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		<title>When does it make sense to overbuild your BESS?</title>
		<link>https://greendealflow.com/when-does-it-make-sense-to-overbuild-your-bess</link>
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		<dc:creator><![CDATA[Green Dealflow]]></dc:creator>
		<pubDate>Mon, 28 Jul 2025 08:06:05 +0000</pubDate>
				<category><![CDATA[Market Insights]]></category>
		<category><![CDATA[Project Finance & Development]]></category>
		<category><![CDATA[BESS]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=32100</guid>

					<description><![CDATA[<p>As renewable energy projects face tighter performance guarantees and volatile markets, BESS developers are considering installing extra capacity upfront, rather than augmenting capacity later. ‘Overbuilding’ like this typically adds 10-20% beyond immediate needs, thus combatting battery degradation, ensuring consistent revenue from stacked use cases, and avoiding costly mid-life expansions. But with battery prices fluctuating and [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/when-does-it-make-sense-to-overbuild-your-bess">When does it make sense to overbuild your BESS?</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-why-overbuild" data-level="2">Why overbuild?</a><ul><li><a href="#h-degradation-buffer" data-level="3">Degradation buffer</a></li><li><a href="#h-multiple-revenue-streams" data-level="3">Multiple revenue streams</a></li><li><a href="#h-cost-certainty" data-level="3">Cost certainty</a></li></ul></li><li><a href="#h-what-about-augmentation" data-level="2">What about augmentation?</a><ul><li><a href="#h-but-augmentation-isn-t-operationally-simple" data-level="3">But augmentation isn’t operationally simple</a></li></ul></li><li><a href="#h-decision-factors-overbuilding-or-augmentation" data-level="2">Decision factors – overbuilding or augmentation?</a></li></ul></div>



<p></p>



<p>As renewable energy projects face tighter performance guarantees and volatile markets, BESS developers are considering installing extra capacity upfront, rather than augmenting capacity later. ‘Overbuilding’ like this typically adds<a href="https://www.utilitydive.com/spons/how-much-energy-do-i-really-have-the-question-costing-storage-owners-m/749720/" target="_blank" rel="noreferrer noopener"> 10-20%</a> beyond immediate needs, thus combatting battery degradation, ensuring consistent revenue from stacked use cases, and avoiding costly mid-life expansions. But with battery prices fluctuating and revenue models evolving, the calculus isn’t universal. When does overbuilding pay off, and when does it strand capital best spent on later augmentation? We need to consider three main factors: degradation curves, contract structures, and the hidden costs of playing catch-up later.</p>



<h2 class="wp-block-heading" id="h-why-overbuild"><strong>Why overbuild?</strong></h2>



<p>Battery energy storage systems need to deliver precision performance sometimes decades into their operational life, which makes system sizing a significant decision. Rather than installing just enough capacity to meet initial needs, many are overbuilding systems that pay dividends throughout the project lifecycle. The practice attends to three operational/market realities:</p>



<h3 class="wp-block-heading" id="h-degradation-buffer"><strong>Degradation buffer</strong></h3>



<p>Batteries, depending on their type,  lose<a href="https://www.gridx.ai/knowledge/what-is-battery-degradation-and-how-to-prevent-it" target="_blank" rel="noreferrer noopener"> 1–3% capacity annually</a>. Proper state-of-charge calibration and cell balancing can slow degradation, but even well-maintained systems lose capacity. Overbuilding ensures performance headroom regardless of calibration accuracy, maintaining performance as cells age. In many capacity markets,<a href="https://www.ofgem.gov.uk/sites/default/files/2025-03/Long%20Duration%20Electricity%20Storage%20Technical%20Decision%20Document.pdf" target="_blank" rel="noreferrer noopener"> longer output guarantees</a>, up to<a href="https://www.energy-storage.news/uk-government-sets-8-hour-minimum-for-ldes-cap-and-floor-scheme/" target="_blank" rel="noreferrer noopener"> 25 years</a>, are becoming standard, and so this approach prevents contract breaches when systems inevitably lose capacity.</p>



<h3 class="wp-block-heading" id="h-multiple-revenue-streams"><strong>Multiple revenue streams</strong></h3>



<p>Extra MW capacity supports stacked revenue streams. A 100 MWh system with 15% overbuild can simultaneously provide frequency regulation (fast-discharging 30 MW) and energy arbitrage (slow-discharging 70 MW) without performance trade-offs. This is valuable in markets where ancillary services and energy trading require distinct power-to-energy ratios. Excess capacity allows operators to pivot between use cases as market conditions shift, such as transitioning from peak shaving to black-start services during grid emergencies.</p>



<h3 class="wp-block-heading" id="h-cost-certainty">Cost certainty</h3>



<p>Overbuilding avoids hidden costs of augmentation, like permitting, labour, and downtime. Projects with long-term contracts routinely overbuild 15–30%, locking in today&#8217;s pricing while hedging against future disruptions.</p>



<p>The calculus varies by project, but where certainty brings a premium value, overbuilding is a good option.</p>



<h2 class="wp-block-heading" id="h-what-about-augmentation">What about augmentation?</h2>



<p><a href="https://modoenergy.com/research/gb-explainer-battery-energy-storage-augmentation-repowering-energy-capacity" target="_blank" rel="noreferrer noopener">Augmentation</a> is an alternative to overbuilding in scenarios where flexibility outweighs the benefits of upfront capacity, for example, merchant projects operating in volatile energy markets, where revenues fluctuate dramatically based on real-time pricing. Starting with a leaner system can test market conditions before committing to expansion, and capacity can be added later when revenue streams prove sustainable. The economics of augmentation also improve when battery prices are in steady decline. Sites designed with expansion space could potentially acquire more advanced technology later at lower prices. This approach could work well for projects anticipating new grid service opportunities that may emerge years after initial commissioning, and it allows projects to address capacity fade.</p>



<h3 class="wp-block-heading" id="h-but-augmentation-isn-t-operationally-simple">But augmentation isn’t operationally simple</h3>



<p>The approach faces technology compatibility issues, and operational downtime during installation and permitting delays. The technical implementation alone requires careful planning. Augmentation can be done through DC blocks (adding battery enclosures to existing inverters) or AC blocks (requiring new inverters and switchgear). Each method carries different cost implications and technical considerations. Systems originally designed without augmentation in mind may face compatibility issues, particularly when mixing older and newer battery technologies.</p>



<p>Developers must consider updated permitting processes, potential shutdowns of operating systems during installation, and the complex integration of new components with existing energy management systems. Poor documentation of the original installation can complicate things further. Financially, augmentation makes the most sense for projects where revenue depends critically on maintaining discharge capacity – particularly those participating in capacity markets with strict performance requirements. But systems focused on frequency regulation or short-duration applications may find the costs outweigh the benefits, as these use cases are less sensitive to gradual capacity loss.</p>



<p>Successful augmentation is about foresight – preserving adequate space, electrical capacity, and maintaining thorough system documentation from day one.</p>



<h2 class="wp-block-heading" id="h-decision-factors-overbuilding-or-augmentation">Decision factors – overbuilding or augmentation?</h2>



<p>Overbuilding makes sense when prices and costs are stable, revenue streams are predictable, and you want to avoid future hassles. Augmentation can work if you think future tech costs will reduce, or you need your upfront costs to stay low. Here are many of the factors to consider:</p>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td><strong><strong>Factor</strong></strong></td><td><strong>Overbuilding (bigger from day 1)</strong></td><td><strong>Periodic augmentation (adding later)</strong></td></tr><tr><td><strong>TCO</strong></td><td>✅ Better per-kWh pricing + avoids future construction costs</td><td>❌ Higher total cost (permits, labour, downtime, price volatility)</td></tr><tr><td><strong>Stacked revenue potential</strong></td><td>✅ Enables multiple simultaneous uses (e.g., frequency regulation + energy arbitrage)</td><td>❌ Limited by original system sizing</td></tr><tr><td><strong>Upfront cost</strong></td><td>❌ Higher</td><td>✅ Lower</td></tr><tr><td><strong>Future proofing</strong></td><td>✅ Built-in degradation buffer and capacity needs</td><td>❌ Requires later upgrades to compensate</td></tr><tr><td><strong>Project complexity</strong></td><td>✅ Single installation with no mid-life disruptions</td><td>❌ Complex multi-phase logistics with downtime risks</td></tr><tr><td><strong>Regulatory/grid compliance</strong></td><td>✅ Meets long-term contracts more easily</td><td>❌ May need re-certification</td></tr><tr><td><strong>Obsolescence</strong></td><td>❌ Stuck with older tech</td><td>✅ Can adopt newer/better batteries</td></tr></tbody></table></figure>



<p>A middle-ground approach might default to modest overbuilding for a degradation buffer and operational simplicity, stay augmentation-ready for when future flexibility has measurable value, and remain scenario-aware for adjustments based on price forecasts and regulation changes.</p>
<p>La entrada <a href="https://greendealflow.com/when-does-it-make-sense-to-overbuild-your-bess">When does it make sense to overbuild your BESS?</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>How Battery Energy Storage Systems Work​</title>
		<link>https://greendealflow.com/how-battery-energy-storage-systems-work</link>
					<comments>https://greendealflow.com/how-battery-energy-storage-systems-work#respond</comments>
		
		<dc:creator><![CDATA[Green Dealflow]]></dc:creator>
		<pubDate>Thu, 24 Oct 2024 12:14:09 +0000</pubDate>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[BESS]]></category>
		<category><![CDATA[Explainer]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31878</guid>

					<description><![CDATA[<p>When people think of the battery industry, associations likely go towards electric vehicles, but the battery industry isn’t just propelled by EVs. Utility-scale battery energy storage (BESS) has also entered the race and is more important than ever before. So, this article will explore how battery energy storage systems work.&#160; What is BESS and how [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/how-battery-energy-storage-systems-work">How Battery Energy Storage Systems Work​</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p><em>When people think of the battery industry, associations likely go towards electric vehicles, but the battery industry isn’t just propelled by EVs. Utility-scale battery energy storage (BESS) has also entered the race and is more important than ever before. So, this article will explore how battery energy storage systems work.&nbsp;</em></p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-what-is-bess-and-how-does-it-work" data-level="2">What is BESS and how does it work?</a><ul><li><a href="#h-how-battery-energy-storage-systems-work" data-level="3">How battery energy storage systems work​​​</a></li><li><a href="#h-main-applications" data-level="3">Main applications​</a></li><li><a href="#h-advantages-of-battery-energy-storage-systems" data-level="3">Advantages of battery energy storage systems</a></li><li><a href="#h-what-are-the-main-types-of-battery-energy-storage-systems" data-level="3">What are the main types of battery energy storage systems?</a></li><li><a href="#h-how-long-does-a-battery-energy-storage-system-last-and-how-to-give-it-a-second-life" data-level="3">How long does a battery energy storage system last and how to give it a second life?​</a></li><li><a href="#h-bess-revenue-streams" data-level="3">BESS revenue streams</a></li><li><a href="#h-how-to-find-the-right-investor-for-battery-energy-storage-projects" data-level="3">How to find the right investor for battery energy storage projects​</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-what-is-bess-and-how-does-it-work">What is BESS and how does it work?<br></h2>



<p>Understanding&nbsp;<strong>how battery energy storage systems work</strong>&nbsp;is essential for those who want to know the knots and bolts of the industry.&nbsp;Battery Energy Storage Systems (BESS) are in simple terms big batteries that store energy for later use, ensuring a reliable supply of energy when the primary energy source is unavailable. These systems are crucial for utilities, businesses, and homes, providing a buffer against energy supply fluctuations caused by weather, blackouts, or geopolitical issues.</p>



<p>Battery energy storage systems have quickly gone from being overlooked to becoming a fundamental component of&nbsp;<a href="https://energy.ec.europa.eu/topics/research-and-technology/energy-storage_en">modern energy strategies</a>, particularly those leveraging renewable energy sources like solar power and wind.</p>



