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Issue 13: Summer 2016 Risks and returns Project financiers weigh up the pros and cons of storage Upside down on top Australia leads the way in making shift to renewable economy Residential heaven Suppliers slug it out for next wave of products, market Coming soon to a utility near you ... Virtual power plants to dominate business Charging the future – special supplement on global ees exhibition series

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  • Issue 13: Summer 2016

    Risks and returnsProject financiers weigh up the pros and cons of storage

    Upside down on topAustralia leads the way in making shift to renewable economy

    Residential heavenSuppliers slug it out for next wave of products, market

    Coming soon to a utility near you ...Virtual power plants to dominate business

    Charging the future special supplement

    on global ees exhibition series

  • power to you!

    2016 Sovema Power Electronics and are operating units of Power Electronics.

    EV / HEV/ PHEV Pack Testing Inverter, UPS, Generator & Flywheel Testing Microgrid Battery Conditioning

    Drive Cycle Simulation Bidirectional DC Power Supply Super and Ultra- Capacitor Testing


    [email protected]

    Advanced Energy Technology Applications New


    Advanced energy solutions to meet your growing needs for testing,

    conditioning, simulation and lifecycling.

    Expanding the FTF-HPMEGA

    Up to 1MW with available option for parallel testing up to 2MW (up to 700V)

    Single or dual circuit models available

    New over-current, under-current, over-voltage and under-voltage protection standard on all models

    Infinite number of program steps when used in conjunction with VisuaLCN software

    Remote Binary Protocol available for control via 3rd party software

    Discharge power recycled to AC line for cooler, more energy efficient operation

    Current Rise Time (10-90%) less than 4ms with zero overshoot

    Optional Zero Volt testing capability

    Other FTF options and custom hardware/software capabilities available. Contact Bitrode to discuss your requirements

    power to you!

    2016 Sovema Power Electronics and are operating units of Power Electronics.

    EV / HEV/ PHEV Pack Testing Inverter, UPS, Generator & Flywheel Testing Microgrid Battery Conditioning

    Drive Cycle Simulation Bidirectional DC Power Supply Super and Ultra- Capacitor Testing


    [email protected]

    Advanced Energy Technology Applications New


    Advanced energy solutions to meet your growing needs for testing,

    conditioning, simulation and lifecycling.

    Expanding the FTF-HPMEGA

    Up to 1MW with available option for parallel testing up to 2MW (up to 700V)

    Single or dual circuit models available

    New over-current, under-current, over-voltage and under-voltage protection standard on all models

    Infinite number of program steps when used in conjunction with VisuaLCN software

    Remote Binary Protocol available for control via 3rd party software

    Discharge power recycled to AC line for cooler, more energy efficient operation

    Current Rise Time (10-90%) less than 4ms with zero overshoot

    Optional Zero Volt testing capability

    Other FTF options and custom hardware/software capabilities available. Contact Bitrode to discuss your requirements

    power to you!

    2016 Sovema Power Electronics and are operating units of Power Electronics.

    EV / HEV/ PHEV Pack Testing Inverter, UPS, Generator & Flywheel Testing Microgrid Battery Conditioning

    Drive Cycle Simulation Bidirectional DC Power Supply Super and Ultra- Capacitor Testing


    [email protected]

    Advanced Energy Technology Applications New


    Advanced energy solutions to meet your growing needs for testing,

    conditioning, simulation and lifecycling.

    Expanding the FTF-HPMEGA

    Up to 1MW with available option for parallel testing up to 2MW (up to 700V)

    Single or dual circuit models available

    New over-current, under-current, over-voltage and under-voltage protection standard on all models

    Infinite number of program steps when used in conjunction with VisuaLCN software

    Remote Binary Protocol available for control via 3rd party software

    Discharge power recycled to AC line for cooler, more energy efficient operation

    Current Rise Time (10-90%) less than 4ms with zero overshoot

    Optional Zero Volt testing capability

    Other FTF options and custom hardware/software capabilities available. Contact Bitrode to discuss your requirements


    www.energystoragejournal.com Energy Storage Journal Summer 2016 1


    LOADING WEIGHT TO TAKE WEIGHT OFF THE LOAD Despite a proliferation of highly nuanced business models, utilities, solar-and-storage companies continue to fine-tune their approach to using energy storage as part of a virtual power plant.

    NEW YORK PILOTS SOLAR-PLUS-STORAGE VPP The REV initiative the reforming energy vision of New York State has a virtual power plant pilot that may serve as the first steps to creating a template for the future.

    Bakholdin: fkywheel veteran moves to Amber Kinetics 5

    Event success, location, location, location: Dubai 73

    Virtual power plants ... coming soon to a utility near you 50

    EDITORIAL 2Think big, think stupid but leave a legacy

    PEOPLE 5Amber Kinetics appoints Daniel Bakholdin as CTO ILA appoints senior scientist for health Lowry joins Nano One UE Technologies appoints co-founder of ESA as president and former US Saft sales VP joins UniEnergy Technologies Crowns Blackwelder joins VSI as new CFO Alevo appoints Dybwad as new chief executive officer ViZn Energy appoints Williams and Bar-Lev to board positions Leeward Renewable picks Wolf as new chief executive American Lithium chooses Swan for advisory board SunEdison appoints new finance heads, Dubel as Chapter 11 CEO Leclanch chooses Feintuch Communications for North American PR Manz joins Johnson Matthey Axion Power appoints Corcoran as director and chair of audit committee

    NEWS 11Tesla acquisition of SolarCity provides yet another business model developing Starwood Energy invests $100 million to Stem, brings project finance pool to $350 million Greensmith Energy, Wrtsil form partnership agreement AGL prepares worlds largest virtual power plant Gaelectric to get further EU funds for CAES project Imergy goes into ABC insolvency agreement intellectual property and assets up for sale EnSync sells first PPAs, opens up Hawaii National Grid tenders for grid services problematic for developers RES snares battery project ahead of launch of UKs frequency response market Doosan acquires 1Energy, MESA co-founder Kaplan stays on as COO GE Ventures takes stake in Sonnen

    TESTING ENERGY STORAGE FOR NEXT-GEN PRODUCT LINES 21Craig Brunk, sales director at Bitrode talks about the current state of the testing market

    HYBRIDIZING ENERGY AND POWER FOR THE GRID 23Maxwell Technologies looks at how supercaps and storage work well together.

    SOLAR-PLUS-STORAGE DOWN UNDER 26Australia has been widely hailed as the next place to be for PV uptake, now its uptake of solar plus storage is positive for the whole of Asia.


    Inside track of the stories behind the latest ees and Intersolar meetings in Munich and a look forward to the meetings in North America

    RISK ASSESSMENT THE KEY TO COMMERCIALLY VIABILITY 47Energy storage technology requires substantial financing and that means substantial risk The view from Standard & Poors

    RESIDENTIAL SOLAR ON THE UP 61Market range expands as residential energy storage plunges ever onward

    CONFERENCE IN PRINT 66Advanced intermediate temperature sodiumnickel chloride batteries with ultra-high energy density.

    EVENTS 71Energy Storage Journals round-up of the most interesting conferences and exhibitions to attend in the coming six months

    Brunk: Challenges for next iteration of testing 21


    2 Energy Storage Journal Summer 2016 www.energystoragejournal.com

    Mike Halls, editor [email protected]

    We were privileged to be among the elite few that witnessed the (then) signing of the largest loan in UK history. The year was 1987. And the largest ever syndicate of international banks think Citi, JP Morgan, Chase Manhattan, Barclays, BNP, UBS had gathered to agree an enormous project financing.

    The project was to finance construction of a tunnel linking Britain to France. The facility was for 5 billion (then around $9 billion).

    Such was the enthusiasm for the project that the lemming effect kicked in. In all, 170 international banks agreed to be part of the lending group. The French and the UK governments joined the party too.

    And two years later the refinancings began. It was seemingly inevitable that it would end in tears and bankruptcy. It did.

    What seemed odd about it at least to those of us nifty with a calculator and with a healthy disregard for contractors promises of finishing on time was that there seemed no way that these bankers would get their shareholders money back.

    With interest rates in double digits the train line would have to make a profit not turnover but profit of $3 million a day just to stay even. Not forgetting the $9 billion of capital that would have to be repaid at some point.

    Just think of the revenues needed to generate that!

    I cant remember our final guesstimate but we ended up reckoning that trains would have to run every hour around the clock and be completely full for the project to work. And, of course, any construction delays would be catastrophic. The slightest disruptions to the service would haemorrhage money.

    In the end the tunnel came in some 80% over budget.

    The bankers werent necessarily stupid. Their credit committees would have gone through the numbers in the same way that we did.

    Their fault was that they suffered from that odd mix that characterizes humanity on the edge of gross stupidity optimism, enthusiasm dashed with a mix of blind faith, resulting in delusion.

