for the industry, environment and society as well as the greatest economic viability of the solutions. Once again, the formal ceremony highlighted the first day of Europe s largest exhibition for batteries and energy storage systems. This is the third year of the award ceremony. At the end of the exhibition day, representatives of the 10 ees AWARD finalists were eagerly awaiting the announcement of the winners at the Innovation and Application Forum. A further 10 companies were nominated for the Intersolar AWARD 2016 and another 13 in the category of Outstanding Solar Projects. New record attendance for 2016 This year, 149 exhibiting companies from all Intersolar and ees exhibitions worldwide applied for the Intersolar and ees AWARD a new record. One of the conditions for the competing companies was to submit products, projects ees AWARD and Intersolar AWARD Winners Source: Solar Promotion 36 ENERGY STORAGE JOURNAL Summer 2016

7 ELECTRICAL ENERGY STORAGE (EES) AWARD good of energy storage and services which were either undergoing testing, already entered the market or showed important developments for existing technologies. Trends in innovation The independent jury particularly praised the high number of systems, which feature high economic viability, enable multiple possibilities for applications and focus on durability, efficiency and security. Other trends in the submissions came to the fore, for example the use of JH3 lithium ion cells for domestic storage systems and the growing significance of wireless interfaces in the energy storage industry, such as smart meters and control options using apps. Also of note was a move to combine renewable energy technologies to guarantee supply safety in different weather conditions. The EnergyHub system Swedish manufacturer Ferroamp Elektronik AB received the ees AWARD 2016 for its EnergyHub system. Combining high flexibility with low-loss photovoltaic storage, the system manages to bring a local DC nanogrid, an up-to-date circuitry and a smart meter function together. In this connection, a bidirectional 3-phase inverter with internal phase compensation and distributed DC-DC converters for diverse PV strings, batteries and DC consumers builds the basic set-up. The jury members emphasized the high efficiency level made possible by the DC coupling and scalability from kw to MW range. We are excited about the ees award. The exposure during the Intersolar and ees exhibition gave us new contacts with potential partners. They especially seem to appreciate that the EnergyHub system allow them to offer new services with a more scalable and flexible PV solar and storage solution, said Mats Kalström, VP Sales & Marketing at Ferroamp Elektronik. The Residential Energy Storage Unit (RESU) Korean manufacturer LG Chem Ltd was able to convince the jury with its innovative Residential Energy Storage Unit (RESU), using lithium-ion batteries with advanced JH3 cell technology. The capacity, energy density, durability and security of RESU were especially mentioned by the jury. The advantages of the system are the extremely high energy density in the low voltage range, the compatibility with many inverters and the easy applicability for example in regards to installations and software. It is a great honor for LG Chem to receive the ees AWARD 2016 and would like to thank both the jury and organizers, said Santiago Senn, Director Energy Storage System at LG Chem Europe afterwards. Right after Intersolar, we launched the sales of our new RESU product line. The feedback about its compactness, technical performance and pricing level is overwhelmingly positive. We are very happy to change the energy and the lives of our customers. This year, 149 exhibiting companies from all Intersolar and ees exhibitions worldwide applied for the Intersolar and ees AWARD a new record. The Sunny Boy Storage 2.5 SMA Solar Technology AG was happy to win two prizes at the AWARD ceremony: In addition to the Intersolar AWARD in the category Outstanding Solar Projects, honoring a photovoltaic diesel hybrid system of SMA Sunbelt Energy GmbH on the Caribbean island of Sint Eustatius, SMA also received the ees AWARD for the Sunny Boy Storage 2.5 battery inverter. It was produced for the demand of private households, as this product can be easily and cost-effectively integrated into new and existing PV systems. Therefore SMA offers as the only provider on the market an ACcoupled system for high-voltage batteries to connect with the inverter. We are very happy to receive this award. The Sunny Boy Storage inverter combines cost-effectiveness as it uses standard PV technology with the maximum flexibility of an AC-coupled battery inverter for highvoltage batteries. It makes it easy to install storage systems into existing or new PV plants, said Thomas