<p>Solar and wind energy, while abundant, isn&#8217;t producing energy all the time. By integrating battery energy storage systems with photovoltaic (PV) solutions or wind turbines, solar and wind energy is stored for later use. This integration ensures a continuous and steady power supply, mitigating the intermittent nature of solar energy and enhancing overall energy reliability.</p>



<figure class="wp-block-image size-full"><img fetchpriority="high" decoding="async" width="768" height="512" src="https://s15344.pcdn.co/wp-content/uploads/2024/10/How-to-boost-insurers-confidence-in-BESS-1.jpg" alt="Discover how battery energy storage systems (BESS) work and their key benefits for businesses and homes." class="wp-image-31879" srcset="https://s15344.pcdn.co/wp-content/uploads/2024/10/How-to-boost-insurers-confidence-in-BESS-1.jpg 768w, https://s15344.pcdn.co/wp-content/uploads/2024/10/How-to-boost-insurers-confidence-in-BESS-1-300x200.jpg 300w" sizes="(max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">An example of a co-located battery storage system where the BESS is located near wind turbines to easily absorb excess capacity during times when power isn&#8217;t being fed directly into the grid.</figcaption></figure>



<h3 class="wp-block-heading" id="h-how-battery-energy-storage-systems-work">How battery energy storage systems work​​​</h3>



<p>The operating principle of a battery energy storage system (BESS) is simple. Batteries get electricity from the power grid, directly from a power station, or from renewable energy sources like solar panels or wind turbines. They store this electricity as current, which is released when&nbsp;<a href="https://www.gridx.ai/knowledge/what-is-a-grid-operator#:~:text=and%20so%20on.-,What%20is%20Distribution%20System%20Operator,(6%2D50%20kV).">DSOs need the extra power.&nbsp;</a></p>



<p>That&#8217;s the very simple version, but there&#8217;s more to BESS.</p>



<p>When combined with advanced&nbsp;<a href="https://corporate.enelx.com/en/question-and-answers/what-is-energy-monitoring">software</a>, a BESS transforms into a sophisticated platform that merges the storage capacity of batteries with intelligent energy management. By harnessing AI, machine learning, and data-driven solutions, these systems can optimize energy consumption, adapting to fluctuations in demand and supply. This intelligent management makes BESS a powerful asset in combating climate change by enabling more efficient and flexible energy use.</p>



<p>Battery energy storage systems support the increased deployment of renewable energy sources, helping to reduce carbon emissions and lower energy costs for businesses and households.</p>



<h3 class="wp-block-heading" id="h-main-applications">Main applications​</h3>



<p>Battery storage can be used in various ways that go beyond simple emergency backups during energy shortages or blackouts. Applications differ depending on whether the storage is utilized by businesses or homes.&nbsp;</p>



<p>Let&#8217;s check them out.</p>



<p><strong>For commercial and industrial use, BESS applications include:</strong></p>



<ul class="wp-block-list">
<li><strong>Peak shaving:</strong>&nbsp;This involves managing energy demand to avoid sudden short-term spikes in consumption.</li>



<li><strong>Load shifting:</strong>&nbsp;Businesses can shift their energy consumption from one time period to another by using the battery when energy costs are higher.</li>



<li><strong>Flexibility:</strong>&nbsp;Customers can reduce their grid demand at critical times without changing their overall electricity consumption. This makes it easier to participate in Demand Response programs and save on energy costs.</li>



<li><strong>Microgrids:</strong>&nbsp;Batteries are crucial for microgrids as they provide the necessary energy storage to enable disconnection from the main electricity grid when needed.</li>



<li><strong>Integration with renewable energy sources:</strong>&nbsp;Batteries ensure a smooth and continuous electricity flow when renewable energy sources are not available.</li>
</ul>



<p><strong>For residential users, BESS offers several benefits:</strong></p>



<ul class="wp-block-list">
<li><strong>Self-consumption:</strong>&nbsp;Homeowners can produce solar energy during daylight hours and use stored energy to run their appliances at night.</li>



<li><strong>Emergency backup:</strong>&nbsp;Batteries provide a reliable backup power source during blackouts.</li>



<li><strong>Going off the grid:</strong>&nbsp;BESS enables complete detachment from electrical or energy utilities, providing energy independence.</li>
</ul>



<h3 class="wp-block-heading" id="h-advantages-of-battery-energy-storage-systems">Advantages of battery energy storage systems<br></h3>



<p>The advantages of using battery storage technologies are numerous. They enhance the reliability and viability of renewable energy sources. Solar and wind power supplies can fluctuate, so battery storage systems are essential for &#8220;smoothing out&#8221; this flow to provide a continuous power supply, regardless of whether the wind is blowing or the sun is shining. Additionally, they protect users from grid fluctuations that could compromise energy supply. Here are some key advantages of battery storage:</p>



<ul class="wp-block-list">
<li><strong>Environmental gains:</strong>&nbsp;Installing a battery storage system in homes or businesses powered by renewable energy reduces pollution, contributing to the&nbsp;<a href="https://corporate.enelx.com/en/question-and-answers/what-is-energy-transition">energy transition</a>&nbsp;and combating global warming.</li>



<li><strong>Lower energy costs:</strong>&nbsp;Storing low-cost energy and consuming it during peak periods when electricity rates are higher allows users to shift consumption and avoid higher charges, saving money. These savings are magnified when combined with solar power, which is free.</li>



<li><strong>Reduced grid dependency:</strong>&nbsp;Battery storage systems guarantee a continuous energy supply, even when the energy grid is unstable due to peaks in demand or extreme weather.</li>



<li><strong>&#8220;Always on&#8221; supply:</strong>&nbsp;Since the sun is not always &#8220;on,&#8221; a battery storage system works around the clock, compensating for any fluctuations in solar energy supply by storing excess power.</li>



<li><strong>Resilience:</strong>&nbsp;A battery storage system provides emergency backup during power outages, ensuring business continuity and household comfort.</li>
</ul>



<h3 class="wp-block-heading" id="h-what-are-the-main-types-of-battery-energy-storage-systems">What are the main types of battery energy storage systems?<br></h3>



<p>Battery energy storage systems come in two primary varieties: &#8220;Behind-the-Meter&#8221; (BTM) systems, also known as &#8220;small-scale battery storage,&#8221; and &#8220;Front-of-the-Meter&#8221; (FTM) systems, which belongs on the utility side of energy distribution.</p>



<p><strong>Behind-the-meter systems (BTM):</strong><br>These systems are installed on the user’s premises and are typically smaller than Front-of-the-Meter systems. BTM systems, such as residential PV plants and battery storage units, reduces stress on the public grid when solar power isn&#8217;t produced, for instance, when the sun isn’t shining. The main function of a BTM is to improve the stability of the owner’s energy supply and reduce costs. If local regulations permit, these batteries can also feed energy back into the grid, providing an additional revenue stream.</p>



<p><strong>Front-of-the-meter systems (FTM):</strong><br>FTM systems are larger and directly connected to the power grid, typically belonging to utilities. These systems include large-scale energy production and storage facilities like power plants, solar parks, and substantial energy storage units. FTM systems help solve network congestion issues and can serve as alternatives to building new power lines.</p>



<h3 class="wp-block-heading" id="h-how-long-does-a-battery-energy-storage-system-last-and-how-to-give-it-a-second-life">How long does a battery energy storage system last and how to give it a second life?​</h3>



<p>Most battery energy storage systems last between 5 to 15 years. As integral components of the energy transition, these systems not only enable sustainability but also must be sustainable themselves. Reusing batteries and recycling their materials at the end of their life aligns with broader sustainability goals and applies&nbsp;<a href="https://corporate.enelx.com/en/our-commitment/circular-economy">circular economy</a>&nbsp;principles effectively.</p>



<p>Recovering materials from batteries and giving them a&nbsp;<a href="https://corporate.enelx.com/en/our-commitment/innovation-sustainability/ev-second-life-battery">second life</a>&nbsp;offers significant environmental benefits, both in the extraction and disposal stages. Additionally, battery reuse provides economic advantages, reducing the need for new materials and lowering overall costs.</p>



<h3 class="wp-block-heading" id="h-bess-revenue-streams">BESS revenue streams</h3>



<p>As BESS is not generating energy on its own and is acting as a flexible asset in our energy system it can gain revenue through many different ways depending on the market. The most common ways of gaining revenues in European markets are either<strong> ancillary services </strong>or <strong>energy arbitrage</strong>. </p>



<p>Ancillary services are services that the grid provider buys from the asset owner, the most common one here is &#8216;Frequency services&#8217;. which can be divided into what&#8217;s known as &#8216;Frequency containment reserve&#8217; (FCR) and &#8216;Automatic Frequency restoration reserve&#8217; (aFRR).</p>



<p>Energy arbitrage is basically using the market fluctuation of the electricity price to gain revenue &#8211; charging when the price is low and discharging when the price is high.</p>



<h3 class="wp-block-heading" id="h-how-to-find-the-right-investor-for-battery-energy-storage-projects">How to find the right investor for battery energy storage projects​</h3>



<p>Whether you’re a new or seasoned developer, you’ve probably already witnessed first-hand that there are many investors out there, many of whom are willing to invest in renewable energy projects.</p>



<p>Although finding investors for energy storage projects is easy in theory, finding just the right one typically proves itself to be a whole different game, oftentimes taking multiple months, especially if you want to be sure that you also get the optimum price for your project. &nbsp;&nbsp;&nbsp;</p>



<p>Having been in this business for nearly a decade, we know the struggle, but we also know the solution to it.</p>



<p>Read more about how we&nbsp;<a href="https://greendealflow.com/renewable-energy-developers/energy-storage">help developers find th</a><a href="https://greendealflow.com/renewable-energy-developers/">e</a>&nbsp;right investor for energy storage projects.</p>



<p></p>
<p>La entrada <a href="https://greendealflow.com/how-battery-energy-storage-systems-work">How Battery Energy Storage Systems Work​</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>EU Battery Storage Market Trends In 2024​</title>
		<link>https://greendealflow.com/eu-battery-storage-market-trends-in-2024</link>
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		<dc:creator><![CDATA[Green Dealflow]]></dc:creator>
		<pubDate>Fri, 24 May 2024 12:06:35 +0000</pubDate>
				<category><![CDATA[Market Insights]]></category>
		<category><![CDATA[BESS]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31874</guid>

					<description><![CDATA[<p>In the heart of Europe&#8217;s energy transition, battery energy storage systems (BESS) are becoming more and more critical to deploy to help reshape our power landscape. And future prospects for the technology are looking bright. In fact, BESS became the most&#160;invested-in energy technology in 2023, so it&#8217;s not just talk, it&#8217;s also a lot of [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/eu-battery-storage-market-trends-in-2024">EU Battery Storage Market Trends In 2024​</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p>In the heart of Europe&#8217;s energy transition, battery energy storage systems (BESS) are becoming more and more critical to deploy to help reshape our power landscape. And future prospects for the technology are looking bright. In fact, BESS became the most&nbsp;<a href="https://www.energy-storage.news/energy-storage-market-grew-faster-than-ever-in-2023-bess-was-most-invested-in-energy-tech-according-to-bnef-iea/#:~:text=According%20to%20the%20International%20Energy,annual%20growth%20in%20deployments%20recorded." target="_blank" rel="noreferrer noopener">invested-in energy technology in 2023</a>, so it&#8217;s not just talk, it&#8217;s also a lot of walk.</p>