    At the time of the decision about building the tunnel, 15.9million passengers were predicted for Eurostar trains in the opening year. In 1995, the first full year, actual numbers were a little over 2.9million, growing

    to 7.1million in 2000, then dropping to 6.3million in 2003.

    Academia has been fascinated by this. How could these experts get these projections so spectacularly wrong?

    Danish economist Bent Flyvbjerg has spent most of the last two decades puzzling at humanitys inability to understand this. His book, Megaprojects and Risk, an Anatomy of Ambition, looks at how strategic misrepresentation deliberately mistaking the likely outcomes of planned actions plays a part in huge project financings.

    Flyvbjerg reckons that nine out of 10 mega-projects faces a cost overrun, with costs 50% higher than expected in real terms not unusual. And then, of course, there are the implications from all this and many of these are not so immediate to grasp.

    So how does this fit into the energy storage industry now caught in a stupendous wave of enthusiasm for all things renewable?

    The answer is a lot and a little. Energy storage at the residential level is now proving eminently bankable. The payback times are reasonable as is the initial outlay. But things get complicated when we start to talk project work on the large to very large scale. Building huge battery factories in the middle of the Nevada desert or trying to legislate 100% renewable energy powering the entire Hawaiian archipelago in a generations time, have a fanciful air to them.

    Flyvbjerg talks about the four sublimes: the excitement of engineers and technologists building the newest or largest item of its kind; the rapture politicians receive from building monumental works that increase their public profile; the delight of businesses and trade unions generating money and jobs; and the aesthetic pleasure generated by iconically large design.

    All this optimism contributes to overestimates of benefits and underestimates of cost.

    Whether itll be fair to judge the Tesla giga-factory and now its spectacular take-over of SolarCity in the same way, is up in the air. The sums of money at stake are huge but so too are the returns possible. Serious investors have done their sums and the spread-sheets are positive. Oe to many they are.

    One thing is for certain, the fate of Tesla and SolarCity are vitally dependent on the brand that can only be

    Think big, think stupid but leave a legacy


    www.energystoragejournal.com Energy Storage Journal Summer 2016 3

    Mike Halls, editor [email protected]

    called its founder Elon Musk. Public perception of him is directly reflected in the share price of the companies that he runs and his exuberant visionary approach to what he does is a genuine positive.

    The economistAlbert Hirschman decided that the underlying principle behind unsuccessful projects was the hiding hand if people knew the actual costs of projects like these, they would never undertake any, so there must bea mechanism that hides this reality from people, engendering progress but also the occasional disaster.

    Flyvbjerg argues instead that what is called for is greater and more detailed studies ofwhy some huge projects succeed, while others dont.

    But as ever in the development of these things, the law of unintended consequences is at work. Wasted money is indeed wasted money but thats not to say that everything is wasted.

    The history of great ventures and the rise of great industries is littered with the legacies of what they leave behind.

    The railway boom that littered the UK initially and later Europe and the US with unprofitable lines and massive shareholder losses also left an infrastructure that is recognisable today. It also made some of these pioneers, such as the so-called robber barons in the US think the ruthlessness of Vanderbilt some of the richest in the world.

    Some 20 years ago a similar territorial battle emerged a race to put in place the huge fibre-optic highways across the western world that would serve the internet of the future. Huge investments were made, investor

    support was massive but in the end the two major players for the space ran out of money.

    The shareholders went bust but, like the millions that use the Channel Tunnel each year, their legacy was the hundreds of millions of miles of fibre-optic cable running through cities across the planet that we use today.

    So as we see mankinds energies invested (or frittered, if thats your view) in the mega-giga-giga battery-making plants of the future, or the smartest of smart grids that will sweep across the planet, were not going to worry.

    We dont have to fear the consequences of these failures as long as were not investors that is! but rather we should just wonder about what legacy we and our children will inherit.

    So to misquote the poet William Blake the road of excess leads to the palace of wisdom.

    Lets face the Next Big Battery Thing with optimism.

    Energy Storage Journal Business and market strategies for energy storage and smart grid technologies

    Energy Storage Journal is a quarterly publication.

    Publisher: Karen Hampton [email protected] +44 7792 852 337

    Editor: Michael Halls, [email protected] +44 1 243 782 275

    Associate editor: Sara Verbruggen [email protected] +44 7981 256 908

    Advertising manager: Jade Beevor [email protected],com +44 1 243 792 467

    Supplements editor: Wyn Jenkins, [email protected], +44 1 792 293 222

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    Research editor: Jane Simpson [email protected]

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    International advertising representation: [email protected]

    The contents of this publication are protected by copyright. No unauthorized translation or reproduction is permitted.

    Every effort has been made to ensure that all the information in this publication is correct, the publisher will accept no responsibility for any errors, or opinion expressed, or omissions, for any loss or damage, cosequential or otherwise, suffered as a result of any material published.

    Any warranty to the correctness and actuality of this publication cannot be assumed.

    2016 HHA Limited UK company no: 09123491

    Working with

    The new titan of leadEcoults UltraBattery, ready to take lithium on, head-to-head

    The CEO interviewAnil Srivastava and Leclanchs bid for market dominance

    Next gen integratorsComing soon to a smart grid near you, the ideal middle man

    Let cool heads prevailThe lead-lithium storage debate steps up a notch

  • Meet the team

    Claire Ronnie, Office Manager and SubscriptionsClaires our unflappable person shes the go-to girl for subscriptions or account enquiries. Go ahead and challenge her!

    Antony Parselle, Page DesignerBetter known in the office as Ant hes been working in magazine design and layout since the early 1990s. Not so good on showing his best side however!

    June Moutrie, Business Development ManagerShes our accounting Wunderkind who deals with all things financial a kind of mini Warren Buffett. But more fun!

    Jan Darasz, CartoonistJan has won international fame as a cartoonist able to making anything including an electrolyte! funny. And as for LiCFePO4 ...

    Kevin Desmond, HistorianMore than just a historian on energy storage and batteries as hes written about many things. Hes the inspiration behind our Heroes of the Grid section.

    Mike Halls, EditorMike, a former journalist with the UK newspaper the Financial Times, has been involved in journalism, publishing and print for three decades. Im particularly fond of writing about the energy storage industry, he says. Its an unusual mixture of being fast-paced but slow to change and friendly too. Theres always something more to learn.

    Karen Hampton, PublisherIn her recent years of working within the energy storage business Karen has become a well known figure at conferences not least as our social butterfly. My job, she says, is to get the maximum benefit for our advertisers to make sure their name and brand is out there, while maintaining the integrity, fairness and excellence our publications are renowned for.

    YEARBOOKS, PUBLISHING ADVERTISING EDITORIAL & EVENT GUIDES Jade Beevor Mike Halls All enquiries +44 (0) 1243 792 467 +44 (0) 7977 016 918 +44 (0) 7792 852 337 [email protected] [email protected] [email protected]

    Reception: +44 (0) 1243 78 22 75 www.energystoragejournal.com Fax +44 1 787 329 730Hampton Halls Associates Ltd, 10 Temple Bar Business Park, Strettington PO18 0TU, UK Registered in England and Wales 09123491

    POWERING THE SMART GRID www.energystoragejournal.com

    Sara Verbruggen,Associate Editor Sara, one of the founding figures of Energy Storage Journal, has relocated back to England, and now works as our in-house adviser as well as a respected contributor to sister magazine, Batteries International.

    Wyn Jenkins, Supplements EditorDont let his boyish charm deceive, Wyns been a journalist and respected editor on major financial titles for some 20 years. When not heading his own publications firm, Seren Global Media, he looks after our supplements.

    Issue 8: Spring 2015

    The new titan of leadEcoults UltraBattery, ready to take lithium on, head-to-head

    The CEO interviewAnil Srivastava and Leclanchs bid for market dominance

    Next gen integratorsComing soon to a smart grid near you, the ideal middle man

    Let cool heads prevailThe lead-lithium storage debate steps up a notch

    Jade Beevor,Advertising Manager Jade, who joined the team in early 2015, is already getting a feel for the industry. This is an incredible business were in, she says. These people are literally changing the future of our lives and the planet too!


    www.energystoragejournal.com Energy Storage Journal Summer 2016 5

    Daniel Bakholdin a well known veteran in flywheel development and commer-cialization was appointed chief technology officer for the US firm Amber Kinet-ics. He will be responsible for advancing the commer-cialization of the companys four-hour discharge duration steel flywheel technology.

    Ed Chiao, chief executive officer at Amber Kinetics said: Bakholdin has been in the flywheel and turbo machinery industry for

    more than 20 years and has shipped over 1,000 com-mercial flywheels. He brings major bona fides to our fly-wheel commercialization ef-forts.

    Bakholdin has 26 years of experience in engineering and management. He co-founded Pentadyne Power Corp, where he worked as vice president of mechanical engineering and later over-saw production engineering as vice president of sustain-ing engineering.