Thierschmidt, Product Manager, Business Unit Residential at SMA Solar Technology AG after the ceremony. The Sunny Boy Storage inverters is thus a logical addition to a wide variety of selfconsumption tariffs as well as a genuine alternative to feed-in tariffs that are about to expire or zero export requirements. n EES AWARD WINNERS 2016 Time to make your submission! AWARD registration 2017 For ees AWARD 2017 the submission period for entries starts in January and lasts until the end of March Intersolar and ees exhibitors can register for the events throughout year. AWARD finalists are going to be announced in April The formal announcement of AWARD Winners will be on May 31, 2017 at ees and Intersolar Europe in Munich. /en/ees-award.html ENERGY STORAGE JOURNAL Summer

8 ELECTRICAL ENERGY STORAGE (EES) POWERFUL PIONEERS The worldwide PV boom: solar to drive energy storage Global Solar PV Cumulative Market Scenario until 2020 By the end of 2015, a total of 229GW of solar capacity had been installed worldwide a 45-fold increase over the past 10 years with some 50GW coming in 2015 alone. This was just one of the findings of Solar- Power Europe s market analysis report Global Market Outlook for Solar Power , whose publication was launched at Intersolar Europe Japan, the USA and China were again among the leading solar markets in 2015; China and Japan were responsible for 50% of the newly installed capacity around the world. The European solar market also grew in 2015: 8.2GW were new installations, up 15% from the previous year. Europe has also become the first region in the world to cross the 100GW mark for total installed photovoltaic capacity. Newly installed capacity this year is forecast to reach around 62GW. The largest markets in 2016 will again be China, the US and Japan but the US is set to overtake Japan as the second largest solar market behind China. Solar energy is well on its way to becoming the most inexpensive form of energy generation in many parts of the world, electricity production costs for solar energy from PV are already as low as 5 to 7 euro cents per kilowatt hour. Because of this PV as well as wind power will play a central role in the energy supply of the future. Storage systems are the backbone of this new energy world, as they guarantee supply safety, and are therefore an important catalyst for the global energy transition. Consequently, Intersolar and ees exhibitions are rising in popularity across the world. Celebrating 25 years In 2016, the organizers of ees and Intersolar celebrated the anniversary of an idea for the past quarter of a century they have been powerful advocates for solar energy. And en route have built Intersolar up to be the world s leading exhibition series for the solar industry. Since its inception in 1991, Intersolar has been bringing people, markets and technologies together and the exhibition has grown continually on an international level as have the international photovoltaics and storage system markets. In 2014, the electrical energy storage (ees) exhibition and conference was introduced in parallel to Intersolar Europe in Munich, Germany. With ees, a professional platform for the energy storage industry was created to showcase companies achievements and innovations, to help companies and drivers of the global growth markets to develop and distribute technologies and business models, and to establish connections with new, emerging markets. The ees exhibitions and accompanying conferences focus on storage solutions for renewable energy, from domestic and commercial applications to large-scale storage systems for stabilizing the grids. The spotlight is also shined on topics such as energy management, electric transportation and uninterruptible power supply, better known as UPS. With ees Europe in Munich, ees North America in San Francisco and ees India in Mumbai, ees events are now found on three continents. ees Europe is the continent s largest and most attended exhibition for the battery and energy storage industry. By running concurrently, ees and Intersolar events create a powerful synergy. Topics affecting the future of the industry, such as energy generation, storage and the systems integration of renewable energy, are discussed under one roof at Intersolar and ees. Here, the traditional energy industry is united with the renewable energy sector and the development of solutions that will enable the power, heat and transport sectors to successfully switch to green energy is actively supported. Solar Promotion GmbH and Freiburg Wirtschaft Touristik und Messe GmbH & Co. KG (FWTM) are more than traditional exhibition organizers. Their employees bring expertise from their industries and are driving the decentralized, renewable energy transition forward. Charging the future! n 38 ENERGY STORAGE JOURNAL Summer 2016