<p>And as renewable energy sources get to dominate more of the grids around Europe, the need for more flexible, efficient BESS has never been more pressing. This article delves into the current state of the European battery storage market, examining the countries leading deployment, the impact of EU policies, and the outlook for future growth.</p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-the-current-state-of-the-battery-storage-market-in-europe" data-level="2">The current state of the battery storage market in Europe​</a><ul><li><a href="#h-market-drivers-and-challenges" data-level="3">Market drivers and challenges​​</a></li><li><a href="#h-leading-countries-in-bess-deployment" data-level="3">Leading countries in BESS deployment​​</a></li><li><a href="#h-united-kingdom-a-frontrunner-in-ancillary-services" data-level="3">United Kingdom: A frontrunner in ancillary services​​</a></li><li><a href="#h-italy-big-targets-big-growth" data-level="3">Italy: Big targets, big growth​​</a></li><li><a href="#h-germany-going-beyond-behind-the-meter-storage" data-level="3">Germany: Going beyond behind-the-meter storage​​</a></li><li><a href="#h-ireland-balancing-wind-power-with-bess" data-level="3">Ireland: Balancing wind power with BESS​​</a></li><li><a href="#h-the-impact-of-eu-policies-on-bess-deployment" data-level="3">The impact of EU policies on BESS deployment​</a></li><li><a href="#h-the-eu-battery-regulation" data-level="3">The EU battery regulation​</a></li><li><a href="#h-the-renewable-energy-directive" data-level="3">The renewable energy directive​</a></li></ul></li><li><a href="#h-the-clean-energy-package" data-level="2">The clean energy package​</a><ul><li><a href="#h-future-outlook-projections-and-trends" data-level="3">Future outlook: projections and trends​</a></li><li><a href="#h-challenges-and-opportunities-for-renewable-energy-developers" data-level="3">Challenges and opportunities for renewable energy developers​</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-the-current-state-of-the-battery-storage-market-in-europe">The current state of the battery storage market in Europe​</h2>



<p>Europe&#8217;s battery storage market has witnessed encouraging growth in recent years. Solar Power Europe shows that the total amount of newly installed BESS capacity in the EU reached <a href="https://www.solarpowereurope.org/press-releases/new-analysis-reveals-european-solar-battery-storage-market-increased-by-94-in-2023">17,2 GWh in 2023</a>, marking a 94% increase YoY. This growth reflects the increasing recognition of BESS as an important tool for grid stability and renewable energy integration across Europe. In the Solar Power Europe high scenario, the 2024 deployment outlook shows that Europe will reach <a href="https://www.solarpowereurope.org/press-releases/new-analysis-reveals-european-solar-battery-storage-market-increased-by-94-in-2023">29,6 GWh of installed capacity</a>, marking a 72% increase YoY.  </p>



<h3 class="wp-block-heading" id="h-market-drivers-and-challenges">Market drivers and challenges​​</h3>



<p>Several factors are propelling the adoption of battery storage across Europe:</p>



<ul class="wp-block-list">
<li>Renewable energy integration: As wind and solar power generation grows, so does the need for flexible storage solutions to manage intermittency.</li>



<li>Grid stability requirements: BESS provides crucial services for frequency regulation and voltage support, enhancing overall grid resilience.</li>



<li>Declining battery costs: Technological advancements and economies of scale have significantly reduced the cost of battery storage, improving its economic viability. Prices have decreased for years, and 2023 was yet another year with an all-time low of&nbsp;<a href="https://about.bnef.com/blog/lithium-ion-battery-pack-prices-hit-record-low-of-139-kwh/">139 USD/kWh</a>, with forecasts pointing to prices of lithium-ion battery packs to reach prices as low as 80 USD/kWh in 2030, deployment is likely to be fueled even more.</li>



<li>Supportive EU policies: The European Green Deal and various national incentives have created a more favorable environment for BESS deployment.</li>
</ul>



<p>However, despite encouraging things happening in the European Parliament to support BESS and renewable technologies, adoption and implementation still needs to happen on the Member State level, which has been lacking in many countries.</p>



<p>But there is good news!</p>



<p>The new&nbsp;<a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AL_202401747&amp;utm_campaign=Newsletter&amp;utm_source=hs_email&amp;utm_medium=email&amp;_hsenc=p2ANqtz-8aYZ1DOXbUNPm-aclD6_J3T7qPEZ3RYSo_e9eDxP1SEgvmbbK45-H_W0T00AA_u0gEAaXt">EU Regulation 2024/1747</a>, complementing Regulation 2019/943, introduces a redesigned Electricity Market to enhance energy storage and flexibility across member states. The regulation aims to ensure better implementation of energy storage measures, addressing issues like double taxation and market access, to name a few.</p>



<p>Key points include:</p>



<ol class="wp-block-list">
<li><strong>Flexibility assessments</strong>: Member states must conduct assessments to identify flexibility needs as per Article 19e.</li>



<li><strong>National targets</strong>: Member States must set and communicate energy storage and flexibility targets in their National Energy and Climate Plans, outlining measures to achieve these targets.</li>



<li><strong>Commission oversight</strong>: The European Commission will review national targets. If they are inadequate, the Commission can establish a Union strategy on flexibility, focusing on energy storage and demand response, potentially accompanied by legislative proposals.</li>
</ol>



<h3 class="wp-block-heading" id="h-leading-countries-in-bess-deployment">Leading countries in BESS deployment​​</h3>



<p>While growth is occurring across the EU, certain markets are setting the pace in battery storage deployment. Let&#8217;s take a look at them.</p>



<h3 class="wp-block-heading" id="h-united-kingdom-a-frontrunner-in-ancillary-services">United Kingdom: A frontrunner in ancillary services​​</h3>



<p>A frontrunner in the European BESS market, the UK has experienced some significant deployment of battery storage in the past years. This growth is largely driven by its ancillary services markets, particularly in frequency response services. Looking between now and 2031, the UK is forecasted to add&nbsp;<a href="https://tamarindo.global/articles/who-are-the-key-players-driving-storage-deployment-in-europe-in-2024/">25, 68GWh of energy storage capacity</a>, by far making it the largest deployer in Europe. &nbsp;</p>



<h3 class="wp-block-heading" id="h-italy-big-targets-big-growth">Italy: Big targets, big growth​​</h3>



<p>A sleeping giant in the European BESS landscape. Italy&#8217;s market is characterized by a mix of utility-scale projects and behind-the-meter installations, but at the moment it is still mainly the residential that has the upper hand. However, this could soon change as the local TSO, Terna, has announced in a commissioned study that it needs some&nbsp;<a href="https://download.terna.it/terna/Study_on_electricity_storage_reference_technologies_8db99b53d98c32b.pdf">71 GWh of utility-scale storage capacity</a>&nbsp;to be developed by 2030 if Italy wants to live up to Eu targets. &nbsp;</p>



<h3 class="wp-block-heading" id="h-germany-going-beyond-behind-the-meter-storage">Germany: Going beyond behind-the-meter storage​​</h3>



<p>Especially after the energy crisis hit as a result of the Russian invasion, behind-the-meter BESS took off in Germany, but grid-scale projects are starting to ramp up and make Germany a key player in the European BESS market. Its installed capacity doubled in 2023, driven by some of the most supportive policies in the EU, and according to&nbsp;<a href="https://tamarindo.global/articles/who-are-the-key-players-driving-storage-deployment-in-europe-in-2024/">Wood Mackenzie</a>, Germany is set to add the third most amount of grid-scale energy storage (8,81GWh) from now until 2031.</p>



<p><em>Expert Opinion: &#8220;Germany&#8217;s success in behind-the-meter storage is a testament to its long-standing commitment to the Energiewende,&#8221; says Dr. Andreas Müller, energy economist at the German Institute for Economic Research (DIW Berlin). &#8220;The combination of high electricity prices, falling battery costs, and supportive policies has created a perfect storm for BESS adoption.&#8221;</em></p>



<h3 class="wp-block-heading" id="h-ireland-balancing-wind-power-with-bess">Ireland: Balancing wind power with BESS​​</h3>



<p>The Integrated Single Electricity Market (I-SEM) of Ireland and Northern Ireland has shown good growth in battery storage and is considered a good market for BESS investments. This market&#8217;s success is partly due to its need for flexible capacity to balance its high penetration of wind power.&nbsp;<a href="https://auroraer.com/country/global/battery-markets-gb-italy-and-the-ireland-i-sem-lead-the-way-in-europe/">According to Aurora research</a><em>:” I-SEM presents a market of solid spreads, strong policy support, and capacity market remuneration, which provide investors with long-term contracted revenue”.</em></p>



<h3 class="wp-block-heading" id="h-the-impact-of-eu-policies-on-bess-deployment">The impact of EU policies on BESS deployment​</h3>



<p>EU policies have played a crucial role in shaping the battery storage landscape across Europe. The European Green Deal, with its ambitious target of carbon neutrality by 2050, has been a major driver for BESS development.</p>



<h3 class="wp-block-heading" id="h-the-eu-battery-regulation">The EU battery regulation​</h3>



<p>Proposed in 2020 and updated in 2023, the&nbsp;<a href="https://environment.ec.europa.eu/topics/waste-and-recycling/batteries_en">EU Battery Regulation</a>&nbsp;aims to ensure sustainable and ethical battery production throughout the value chain.</p>



<p>Key aspects include:</p>



<ul class="wp-block-list">
<li>Mandatory carbon footprint declarations for batteries</li>



<li>Minimum recycled content requirements</li>



<li>Due diligence obligations for raw material sourcing. These policies will help to shape the BESS market significantly, promoting sustainable practices and fostering innovation in the sector, like China which&nbsp;<a href="https://www.energy-storage.news/worlds-first-large-scale-semi-solid-bess-connects-to-grid-in-china/">recently connected</a>&nbsp;the world’s first semi-solid BESS plant to its grid.</li>
</ul>



<h3 class="wp-block-heading" id="h-the-renewable-energy-directive">The renewable energy directive​</h3>



<p>The revised Renewable Energy Directive (RED II) sets binding targets for renewable energy consumption in the EU. While not directly addressing storage, this directive creates a more favorable environment for BESS by increasing the need for flexible capacity to integrate higher shares of renewable energy.</p>



<h2 class="wp-block-heading" id="h-the-clean-energy-package">The clean energy package​</h2>



<p>The EU&#8217;s Clean Energy Package, particularly the Electricity Market Design Regulation, has improved market conditions for energy storage. It clarifies the role of storage in the electricity system and removes several barriers to its participation in energy markets.</p>



<h3 class="wp-block-heading" id="h-future-outlook-projections-and-trends">Future outlook: projections and trends​</h3>



<h4 class="wp-block-heading" id="h-capacity-projections">Capacity projections​</h4>



<p>Industry analysts predict that the EU&#8217;s BESS capacity could reach 60 GW by 2030, a six-fold increase from 2023 levels. This implies a compound annual growth rate (CAGR) of approximately 25% over the next seven years.</p>



<p>Projected growth trajectory:</p>



<p>2024-2025: Expected annual additions of 5-6 GW</p>



<p>2026-2027: Acceleration to 7-8 GW per year</p>



<p>2028-2030: Potential for 10+ GW of annual additions</p>



<figure class="wp-block-image size-full"><img decoding="async" width="451" height="314" src="https://s15344.pcdn.co/wp-content/uploads/2024/10/Europe-cap.png" alt="" class="wp-image-31876" style="aspect-ratio:1;object-fit:cover" srcset="https://s15344.pcdn.co/wp-content/uploads/2024/10/Europe-cap.png 451w, https://s15344.pcdn.co/wp-content/uploads/2024/10/Europe-cap-300x209.png 300w" sizes="(max-width: 451px) 100vw, 451px" /><figcaption class="wp-element-caption">EUROPE CUMULATIVE BATTERY STORAGE INSTALLED CAPACITY SCENARIOS 2024-2028, Solar Power Europe</figcaption></figure>



<h4 class="wp-block-heading" id="h-emerging-trends-and-technologies">Emerging trends and technologies​</h4>



<p>Several trends are expected to shape the future of battery storage in Europe:</p>



<ul class="wp-block-list">
<li>Long-duration energy storage: As renewable penetration increases, there&#8217;s growing interest in storage technologies that can provide power for extended periods, from several hours to days or even weeks.</li>



<li>Vehicle-to-grid (V2G) integration: The rising adoption of electric vehicles presents an opportunity for bidirectional charging, allowing EVs to act as distributed storage resources.</li>