    Pentadyne, now Powerth-ru, develops and manufac-tures flywheel energy storage systems for power quality and power recycling appli-cations. Bakholdin invented or co-invented much of the technology utilized in Pow-erthrus machines.

    Bakholdin was previously a consultant to a range of power and energy tech start-ups. Concurrently, he was a director of Hyperloop Trans-portation Technologies mag-netic propulsion and levita-tion development laboratory.

    From 2012 to 2014, he was chief operating officer of Rotonix USA. Rotonix developed a 1MW energy storage flywheel system for power quality and recycling applications. Bakholdin or-chestrated the companys US-based R&D and Rotat-ing Group production facil-ity. He also oversaw the es-tablishment and tooling of Rotonix Chinas production facility in Beijing.

    From 2008 to 2011, Bak-holdin was chief operating officer at Advanced Turbine Designs, a company devel-oping a 5kW microturbine gen-set for distributed power generation and residential combined heat and power applications.

    He is also a co-founder and

    former president of Quad-radyne (acquired by Penta-dyne), the HEV project man-ager at Capstone Turbine Corp and manager of design engineering and testing at Rosen Motors, an innovative developer of flywheel power systems.

    Amber Kinetics (formerly Berkeley Energy Sciences Corp), was co-founded by Ed Chiao and Seth Sand-ers, a professor of electrical engineering and computer science at the University of California-Berkeley.

    Amber Kinetics was incu-bated at the University of C a l i f o r n i a - B e r k e l e y s Skydeck before launching commercial operations in 2013.

    Amber Kinetics appoints Daniel Bakholdin as CTO

    Cris Williams has been ap-pointed as the Internation-al Lead Associations new senior scientist-health with responsibility for provid-ing in depth expertise on toxicological science asso-ciated with lead exposures. He will be based in ILAs offices in North Carolina in the US.

    Williams previously worked for the consulting firm Ramboll Environ and has more than 21 years of experience in applied toxicology, quantitative risk assessment and public health.

    He is a member of the Society of Toxicology and the author or co-author of more than 30 peer-reviewed publications in toxicology and risk assess-ment. In addition, he has

    worked as a peer reviewer for several toxicology and risk assessment journals.

    Williams will provide health science support for the lead industry and the lead battery industry and joins a team that includes Jasim Chowdhury who provides scientific support in the environmental area.

    Steve Binks, ILAs regula-tory affairs director said He joins ILA at a very op-portune time with the health effects of lead taking centre stage in the regulatory land-scape. His knowledge and experience will be critical for lead producers and downstream users to help ensure that any new regula-tions appropriately reflect the current science and are proportionate to the risks to human health.

    ILA appoints senior scientist for health

    Bakholdin: appointed chief technology officer for the US firm Amber Kinetics.

    For the record Joe Lowry joined Nano One as a strategic adviser to the company in April. Lowry has worked for top lithium producers in the US, Japan and Chi-na, and, Nano One says the firm, has extensive worldwide market ex-perience, a large contact base and a good pulse on the lithium market.

    Lowry is widely respected and known as one of the worlds experts in the lithium sector.

    After a two-decade tenure working in senior positions in leading international lithium companies, Lowry formed Global Lithium as an advisory firm in 2012.

    Lowry joins Nano One

    Bakholdin has been in the flywheel and turbo machinery industry for more than 20 years and has shipped over 1,000 commercial flywheels. He brings major bona fides to our flywheel commercialization efforts.

  • For the challenges ahead...

    Check out how Hammond Groupis driving innovation for PbA batteries.www.hmndgroup.com/about/

    2016 Sally Breidegam mikSiewicz innovation award winner

  • For the challenges ahead...

    Check out how Hammond Groupis driving innovation for PbA batteries.www.hmndgroup.com/about/

    2016 Sally Breidegam mikSiewicz innovation award winner


    8 Energy Storage Journal Summer 2016 www.energystoragejournal.com

    UniEnergy Technologies, the US Vanadium flow bat-tery firm appointed Rick Winter, the chief operating officer in June as president with full P&L responsibility and accountability for daily operations of the company. Winter continues as COO.

    Winter, a well known industry figure not least because of his role as a co-founder of the Electric Storage Association and his tenure as chairman of the body, has helped shape the industrys embrace of en-ergy storage.

    He joined UET in 2013 and subsequently managed the launch of UETs product lines, the Uni.System and the ReFlex, and guided the company from a standing start to 80MWh in deploy-ments, orders, and awards.

    UET is now tripling its manufacturing and engi-neering floor space to meet growing demand and enable 100MW annual production at its current facility, says the firm.

    Winter has 28 years ex-perience innovating and implementing grid storage technologies. He has been a driving force in the transi-tion of the grid storage in-dustry from its early stages, to the strategic imperative for grid flexibility and the stability it has today.

    During this time, he helped build the US Electric-ity Storage Association from its inception in 1991, serv-ing twice as chairman and as a board member for 18 years.

    In 2011, he was awarded the Phil Symons award for his instrumental role in the evolution of storage tech-nologies in both the utility and battery manufacturing industries.

    With a focus on producti-

    zation, Winter has hands-on experience evaluating grid impacts of distributed gen-eration systems including batteries, flywheels, micro-turbines, photovoltaics and diesel generators.

    Winters background ranges from managing the storage technologies pro-gramme at Pacific Gas & Electric, Americas largest investor-owned utility, to deploying remote area hy-brid power systems in Aus-tralias Torres Strait.

    He has led product de-velopment at five advanced battery companies, in the process creating the worlds first flow battery product by leveraging ad-vanced zinc-bromide tech-nology from Austria (the 100kW/100kWh Power-Block), and leading devel-opment of iron-chromium batteries for cell towers in India.

    Winter invented the sin-gle loop flow battery mem-brane in his garage (Patent number 8039161), going on to found Primus Power and raise $30 million in capital. He holds 17 US patents and numerous abroad with a further 10 US patents pend-ing.

    Winter led the innova-tion team that created the worlds first commercial flow battery product (the 100kW PowerBlock) while he was vice president of en-gineering at PowerCell.

    At the end of June UET appointed Blake Frye, for-mer vice president for sales for Saft America, as its sen-ior vice president of global sales. Frye will be in charge of deployment and sales of UETs vanadium flow en-ergy storage systems.

    Fryes broad industry experience and technical ex-pertise makes him uniquely

    qualified to provide value to customers, end-users, and channel partners, as well as to advise on the advantages of flow batteries compared with other technologies, says UET.

    Frye started as a sales manager with Saft in 2001 becoming a vice president for sales and marketing in North America in 2004, a director of Saft Group in 2007 and finally a VP of sales for energy storage in 2010 where he led the crea-tion and growth of its en-ergy storage business.

    He closed multiple large-scale contracts with utili-ties, renewable developers, transit authorities, and the US Department of Defence, with projects located in Cal-ifornia, Hawaii, the north-eastern US, Alaska, Arizona, Canada, Bolivia, Mexico, and the Caribbean basin, says the firm.

    Earlier in his 15-year ca-reer at Saft, Frye managed marketing, business devel-opment, and communica-tions for two Saft interna-tional business units selling lithium and nickel metal hydride batteries with over $400 million in annual rev-enues.

    Frye has extensive techni-cal expertise from his six years at Energizer from 1995, where he was re-sponsible for product de-velopment including nov-el technologies for new

    rechargeable battery prod-ucts.

    Frye holds three US pat-ents, and his team at Saft was recognized by the En-ergy Storage Association in 2015 with the Brad Rob-erts Outstanding Industry Achievement Award.

    After many years of direct interactions with customers, it is clear the advanced vanadium flow batteries developed at UET and now deployed at meg-awatt-scale are an industry game-changer, said Frye.

    UETs core technology is a so-called third generation vanadium flow battery, with a breakthrough electrolyte first developed at Pacific Northwest National Labo-ratory (PNNL) with support from the US Department Of Energys Office of Electricity Delivery and Energy Reli-ability.

    Our vanadium flow en-ergy storage systems partner well with solar energy be-cause of the long-life of the batteries and their ability to facilitate the integration of increasing renewable re-sources into the grid, says Frye. By working together with a leading utility and national laboratories, we will develop metrics for evaluating renewable energy and storage integration and demonstrate the benefits of leading energy storage tech-nology to the USs grid mod-ernization efforts.

    UE Technologies appoints co-founder of ESA as president and former US Saft sales VP joins UniEnergy Technologies

    Winter: ESA co-founder Frye: new senior sales VP


    www.energystoragejournal.com Energy Storage Journal Summer 2016 9

    Crowns Blackwelder joins VSI as new CFO

    Jesse Blackwelder took over as chief financial officer of VSI Global a portfolio company of invest-ment firms Lakewood Capital, and Spartacus on July 11. He was most recently CFO of Crown Battery Manufacturing, where he headed the companys finance function, includ-ing numerous data analysis initiatives that contributed to the company achieving the highest profits in its history.