9 ELECTRICAL ENERGY STORAGE (EES) NORTH AMERICA Next generation solar energy storage has to be part of the mix As solar penetration increases in the US, the value new projects can extract from the grid will fall. This put further pressure on the cost of solar to remain competitive. Solar plus storage is the answer says Ravi Manghani, director of energy storage at GTM Research. Ravi Manghani at ees North America. Source: Solar Promotion The US market for solar PV has grown exponentially in recent years going from a few MWs of installations in 2000 to over 7GWs in In February this year the millionth solar installation came online in the US. For the first time, solar PV accounted for more generation capacity to come online than natural gas in While this is a great landmark, solar has only recently been given a spot at the grownups table. The key reason for this delayed recognition for solar is apparent if we step back and look at solar generation as a percentage of total electricity generation in the US, that number is still under one percent in Getting solar to the next order of magnitude a lofty but attainable goal involves all the factors that have brought solar this far, but more importantly it needs newer business models, integration of peripheral, complementary technologies, and market structures that uncap the real value of solar. As it stands today, the solar industry in the US is primarily focused on the near-term, and for good reason. Every quarter brings a new spate of business models, regulatory skirmishes, financing innovations (or woes), and overall change. The solar market moves fast, and there is little time to invest resources beyond the next few years. The near-term focus of the industry is driven by a few market and policy drivers, namely, the extension of renewable tax credits, continuous improvement in technology and business models across the system value chain with plenty of headroom for cost reductions, and the potential role of the Paris Agreement in decarbonizing the US economy (with or without the Clean Power Plan). This anticipated and unprecedented growth in solar PV adoption will have its share of downsides. And in addressing these downsides lies yet another opportunity for the solar industry to frame solar not as a price-taking and non-dispatchable renewable energy resource, but rather as a smart, U.S. Solar-Paired-Storage Deployments to Cross 1GW by 2021, a 70X Growth from Source: GTM Research U.S. Annual Solar-Paired-Storage Deployments, E (MW) ENERGY STORAGE JOURNAL Summer

10 ELECTRICAL ENERGY STORAGE (EES) NORTH AMERICA The more solar is placed on the grid, the less the grid needs power when solar production is highest causing solar s value to decline as its penetration increases. value-adding and dispatchable resource that leads to decarbonization and modernization of the US electricity grid. Solar Promotion and CALSEIA, in partnership with GTM Research, have published a white paper on the future of solar called Smart Solar: Integration of Storage and Energy Management. Theories of value Growing solar and wind penetration has been argued to present challenges to existing utility business models and maintenance of a reliably balanced grid. Solar, in particular due to its distributed nature, continues to face several net energy metering (NEM) battles from state regulators and electric utilities. Over the past few years, NEM has been at the center of regulatory disputes across more than 20 states. Utilities often argue that NEM customers do not pay their fair share of grid costs, resulting in a cost shift to nonsolar ratepayers. Solar advocates counter that distributed solar has value to the grid for which utilities are not fully accounting, such as capacity value, transmission and distribution (T&D) deferral, and T&D line loss savings. This has a significant impact on the economics of residential solar, in particular. A parallel, but more widely agreeable theory can be applied to value of solar to the grid. As solar grows as a share of the total generation mix, its value to the electricity system (and thus the revenue it can generate) begins to decrease. Solar is a zero marginal-cost resource, which means it will bid into wholesale power markets at zero dollars and take any price it can receive. Add an increasing amount of solar to that market and prices decline overall, leading to lower revenue for each solar project. Since solar is non-dispatchable, project operators cannot strategically sell into the market at higher priced times solar is purely a price taker (unless paired with energy storage, as discussed later). In fact, the more solar is placed on the grid, the less the grid needs power when solar production is highest causing solar s value to decline as its penetration increases. Researchers