<li>Green hydrogen integration: Battery storage is increasingly seen as complementary to green hydrogen production, helping to optimize electrolyzer operations and manage grid interactions.</li>



<li>Advanced battery chemistries: While lithium-ion batteries currently dominate, research into alternative chemistries like solid-state batteries and flow batteries could reshape the market in the coming years.</li>
</ul>



<p><em><strong>Expert Opinion: &#8220;The future of energy storage in Europe is not just about capacity, but about integration and innovation,&#8221; notes Dr. Elena Korosteleva, Senior Researcher at the European Battery Alliance. &#8220;We&#8217;re moving towards a more holistic view of energy systems, where storage plays a central role in balancing supply and demand across various timescales and sectors.&#8221;</strong></em></p>



<h3 class="wp-block-heading" id="h-challenges-and-opportunities-for-renewable-energy-developers">Challenges and opportunities for renewable energy developers​</h3>



<p>For renewable energy developers, the rapid growth of the battery storage market presents both challenges and opportunities:</p>



<h4 class="wp-block-heading" id="h-challenges">Challenges​</h4>



<p>Regulatory complexity: Navigating the diverse regulatory landscapes across EU member states can be challenging. The decision to enter a new market is often put off by the task of getting fully up to speed with the local regulatory landscape, not to mention what investors are willing to pay for projects in a given country.</p>



<p>Technical integration: Ensuring more and seamless integration of BESS with existing renewable energy assets and grid infrastructure requires careful planning and expertise, but also&nbsp;<a href="https://greendealflow.com/bess-failures-increasing/">getting insurance companies onside projects</a>&nbsp;to make sure that they are properly insured in case of malfunction and fires, which is an increasing problem as BESS deployment increases.</p>



<p>Market volatility: Revenue streams for battery storage can be subject to market fluctuations, particularly in ancillary services markets.</p>



<p>BESS noise: As BESS deployment edges closer and closer to residential areas, the topic of BESS noise must be a thing to consider.</p>



<h4 class="wp-block-heading" id="h-opportunities">Opportunities​</h4>



<p>Enhanced project economics: Pairing storage with renewable generation can improve project economics by enabling participation in multiple value streams.</p>



<p>Grid constraint mitigation: BESS can help developers overcome grid connection constraints in areas with high renewable penetration.</p>



<p>New business models: The evolving storage landscape opens up possibilities for innovative business models, such as virtual power plants and energy-as-a-service offerings.</p>



<h4 class="wp-block-heading" id="h-a-battery-powered-future-for-europe-s-energy-transition">A battery-powered future for Europe&#8217;s energy transition​</h4>



<p>As Europe continues its journey towards a carbon-neutral future, battery storage will play an increasingly pivotal role. From balancing grids and integrating renewables to empowering consumers and enabling new business models, BESS is at the heart of the continent&#8217;s energy revolution.</p>



<p>The rapid growth observed in markets like the UK, Germany, Italy, and Ireland provides valuable lessons for other European countries. As technology costs continue to fall and supportive policies take effect, we can expect to see accelerated deployment across the continent.</p>



<p>However, realizing the full potential of battery storage will require continued collaboration between policymakers, industry players, and researchers. Addressing challenges such as supply chain sustainability, regulatory harmonization, and long-duration storage will be crucial in the coming years.</p>



<p>For <a href="https://greendealflow.com/renewable-energy-developers/energy-storage">battery energy storage developers</a> and investors, the message is clear: battery storage is no longer just an optional add-on, but a core component of future-proof energy systems. Those who can navigate the complexities of this rapidly evolving market stand to play a leading role in Europe&#8217;s clean energy future.</p>



<p>As we look towards 2030 and beyond, one thing is certain – the power of battery storage will be a driving force in Europe&#8217;s energy landscape, helping to unlock a more sustainable, resilient, and flexible energy system for generations to come.</p>
<p>La entrada <a href="https://greendealflow.com/eu-battery-storage-market-trends-in-2024">EU Battery Storage Market Trends In 2024​</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>How To Boost Insurers’ Confidence In BESS ​</title>
		<link>https://greendealflow.com/bess-failures-increasing</link>
					<comments>https://greendealflow.com/bess-failures-increasing#respond</comments>
		
		<dc:creator><![CDATA[Ben Cook]]></dc:creator>
		<pubDate>Wed, 17 Apr 2024 10:47:19 +0000</pubDate>
				<category><![CDATA[Market Insights]]></category>
		<category><![CDATA[BESS]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31838</guid>

					<description><![CDATA[<p>With BESS failures having increased ten-fold, here&#8217;s your guide to getting skeptical insurers onside and boosting insurers&#8217; confidence in BESS projects. More BESS means more failures​ Battery energy storage system (BESS) failures have increased ten-fold since 2016, with “issues pertaining to the quality and performance of BESS” among the major causes, according to a new [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/bess-failures-increasing">How To Boost Insurers’ Confidence In BESS ​</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p>With BESS failures having increased ten-fold, here&#8217;s your guide to getting skeptical insurers onside and boosting insurers&#8217; confidence in BESS projects.</p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-more-bess-means-more-failures" data-level="2">More BESS means more failures​</a><ul><li><a href="#h-hybrid-projects-are-more-at-risk" data-level="3">Hybrid projects are more at risk​</a></li><li><a href="#h-recommendations-to-boost-confidence-in-bess-projects" data-level="3">Recommendations to boost confidence in BESS projects​</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-more-bess-means-more-failures">More BESS means more failures​</h2>



<p>Battery energy storage system (BESS) failures have increased ten-fold since 2016, with “issues pertaining to the quality and performance of BESS” among the major causes, according to a new study published by a leading renewable energy insurer. The report from GCube Insurance –&nbsp;<em>‘Batteries Not Excluded: Getting the insurance market on board with BESS’&nbsp;</em>– said the available data on BESS failures suggested the nascent market was “characterized by ongoing challenges and uncertainties across design, installation, operation, and maintenance”.</p>



<figure class="wp-block-image size-full"><img decoding="async" width="768" height="540" src="https://s15344.pcdn.co/wp-content/uploads/2024/10/Events-per-year.png" alt="" class="wp-image-31839" srcset="https://s15344.pcdn.co/wp-content/uploads/2024/10/Events-per-year.png 768w, https://s15344.pcdn.co/wp-content/uploads/2024/10/Events-per-year-300x211.png 300w" sizes="(max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">BESS failures by year (source: GCube)</figcaption></figure>



<h3 class="wp-block-heading" id="h-hybrid-projects-are-more-at-risk">Hybrid projects are more at risk​</h3>



<p>The report also indicated that hybrid solar-plus-storage projects were at particular risk of failure, with&nbsp;<a href="https://gcube-insurance.com/Insights/Reports/Battery-and-Energy-Storage-Systems" target="_blank" rel="noreferrer noopener">48 per cent of publicly reported failures occurring at such projects</a>. The report acknowledged that solar-plus-storage projects have benefitted from incentives such as the Inflation Reduction Act in the US and therefore such hybrid schemes represent a large proportion of installed BESS capacity worldwide. Indeed, figures from Berkeley Lab – a US Department of Energy Office of Science national laboratory managed by the University of California – show that solar and battery storage is by far the fastest growing resources in the queues.&nbsp;</p>



<p>Combined, they accounted for more than 80 percent of new capacity entering the queues in 2022. However, the GCube report added that the “predominance of solar-related failures still raises questions around the unique challenges and associated risks of combining battery technology with solar power”. It also concluded that project owners with combined generation and storage contracts may face both the challenges unique to BESS plus the “natural perils risks affecting solar, such as hail and wildfire”.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="671" src="https://s15344.pcdn.co/wp-content/uploads/2024/10/Hybrid-models.png" alt="" class="wp-image-31840" srcset="https://s15344.pcdn.co/wp-content/uploads/2024/10/Hybrid-models.png 768w, https://s15344.pcdn.co/wp-content/uploads/2024/10/Hybrid-models-300x262.png 300w" sizes="(max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Solar-plus-storage projects dominate US grid interconnection queues (Source: Berkeley Lab)</figcaption></figure>



<h3 class="wp-block-heading" id="h-recommendations-to-boost-confidence-in-bess-projects">Recommendations to boost confidence in BESS projects​</h3>



<p>GCube said a number of lessons could be learned from the analysis of BESS failure data. Specifically, the report said: “An enhanced emphasis on reliability and quality standards is essential to avert substantial losses and foster the sustainable development of the energy storage industry.”</p>



<p>The availability of BESS insurance varies from market to market, partly due to insurers’ level of comfort and familiarity with the types of technology being used. How can asset owners and developers boost the confidence of underwriters in their assets and projects? GCube has recommended five steps:</p>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1729766635852"><strong class="schema-faq-question">Carefully consider the type of battery used for BESS</strong> <p class="schema-faq-answer">Note that insurers prefer to underwrite lithium-iron-phosphate batteries over nickel maganese cobalt batteries, for example – it may be worth considering other non-lithium options, due to their lower fire risk. LFP batteries have a longer cycle life and lower cost per kWh than NMC batteries, but lower energy density and higher weight.</p> </div> <div class="schema-faq-section" id="faq-question-1729766644085"><strong class="schema-faq-question">Ensure adequate spacing between battery modules</strong> <p class="schema-faq-answer">When designing the layout of BESS, ample spacing between battery modules, racks, containers or buildings will mitigate fire and explosion risks. Anything less than 8 feet or 2.5 meters between containers or clusters “significantly affects insurers’ exposure and may pose challenges for clients seeking coverage,” GCube said.</p> </div> <div class="schema-faq-section" id="faq-question-1729766658726"><strong class="schema-faq-question">Provide detailed information about the qualifications of project participants</strong> <p class="schema-faq-answer">Supply clear and detailed information about the qualifications of the key project participants, and ensure they comply with the relevant standards and regulations. Conduct a thorough review of the site layout and precise measurements of BESS components to enhance risk mitigation and streamline insurance negotiations.</p> </div> <div class="schema-faq-section" id="faq-question-1729766673447"><strong class="schema-faq-question">Ensure clarity regarding how the BESS interacts with solar or wind generation</strong> <p class="schema-faq-answer">Make sure the BESS’ interaction with solar or wind generation – and how it works if part of the project is offline – is clearly understood. Insurers will evaluate revenue and electricity flow models, and exposure to weather-related risks, and may require additional coverage or mitigation measures if the risks are significant.</p> </div> <div class="schema-faq-section" id="faq-question-1729766708716"><strong class="schema-faq-question">Provide a complete root cause analysis</strong> <p class="schema-faq-answer">Conduct a complete root cause analysis and devise a corrective action plan for any past mechanical breakdown losses and implement them effectively. Insurers monitor the claims history and performance of the battery manufacturers and system integrators and may adjust the rates or terms accordingly.</p> </div> </div>



<p>In the longer term, GCube recommended that the market takes three steps to advance BESS technology in a “sustainable, safe and reliable manner”:</p>



<ul class="wp-block-list">
<li><strong>Develop spacing standards for BESS units<br></strong>To minimize thermal runaway risk, the industry needs to develop and adopt standardized guidelines for the minimum spacing between BESS units. Crucially, these guidelines should account for the different types and characteristics of battery technologies and chemistries.</li>



<li><strong>Define a liability framework for BESS projects<br></strong>The BESS market should develop a clear and transparent framework for liability in case of failures or incidents. It should specify the roles and responsibilities of different parties, such as developers, OEMs, and insurers.</li>



<li><strong>Involve OEMs in the entire BESS project lifecycle<br></strong>Developers and project stakeholders should engage OEMs from the early stages of the project, and involve them in the decision-making process regarding the selection, configuration, integration, augmentation, and testing of battery systems and components.</li>
</ul>



<p>If you wish to learn even more about BESS, we cover the <a href="https://greendealflow.com/eu-battery-storage-market-trends-in-2024/">current state of the EU battery storage market and its trends</a> here. You may also explore how we assist developers with getting the <a href="https://greendealflow.com/renewable-energy-developers/energy-storage">right funding for their storage projects</a>. </p>