    Roger Knight, managing partner of Lakewood Capital and Spartacus Partners, said, Since our acquisi-tion of VSI Global in February 2015, we have been putting in place the infrastructure and building blocks to ensure state-of-the-art service. Blackwelder is an integral part of that process.

    Alevo appoints Dybwad as new chief executive officer

    Alevo appointed Per Dybwad in May as its chief executive while the founder and executive chairman Jostein Eikeland passes on his CEO responsibilities to Dybwad.

    Dybwad was elected to the Alevo board of directors in March. He joins from Dentware Scandinavia where he was CEO and director of the publicly traded 3D printing company.

    He has previously worked for a short time at Maxwell Technologies, the ultracapacitor firm as director of sales, marketing and business devel-opment for the firms high voltage business unit. Dybwad will lead the executive team, initially focusing on achieving the companys manufactur-ing and commercial development and global deployment, says the firm.

    Dybwad brings over 30 years

    international management experience to Alevo and his expertise includes energy distribution and storage, medtech and pharma, environmental technology, materials science, finan-cial services and consumer goods.

    ViZn Energy appoints Williams and Bar-Lev to board positions

    ViZn Energy Systems, the zinc/iron flow battery firm. has appointed Kent Williams to the companys board of directors. Joshua Bar-Lev has joined ViZns advisory board.

    Williams is a strategic adviser to several alternative energy companies focused on plug-in electric vehicle (PHEV) drive trains and new battery technologies.

    Bar-Lev was the vice president of regulatory affairs for BrightSource Energy, a builder of utility-scale solar power plants, from its start-up in 2004 until he retired in May 2011. He was responsible for govern-ment relations, regulatory policy and permitting for BrightSource and was on their executive management committee. Previously, he was chief counsel at the Pacific Gas & Electric Company.

    Williams and Bar-Lev have over 80 years of successful leadership roles and strategic business experience in the energy industry and are heavy-hitters in the business world and each possesses impressive energy industry experience, said ViZn chief executive Ron Van Dell.

    Leeward Renewable picks Wolf as new chief executiveLeeward Renewable Energy, an af-filiate of ArcLight Capital, appointed Gregory Wolf in July as its chief executive officer.

    Wolf, who has more than two

    decades experience in renewables, was most recently president of Duke Energy Renewables. At Duke he headed the integrated renewable energy business which Leeward says delivered high growth results and a strong operational track record.

    Before that he was senior vice president of development for Duke Energys commercial unit, where he created Duke Energys solar and biomass business and managed a national development pipeline.

    He has also been a vice president of General Electrics Power Systems business as well as GE Capital Group.

    American Lithium chooses Swan for advisory boardAmerican Lithium has appointed lithium battery expert, David Swan to the companys advisory board. Swan has more than 30 years professional experience in clean and efficient energy conversion and storage systems, specializing in the design and application of lithium battery technology for automotive and aerospace applications.

    Swan is internationally recognized for his research, development and commercialization of advanced ener-gy storage systems and has consulted to all major global automotive and supplier companies including BMW, Toyota, Honda, Chrysler, Daimler, General Motors and Ballard Power Systems, says American Lithium.

    In 2006, the California Air Re-sources Board appointed Swan to its Zero Emission Vehicle Expert Review Panel where he liaised with all leading technology developers and every major automobile manu-facturer.

    Between 1995-2000, Swan was chief scientist at AeroVironment, a technology company working on electric transportation as well as unmanned aircraft systems for the US defence department.

    He was responsible for energy stor-age activities including development and testing of battery systems for electric and hybrid vehicles including all aspects of General Motors hybrid vehicle battery programme, and de-velopment of fuel cell and hydrogen storage systems for AeroVironments solar-powered aircraft.

    His pedigree is impressive. Swan was appointed to the Technical Committee of the US government-industry R&D initiative, Partnership for A New Generation of Vehicles,

    Dybwad: heads executive team

    Williams: strategic advisory experience


    10 Energy Storage Journal Summer 2016 www.energystoragejournal.com

    a cooperative research programme between the government and USCAR (the US Council for Automotive Research).

    He has also been appointed to the California South Coast Air Qual-ity Management District (AQMD) Locomotive Propulsion Task Force and is a past member of the Society of Automotive Engineers and the American Society of Mechanical Engineers.

    Swan has seven patents in his field with others pending. He is the au-thor of over 40 published papers on fluid mechanics, applied electrochem-istry and electric vehicle technology, and has contributed to numerous textbooks.

    SunEdison appoints new finance heads, Dubel as Chapter 11 CEO

    SunEdison appointed John Dubel as its chief executive officer, effective from June 22. He takes over from Ahmad Chatila, the former president and CEO who steps down that day. Dubel will continue as SunEdisons chief restructuring officer. The firm is in Chapter 11 bankruptcy protec-tion. He started at the firm at the end of April.

    Chatila joined SunEdison in 2009 and led the company through a series of aggressive acquisitions where, some critics say, that made the company grow too quickly. In 2009, semiconductor company MEMC Electronic Materials spent $200 mil-lion buying solar startup SunEdison, which was founded by entrepreneur Jigar Shah. In 2013, the conglomer-ate changed its name to SunEdison, and in 2015 sold off its semiconduc-tor business, choosing to focus solely on clean energy.

    Dubel has over 30 years experi-ence advising boards and companies

    on matters related to restructuring.Dubel will report directly to Sun-

    Edisons board of directors. In June SunEdison appointed new

    heads for its finance team, including Philip Gund, as chief financial officer and Salvatore LoBiondo as a senior vice president and corporate control-ler

    Gund and LoBiondo are senior managing directors with Ankura Consulting Group, a business advi-sory and expert services firm.

    Gund is a senior managing director of Ankura Consulting Group, with more than 30 years of professional experience, including 26 working with debtor companies, creditors, investors, and court-appointed of-ficials. He was most recently chief restructuring officer at Vivaro Cor-poration, one of the largest pre-paid phone card companies, and as an adviser to Infrastructure and Energy Alternatives, an alternative energy construction company.

    LoBiondo is a senior managing di-rector of Ankura Consulting Group and has led restructurings across diverse industries, often working in advisory and interim management roles.

    Leclanch chooses Feintuch Communications for North American PR

    Leclanch, the Swiss battery energy storage system provider, has hired Feintuch Communications for what it calls, its public relations agency of record for corporate and trade public relations in North America.

    Leclanch recently established a North American subsidiary in Dal-las headed by Bryan Urban. The North American market represents a tremendous growth opportunity for Leclanch as the demand for station-ary and mobile battery energy storage systems has increased exponentially in the last few years, said Urban.

    Manz joins Johnson Matthey Anna Manz will join Johnson Mat-theys board of directors in October, succeeding Den Jones as group fi-nance director. Jones had announced in March his intention to step down as group finance director; he left the company at the end of July.

    Manz joins from Diageo where she was group strategy director and a member of Diageos executive com-mittee.

    Alta Energy takes Bettis as sales VP

    Alta Energy, a solar analytics and procurement company has recruited Mark Bettis as vice president of sales.

    Bettis was previously vice presi-dent of sales and marketing for REC Solar, a firm providing grid-tied solar electric design and installation for commercial customers nationwide.

    His solar experience includes sales and marketing positions at SunLink, Tioga Energy, Delta Electronics and Schott Solar.

    Axion Power appoints Corcoran as director and chair of audit committee

    Axion Power International appointed Michael Corcoran in May as a board director and chairman of the audit committee.

    Corcoran is a partner with GVP Partners a company he founded in 2008 to provide governance, risk and compliance advisory services. He has helped several global companies imple-ment and operate automated enter-prise risk and compliance programs.

    Before GVP Partners, he was a partner with Deloitte & Touche from 2005 to 2008 and headed the business risk advisory practice along the US east coast.

    Separately the firm announced in April that it had appointed Richard Bogan as its new chief executive and chairman with Donald Farley, as its vice chairman.

    Axion said: The realignment is consistent with the companys traditional combination of the CEO and chairman roles and is as a result of the transfer of leadership responsi-bilities to Bogan. Farley will continue to play a prominent role as vice chairman and will focus on strategic growth initiatives and partnering opportunities.

    Chatila: steps down

    Corcoran: board director

  • NEWS

    www.energystoragejournal.com Energy Storage Journal Summer 2016 11

    Tesla Motors agreed in August to buy SolarCity, the USs largest rooftop so-lar installer for $2.6 billion. Although not finalized as Energy Storage Journal went to press, the acquisition offers a more comprehensive business model for energy storage in the future.

    Elon Musk, the chief executive of Te-sla and also chairman of SolarCity, says he expects two-thirds of shareholders to approve the deal which should be finalized in the last quarter of the year.

    Essentially its yet another step in the evolution of Tesla. Initially it was a car company making high-end electric vehicles, it then morphed probably predictably into that of a lithium ion contract battery manufacturer ca-pable of feeding the Teslas with the EV batteries at a competitive (if as yet un-proven) rate, says one commentator.