first identified the value deflation effect in the 1990s, and it has continued to inform planning studies for increased renewable penetration (for example by the National Renewable Energy Laboratory). But over the past two years, a number of high profile studies using wholesale price predictions as proxies for the future value of solar have quantified a similar effect with increasing precision in disparate geographical contexts. The road upwards Ultimately, the ascent of solar in the US to the next order of magnitude depends on the industry s ability to successfully transform solar into a reliable and dispatchable grid resource. The US crossed one million solar PV installations in the first quarter of this year, but the path to get to 10 million installations, undoubtedly involves integrating solar with energy storage, energy management, and other software solutions that are deployed to create a cleaner, resilient and responsive grid. The fundamental insight that the value of solar declines as solar s penetration on the grid increases holds true for distributed solar as well as large scale solar. This effect can be masked by the rate structure for example, net energy metering that compensates distributed solar at a constant retail electricity rate will not reflect solar s value deflation. But one study of residential systems in California found that under a rate structure that compensates customers who own distributed solar for power exports to the grid at time-varying wholesale prices, customers lose 35% of their bill savings from solar at 15% solar penetration on the grid, compared with zero solar penetration and net energy metering. Put another way, grid parity for solar is a moving target. As solar penetration increases, the value new projects can extract from the grid may fall, which will put further downward pressure on the cost of solar in order to remain competitive. We do expect solar costs to continue falling through 2030, but at a far more tempered rate than we have seen over the past decade (for example, our forecast calls for just 11% reduction in utility-scale system costs from ). Will it be enough, or will economic competitiveness escape solar s grasp as the market grows? Enter smart solar One consistent theme in the value of solar and prospects of solar becoming mainstream discussions is linked to dispatchability of solar (or lack thereof). This non-dispatchable nature of solar has, and is, projected to give rise to many curvy problems, including but not limited to the duck curve in California, and Loch Ness Nessie curve in Hawaii. And yet, these are also the states that have put forward aggressive renewable goals 50% by 2030 for California, and 100% by 2045 for Hawaii. As a result, the solar industry will have to cope with changing net energy metering regimes and solar value deflation, in addition to other ongoing industry challenges. Various viable and not-so-viable solutions have been proposed and tested that broadly fall under three categories: Market design (expand the grid, implement rate design solutions); 40 ENERGY STORAGE JOURNAL Summer 2016

11 ELECTRICAL ENERGY STORAGE (EES) NORTH AMERICA Demand management (manage load to align with solar output); and, Energy storage (shift and firm output). From a behind-the-meter end-customer s point of view, dispatchability of solar can be achieved primarily through two technologies load management and energy storage. Both these technologies have been enabled by distinct advancements in hardware (advanced metering, batteries) and software (customer analytics). A confluence of these technology advancements along with appropriate market structures that value services offered by solar-plus-storage, or solar-plus-energy-management are the stepping stones for taking solar to the next level and enhancing solar as a smart renewable energy resource. Renewables plus storage benefits across the grid. Source: GTM Research Storage enables flexibility Energy storage has enormous promise on its own, but it can also serve the needs of a growing solar market. First, energy storage can help distributed solar owners navigate changing rate structures by maximizing self-consumption (and decreasing potentially lower-valued grid exports), optimizing consumption versus time-of-use rates and mitigating demand charges. Second, at the system level, energy storage may be the factor that eases solar s value deflation effect before it truly takes hold. Pairing energy storage with renewables can enhance the value of the underlying renewable asset. As renewable penetration on the grid increases, storage can be used to facilitate renewables smoothing through ramp rate control and firming instantaneous output. In remote islands such as Hawaii and Puerto Rico, these are important technical requirements to enable