<h4 class="wp-block-heading" id="h-about-the-author">About the author</h4>



<p>Ben Cook is the Insights Director at Tamarindo. Tamarindo delivers insights, connections, and communications for the global energy transition. He heads up Tamarindo’s Energy Storage Report. An experienced editor and journalist, he has worked as a writer and contributor for national newspapers, including The Guardian and The Times. He also spent six years as the Madrid-based editor of a legal magazine and website and previously worked as chief editor for a Paris-based legal and financial ratings agency. He has also previously worked as chief editor for a Milan-headquartered legal publisher.</p>
<p>La entrada <a href="https://greendealflow.com/bess-failures-increasing">How To Boost Insurers’ Confidence In BESS ​</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>How MACSE Is Optimizing The Italian Market</title>
		<link>https://greendealflow.com/how-macse-is-optimizing-the-italian-market</link>
					<comments>https://greendealflow.com/how-macse-is-optimizing-the-italian-market#respond</comments>
		
		<dc:creator><![CDATA[Green Dealflow]]></dc:creator>
		<pubDate>Tue, 30 May 2023 09:00:10 +0000</pubDate>
				<category><![CDATA[Market Insights]]></category>
		<category><![CDATA[BESS]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31778</guid>

					<description><![CDATA[<p>Italy&#8217;s new MACSE mechanism, recently approved by the DGCOMP, is set to procure the bulk of long-duration storage. We give you a quick overview of how MACSE is set to optimize the Italian BESS market. Legislative support for energy storage systems​​ In response to this necessity, Legislative Decree 210/2021, implementing EU Directive 2019/944, introduced a [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/how-macse-is-optimizing-the-italian-market">How MACSE Is Optimizing The Italian Market</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p>Italy&#8217;s new MACSE mechanism, recently approved by the DGCOMP, is set to procure the bulk of long-duration storage. We give you a quick overview of how MACSE is set to optimize the Italian BESS market.</p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-legislative-support-for-energy-storage-systems" data-level="2">Legislative support for energy storage systems​​</a><ul><li><a href="#h-future-storage-capacity-requirements" data-level="3">Future storage capacity requirements​</a></li><li><a href="#h-second-consultation-and-regulatory-updates" data-level="3">Second consultation and regulatory updates​</a></li><li><a href="#h-final-notes" data-level="3">Final notes</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-legislative-support-for-energy-storage-systems">Legislative support for energy storage systems​​</h2>



<p>In response to this necessity, Legislative Decree 210/2021, implementing EU Directive 2019/944, introduced a new electrical storage capacity procurement system. This system aims to integrate renewable energy sources with an efficient level of &#8220;overgeneration&#8221; in the electricity system.</p>



<h3 class="wp-block-heading" id="h-future-storage-capacity-requirements">Future storage capacity requirements​</h3>



<p>Pursuant to&nbsp;<a href="https://www.loc.gov/item/global-legal-monitor/2022-01-24/italy-new-legislation-liberalizes-domestic-electricity-market/">Legislative Decree no. 210/2021</a>&nbsp;and&nbsp;<a href="https://commission.europa.eu/document/download/5ef1819e-1c42-446f-91d0-abb9cf7719e8_en?filename=IT_FINAL%20UPDATED%20NECP%202021-2030%20%28English%29.pdf">ARERA&#8217;s Resolution 247/2023/R/eel</a>, Terna initiated a consultation on the MACSE electricity storage capacity procurement mechanism on 31 October 2023. This mechanism aims to acquire new storage capacity through multi-year supply contracts awarded via competitive auctions. These auctions, organized by Terna, will be categorized by technology and offer pooled storage capacity to third parties on a new centralized trading platform managed by GME.</p>



<p>Selected participants will receive a fixed monthly premium from Terna throughout the delivery period, which ranges from 12-14 years for lithium-ion batteries to up to 30 years for pumping systems. Participation requirements include compliance with specific subjective and objective criteria and the provision of significant pre-bid, post-auction, and guarantee fund amounts.</p>



<h3 class="wp-block-heading" id="h-second-consultation-and-regulatory-updates">Second consultation and regulatory updates​</h3>



<p>A second consultation conducted by Terna between April 12th and May 3rd incorporated feedback from the European Commission&#8217;s decision of 21 December 2023 and previous consultation phases. Key changes include the elimination of price limits on MSD bids, obligations to return price differences, and area-specific quota limitations.</p>



<p>The mechanism is exclusively applicable to stand-alone systems not combined with production plants. Following this second consultation, Terna will seek final regulatory approval from the Ministry of Environment and Energy Security (MASE), with the first tender expected in 2025.</p>



<h3 class="wp-block-heading" id="h-final-notes">Final notes</h3>



<p>The MACSE mechanism will promote the <a href="https://greendealflow.com/renewable-energy-developers/energy-storage">development of new storage capacity</a>, essential for integrating renewable sources into the energy system and managing overgeneration. Adequate storage capacity is crucial for the significant growth of non-programmable renewable sources and the system&#8217;s flexibility needs, especially with the progressive divestment of thermoelectric capacity. The availability of time-shifting products will also enable operators to manage profile risk more efficiently, ensuring greater integration of renewables into the spot market dynamics.</p>



<p></p>
<p>La entrada <a href="https://greendealflow.com/how-macse-is-optimizing-the-italian-market">How MACSE Is Optimizing The Italian Market</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>Why Co-located Storage Is Set To Take Off</title>
		<link>https://greendealflow.com/why-co-located-solar-energy-storage-is-set-to-take-off</link>
					<comments>https://greendealflow.com/why-co-located-solar-energy-storage-is-set-to-take-off#respond</comments>
		
		<dc:creator><![CDATA[Ben Cook]]></dc:creator>
		<pubDate>Thu, 04 May 2023 08:54:29 +0000</pubDate>
				<category><![CDATA[Project Finance & Development]]></category>
		<category><![CDATA[BESS]]></category>
		<category><![CDATA[Photovoltaics]]></category>
		<category><![CDATA[Wind]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31774</guid>

					<description><![CDATA[<p>Co-location of renewable assets with storage was rarely considered in the era of subsidies, but it is about to become the norm as investors seek to maximize the value of assets. We explore why co-located storage is set to take off. Co-location and its benefits​ Given the numerous benefits of co-locating energy storage with solar [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/why-co-located-solar-energy-storage-is-set-to-take-off">Why Co-located Storage Is Set To Take Off</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p>Co-location of renewable assets with storage was rarely considered in the era of subsidies, but it is about to become the norm as investors seek to maximize the value of assets. We explore why co-located storage is set to take off.</p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-co-location-and-its-benefits" data-level="2">Co-location and its benefits​</a><ul><li><a href="#h-co-location-increases-investment-returns" data-level="3">Co-location increases investment returns​</a></li></ul></li><li><a href="#h-are-declining-subsidies-incentivizing-co-location" data-level="2">Are declining subsidies incentivizing co-location?​</a><ul><li><a href="#h-hybrid-ppas-offer-a-solution" data-level="3">Hybrid PPAs offer a solution​</a></li><li><a href="#h-the-rise-of-the-power-couple" data-level="3">The rise of the ‘power couple’​</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-co-location-and-its-benefits">Co-location and its benefits​</h2>



<p>Given the numerous benefits of co-locating energy storage with solar or wind projects, it’s surprising that such schemes aren’t more common.</p>



<p>Co-locating allows power to be stored when the wind isn’t blowing or the sun isn’t shining. Additionally, co-located projects offer a price arbitrage opportunity, where power is bought during off-peak hours (when grid prices are lowest) and then stored for use during peak hours (when grid electricity prices are highest).</p>



<p>These projects can also provide grid services like ‘dynamic containment,’ which involves catching and containing any deviations in energy frequency caused by events like the loss of a generator. Moreover, solar plus storage is particularly seen as a way to mitigate the risk of yield and profit compression (known as the ‘solar capture rate’), which refers to the continuous reduction in energy prices when the sun is shining and more solar assets enter the market.</p>



<h3 class="wp-block-heading" id="h-co-location-increases-investment-returns">Co-location increases investment returns​</h3>



<p>Other benefits of co-location include an increase in the return on investment from renewable projects by reducing the capital outlay required – that is, fewer wind turbines or solar panels are needed to generate the same revenue.</p>



<p>Meanwhile, capital and operational costs can also be reduced by sharing existing infrastructure, land, and grid connections. Combining storage and generation assets also allows more effective utilization of connected grid capacity. As a consequence, the savviest investment funds are taking the step of retrofitting storage to their existing renewables projects. For example, last year it emerged that Next Energy Solar Fund would be retrofitting its 11MW North Norfolk solar farm with a 6MW/12MWh battery system.</p>



<p>Given the multiple benefits of co-location, why aren’t more wind and solar projects linked with storage systems? A key reason is that subsidies for wind and solar projects&nbsp;<a href="https://www.k2management.com/news/tapping-into-wind-solar-colocation">artificially reduced the high cost of projects</a>&nbsp;and meant that there was less incentive for project developers to do everything possible to optimize the value of projects.</p>



<h2 class="wp-block-heading" id="h-are-declining-subsidies-incentivizing-co-location">Are declining subsidies incentivizing co-location?​</h2>



<p>Now policymakers are providing less by way of subsidy for renewable energy projects so there is a greater onus on project developers to find ways of making schemes more attractive to investors and an effective way of doing this is by co-locating wind and solar with storage. For example, data from the US Energy Information Administration shows that total renewable-related subsidies were about $15.5 billion for both FY 2010 and FY 2013, then dropped to $6.7 billion in FY 2016 (see graph below).</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="628" src="https://s15344.pcdn.co/wp-content/uploads/2024/10/renewable-subsidy-trends.png" alt="" class="wp-image-31776" srcset="https://s15344.pcdn.co/wp-content/uploads/2024/10/renewable-subsidy-trends.png 768w, https://s15344.pcdn.co/wp-content/uploads/2024/10/renewable-subsidy-trends-300x245.png 300w" sizes="(max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Source: US Energy Information Administration</figcaption></figure>



<p>Indeed, even if project developers are not planning to co-locate storage with wind and solar projects at the outset, they are now being advised to&nbsp;<a href="https://www.infrastructureinvestor.com/better-together-a-guide-to-energy-project-co-location/">‘future-proof’ their project</a>&nbsp;by ensuring leases, for example, allow for a battery facility in addition to the main generation facility. Developers are also being encouraged to structure planning applications in such a way that they cater to potential battery add-ons in the future as this will maximize the value of the asset.</p>



<p>Yet barriers to co-located wind and storage projects remain. While corporate power purchase agreements (PPAs) have been flagged as offering a potential route to market for co-located assets, there is concern that the greater flexibility offered by co-located assets will result in PPAs that involve much higher premiums – because the extra flexibility is priced in – and this could be&nbsp;<a href="https://weightmans.email/52/2532/upload/weightmans-colocation-insight-paper-december-2022.pdf?intIaContactId=PbyfsAEMXo8K19%2bgWMtvBw%3d%3d&amp;intExternalSystemId=1">off-putting for potential corporate customers</a>.</p>



<h3 class="wp-block-heading" id="h-hybrid-ppas-offer-a-solution">Hybrid PPAs offer a solution​</h3>



<p>One potential solution is the development of hybrid PPAs. There are concerns that negotiating a contract for a hybrid PPA will be more complicated than treating assets as standalone and setting up separate routes to market for each asset. However, the counterargument is that the ability of co-located sites to guarantee more output and meet both peak and baseload energy requirements will enable operators of co-located sites to get a better price for their energy output.</p>



<p>Yet, despite an element of uncertainty about the best way forward for co-located projects, they will be the norm in the future. The appeal to investors of such projects is beyond doubt – witness Intersect Power confirming the $3.1 billion financial close of one of the US’ largest ever solar-storage portfolios, which included the Oberon I and II projects in California, which total approximately 685 MWp of solar and around 1GWh of battery energy storage.</p>