    As part of the volumes required to realise the economies of scale needed for the EV side to work, the company moved the excess volumes these are potential volumes into the residen-tial side of the renewables business with its PowerWall.

    It may have been effective but it wasnt a particularly subtle move on Teslas part, the market for residential storage of renewables, at least in the last year or so has been swept by com-petitors. Sonnen, for example, is dis-posing of something like 10,000 units this year.

    According to Elon Musk, the chief executive of Tesla and chairman of SolarCity he owns roughly a fifth in each company according to S&Ps Global Market Intelligence the deal was a no brainer in what it provided.

    We would be the worlds only verti-cally integrated energy company offer-

    ing end-to-end clean energy products to our customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered, he said.

    More simply, it would be one-stop shopping for renewables youd buy the panels for the roof and their instal-lation, store their energy in the Pow-erWall, which would then look after the houses power needs and then plug in your Tesla, or EV, to take you to work or shopping.

    Which sounds brilliantly simple. However, there are too many vari-ants in the business model that cause complications from the price of energy. Predictably analysts have a huge range of opinions over the acquisition. Some say Tesla should focus more on making its car products successful before as-suming more debt. Others talk about it being a bail-out of SolarCity.

    Initial reaction to the talk of the merger was negative and Tesla stock fell 10% in the week of the announce-ment.

    Both companies are burning cash at a furious rate, according to the Wall Street Journal. SolarCity went through $2.6 billion in 2015 while Tesla spent $2.2 billion. But that was well known already. Another analyst called the acquisition a bail out of what was effectively a sister firm to Tesla.

    In one sense the debt levels are a side issue albeit an important one. Solar-City has over $6 billion in liabilities, according to Reuters, the news agency, but these are balanced by regular and predictable income streams. SolarCity is however the largest player in the US

    residential market with roughly a third of all the business.

    There are synergies too. A joint com-pany might be able to achieve cost savings of over $150 million in the first full year after closing the transac-tion, Musk said. The merger could fix this, transforming Teslas roughly 200 showrooms around the world into one-stop shops for homeowners and motorists.

    The biggest area of savings may come from lowering SolarCitys cost to obtain customers by using Teslas strong brand recognition on top of its retail store locations.

    Moreover, its the potential income that continue to stop Teslas buoyant share price from slipping too far.

    Musks vision and a noble one, de-spite the excessive hype is depend-ent on a host of variables varying from the appetite of consumers wanting to move to an electric vehicle and also adopting a home residential system and the price of solar at the time.

    As a brand name, and one of a small group of market leaders, the acquisi-tion is more related to the reputation of Musk as the great innovator rather than the vulnerability his companies have in terms of sales, the arrival of new technologies, and at its simplest, its affordability.

    From SolarCitys viewpoint it can only succeed if it gets bigger. In a June interview Lyndon Rive, chief ex-ecutive of SolarCity said the compa-ny wants to function at some point as a distributed power plant that, using its network of panels and batteries. To do that, it needs a lot of SolarCity panels and Tesla batteries in a lot of homes.

    Tesla acquisition of SolarCity provides yet another business model developing

    Lyndon Rive, chief executive of SolarCity said the company wants to function at some point as a distributed power plant that, using its network of panels and batteries. To do that, it needs a lot of SolarCity panels and Tesla batteries in a lot of homes.

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  • NEWS

    14 Energy Storage Journal Summer 2016 www.energystoragejournal.com

    Stem, the US software-driv-en energy storage company, announced mid-August that its project financing pool now exceeds $350 million following the addition of up to $100 million in new money from investment af-filiates of Starwood Energy Group Global, a private investment firm focused on energy infrastructure.

    John Carrington, CEO of, Stem plans to use its pool of capital to support project finance deals for its projects. Each of these is set up as a special purpose entity that is funded through non-re-course project financing. The project company then signs a lease for Stems so-called storage-as-a-service.

    Stem created its energy storage project financing model in 2013 and says it is now the global leader in energy storage for commer-cial and industrial facilities with more than 75MWh of projects deployed or under

    contract across more than 480 locations across the US.

    GTM Research estimates that the firm has more than a 50% share of the behind the meter market.

    Third-party financing enables companies such as Safeway, Wells Fargo, and Adobe to subscribe to our storage-as-a-service solution with no upfront costs for equipment or installation, says the firm. Custom-ers benefit from intelligent storage that automatically reduces energy use during peak demand times, lowers monthly electricity bills by up to 20%, and provides a revenue stream from ser-vices that help balance the electric grid.

    Madison Grose, a senior managing director at Star-wood Energy said: Distrib-uted energy resources such as those provided by Stem will be part of the founda-tion of the future electric grid. The Stem financing

    is an attractive investment that facilitates lower ener-gy storage costs and wider adoption of clean energy solutions its a win/win for our investors, Stems customers and the environ-ment.

    According to a GTM Re-search, the US market for behind-the-meter energy storage grew more than 400% in 2015. By 2021, this sector is expected to ac-count for up to 49% of the total energy storage market.

    This financing vehicle gives our customers access to capital and allows them to achieve the benefits of intelligent energy storage without making a major in-vestment, said Carrington. Support from Starwood Energy helps solidify Stems position as a well financed, industry leader in providing intelligent energy storage solutions.

    As Stem brings on more storage projects, Carrington

    hopes to reduce the firms cost of capital by adding economies of scale and demonstrating the validity of its business model to a wider audience of investors. Carrington says Stem has already cut itss cost of capi-tal in half over the past 18 months.

    Stem was one of 10 win-ners of an auction to sup-ply demand response to Consolidated Edison. Under the agreement with Con Ed, Stem will install up to 857kW of battery storage in New York City by 2018.

    Last November, Southern California Edison awarded Stem a contract to provide 85MW of distributed be-hind-the-meter storage for buildings in the West Los Angeles Basin.

    For customers, Stems bat-tery systems are similar to a demand response service. It can shave peak load and capture savings from avoid-ed demand charges. Aggre-gating its grid management tools across multiple cus-tomers, Stem can then turn around and offer to help utilities manage their grid.

    Stems primary project financing comes from Gen-erate Capital, a specialty fi-nance company. Generates work with Stem brings a version of the solar financ-ing model to energy stor-age, supporting its mission to rebuild energy systems using high-impact, proven technology solutions. Other project financing is also pro-vided by Clean Feet Inves-tors.

    In addition to Starwood Stem is funded by a consor-tium of investors including Angeleno Group, Iberdrola (Inversiones Financieras Perseo) GE Ventures, Con-stellation Technology Ven-tures, Total Energy Ven-tures, Mitsui, RWE Supply & Trading, and Mithril Capital Management

    Starwood Energy invests $100 million to Stem, brings project finance pool to $350 million

    Greensmith Energy, one of the largest US providers of energy storage software and integration services,entered into a cooperation agree-ment with Wrtsil, the in-ternational technology firm, in July.

    This enables Wrtsil to deliver energy storage sys-tems integrated with solar PV, and Wrtsil Smart Power Generation power plants, jointly forming a hy-brid energy solution.

    Greensmith will provide its GEMS software platform to provide the control for the system. Wrtsil, a com-pany known for its multi-fuel power plants, says it will leverage its installed base and provide global EPC (engineering, procure-ment and construction) and

    O&M (operation and main-tenance) services to custom-ers worldwide.

    The two firms said: As a combined market solution, Wrtsil and Greensmith will provide sustainable, re-liable, and affordable power particularly in countries and regions with limited or small electrical grids.

    Separately, Greensmith Energy launched its behind-the-meter energy storage so-lution, Omni4 in June.

    Greensmiths Omni4 is a plug-and-play product suit-able for a variety of custom-ers including utilities, devel-opers, building operators and energy partners. Omni4 comes in four configurable sizes 100kW, 250kW, 500kW and 1MW.

    All Omni4 systems come

    deployment ready and in-clude fully-integrated out-door-rated enclosures, batter-ies, AC/DC protection, power conversion, thermal manage-ment, fire suppression and advanced software controls.

    Greensmith announced mid-August that AltaGas has selected the firm as the software provider and system integrator for a 20MW/80MWh system in Pomona, California. The project will be put on a fast-track basis and the firms say they expect this to be com-pleted by the end of the year.

    The firm says it is now on track to install 200MW of cumulative operating capac-ity. It was recently voted as being one of the fastest growing energy storage companies.

    Greensmith Energy, Wrtsil form partnership agreement

  • NEWS

    www.energystoragejournal.com Energy Storage Journal Summer 2016 15

    Australia energy retailer AGL, working with the federal governments Aus-tralian Renewable En-ergy Agency (ARENA), is commissioning Sunverge Energy, the Californian energy storage firm, to de-velop what it says will be the worlds largest virtual power plant.