reliable grid operations while onboarding more renewables on the grid. Even in markets that are not grid constrained, storage addition can allow consistent use of firmer renewable capacity to meet capacity and electricity needs. SolarCity s recent foray into utility-scale solar plus storage-based Capacity Services offering aims to tap into these value streams created by firm solar output. If we shift to the viewpoint of the residential and non-residential end-customers, storage already has and will likely continue to play a growing role, as several utilities and public utility commissions continue to evolve rate design structures for solar customers. In states like Hawaii and Nevada, with less than retail rate net energy metering (NEM) values, there are electricity bill saving opportunities by increased self-consumption. Though California has not significantly reduced the solar export value for future solar customers in its recent NEM 2.0 decision, the mandatory requirement to transition to TOU tariff creates an incentive to time shift excess solar to evening peak hours. On top of these benefits to different sides of the meter, storage improves the overall system resiliency in instance of power outages, and improves grid reliability. Energy storage is not the only resource that can help mitigate value deflation and manage evolving rates. While energy storage serves its purpose on the supply side of the equation, load control can provide additional support on the demand side. As more devices in the building become controllable, smart and networked, customers and services providers will gain the ability to shift load away from traditional peak periods and further toward periods of higher solar production. Rocky Mountain Institute calls this demand flexibility or flexiwatts and has estimated that residential flexibility alone can reduce grid costs by $13 billion per year. In recent months, several solar companies have introduced home energy management programs and systems, while many others have established partnerships with energy management companies. Companies such as Enphase Energy and SolarCity have in-house energy management systems targeting residential and non-residential customers. SunPower on the other hand, has inked a deal with EnerNOC and invested in Tendril to enhance its energy management software offerings and capabilities. Solar can play a vital role in new grid edge market structures Today, behind-the-meter solar projects essentially receive a single value stream the reduction of a customer s bill via a combination of self-consumption of solar power When paired with energy storage, load control and other distributed energy resources (DERs), solar can be a crucial component of tomorrow s grid-responsive building. ENERGY STORAGE JOURNAL Summer

12 ELECTRICAL ENERGY STORAGE (EES) NORTH AMERICA The solar industry in the US is primarily focused on the nearterm, and for good reason. Every quarter brings a new spate of business models, regulatory skirmishes, financing innovations (or woes), and overall change. and net energy metering for power fed back into the grid. But solar ultimately has greater value specifically, value to the grid. Especially when paired with energy storage, load control and other distributed energy resources (DERs), solar can be a crucial component of tomorrow s grid-responsive building. This may sound futuristic and theoretical, but it is beginning to happen today. The technology for DER aggregation is quickly arriving, as are the associated business models. And most importantly, the ground rules are being set by regulators and grid operators. In California, the ISO has approved a proposal for distributed resources (under the name Distributed Energy Resource Providers, or DERPs) to bid into ISO markets under certain conditions. In New York, the Reforming the Energy Vision (REV) initiative seeks to open a host of grid service value streams to distributed resources under the guidance of the state ISO and the newly formed Distribution System Platform (DSP) providers. Regulatory overhauls such as that being proposed in New York under the REV initiative had grander ambitions. In the ideal REV future, customer premises become grid-responsive assets, participating in a variety of new markets that reflect the true and full value of the customer s costs and her services to the system. This customer of the future has all the trappings of the smart home various controllable devices connected to high energy usage appliances, all operating in concert through a simple interface. But in order to maximize value, the customer needs some form of generation, and solar is often the best bet. For the solar industry today, initiatives such as REV in New York or utility Distribution Resource Plans (DRPs) in California, present small