<p>Meanwhile, earlier this year, Copenhagen Infrastructure Partners, on behalf of its Flagship Funds, entered into a partnership with Amberside Energy with a view to developing 2GW of solar and battery storage projects in the UK. Elsewhere, in January, NextEnergy Capital launched a new fund, NextPower V ESG (NPV ESG), which will invest in solar and energy storage assets in OECD [Organisation for Economic Co-operation and Development] countries. NPV ESG is targeting capital commitments of $1.5 billion with a $2 billion ceiling.</p>



<h3 class="wp-block-heading" id="h-the-rise-of-the-power-couple">The rise of the ‘power couple’​</h3>



<p>This is just the start. Co-located solar and storage, which has been dubbed by some market observers as the ‘power couple’, is set to take off. DNV has predicted that, within a decade, around one-fifth of all PV will be installed alongside dedicated storage, and by 2050, this will have risen to 50 percent of all PV. DNV says that, by mid-century, the total installed global solar capacity will amount to 9.5TW, with a further 5TW of solar + storage capacity.</p>



<p>With renewable energy developers less able to rely on government subsidies to make projects viable, and with investors looking to ‘future-proof’ renewables, co-location will be a key consideration when seeking to maximize the value of wind and solar assets.</p>



<p>Want to read more about storage? Read Ben&#8217;s article on the&nbsp;<a href="https://greendealflow.com/alternatives-to-lithium-ion-batteries/">4 alternatives to lithium-ion batteries that are currently exciting investors</a>, or&nbsp;<a href="https://www.tamarindo.global/intelligence-briefings/energy-storage-report" target="_blank" rel="noreferrer noopener">Tamarindo&#8217;s Energy Storage Report Intelligence Briefing.</a></p>



<h4 class="wp-block-heading" id="h-about-the-author">About the author</h4>



<p>Ben Cook is the Insights Director at Tamarindo. Tamarindo delivers insights, connections, and communications for the global energy transition. He heads up Tamarindo’s Energy Storage Report. An experienced editor and journalist, he has worked as a writer and contributor for national newspapers, including The Guardian and The Times. He also spent six years as the Madrid-based editor of a legal magazine and website and previously worked as chief editor for a Paris-based legal and financial ratings agency. He has also previously worked as chief editor for a Milan-headquartered legal publisher.</p>



<p></p>
<p>La entrada <a href="https://greendealflow.com/why-co-located-solar-energy-storage-is-set-to-take-off">Why Co-located Storage Is Set To Take Off</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>4 Alternatives To Lithium-ion Batteries Currently Exciting Investors</title>
		<link>https://greendealflow.com/alternatives-to-lithium-ion-batteries</link>
					<comments>https://greendealflow.com/alternatives-to-lithium-ion-batteries#respond</comments>
		
		<dc:creator><![CDATA[Ben Cook]]></dc:creator>
		<pubDate>Wed, 22 Feb 2023 09:10:20 +0000</pubDate>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[BESS]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31782</guid>

					<description><![CDATA[<p>With lithium-ion batteries raising ESG-related concerns, investors are increasingly seeing value in long-duration energy storage. This article explores 4 alternatives to lithium-ion batteries currently exciting investors. Introduction​ It’s the question being asked by the biggest movers and shakers in the energy storage industry – which type of storage will challenge the dominance of lithium-ion batteries? [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/alternatives-to-lithium-ion-batteries">4 Alternatives To Lithium-ion Batteries Currently Exciting Investors</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p>With lithium-ion batteries raising ESG-related concerns, investors are increasingly seeing value in long-duration energy storage. This article explores 4 alternatives to lithium-ion batteries currently exciting investors.</p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-introduction" data-level="2">Introduction​</a><ul><li><a href="#h-the-next-big-thing-in-energy-storage" data-level="3">The &#8216;next big thing&#8217; in energy storage?​</a></li><li><a href="#h-compressed-air-energy-storage-caes" data-level="3">Compressed air energy storage (CAES)​</a></li><li><a href="#h-flow-batteries" data-level="3">Flow batteries​</a></li><li><a href="#h-gravity-based-storage" data-level="3">Gravity-based storage​</a></li><li><a href="#h-zinc-based-chemistries" data-level="3">Zinc-based chemistries​</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-introduction">Introduction​</h2>



<p>It’s the question being asked by the biggest movers and shakers in the energy storage industry – which type of storage will challenge the dominance of lithium-ion batteries? Lithium-ion batteries are currently the indisputable technology of choice for storage developers, representing 90 percent of the total amount of storage deployed globally in 2020 and 2021. But energy storage investors are starting to think twice about lithium-ion, partly because lithium-ion carbonate prices <a href="https://tradingeconomics.com/commodity/lithium" target="_blank" rel="noreferrer noopener">soared more than ten-fold between 2021 and 2022 </a>&#8211; prices have since fallen, but lithium carbonate is still around five times as expensive as it was two years ago. Other concerns include the fact that the mining of lithium can have negative social and environmental impacts. As a result, lithium mining companies are facing increasing scrutiny from investors regarding their environmental credentials. Fears have been expressed that an ESG-related “investor backlash” could derail the lithium mining industry – there have also been allegations of <a href="https://www.tamarindo.global/articles/esr-are-battery-manufacturers-about-to-implode" target="_blank" rel="noreferrer noopener">toxic chemicals from lithium mines polluting water supplies</a>.</p>



<h3 class="wp-block-heading" id="h-the-next-big-thing-in-energy-storage">The &#8216;next big thing&#8217; in energy storage?​</h3>



<p>In light of such controversy, companies are racing to find the ‘next big thing’ in energy storage, focusing on alternative technologies that are likely to raise fewer environmental concerns. However, other factors also play a role in determining the appeal of alternative storage options. Managing frequency-response, which involves maintaining grid frequency at around 60 hertz in the US or 50 hertz in the UK and Europe to prevent system instability, is one of the primary applications for energy storage today. This often requires storage for durations of an hour or less, where battery storage is most cost-effective. But as the future shifts towards using energy storage for price arbitrage or capacity provision, the focus will increasingly turn to developing long-duration storage technologies. Investors are recognizing the value in these technologies more and more.</p>



<p>So, which types of long-duration storage are currently attracting the most interest from investors? Here, the Energy Storage Report highlights four to watch. Let&#8217;s take a look at them.</p>



<h3 class="wp-block-heading" id="h-compressed-air-energy-storage-caes">Compressed air energy storage (CAES)​</h3>



<p>In the 1870s, engineers deployed primitive CAES systems to provide effective, on-demand energy for cities and industries. Although many smaller types of CAES exist, Germany established the first utility-scale system in the 1970s, with a nameplate capacity of over 290 MW. This technology is now starting to gain significant attention from investors, with one international bank revealing to Energy Storage Report that it is currently in discussions about a potential investment in CAES.</p>



<p>The momentum began in January last year when Canadian CAES company Hydrostor secured a $250 million preferred equity financing commitment from the private equity and sustainable investing divisions within Goldman Sachs Asset Management. Investors view Hydrostor as well-positioned to become a market leader, and many are convinced that the need for utility-scale long-duration storage is becoming increasingly urgent.</p>



<p>Elsewhere, at the end of last year, Australian energy developers Sunshine Hydro and Energy Estate said they were exploring the possibility of utilizing long-duration energy storage technologies, including compressed air. In February this year, compressed air energy storage company Corre Energy raised approximately €8.9 million via the placing of new shares. This came a month after the company launched a subsidiary in the US – the US Department of Energy has ranked CAES as one of the lowest-cost long-duration<a href="https://www.energy.gov/eere/analysis/2022-grid-energy-storage-technology-cost-and-performance-assessment" target="_blank" rel="noreferrer noopener"> storage technologies</a><strong>. </strong></p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="561" src="https://s15344.pcdn.co/wp-content/uploads/2024/10/US-department-of-energy.png" alt="" class="wp-image-31784" srcset="https://s15344.pcdn.co/wp-content/uploads/2024/10/US-department-of-energy.png 768w, https://s15344.pcdn.co/wp-content/uploads/2024/10/US-department-of-energy-300x219.png 300w" sizes="(max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Source: US Department of Energy</figcaption></figure>



<h3 class="wp-block-heading" id="h-flow-batteries">Flow batteries​</h3>



<p>Flow batteries appeal to investors because they are safe and non-toxic, which makes them more robust when installed in harsher environments. These were among the main drivers behind Energy Storage Industries Asia Pacific’s decision last year to enter a strategic partnership with ESS for the provision of up to 12GWh of iron flow batteries in Australia, New Zealand, and Oceania. Indeed, some observers have tipped ESS’ product to become the “gold standard in the flow battery industry”.</p>



<p>However, flow batteries do score highly in other areas among investors. For example, they make use of low-cost materials – vanadium, the most commonly used electrolyte in flow batteries, is widely available. Vanadium can be recovered from waste products such as mining slag, oil field sludge, and fly ash (a coal combustion product that is composed of the particulates that are driven out of coal-fired boilers together with the flue gases). As a result, flow batteries are appealing to investors from an environmental, social, and governance (ESG) perspective as they do not utilize ‘conflict’ materials such as cobalt.</p>



<p>In September last year, the Sacramento Municipal Utility District (SMUD) in California placed its faith in long-duration iron flow batteries with the announcement of a deal with ESS for the provision of 200MW / 2GWh, which will be integrated into the SMUD electricity grid from 2023. Last year also saw special purpose acquisition company (SPAC) Mustang Energy PLC  enter into an agreement with Acacia Resources to acquire its 27.4 percent interest in VRFB Holdings – a shareholder in Austrian vanadium redox flow battery system manufacturer CellCube – for US$10.5 million. In August last year, Largo Clean Energy, part of Largo Inc, signed a ‘non-binding’ memorandum of understanding with Ansaldo Green Tech to negotiate the formation of a joint venture for the manufacture and commercial deployment of vanadium redox flow batteries in the European, African, and Middle East Power Generation Markets. Also in 2022, Australian energy developers Sunshine Hydro and Energy Estate said they were exploring the possible use of flow batteries.</p>



<h3 class="wp-block-heading" id="h-gravity-based-storage">Gravity-based storage​</h3>



<p>Some analysts expect gravity-based storage to figure much more prominently in energy systems around the world in the coming years. In September last year, it was announced that Energy Vault’s gravity energy storage technology will be deployed at a 2GWh storage project in China being developed by Atlas Renewable LLC, the Investment Association of China, environmental management company China Tianying and a group of provincial and local governments.&nbsp;</p>



<p>Meanwhile, in February this year, underground gravity storage technology company Gravitricity signed a memorandum of understanding with Czech state enterprise DIAMO with the aim of working together to seek EU funds to transform the former Darkov deep mine into a large-scale energy store, a project that could be a pathfinder for projects Europe-wide.[5] A month earlier, Gravitricity appointed corporate finance specialists Gneiss Energy to spearhead a £40 million funding drive with the goal of building three demonstrator projects in the next five years. However, some gravity-based energy storage technologies have been plagued by skeptics who question their effectiveness. </p>



<p>Last year, Energy Vault – despite its roots in gravity-based storage – signed a contract for the deployment of a 275.2 MWh battery storage project at W Power’s Energy Reliability Center in Stanton, California, in a move it said reflected the company’s new “technology-agnostic” integration and software strategy – ultimately, it was a development that added fuel to the gravity-based storage skeptics fire.</p>



<h3 class="wp-block-heading" id="h-zinc-based-chemistries">Zinc-based chemistries​</h3>



<p>Zinc-air batteries are appealing because they have a higher energy density and better cycling stability than other batteries. Zinc8 Energy Solutions, which manufactures zinc-air batteries, says the technology has no fire and explosion risk, which makes it much safer. The company also says the batteries have “no capacity fade over an extensive lifetime”. Earlier this year, Zinc8 was approved for a $9 million grant from Empire State Development, a New York economic development corporation.</p>



