This week I spoke at the Energy Storage North America conference in San Jose, CA in a session titled “Distribution-Sited Energy Storage: Lessons Learned and Case Studies.” Before joining 1Energy Systems this summer, I helped install and test six different distribution-tied energy storage systems over the past several years while at Duke Energy. My decision to join 1Energy was motivated by what I learned from my hands-on experience with these early deployments.
Many important lessons learned emerged from this period of utility-driven R&D projects, both at Duke Energy and across the industry. Utilities and their vendors have proven that energy storage can be fielded in a utility environment, using multiple different battery technologies. Storage projects have delivered value to the utility using simple control algorithms and some basic coordination with other grid equipment.
In spite of this progress, the installed base of demonstration batteries do not have the characteristics of a mature technology that is ready to support scalability. System are typically defined along proprietary lines rather than the merits of individual components. Most storage projects to date have significant non-recurring engineering for systems that deliver simple, single, hard-wired functionalities with expensive custom integration into utility IT systems.
In order to scale, the energy storage industry must take on the characteristics of other mature industries that serve utilities. These characteristics extend well beyond what utilities can develop on their own and require an industry ecosystem, including the following characteristics:
• Standards that simplify the interconnectivity of energy storage system components, reduce non-recurring engineering, and enable individual components to compete on their merits rather than default to proprietary boundaries.
• Grid-integrated control algorithms hosted within a discrete software layer that deliver multiple, simultaneous, and optimized functionalities and allow utilities to focus on system value rather than just cost.
• Control methodologies that connect energy storage with other grid assets to make them a coordinated team and magnify the value.
I joined 1Energy Systems because the company is focused on creating the conditions for energy storage to scale with utilities and is where I can make the most difference in taking the energy storage industry to the next level. 1Energy’s endorsement of the Modular Energy Storage Architecture (MESA) standard and our focus on a discrete software layer equipped with smart, interoperable control algorithms are great examples of how we are making a difference.
The last few years of distribution-connected energy storage deployments, such as those at Duke Energy, have done a lot to bring energy storage to the field for the first time and set the stage for a promising technology. Moving from energy storage demonstration projects to energy storage as a ubiquitous component of the electric grid is a different challenge: one that requires an industry ecosystem built for scale.
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