SNL POWER DAILY: Energy storage projects emerge in California, New York

The power authority, which supplies power generation and transmission service to 11 municipal utilities and one irrigation district, and Ice Energy announced a 53-MW project, to be implemented by the authority’s member utilities, that will shift about 64 GWh of on-peak electrical consumption to off-peak periods annually.

 

During a conference call Jan. 27 to discuss the arrangement, Ramirez said, in every commodity market in the world except for electricity, storage exists to serve as the shock absorber for the imbalance between supply and demand.

 

“Until now, utilities have been forced to significantly overbuild all facets of their infrastructure to meet peak energy demands for but a few hours each year,” he said. “That all changes, starting today. With our proven solution, SCPPA and Ice Energy will deliver the first cost-effective alternative to peaking power plants.”

 

Ice Energy’s storage system essentially taps into air conditioning systems to cut peak demand. Operating on two modes, “ice cooling” and “ice charging,” the storage unit stores energy at night and delivers it during the next day. While charging, 450 gallons of water are frozen to ice. As power consumption of air conditioning rises along with day time temperatures, the unit replaces the air conditioner compressor. While cooling, the ice instead of the air conditioner compressor is used to cool refrigerant.

 

Deployment of the systems will start immediately and last 24 months at about 1,500 sites at government, commercial and industrial buildings in retrofit and new construction, said Ice Energy Executive Vice President of Utility Solutions Chris Hickman.

 

During the conference call, he called it a “historic day for the utility industry, in terms of the recognition of the role energy storage will continue play.”

 

A unique aspect with the contract with the power authority is that the contract can grow, he said. While the starting with 53 MW with the 12 authority members, that contract has the market potential to grow to more 700 MW, Hickman said.

 

SCPPA Energy Systems Manager David Walden said the actual result of any particular installation will start almost immediately. “I think this is obviously a first step to bringing demand-side, utility-scale storage to the electric utility industry,” he said.

 

The Ice Energy announcement came not long after an AES Corp. unit asked New York regulators to back a plan for a 20-MW storage unit.

 

In a Jan. 25 application, AES ES Westover LLC asked the New York Public Service Commission for a ruling declaring that it does not require a certificate of public convenience and necessity for an energy storage project to be built on the site of the Westover power plant. Should the PSC determine a certificate is needed, AES ES Westover asked the commission to grant one. In either case, the company asked for a decision by March 18.

 

The project builds on pilot and demonstration projects by AES Energy Storage LLC, the direct owner of AES ES Westover, that showed the technical feasibility and commercial potential for using systems composed of advanced lithium ion battery cells and power control technologies to help maintain the stability of the electric grid.

 

“The project will assist the commission’s and the state’s efforts to enhance system reliability lower costs to ratepayers, integrate renewable resources, and reduce CO2 greenhouse gas emissions,” the company said.

The first phase of the project, 8 MW, could be in service in the second quarter of 2010, while the second, 12-MW portion could be online by the third quarter of 2010.

 

AES ES Westover also asked for an order granting it lightened regulation as an electric corporation and for approval to enter into a certain debt obligation with a term greater than 12 months to finance the second phase. The company asked for an answer to these requests by April 15.