<p>The grant took the form of tax credits offered as an incentive for the company to locate and establish its first US-based production facility in New York State. Meanwhile, in January this year, zinc-powered long-duration energy storage system provider Eos Energy Enterprises received $13.75 million in investment from a number of investors including Clear Creek Investments, LLC, Ardsley Advisory Partners and AltEnergy, LLC. Elsewhere, in December last year, Oregon-based Nickel-zinc battery-based systems company ZincFive raised $54 million in Series D funding, bringing the company’s total funding since inception to $139 million. Despite, the undoubted potential of zinc-based energy storage systems, concerns have been raised about&nbsp;<a href="https://www.tamarindo.global/articles/esr-4-reasons-why-we-need-alternatives-to-lithium-ion-batteries" target="_blank" rel="noreferrer noopener">possible limitations on future zinc supplies</a>.<sup>[6]</sup></p>



<p>With demand for long-duration storage set to rise in the coming years, investors are aware that the use of long-duration storage will become more commonplace. DNV has forecast that long-duration technologies such as CAES, flow batteries, gravity-based storage, and zinc-based technologies will “enter the market at scale” in the second half of the 2030s. Prior to that, despite some reservations about some types of gravity-based storage, we can expect notable growth in the deployment of all these types of long-duration storage in the near future.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="502" src="https://s15344.pcdn.co/wp-content/uploads/2024/10/Long-duration-energy-storage-potential-768x502-1.png" alt="" class="wp-image-31785" srcset="https://s15344.pcdn.co/wp-content/uploads/2024/10/Long-duration-energy-storage-potential-768x502-1.png 768w, https://s15344.pcdn.co/wp-content/uploads/2024/10/Long-duration-energy-storage-potential-768x502-1-300x196.png 300w" sizes="(max-width: 768px) 100vw, 768px" /></figure>



<h4 class="wp-block-heading" id="h-about-the-author">About the author</h4>



<p>Ben Cook is the Insights Director at Tamarindo. Tamarindo delivers insights, connections, and communications for the global energy transition. He heads up Tamarindo’s Energy Storage Report. An experienced editor and journalist, he has worked as a writer and contributor for national newspapers, including The Guardian and The Times. He also spent six years as the Madrid-based editor of a legal magazine and website and previously worked as chief editor for a Paris-based legal and financial ratings agency. He has also previously worked as chief editor for a Milan-headquartered legal publisher.</p>



<p></p>
<p>La entrada <a href="https://greendealflow.com/alternatives-to-lithium-ion-batteries">4 Alternatives To Lithium-ion Batteries Currently Exciting Investors</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>Authorization Procedures For Italian Renewables</title>
		<link>https://greendealflow.com/authorization-procedures-for-italian-renewable-energy-plants</link>
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		<dc:creator><![CDATA[Tommaso Tomaiuolo]]></dc:creator>
		<pubDate>Fri, 29 Jul 2022 08:37:52 +0000</pubDate>
				<category><![CDATA[Market Insights]]></category>
		<category><![CDATA[BESS]]></category>
		<category><![CDATA[Italy]]></category>
		<category><![CDATA[Photovoltaics]]></category>
		<category><![CDATA[Wind]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31764</guid>

					<description><![CDATA[<p>The following article explains the authorization procedures for Italian renewables following the introduction of new frameworks regarding renewable energy installations in Italy according to the official decree. The Aid Decree​ On July 14, the Senate renewed its confidence in the Government by definitively approving, in the text dismissed by the Chamber, the bill for the [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/authorization-procedures-for-italian-renewable-energy-plants">Authorization Procedures For Italian Renewables</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
]]></description>
										<content:encoded><![CDATA[
<p>The following article explains the authorization procedures for Italian renewables following the introduction of new frameworks regarding renewable energy installations in Italy according to the official decree.</p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-the-aid-decree" data-level="2">The Aid Decree​</a><ul><li><a href="#h-speeding-up-identification-of-suitable-areas" data-level="3">Speeding up identification of suitable areas​</a></li><li><a href="#h-exceptions-to-the-ordinary-authorization-procedure" data-level="3">Exceptions to the ordinary authorization procedure​</a></li><li><a href="#h-more-on-exemptions" data-level="3">More on exemptions​</a></li><li><a href="#h-article-7" data-level="3">Article 7​</a></li><li><a href="#h-more-on-article-7" data-level="3">More on Article 7​</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-the-aid-decree">The Aid Decree​</h2>



<p>On July 14, the Senate renewed its confidence in the Government by definitively approving, in the text dismissed by the Chamber, the bill for the conversion, with modifications, of the Decree-Law no.&nbsp;50 of 17 May 2022, published in the Official Gazette on 15 July 2022 general series &#8211; no.&nbsp;164 (also known as the “&nbsp;<strong>Aid Decree</strong>&nbsp;”).</p>



<p>This is a measure aimed at adopting measures to combat the systemic effects caused by the Ukrainian crisis, in particular with regard to national energy policies, business productivity, and investment attraction.</p>



<p>With regard to the energy sector, with a view to encouraging the production of energy from renewable sources, articles 6 and 7 of the Aid Decree introduced rules for further simplification of the authorization procedures for the construction and operation of plants powered by renewable sources.</p>



<h3 class="wp-block-heading" id="h-speeding-up-identification-of-suitable-areas">Speeding up identification of suitable areas​</h3>



<p>Article 6, paragraph 1 of the Aid Decree &#8211; in amending article 20, paragraph 4 of Legislative Decree No. 199 of 8 November 2021 (the &#8221;&nbsp;<strong>Legislative Decree 199/2021</strong>&nbsp;&#8220;) &#8211; aims to speed up the process of identifying surfaces and areas suitable for the installation of renewable energy plants, giving the Department for Regional Affairs and Autonomies the possibility of exercising state substitute power in the event of failure by the Regions to adopt laws aimed at delineating suitable areas within the deadline provided for by the legislation in force.</p>



<p>The provision also affects Article 20, paragraph 8 of Legislative Decree 199/2021, extending the number of areas that can be classified by <em>law</em> as suitable for the construction and operation of renewable plants pending the identification of suitable areas by of the Regions.</p>



<p>Specifically, in light of the changes introduced as a result of Article 6 of the Aid Decree:</p>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1729758843730"><strong class="schema-faq-question">Change number 1</strong> <p class="schema-faq-answer">Sites where there are photovoltaic systems on which substantial modification interventions are carried out, for reconstruction, enhancement or complete reconstruction, also with the addition of storage systems with a capacity not exceeding 8 MWh for each MW of power can be classified as suitable of the photovoltaic system (before the approval of the Aid Decree there was a limit of 3 MW, now raised to 8 MW);</p> </div> <div class="schema-faq-section" id="faq-question-1729758863544"><strong class="schema-faq-question">Change number 2</strong> <p class="schema-faq-answer">The provision that qualifies as suitable, in the absence of constraints, also extends to biomethane production plants: (a) agricultural areas within 500 meters of industrial, artisanal and commercial areas, including SIN, as well as quarries and mines; (b) inland areas or within 500 meters of industrial plants and factories; and (c) the adjacent areas within 300 meters of the motorway network (before the approval of the Aid Decree, this provision was applicable only to photovoltaic systems);</p> </div> <div class="schema-faq-section" id="faq-question-1729758878821"><strong class="schema-faq-question">Change number 3</strong> <p class="schema-faq-answer">The areas not included in the perimeter of the assets subject to protection pursuant to Legislative Decree no. 42 of January 22, 2004 (Code of Cultural Heritage and Landscape &#8211; the “ <strong>Legislative Decree 42/2004</strong> ”), nor falling within the range of respect for protected assets or of notable public interest referred to in part two and art. 136 of Legislative Decree 42/2004.</p> </div> </div>



<h3 class="wp-block-heading" id="h-exceptions-to-the-ordinary-authorization-procedure">Exceptions to the ordinary authorization procedure​</h3>



<p>It should be remembered that Article 22 of Legislative Decree 199/2021, with reference to the construction and operation of plants for the production of energy from renewable sources in suitable areas, has introduced some exceptions to the ordinary authorization procedure. Specifically, with reference to these projects:</p>



<ul class="wp-block-list">
<li>The competent authority in landscape matters expresses itself with a mandatory non-binding opinion and once the deadline for the expression of the non-binding opinion has expired, the competent administration in any case provides for the authorization application;</li>



<li>the terms of the authorization procedures for installations in suitable areas are reduced by one-third.</li>
</ul>



<h3 class="wp-block-heading" id="h-more-on-exemptions">More on exemptions​</h3>



<p>Article 6 of the Aid Decree has explicitly extended the scope of these exceptions, stating that they apply to electrical infrastructures connecting renewable energy plants and to those necessary for developing the national transmission grid, provided they are strictly functional to increasing energy production from renewable sources.</p>



<p>The decree also adopts incentive measures, specifically in paragraphs 2 quarter and quinques, to encourage new projects and interventions that promote social, economic, and productive development in municipalities with areas under concession for geothermal energy production. Starting January 1, 2023, holders of concessions for constructing and managing these plants, under Legislative Decree no. 287 of December 29, 2003, and law no. 99 of July 23, 2009, must pay a contribution of €0.05 for each kilowatt hour of electricity produced by the corresponding geothermal plant. Within ninety days of the Aid Decree’s entry into force, the Minister of Economic Development will issue a decree.</p>



<p>The decree also introduces further simplifications for tourist and spa facilities. For 24 months from the conversion law&#8217;s entry into force, these facilities can implement new photovoltaic projects with ground-mounted modules up to 1,000 kWp using the administrative DILA (sworn declaration of start of works) regime. These projects must be aimed at using self-produced energy for the needs of the facilities, located outside historical centers, and not under protection according to Legislative Decree 42/2004 (see Article 6, paragraph 2 septies of the Aid Decree).</p>



<p>Finally, Article 6 of the Aid Decree requires the Ministry of Culture, within sixty days of the conversion law&#8217;s entry into force, to establish uniform criteria for evaluating renewable energy plant projects. This aims to streamline proceedings and ensure that any negative assessments are well-founded, reflecting stringent and proven needs for cultural or landscape protection, in line with the specific characteristics of different territories.</p>



<h3 class="wp-block-heading" id="h-article-7">Article 7​</h3>



<p>Article 7 of the Aid Decree introduces significant innovations, simplifying procedures for authorizing plants that produce electricity from renewable sources.</p>



<p>These changes primarily affect projects that require an Environmental Impact Assessment (EIA) under state jurisdiction.</p>



<p>Specifically, the decree establishes that in the authorization procedures for renewable energy plants, if the project requires an EIA at the state level, the Council of Ministers&#8217; resolutions will replace the EIA provision for all purposes, even in cases of conflicting assessments by the relevant environmental authorities.</p>



<p>The Presidents of the concerned Regions and Autonomous Provinces participate in the Council of Ministers&#8217; meetings to express the position of their administration and the non-state administrations involved in the authorization process, but they do not have voting rights.</p>



<p>The Council of Ministers&#8217; resolutions are then incorporated into the single authorization procedure, which the competent administration must conclude within sixty days. If the Council of Ministers decides to issue the EIA provision and the sixty-day period passes without action, the authorization is automatically deemed issued.</p>



<h3 class="wp-block-heading" id="h-more-on-article-7">More on Article 7​</h3>



<p>Furthermore, article 7 of the Aid Decree intervenes in various ways on the authorization procedures connected to the construction and operation of renewable plants, providing that:</p>



<ul class="wp-block-list">
<li>for the construction of plants other than those fueled by biomass, including biogas plants and plants for the production of biomethane of new construction, and for photovoltaic plants, the proponent, when submitting the application for authorization, can request the declaration of public utility and the affixing of the preordained constraint to the expropriation of the areas affected by the construction of the plant and related works.</li>



<li>the simplified authorization procedure (PAS) for the construction and operation of photovoltaic systems up to 20 MW located in quarries or lots of quarries not susceptible to further exploitation may also concern the location in &#8220;portions of quarries&#8221;, it being understood that the same they must not be susceptible to further exploitation.</li>