windows into the future of customersited solar. That future is hard to predict, but it almost certainly presents an array of new opportunities to extract value for customers and the grid from on-site solar. n The digitization of the home: the customer experience is everything. Source: GTM Research Utility Programs Demand Response Customer Engagement Energy Efficiency Smart Thermostat Electric Vehicle Portable Devices Portal Online Application Solar PV and Micro-Inverter Energy Storage Smart Thermostat, Gateway and Display HVAC with Direct Load Controller Router and Broadband Services Entertainment System Backup Generator EV Charger Smart Meter and Reader Lighting Control Security Devices Smart Appliances, Devices and Plugs 42 ENERGY STORAGE JOURNAL Summer 2016

13 ELECTRICAL ENERGY STORAGE (EES) NORTH AMERICA Solar + Storage = More jobs Extracts from a Solar Foundation discussion paper The boom in the US energy storage market is going to be reflected in a host of work opportunities, according to a discussion paper by the Solar Foundation. The reasoning is simple, the expected boom in energy storage and particularly in behind-the-meter storage. The numbers bear this out. Last year, the US energy storage market deployed 221MW up from 65MW in Of the 221MW 187MW were in front of the meter (utility-scale), while the balance was behind the meter. By 2021 the market is forecast to be around nine times larger than the 2015 market. The greatest growth is expected to occur in the behind the meter (residential & non-residential) segment, growing from 15% to 49% with residential demand experiencing the fastest growth. Key drivers of market growth include many of the same factors that have driven PV growth: declining costs, comparably high electricity rates, policies, and incentives. Battery prices have declined 80% over the past six years and total costs are projected to decline more than 40% over the next five years. As storage costs decline, the value of the solar + storage package increases. The package cost is higher than just solar but of greater value so storage will likely increase PV installation and related employment. Furthermore, storage makes larger systems more economical. Many residential customers installed smaller, 2kW-3kW systems so as to not exceed the total annual load for their net metering credit. With storage, it becomes economical to enlarge their system which would result in more jobs. The fastest growing storage market segment residential will likely be driven by solar deployment if states restrict net metering, increase residential time-of-use rates (or demand charges), or encourage virtual power plants as is being done in New York. Conversely, it is likely that more states will be subject to time-of-use rates; California has already enacted them for residential customers. Virtual power plants have policy and economic appeal and, thus, should experience significant growth. Distributed generation can Storage deployment trends (MW) be aggregated to optimize both customer and utility needs, providing a return on investment for all parties. With solar coupled with storage, utilities are starting to view distributed generation as a business opportunity. n Solar + storage related deployment jobs, 2021 (projected) Sector Storage installation Storage induced Total jobs jobs PV jobs Utility scale Non-residential 600 1,200 1,800 Residential 8,305 16,609 24,914 Total 9,027 18,054 27,081 Source: The Solar Foundation, Front of the meter 187 1,061 Behind the meter 35 1,020 Total 221 2,081 Source: GTM Research/ESA, US Energy Storage Monitor, Q2 Review 2016 The job picture The Solar Foundation looked at two major sources of jobs: 1) storage deployment or installation jobs and 2) storage induced PV installation jobs. The latter would result from the additional solar to be installed because of the added value of storage. In both cases, the jobs include associated installation support jobs, but exclude related manufacturing, sales, and distribution jobs. Assuming expected strong growth in time-of-use rates and virtual power plants, solar + storage might represent nearly 40% of energy storage MW deployed in And like solar PV, employment will be more efficient for utility-scale developers than for smaller residential ones, resulting in a much greater amount of residential employment. The table below shows possible jobs created. ENERGY STORAGE JOURNAL Summer