    This project is the worlds largest, the first of its kind and an innovative solution to both help cus-tomers manage their en-ergy bills and at the same time contribute to grid stability, said AGL chief executive Andy Vesey.

    This project is core to our strategy of being a manager of distributed energy resources. It also leverages our investment in Sunverge and helps us to continue to improve the digital customer experi-ence.

    Sunverge and AGL have partnered on storage in-stallations in Australia since 2015, and earlier this year AGL became an investor in Sunverge.

    The AGL virtual power plant will be capable of storing 7MWh of energy, with an output equivalent to a 5MW solar peaking plant this is enough power for 1,000 homes. It will also provide greater grid stability, demonstrate alternative ways to manage peaks in demand and sup-port the higher penetration of intermittent, renewable generation on the grid.

    The project will be rolled out in three phases over a period of approxi-mately 18 months. In the first phase, running until April 2017, the first 150 customers in metropolitan Adelaide will be eligible to buy a discounted Sun-

    verge SIS 5kW/7.7kWh energy storage system for A$3,500 ($2,700) which includes hardware, soft-ware and installation.

    For customers with suf-ficient excess solar gen-eration, this is expected to result in a seven-year pay-back period, says AGL. Consumers currently without solar will be able to purchase a solar system of the appropriate size for their needs with their bat-tery.

    Later phases will see an offering to narrower zones within metropolitan Ad-elaide where peak demand management and other network support services can be demonstrated.

    AGL says it hopes the project can show how re-lationships between elec-tricity networks, retailers, consumers and the market operator can create new

    sources of value and sta-bility in a renewable en-ergy future.

    The overall project cost is approximately A$20 million, with ARENA pro-viding conditional approv-al of A$5 million as part of its Advancing Renewables Program, which aims to support the penetration of renewables on the grid.

    The AGL and ARENA Virtual Power Plant is re-markable today, but in five years time large-scale VPPs will be everywhere, said Ken Munson, co-founder and CEO of Sun-verge Energy.

    By helping to build a stronger, more efficient and more reliable grid, VPPs deliver tremendous value to utilities, their customers and the environment.

    Sunverge has deployed hundreds of Solar Integra-tion Systems in Australia and New Zealand, reduc-ing peak load by 48% and providing more than 6,100 hours of backup power over the past 12 months.

    Gaelectric, the Irish renew-able energy and energy storage group, announced in August it is to receive some 8.28 million ($9.4 million) in funding from the European Union to develop a compressed-air energy storage (CAES) in Larne, Northern Ireland.

    The 330MW project had already been designated as a European Project of Common Interest in 2013, and had been awarded EU grant support of 6.5 mil-lion for front-end engineer-ing and design studies. This latest award is for the drill-ing of an appraisal well, and detailed studies into the design and commercial structure of the project.

    This facility will generate up to 330MW of power for periods of up to six hours. It will create demand of

    up to 200MW during its compression cycle. This is enough to meet the elec-tricity needs of more than 200,000 homes, and create demand on the system of 250MW.

    The project involves the creation of two storage caverns within salt deposits which are a feature of the east Antrim coastal areas of Northern Ireland. These caverns will be located at

    depths of greater than 1400 metres below ground.

    The project has been de-signed to allow its replica-tion at other suitable sites in the UK and the European mainland.

    AGL prepares worlds largest virtual power plant

    Gaelectric to get further EU funds for CAES project

    South Koreas largest utility, Korea Electric Power Corporation better known as Kepco has awarded Kokam a contract to develop a 36MW/13MWh energy Storage System (ESS) for frequency regulation at the Non-Gong substa-tion in South Korea. Work started in June and should be completed by the end of the year.

    The project features a combination of two

    Kokam lithium ion bat-tery technologies: its ultra high power nickel manga-nese cobalt battery tech-nology and its NANO battery technology.

    This is not Kokams first project with Kepco. In March, Kokam announced that it had deployed two ultra high power nickel manganese cobalt batteries (a 24MW/9MWh and a 16MW/6MWh system) along with a

    16MW/5MWh lithium titanate oxide system. This provides Kepco with 56MW of energy storage capacity for frequency regulation. When the new 36MW ESS project is completed, Kokam will have de-ployed 92MW of energy storage capacity for frequency regulation for Kepco, and the total worldwide capacity of ESSs using its batteries will total 132MW.

    Kokam to build 36MW ESS for Kepco

  • NEWS

    16 Energy Storage Journal Summer 2016 www.energystoragejournal.com


    UK aggregator Smartest Energy has called for the UKs National Grid to provide more certainty on future frequency response capacity, for the emerging energy storage market to grow. International interest is high given that this is a stepping stone that all mature renewable energy markets must cross.

    Smartest Energy published its find-ings in mid-August following a survey of 45 energy storage developers about the barriers to commercialization. The key findings are that there are too few National Grid contracts and those that are being awarded are too short.

    The biggest revenue opportunity available to developers will be from

    providing grid services, chiefly the new enhanced frequency response (EFR) market, with most developers pursuing this opportunity.

    National Grid will announce the winners of the first 200MW EFR auc-tion on August 26.

    However, with the pipeline of bat-tery projects estimated to be at least 1GW, a lot of storage capacity will re-main untapped because of the limited availability of contracts.

    A big issue for developers seeking to commercialize energy storage in the UK is the four years of guaranteed revenue from the EFR market.

    Unless assets can achieve a return in that time highly unlikely at current

    battery prices developers have to look at other sources of income. But these are not guaranteed and in some cases income is reduced by environ-mental levies.

    While most of the developers sur-veyed by Smartest Energy believe a return on investment can be realised in five to 10 years, there is an inherent risk in developing and raising finance for batteries where these other rev-enue sources are not guaranteed.

    During the first four years of the as-sets operational lifetime the con-tractual period for ER services its ability to earn other revenues is lim-ited.

    It will depend upon whether Na-

    UKs National Grid tenders for grid services problematic for developers

    Certainty is needed on future frequency response capacity, for the UK storage market to thrive.

  • NEWS

    www.energystoragejournal.com Energy Storage Journal Summer 2016 17

    tional Grid chooses to contract for long continuous periods of EFR service from storage owners or is willing to ac-cept a mix of offers covering different periods of the day which could enable contracted storage owners to use their assets for other purposes when not committed to providing EFR services, says Kevin Magner, director, financial advisory, government and infrastruc-ture, at Deloitte in London.

    The consultancy provides financial advisory and other services to firms in the renewables and energy storage sectors.

    Storage assets operational lifetimes are at least 10 years, so they could ac-cess other revenues after the end of the

    four year EFR contract period. For example, their owners could bid into subsequent EFR or other grid service tenders also, one of which is firm fre-quency response. However, this is not guaranteed.

    Our assumption is EFR will even-tually replace firm frequency response, since less of it will be required, says Robert Owens, vice president of de-mand side management at Smartest Energy.

    In designing the EFR market, Na-tional Grid has made sure that at least 1GW of enhanced frequency response where storage devices, such as bat-teries, have to react within sub-second timeframes to inject power into the grid to correct imbalances can be provided without causing problems to the power system, which also means that EFR can be, in future, a standard product much like firm frequency re-sponse is today.

    By the time of the next EFR bid-ding round, which will be from 2018, and is expected to be in the region of 400MW, technological advances, or reductions in production costs, may make newer storage systems more competitive by then, which may mean assets built for the first round are un-able to provide the service competi-tively.

    We would expect bidders that can mobilize capital that is willing to take a positive view on the ability of stor-age assets to earn sufficient revenues both in the EFR contract period and in other markets, later, over the eco-nomic life of the assets will be well placed in the EFR tender competi-tion, says Magner.

    In general, the longer the period over which costs can be amortized then the lower the required year-by-year rev-enues.This is likely to be linked to where the storage assets are deployed and their suitability for accessing oth-er markets such as load shifting for large power consumers or enabling large renewable generators to offer fixed levels of output for more of each day, Magner says.

    He also points to other unique ad-vantages of battery storage, which in-stalled as a containerized product can be redeployed physically more easily than most forms of generation, and is also less intrusive.

    While some of these other commer-cial opportunities help to mitigate the risk for storage owners, from Smartest Energys discussions with developers for the survey, Owens says most have come up with projects for direct grid

    connection, as opposed to co-locating storage with existing renewable gen-erators.

    This is due in part to intensive fo-cus on the EFR market as National Grid may opt to select bids for pro-jects that are dedicated 24/7 to pro-viding this service. Also co-locating with wind or solar can interfere with renewables payments, says Owens.

    Because four years of guaranteed revenues is not enough to make pro-ject financing, a type of debt financing instrument for raising capital to build large energy and infrastructure pro-jects, developers and investors have had to look at alternative financing options.

    In general the storage opportunity looks at this stage to require more entrepreneurial forms of equity and mezzanine-style debt, or corporate fi-nancing, says Magner.

