| | AUGUST 20198CIOReviewIN MYOPINIONGoing forward, 2019-2020 will look like the year that energy storage took off. Energy storage has already been growing rapidly, with many notable projects of increasingly larger size. In 2014-2015, a project that was considered large was rated at a few megawatt-hours. Energy storage is rated in both power (MW) and energy (MWh), where the MWh rating is the MW rating multiplied by the number of hours it can discharge. Today, project ratings over 100 MWh are common. Fluence has a project scheduled in Long Beach rated at 100 MW/400 MWh. Vistra energy has a proposal for a project in the US rated at 300 MW / 1200 MWh to go online in 2020. And they keep getting bigger. It used to be that long duration storage was only achievable with flow batteries or pumped hydro. However California's resource adequacy market requires a minimum of 4-hour duration and most of the contracts are met with Li-ion batteries. Recently, FERC Order 841 required that all independent system operators (ISOs) within the US propose an "energy storage participation model" with implementation by the end of 2019. This order will create markets for energy storage across the US. The payment structure and requirements for duration are yet to be settled, however many ISOs are requiring four or more hours of storage. PJM's requirement is perhaps the most astounding: up to 10 hours of duration, representing a total potential market of up to 210 GWh. In New York, the governor set a target for 1500 MW of energy storage by 2025 and 3000 MW by 2030. Between all of the upcoming markets and policies, there are 225 plus GWh of energy storage opportunities across the US when the duration requirements are accounted for.Meanwhile, the energy landscape is changing. In PJM's base residual auctions up to three years out, renewables are price makers and are undercutting the cost of energy of coal, nuclear, and even HOW ENERGY STORAGE WILL BE PART OF EVERY ENERGY PROJECT GOING FORWARDBy Davion M. Hill, Global Energy Storage Segment Leader, DNV GL
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