14 ELECTRICAL ENERGY STORAGE (EES) NORTH AMERICA Solar+Storage poised to take North American market by storm There was no doubt about it. But there was a buzz in the air when the doors of San Francisco s Moscone West exhibition hall opened this July 12. The reason was simple. Solar plus storage was now one of the hottest topics in the North American market. And evidence of this was the first stand-alone ees North America event, co-located with Intersolar North America. Dedicated to achieving a global sustainable energy supply, ees North America connects suppliers, manufacturers, distributors and users of stationary and mobile electricity storage systems with solar companies from the US and beyond. On the exhibition floor and in the nearby conference sessions, professionals learnt about what business models were proving successful, new technologies and how to make connections with new, emerging markets. Positive reports about the US solarplus-storage market and the US solar market fueled visitor optimism over the industry s future. According to GTM Research, the solar-plus-storage market in the US will be worth a $6 billion annual industry by 2021, and the country will install 14.5 gigawatts of new PV capacity this year alone. (Currently, there are 29GW of solar installed.) Together, the two events attracted more than 18,000 attendees from over 80 countries, who saw the latest products from more than 550 companies. The storage sector enjoyed particularly strong growth, with an increase of more than 40% compared with battery and energy storage exhibitors showcased their products at ees and Intersolar North America. Robust foot traffic on the show floor and a packed exhibition space demonstrated the market interest in pairing energy storage with PV technologies. The two events are the most well attended solar and storage industry shows in North America, and are the places where attendees can see innovations from solar and energy storage first. ees and Intersolar are meaningful annual events for both the solar and storage industries, said Boris von Bormann, chief executive officer of sonnen, Inc and an exhibitor at ees North America. For sonnen, exhibiting and speaking at the show provides an ideal platform to showcase how our smart energy management products help residential and commercial customers take greater control of their energy future. Additionally we see the true value in bringing together key thought leaders, potential partners and customers in one place for face-to-face conversations and opportunities to develop mutually beneficial partnerships. A report from GTM Research and a discussion paper from The Solar Foundation both presented at ees North America discussed the positive trends for the solar-plus-storage industry. The combined solar-plus-storage market could create 27,000 new jobs by Additionally, as grid penetration of solar increases, energy storage technologies will become more important. Ravi Manghani, GTM s director of energy storage, said there will be 1.2GW of solar paired with storage installed by In California alone, solar-plus-storage deployments will reach almost 600MW 150 times the 2015 installation rate. All market frameworks, including business architecture and the technology landscape, are looking for opportunities to collaborate with smart renewable energy technology, Manghani said, and the storage market is no different. Visitors to the ees stage exhibition were able to see the companies commercializing 44 ENERGY STORAGE JOURNAL Summer 2016

15 ELECTRICAL ENERGY STORAGE (EES) NORTH AMERICA these technologies, both established industry players and up-and-coming early and mid-stage companies. The Powerhouse Pavilion featured software, financing and energy companies, and attracted enthusiastic crowds throughout the three-day exhibition. This marked the first collaboration between ees North America organizers and Californiabased Powerhouse, the world s first and only incubator and accelerator dedicated to solar. Additionally, throughout the exhibition, visitors listened to presentations from exhibiting companies during free sessions at the ees North America stage. These discussions echoed conversations from the ees North America conference. Hundreds of attendees heard from energy storage executives on the technologies, policy and market trends shaping the industry in nine panel sessions. Overall, visitors said they d been well pleased with this the inaugural event, and excited about what s in store for the future. n The next ees North America will take place between July 11-13, 2017 at the Moscone Center in San Francisco. Exhibitor applications for 2017 are available online: In California alone, solar-plus-storage deployments will reach almost 600MW 150 times the 2015 installation rate ENERGY STORAGE JOURNAL Summer

16 INDIA S LARGEST SOLAR EXHIBITION HIGHLIGHTS ENERGY STORAGE INNOVATIONS OCT 19 21, 2016 MUMBAI INDIA CHARGING THE FUTURE EUROPE S LARGEST EXHIBITION FOR BATTERIES AND ENERGY STORAGE SYSTEMS MAY 31 JUNE 2, 2017 MUNICH GERMANY NORTH AMERICA'S ULTIMATE HOT SPOT FOR ENERGY STORAGE SOLUTIONS JULY 11 13, 2017 SAN FRANCISCO USA INTERNATIONAL EXHIBITION SERIES FOR BATTERIES AND ENERGY STORAGE SYSTEMS