    That will almost certainly change as the market matures and the sen-ior debt proposition becomes clearer, better understood, and larger in vol-ume. The key is mobilizing capital that has confidence in the long term revenue potential of the storage assets, based on their physical operating life, and will accept repayment, refinanc-ing or returns linked to that.

    Smartest Energy has been work-ing with developers on a commercial framework for energy storage projects in the UK. From its discussions the company expects that National Grid may spread contracts out among de-velopers so there might be as many as 20 awarded for servicing the 200MW EFR market.

    EFR is a testing exercise for Na-tional Grid, as much as one of pro-curement, so it may be in future that as revenue streams settle and other factors are considered, such as how far battery prices come down, that bigger projects will prevail in later EFR bid-ding rounds, says Owens.

    Smartest Energy, which purchases electricity from independent renew-able generators, equivalent to 13% of the UKs independent renewable capacity, is not an investor in any of the EFR projects. We produced the survey from the stance of a service provider, says Owens.

    The company has been working with the energy storage industry for the past three years, when it part-nered UK Power Networks to pro-vide a supply and offtake agreement for the distribution network opera-tors 6MW battery in Leighton Buz-zard, England.


  • NEWS

    18 Energy Storage Journal Summer 2016 www.energystoragejournal.com

    Sherwood Partners, the US insolvency adviser, has been engaged by Imergy, the va-nadium flow battery firm, to market and sell the com-panys assets. On July 18 Imergy entered into an As-signment for the Benefit of Creditors (ABC), a form of insolvency under Californian state law.

    The collapse of Imergy had been widely anticipated. It follows the collapse of so-lar firm, SunEdison in the spring.

    Imergy had been partnered with SunEdison on a huge Indian rural electrification programme where SunEdi-son had agreed to buy up to

    1,000 of Imergys 30kw units over the next three years.

    SunEdison was an equity investor in Imergy.

    Last December the firms announced they were working together on a 5MW/20MWh flow battery for the Independent Electric-ity System Operator, an On-tario, Canada utility.

    Sherwood says now that it is the so-called assignee of Imergy, we take control and work through the prob-lems of the company. These problems are transferred to the assignee. The manage-ment team, investors and the board can then move forward with their lives and

    everyday business. Also, the personal liability of directors and officers for running an insolvent company ceases to be an issue once the assign-ment of assets occurs.

    Imergy has ceased opera-tions and dismissed its staff. However, some key former employees to help with the sale of the intellectual property and related assets. Some of the claims such as the ability to cut the cost of manufacturing the batter-ies from $500kWh to under $300kWh were contentious.

    The IP could well provoke interest given Imergy, which was part of Deeya Energy until 2013, had distinct dif-

    ferences from other flow battery firms. It originally worked on an iron-chromi-um chemistry but shifted to vanadium three years ago. It moved from using sulphuric acid as an electrolyte to an-other electrolyte developed by the Pacific Northwest National Laboratory.

    One advantage was its ability to use so-called dirty vanadium. It claimed to be the first flow battery compa-ny able to use secondary re-sources of vanadium from mining slag, fly ash and other environmental waste. The battery could stay stable up to 55C without the need for cooling.

    EnSync Energy Systems, the US energy management sys-tem company, announced in August the sale of multiple projects in Hawaii to AEP OnSite Partners, a subsidiary of American Electric Power.

    The sale of these projects is EnSync Energys first transac-tion of a portfolio of project power purchase agreements (PPAs) and includes a major portion of EnSync Energys PPA backlog reported at the end of our third quarter.

    The first solar-plus-storage PPA is a watershed moment for Hawaii, which has one of the most aggressive renewa-ble portfolio standards in the US. In June last year it signed into a law a target of using 100% renewable energy for its electricity by 2045.

    All of the systems are sited behind-the-meter at condo-miniums or university cam-pus buildings on Oahu and the Island of Hawaii, and represent the first ever solar plus storage PPAs in Hawaii. EnSync will provide project services through a contract

    with AEP OnSite Partners.Were very pleased to

    complete this transaction with AEP OnSite Partners, a recognized leader in renew-able energy investments and this sale, which could be the first of its kind in the renew-able energy market, and pro-vides validation of our PPA business model, says Brad Hansen, chief executive of EnSync Energy.

    When we entered the Ha-waiian market with our PPA business model featuring

    leading energy management and energy storage systems, it was novel and unique in the islands. Since that time our pipeline and backlog of PPAs has continued to build and we look forward to con-tinuing this growth over the coming quarters and years.

    EnSync Energy has built a position in the Hawaiian market, and through its sub-sidiary company, Holu En-ergy, has developed a project pipeline in the islands.

    These projects are the first

    integrated solar and storage projects in Hawaii.

    In 2015, EnSync incorpo-rated power purchase agree-ments into its portfolio of offerings, enabling electricity savings for customers and providing a stable financial yield for investors. EnSync is a global corporation, with a joint venture in AnHui, China at Meineng Energy, as well as a strategic partner-ship with Solar Power.

    EnSync was formerly known as ZBB Energy.

    Imergy goes into ABC insolvency agreement intellectual property and assets up for sale

    EnSync sells first PPAs, opens up Hawaii

    Advanced Microgrid Solutions, a developer of energy storage systems for electric utility grid support, and Opus One Solutions, a smart grid software engineering company, agreed a tie-up in July to provide utili-ties with a platform for real-time management and optimization of the

    electric grid.AMS and Opus One say

    they will pair advanced energy storage systems with real-time grid level energy management software to bring utilities grid visibility, control, and optimization. This will support widespread deployment and opera-tion of distributed energy

    resources, including renewable energy.

    In addition to the benefits to utilities, the so-lutions provided by AMS and Opus One will help customers optimize their energy strategies while contributing to a stronger, more resilient grid, they say.

    This partnership gives AMS and Opus One a competitive edge in

    AMS tied up with Opus One

  • NEWS

    www.energystoragejournal.com Energy Storage Journal Summer 2016 19

    Doosan Heavy Industries & Construction, a Korea-based power generation technology firm, acquired US-firm 1Energy Systems in mid-July. 1Energy was founded in 2011 to develop the software needed to au-tomatically integrate dis-tributed energy resources into electric power systems.

    1Energy will be renamed Doosan GridTech and will remain in Seattle, operating as a new business division of DHIC.

    By accelerating the growth of 1Energy, the ac-quisition furthers Doosans expansion into technology solutions to manage and operate an increasingly digital, distributed electric grid, say the two firms.

    Daejin Choi, vice presi-dent of DHIC for nearly

    seven years, will relocate to Seattle to become CEO of Doosan GridTech. New Doosan GridTech employ-ees will be hired in Seattle, joining 1Energy employees and Doosan personnel relo-cating from Korea.

    Wind and solar power, energy storage and the ad-vent of electric vehicles are changing how the grid op-erates, said David Kaplan, 1Energy CEO who will become COO of Doosan GridTech.

    As Doosan GridTech, well scale rapidly to de-liver more field-based intel-ligence and continue our leadership in cross-industry efforts, such as Modular Energy Storage Architec-ture (MESA) open stand-ards, to deliver more cost-effective and functional

    solutions on behalf of cus-tomers.

    Kaplan, who was a central figure in creating MESA, says standards are neces-sary to scale any technol-ogy. The personal computer industry grew to millions of units per year, while driving down prices, after software and hardware components were standardized. MESA standards will allow con-nections between energy storage system compo-nents, freeing utilities and vendors to grow storage through market processes.

    While battery storage technologies are improving all the time, they are only as good as the software that operates them, Ka-plan said. Doosan Grid-Tech provides the advanced software the intelligence

    that controls complex op-erations to truly break open the opportunities of battery storage, enabling utilities to meet the chal-lenge of managing distrib-uted resources and capture new value streams across the grid.

    Ji Taik Chung, DHIC vice chairman said: Doosans global customers are con-fronting two critical, long-term trends: Increased elec-trification of the worlds energy systems driven by public policies to reduce carbon emissions, and the declining costs of technolo-gy, especially renewable en-ergy and battery storage.

    1Energy has roughly 30MW of energy storage projects using its platform, with about half of that in the US.

    GE Ventures announced in June that it had bought a stake in Germanys Son-nen for an undisclosed sum to boost its presence in the fast-growing market for battery systems built to store solar power.

    This is an extraordinary endorsement of Sonnen, said one industry commen-tator. Its not just about an investor covering its bases so much as not to miss out on an opportunity that may happen, but one taking a stake in what it reckons will be a major player in the sector.

    GEs unit is paying a mid double-digit million-euro sum for a minority stake in the company, according to a statement by the Bavaria-based Sonnen and reported in the press.

    The company said other investors are considering taking stakes in Sonnen, whose ownership includes

    founder Christoph Oster-mann and four private eq-uity funds. Ostermann re-cently announced the firm was seeking an investment round of up to 50 million.