<li>with regard to ceased quarries and mines, not recovered or abandoned or in conditions of environmental degradation considered suitable areas pursuant to the law for the installation of plants for the production of electricity from renewable sources, portions of quarries and mines not susceptible to further exploitation.</li>



<li>with regard to the standard that subjects to PAS the installation of photovoltaic systems with a power of up to 10 MW in floating mode on the water mirror of reservoirs and reservoirs, including water reservoirs in disused quarries, the plants in question can be placed also in the water reservoirs in the quarries in operation (see the modification of article 9 &#8211; <em>ter</em> of the Energy Decree).</li>
</ul>



<p>Furthermore, it is appropriate to point out that with the provisions referred to in Article 7 &#8211;&nbsp;<em>bis</em>&nbsp;of the Aid Decree, the deadline for the start of work for the interventions carried out under a qualification issued under Article 12 of the Legislative Decree n.&nbsp;387 of 29 December 2003 is set for three years from the issue of the relative qualification.</p>



<p>The Aid Decree therefore follows the path already outlined by the Simplifications Decree and the Energy Decree, demonstrating a unitary, albeit fragmented, intention of the legislator towards promoting the consumption of energy from renewable sources.</p>



<h4 class="wp-block-heading" id="h-about-the-author">About the author </h4>



<p>Italian-qualified lawyer, Tommaso has fifteen years of extensive experience in domestic, cross-border border, and multi- jurisdiction mergers and acquisitions, joint ventures, corporate finance, and private equity transactions involving both listed and privately held companies. He has particular expertise in transactions in highly regulated activities as well as in the infrastructure sector and, in particular, in the energy, transport, water, and waste sectors. His experience also includes assistance in favor of developers and lenders in relation to development projects in the energy sector, with particular reference to renewable energy assets (solar, biomass, wind, hydrogen) and transport infrastructure (electricity and gas transport, electricity and gas distribution, gas storage and LNG plants). He has extensive experience in the negotiation and drafting of M&amp;A contracts, facility agreements, EPC, O&amp;M, PPA contracts, and supply contracts in the public and private sectors. Tommaso has an LL.M Master&#8217;s Degree in Business &amp; Corporate Law at City Birmingham University and has more than 15 years of experience in primary international law firms in London, Milan, and Dubai. Tommaso is an Italian native speaker and is fluent in English and Spanish</p>
<p>La entrada <a href="https://greendealflow.com/authorization-procedures-for-italian-renewable-energy-plants">Authorization Procedures For Italian Renewables</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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		<title>Zinc-ion Battery Storage &#8211; Q&#038;A With Enerpoly</title>
		<link>https://greendealflow.com/zinc-ion-battery-storage-qa-with-enerpoly</link>
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		<dc:creator><![CDATA[Green Dealflow]]></dc:creator>
		<pubDate>Fri, 22 Jul 2022 08:29:18 +0000</pubDate>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[BESS]]></category>
		<guid isPermaLink="false">https://greendealflow.com/?p=31760</guid>

					<description><![CDATA[<p>To diversify away from lithium-ion batteries, zinc-ion might be an alternative. To get more knowledge, we asked Enerpoly, an innovative company trying to put zinc-ion batteries on the table of energy storage, how they see zinc-ion in the future. What is the Enerpoly innovative perspective on zinc-ion energy storage? Enerpoly develops and manufactures zinc-ion batteries [&#8230;]</p>
<p>La entrada <a href="https://greendealflow.com/zinc-ion-battery-storage-qa-with-enerpoly">Zinc-ion Battery Storage &#8211; Q&amp;A With Enerpoly</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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<p>To diversify away from lithium-ion batteries, zinc-ion might be an alternative. To get more knowledge, we asked Enerpoly, an innovative company trying to put zinc-ion batteries on the table of energy storage, how they see zinc-ion in the future.</p>



<div class="wp-block-yoast-seo-table-of-contents yoast-table-of-contents"><h2>Table of contents</h2><ul><li><a href="#h-what-is-the-enerpoly-innovative-perspective-on-zinc-ion-energy-storage" data-level="2">What is the Enerpoly innovative perspective on zinc-ion energy storage?</a><ul><li><a href="#h-what-is-enerpoly-doing-to-enhance-battery-sustainability-toxicity-recycle" data-level="3">What is Enerpoly doing to enhance battery sustainability (toxicity-recycle)?</a></li><li><a href="#h-how-do-you-see-the-energy-storage-market-in-terms-of-raw-materials-and-natural-resources" data-level="3">How do you see the energy storage market in terms of raw materials and natural resources?​</a></li><li><a href="#h-based-on-your-experience-with-zinc-ion-which-are-the-main-factors-influencing-the-deployment-of-large-scale-energy-storage" data-level="3">Based on your experience with zinc-ion, which are the main factors influencing the deployment of large-scale energy storage?</a></li><li><a href="#h-what-are-the-safety-concerns-around-energy-storage-and-how-enerpoly-solution-is-different-flammability" data-level="3">What are the safety concerns around energy storage and how Enerpoly solution is different? (flammability) ​</a></li><li><a href="#h-do-you-identify-any-constraints-to-the-deployment-of-the-technology-in-regards-to-its-grid-scale-scalability-what-is-your-timeline" data-level="3">Do you identify any constraints to the deployment of the technology in regards to its grid-scale scalability, what is your timeline?</a></li><li><a href="#h-more-alternatives-to-storage" data-level="3">More alternatives to storage​</a></li></ul></li></ul></div>



<h2 class="wp-block-heading" id="h-what-is-the-enerpoly-innovative-perspective-on-zinc-ion-energy-storage">What is the Enerpoly innovative perspective on zinc-ion energy storage?<br></h2>



<p>Enerpoly develops and manufactures zinc-ion batteries to deliver breakthrough affordability in stationary storage. The patented technology innovates the rechargeability of the single-use zinc-manganese alkaline battery – chemistry that has dominated the primary battery industry as a simple, well-performing, and economical solution for more than half a century.</p>



<p>Zinc-ion batteries use the same zinc and manganese &#8211; cost-effective, safe materials that have existing stable supply chains and recycling infrastructure. Enerpoly thus delivers the lowest cost of ownership in battery energy storage (&lt; $50/MWh LCOS) and allows for sustainable scaling. By innovating with these materials, Enerpoly is building a world where everyone has access to clean energy.</p>



<h3 class="wp-block-heading" id="h-what-is-enerpoly-doing-to-enhance-battery-sustainability-toxicity-recycle">What is Enerpoly doing to enhance battery sustainability (toxicity-recycle)?<br></h3>



<p>Based in Stockholm, Enerpoly brings the best of Swedish design, eco-friendliness, and sustainability to the energy storage industry.</p>



<p>By working with materials that are sourced and produced locally, Enerpoly mitigates carbon emissions by 75kg CO2eq per kWh produced (cradle-to-gate) versus LFP batteries.</p>



<p>Enerpoly exclusively uses non-toxic materials and solvents in the production process. Zinc-ion batteries are safe and are constructed similarly to alkaline batteries which have been used in household devices, even including children’s toys, for the last 60 years.</p>



<p>Enerpoly focuses on ensuring the circularity of the battery. The major components, zinc, and manganese, are already recyclable, with end-of-life recycling rates in the EU at 40-50%.</p>



<h3 class="wp-block-heading" id="h-how-do-you-see-the-energy-storage-market-in-terms-of-raw-materials-and-natural-resources">How do you see the energy storage market in terms of raw materials and natural resources?​</h3>



<p>Enerpoly has always considered raw materials of paramount importance, both in terms of cost and availability. CTO and co-founder Dr. Mylad Chamoun focused his research into electrochemical storage on finding solutions that make energy storage more economical and accessible. His research breakthrough on zinc-ion batteries led to the founding of Enerpoly.</p>



<p>Energy storage is highly dependent on the availability and accessibility of raw materials. Recent global events have revealed how concentrated supply and unstable supply chains can lead to price volatility. Key raw material prices for lithium-ion batteries have reached all-time highs, and end-users like automakers are even considering investments into raw material refining to secure supply.</p>



<p>To steal the words of Simon Moores, CEO, Benchmark: “For the next decade, physical supply of key battery raw materials is king – it will make or break […] plans.”</p>



<p>In this environment, Enerpoly holds an advantage by using accessible and circular materials such as zinc and manganese. For example, zinc currently produces 130x more than lithium with a 21x lower cost. It also has a high end-of-life recycling rate as mentioned previously.</p>



<h3 class="wp-block-heading" id="h-based-on-your-experience-with-zinc-ion-which-are-the-main-factors-influencing-the-deployment-of-large-scale-energy-storage">Based on your experience with zinc-ion, which are the main factors influencing the deployment of large-scale energy storage?<br></h3>



<p>There are 3 factors Enerpoly has seen influencing energy storage deployments:</p>



<p>1) The high cost of battery materials can render energy storage projects unfeasible. Today’s existing battery solutions are unable to deliver the combination of low cost and long lifetime to break even on the investment.</p>



<p>2) Integrators have issues sourcing battery supply for stationary storage. This issue will be exacerbated as EV uptake accelerates.</p>



<p>3) The issues of safety have dogged battery storage installations with tightening local regulations, strict fire codes and vetting by fire departments, and/or community protests.</p>



<p>Enerpoly’s zinc-ion batteries can tackle all these challenges. Enerpoly focuses on delivering groundbreaking affordability to energy storage by bringing zinc-ion batteries to market quickly. This scalability is achieved by leveraging and adapting existing infrastructure and processes to zinc-ion battery production, as well as using globally accessible materials. The batteries and the associated manufacturing processes are low-risk given the non-flammable, non-explosive, and non-toxic materials utilized.</p>



<h3 class="wp-block-heading" id="h-what-are-the-safety-concerns-around-energy-storage-and-how-enerpoly-solution-is-different-flammability">What are the safety concerns around energy storage and how Enerpoly solution is different? (flammability) ​</h3>



<p>The zinc-ion battery cell contains an aqueous electrolyte, aka it’s water-based. Water doesn’t burn and offers an excellent heat sink.</p>



<p>Nonetheless, Enerpoly tested the zinc-ion battery against UL9540A standards to measure thermal runaway fire propagation. The battery cell tested exceedingly well, proving it is non-flammable and non-explosive.</p>



<h3 class="wp-block-heading" id="h-do-you-identify-any-constraints-to-the-deployment-of-the-technology-in-regards-to-its-grid-scale-scalability-what-is-your-timeline">Do you identify any constraints to the deployment of the technology in regards to its grid-scale scalability, what is your timeline?<br></h3>



<p>Today, Enerpoly has a production validation line (&lt;500kWh/yr production) based in Stockholm and is aiming at field pilots in 2023. Hence, the main constraint toward grid-scale zinc-ion battery solutions is scaling up manufacturing to service the market.</p>



<p>To scale up production, Enerpoly is working on securing financing and offtake agreements. We anticipate being able to work with the grid-scale storage market starting in 2025-26. Given that projects have some runtime before the start of commission, Enerpoly is very interested in having discussions with project developers and integrators looking to secure future supply.</p>



<h3 class="wp-block-heading" id="h-more-alternatives-to-storage">More alternatives to storage​</h3>



<p>If you would like to know more about energy storage, we recommend checking out our piece on the <a href="https://greendealflow.com/alternatives-to-lithium-ion-batteries/">alternatives to lithium-ion batteries</a>, our Q&amp;A with Phelas who specializes in <a href="https://greendealflow.com/what-is-liquid-air-energy-storage">liquid air energy storage</a>, or our more practical piece on <a href="https://greendealflow.com/how-battery-energy-storage-systems-work/">how battery energy storage systems work.</a></p>



<p></p>
<p>La entrada <a href="https://greendealflow.com/zinc-ion-battery-storage-qa-with-enerpoly">Zinc-ion Battery Storage &#8211; Q&amp;A With Enerpoly</a> se publicó primero en <a href="https://greendealflow.com">We turn good projects into great deals - Green Dealflow</a>.</p>
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