Energy storage is getting a bump in the
president’s proposed 2013 budget. It’s an extra
boost that the industry says that it needs to get
out of the lab and into market. Just how far off is
the concept whereby such stored power is released
when the wind dies down or the sun doesn’t shine?
It’s here now. But some major hurdles are blocking
wide scale deployment. Balancing the electricity
load is difficult. Storage devices, if they can be
shown to work at commercial scale, would be a huge
boon to an industry that is trying to advance
renewable power. It can help utilities avoid
downtime and thereby save billions in lost
opportunities while also allowing such companies to
sell blocks of peak power at premium prices.
“The choice we face as a nation is simple: Do we
want the clean energy technologies of tomorrow to be
invented in America by American innovators, made by
American workers and sold around the world, or do we
want to concede those jobs to our competitors?
asks
Energy Secretary Steven Chu. “We can and must
compete for those jobs.”
The amount of money that would be allotted to clean
energy, generally, would climb by 2.3 percent from
the 2012 budget to the 2013 budget. The White House
says that such an increase, albeit small, is still
making a significant statement with respect to
President Obama’s commitment to renewables and green
technologies.
Specifically, he is asking that $27 billion go
toward all of the Energy Department's endeavors. Of
that, $60 million would be targeted to researching
and expanding the uses for energy storage systems.
That’s on top of the $185 million provided to 16
separate storage projects via the 2009 stimulus
plan.
A KEMA study is forecasting that if the technology
is given the right financial incentives then 2-4
gigawatts of energy storage would be developed in
five years. The study also says that the cost of the
now-expensive storage will drop.
To reach the size and scale that is needed to cut
prices, the
Electricity Storage Association is advocating
for tax and financial incentives like the investment
or production tax credits given to wind and solar,
which may not get renewed after this year. It also
wants to see energy storage included in the Obama
administration’s clean energy standards as well as
renewable portfolio standards that are now set at
the state level.
“The next five years will be critical and provide
enormous opportunity to move storage technologies to
full commercialization,” says Brad Roberts,
executive director of the storage group.
White House Supportive
To be clear, storage devices come in many forms: The
most prevalent ones today are batteries that link to
the transmission grid where they siphon off power at
night, and store it. It is then dispatched during
the day when prices rise. Then there’s the
fast-response flywheels, and a deviation of that
called kinetic energy storage that is practical for
short-term needs.
Beyond those tools, there's also compressed air
energy storage that holds air underground and
releases it in heated form to create electricity.
And there’s the mature pumped hydro storage, whereby
turbines push water into reservoirs at night and
then let it go during the day when demand is
highest.
The younger products are now relatively expensive
and it is still unknown how they would operate in a
commercial setting. If they are to be cost
effective, they must be able to offer other
services, say experts. Until then, the federal
government will partner with private industry to
help foster this sector.
The
Oak Ridge National Laboratory has applied for a
grant from the Energy Department to, among other
things, help get lithium ion batteries into hybrids
and all-electric vehicles, as well as get them
connected to solar cells and windmills.
“However, safety of the technology is still a
concern, service life is not yet sufficient, and
costs are too high,” the lab says, noting that its
efforts would serve to break down those barriers.
In a talk with this reporter, Celgard President
Mitch Pulwer said that the lithium ion technology is
effective now. But he adds that governmental
assistance is needed for the advanced battery
industry to ratchet up production and enable a
supply chain, all of which will help reduce prices
for batteries -- a tool that also has powerful
applications for the utility industry.
“The challenge with the grid is that the load is not
uniform,” adds Gary Rackliffe, with ABB Inc., in an
interview. “Energy storage balances those demands
and addresses the issue of variability.”
Energy storage’s potential could be short-circuited
unless the price of the technology starts to fall.
The White House sees the possibilities, garnering
the thanks of an industry that also wants parity
with other clean tech investments.
EnergyBiz Insider is the Winner of the 2011 Online
Column category awarded by Media Industry News, MIN.
Ken Silverstein has also been named one of the Top
Economics Journalists by Wall Street Economists.
Follow Ken on www.twitter.com/ken_silverstein
energybizinsider@energycentral.com
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