    Sonnen claims to be Eu-ropes biggest maker of lith-ium-battery systems for so-lar storage. It competes with Tesla Motors Powerwall home battery and Bosch

    Power Tec. This year it claimed that it had shipped more sonnenBatterie than Teslas Powerwall.

    Ostermann later was quoted in the press as say-ing: With GE Ventures, we have not only partnered with one of the worlds largest power and water technology companies but gained a supporter for our

    vision of a sustainable and affordable energy future for all.

    Sonnen is helping to re-shape the energy industry, said Jonathan Pulitzer, managing director at GE Ventures. We believe in Sonnens vision. thats why we are excited to be a part-ner to provide clean and af-fordable energy to all.

    Doosan acquires 1Energy, MESA co-founder Kaplan stays on as COO

    GE Ventures takes stake in Sonnen

    For the record, Rongke Power a partner and affili-ate of UniEnergy Technol-ogies said in May it plans to deploy the worlds largest battery a vanadium flow battery rated at 800MWh. UET and Rongke Power have worked closely together since 2012 to develop large-scale vanadium flow batteries.

    The battery arrays approved by the China National Energy Adminis-tration will be made up of 10 20MW/80MWh VFB systems deployed on the Dalian peninsula, which during extreme weather events has experienced stress on the electricity grid.

    After commissioning, the VFB battery will

    be able to peak-shave approximately 8% of Dalians expected load in 2020.

    The VFB battery will be built at Rongke Powers new factory to be opened this autumn, with a phase 1 capacity of 300MW of VFB electrode stacks, a phase 2 capacity of 1GW, and a phase 3 capacity of 3GW.

    The worlds largest battery for north China

  • NEWS

    20 Energy Storage Journal Summer 2016 www.energystoragejournal.com

    Renewable Energy Systems, the UK based international energy storage de-veloper, is building a 20MW battery storage plant to provide services in sub-second frequency response to the National Grid in the UK.

    In May the two signed a four-year contract for RES to provide frequency response from a 20MW battery stor-age plant the company is building, which will be operational in the final quarter of 2017.

    The deal was announced before the transmission system operator can publicise successful bids for its new enhanced frequency response market, which happens in late August.

    RES said: This is a new service which will aid National Grid in per-forming its system balancing role, which increasingly requires innova-tion and the use of new technolo-gies. The services delivered by RES battery storage system will provide cost effective frequency response to the grid within one second of the de-tection of a frequency deviation.

    The 20MW plant is outside of the 200MW enhanced frequency response (EFR) market the National Grid is in the process of establishing.

    National Grid senior account man-ager Adam Sims said: RES system is being used to test parameters of fre-quency regulation. It is a precursor to the enhanced frequency response, but is not part of the market.

    Fast frequency regulation has grown in demand as a means of balancing the grid, especially in North America, as more intermittent renewable energy sources such as wind and solar con-tinue to be added.

    Energy storage plants typically bal-ance the grid within second or sub-second ranges to correct supply and

    demand imbalances. Helped by fall-ing battery prices it is becoming more economic to use lithium battery stor-age systems to despatch these types of power-intensive ancillary grid services.

    Transmission system operator PJM Interconnection has overseen the most advanced and largest market for bat-tery storage for the provision of fast frequency regulation services. The markets rules have been established to more accurately compensate stor-age providers for high performance qualities of energy storage systems.

    Other markets in North America and globally here the UK approach is included have looked to PJM as an example of how to design a market for battery storage.

    RES core business is developing operating renewable energy plants, including utility-scale wind and solar photovoltaic plants, which the com-pany has been building since the early 1990s. The companys global portfo-lio of assets built or in development numbers several gigawatts and also includes transmission projects.

    In the past few years RES has devel-oped over 70MW of energy storage mainly in North America.

    National Grid has continued to refine the design of its enhanced fre-quency response market since it was announced in the second half of 2015.

    Sims says: Designing the enhanced frequency response market has fea-tured collaborative input by the com-panies seeking to take part, many of which are planning to use battery storage to provide this service.

    For instance, the invitation to tender documents, which provide guidelines for the remaining prequalified par-ticipants for their bid submissions, has split the enhanced frequency response

    into two service envelopes. This has been done to simplify the

    original approach which would have allowed for many variations, to pro-vide flexibility. However, in reality this could have been complicated to administer.

    RES has also provided input into the National Grids research into enhanced frequency response. The company says it initially proposed this service to National Grid in 2014, based on the companys experience of delivering multiple similar projects in North America, for the PJM Intercon-nection, Ontarios independent elec-tricity system operator and others.

    The company said: We undertook a significant amount of detailed tech-nical analysis on the benefit of such a service to the electricity system in Great Britain, and worked closely with National Grid in testing and proving National Grids own analysis of the impact of very fast frequency response services on the grid.

    The result is this contract, which separately contributed to National Grids decision to seek 10 times more (200MW) of sub-second frequency response through the enhanced fre-quency response invitation to tender.

    The 20MW asset being built by RES will provide a different service and a different ramp rate within the one sec-ond frequency range. It is very much a test bed for the National Grid to use a battery to see how it performs providing fast response services and gather data. For instance, what are the parameters and what will they do to the grid in the UK? says Sims.

    Under the terms of the contract RES will develop, build, own and operate the 20MW battery energy storage plant to deliver the sub-second fre-quency response services to National Grid.

    The service contract will be paid for by National Grid through its role as system operator and is similar to many other ancillary services con-tracts it procures for balancing pur-poses, according to RES.

    RES snares battery project ahead of launch of UKs frequency response market

    Renewable Energy Systems system is being used to test parameters of frequency regulation. It is a pre-cursor to the enhanced frequency response, but is not part of the market.


    www.energystoragejournal.com Energy Storage Journal Summer 2016 21

    What do you think are going to be the most interesting markets for testing in the coming years?

    We are seeing a broad spectrum of activity within what we wed call growth markets.

    The transportation sector is looking at lead acid developments to 48 volts for consumer transportation as well as 1000+ volts for advanced chem-istry batteries for off-road and mass transportation applications.

    We receive more requests for micro-grid applications standalone islands, remote/rural locations, and the like at this time, but we dont see a lot of test equipment activity for applications relating to grid peak storage or frequency regulation.

    Another area that we see growth in is in the re-purposing of used EV/EHV batteries. There is still a lot of life in EV/EHV batteries after they are no longer ideal for transportation use.

    And in terms of geographical location, where do you think will be the new hot spots for testing?

    In the past 12 months we have seen a great amount of activity from China and in India. While the North American market still remains as a stronghold in R&D of both lead acid and advanced chemistry batteries, the Indian and Asian markets are leaning heavily on equipment for the testing of advanced chemistries.

    Will Brazil be the next Shenzhen?

    We do see activity in Brazil and we are always hoping for growth in the South American market, but the volatility of the Brazilian market seems to change even within the time taken from when we quote a project and the expected PO [purchase order] date.

    In terms of the technological advances in testing, what areas do you think are going to be the most exciting greater precision, greater predictability for lower cycling, totally new products and the like? Or all?

    Customers continue to ask for faster and more accurate test equipment. There is a spec war going on globally. R&D lab equipment being used for material research requires high level of resolution and accuracy.

    There is always the economic trade-off between cost and requirement.

    I believe that all test equipment suppliers are working to understand this now.

    Where do you see Bitrode as part of this?

    We take pride in our reliability and the ability to prove what we put on our spec sheets. Our R&D depart-

    Testing times as new generation of energy storage products appears

    Energy Storage Journal interviewed Craig Brunk, sales director at Bitrode for his take on the current state of the testing market and the direction itll go in the next few years.


    22 Energy Storage Journal Summer 2016 www.energystoragejournal.com

    ment is constantly being challenged to meet the escalating requirements of our customers and not take short cuts.

    We are in development of three to four new product platforms that we believe will give customers the value they expect from Bitrode testers and meet their high demands for precision and reliability.

    What are your thoughts on new forms of potential secondary batteries such as lithium air, magnesium ion

    Bitrodes product line is chemistry neutral; we build testers for cell test-ing, module testing and pack testing. Our R&D lab and university cus-tomers dont typically disclose their proprietary development programs and proprietary test algorithms.

    Our Windows-based VisuaLCN software is fully capable and easily programmable by users to develop test profiles for each variation of bat-tery chemistry.

    How do you think the testing industry will evolve in the years to come?

    At the end of the day, customers want to work with suppliers that have experience in the industry, a track record of proven results and respon-siveness to requests for equipment flexibility, technology, service and performance.

    Natural selection will eliminate those that cant meet these require-ments.

    Will the industry consolidate?

    Thats a maybe! Digatron and Firing Circuits merged in 1988. Sovema purchased Bitrode in 2008. Its been quite a while since a merger or acqui-sition has taken place. Perhaps 2018 will be the next year for change? (laughs!)

    Become more specialized?

    Power electronics are the heart of battery testing equipment. If any-thing, I would see expansion of our com