Fractal EMS to Present Learning Lab at #ESACon21 on Optimizing Storage O&M

by Fractal EMS on October 7, 2021

Daniel Crotzer, CEO of Fractal EMS will present a Learning Lab at the upcoming 2021 ESA Energy Storage Annual Conference and Expo entitle “Many Happy Returns: Optimizing Storage System Operations and Maintenance. The presentation is scheduled for Wednesday, December 1, 2021 at 10:30 AM – 12:00 PM MT. Learning Labs are pre-conference educational sessions designed to provide more in-depth and interactive learning opportunities.

This Learning Lab will offer attendees the opportunity to evaluate ways to successfully manage the operation and maintenance of a battery energy storage facility. Attendees will learn how to determine whether an asset manager can achieve their targeted rate of return and review decisions that include optimizing operation to maximize revenues; incorporating physical degradation and lifetime impacts into operating algorithms; deciding when to augment capacity to maintain contractual performance; and protocols to maintain and enhance safety. This Learning Lab will also discuss the main operations and maintenance decisions involved in optimizing battery energy storage asset value, as well as the tools and strategies that asset managers employ to make those decisions.

The ESA national conference runs December 1-3, 2021 at the Phoenix Convention Center, in Phoenix, Arizona. Click here for more information about the conference.

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Fractal EMSFractal EMS to Present Learning Lab at #ESACon21 on Optimizing Storage O&M

Storage ITC Within Sight

by Judy McElroy on September 15, 2021

On September 15, 2021, the U.S. House Ways & Means Committee finished a markup of the Build Back Better Act[1], specifically Subtitle G – Green Energy.[2] The markup for Subtitle G contains proposed amendments to the current Internal Revenue Code (IRC) Section 48[3] that would add Energy Storage Technologies (among others), as eligible energy property, and hence receive the Investment Tax Credit.

Original IRC Section 48 Language

The original Internal Revenue Code (IRC) Section 48 listed ITC eligible technologies:

  • Qualified fuel cell property
  • Energy property
  • Qualified small wind energy property
  • Waste energy recovery property

Proposed Subtitle G Language

Proposed amendments to IRC Section 48 were described in Subtitle G – Clean Energy, Part 1 – Renewable Electricity and Reducing Carbon Emissions, Section 136101, Extension and Modification of Credit for Electricity Produced from Certain Renewable Resources.

The following technologies were added as eligible energy property:

Energy Storage Technology. Energy Storage Technology means equipment (other than equipment primarily used in the transportation of goods or individuals and not for the production of electricity) which uses batteries, compressed air, pumped hydropower, hydrogen storage, thermal energy storage, regenerative fuel cells, flywheels, capacitors, superconducting magnets, or other technologies identified by the Secretary, after consultation with the Secretary of Energy, to store energy for conversion to electricity (or, in the case of hydrogen storage, to store energy), and has a capacity of not less than 5 kilowatt hours. Construction must begin by Jan 1, 2034.

Qualified Biogas Property. Qualified Biogas Property means property comprising a system which (i) converts biomass into a gas which (a) consists of not less than 52 percent methane, or (b) is concentrated by such system into a gas which consists of not less than 52 percent methane, and (ii) captures such gas for productive use. Construction must begin by Jan 1, 2034.

Microgrid Controllers. Microgrid Controller means equipment which is (i) part of a “Qualified Microgrid,” and (ii) designed and used to monitor and control the energy resources and loads on such microgrid to maintain acceptable frequency, voltage, or economic dispatch. Construction must begin by Jan 1, 2034.

Qualified Microgrid means an electrical system which (i) includes equipment which is capable of generating not less than 4 kilowatts and not greater than 20 megawatts of electricity, (ii) is capable of operating (a) in connection with the electrical grid and as a single controllable entity with respect to such grid, and ‘(b) independently (and disconnected) from such grid, and (iii) is not part of a bulk-power system.

Key Summary of Proposed Language[4]

  • Energy storage technologies added as eligible property in the current ITC Section 48.
  • ITC Section 48 extended for 10 years, at 30% 2022-2031 before phasing down 26% in 2032 and 22% in 2033
  • Base ITC value is 6%, and rises to 30% if certain labor standards are met (with <1 MW projects exempted):
    • Prevailing wage for all workers in project construction & project alteration and repair up to 5 years after placed in service
    • Qualified apprentices required to complete a percent of all construction/alteration/repair labor hours, starting at 5% in 2022 and rising to 15% in 2024 and beyond, with 1 apprentice required for every 4 workers; exemptions allowed if labor supply is unavailable or good faith efforts can be demonstrated
  • A bonus of 10% of ITC value (i.e., +3% added to 30% ITC) if certain domestic content standards are met:
    • 100% of steel & iron
    • 55% of manufactured products
    • Waivers allowed if domestic content raises project costs 25% or US production is determined to be insufficient in volume
  • Direct payment election allowed for Section 48 ITCs, with a phase in of domestic content requirements:
    • Only 90% and 85% of ITC value is available for direct payment in 2024 and 2025 if domestic content standards are not met
    • Domestic content standards are required for any direct payment of ITC value starting in 2026

This legislation is expected to be included in a full budget reconciliation package for vote in the House of Representatives later this month.

[1] https://waysandmeans.house.gov/legislation/markups/markup-build-back-better-act. See bottom of webpage for all markup documents

[2] https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/SUBFGHJ_xml.pdf

[3] https://irc.bloombergtax.com/public/uscode/doc/irc/section_48

[4] Summary provided by the Energy Storage Association (ESA). ESA provides vital policy and market updates to members.

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Judy McElroyStorage ITC Within Sight

Assuming Control: The Software Revolution in Energy Storage – ESA Webinar

by Fractal EMS on August 25, 2021

Energy storage technologies offer unprecedented flexibility to power systems—but only if they employ smart software and controls. Safely and effectively operating large grid-connected battery energy storage systems (BESS) requires increasingly sophisticated data processing and parameter prediction to optimize asset performance and value. Software embedded in battery management systems (BMS) directs thousands of individual cells to operate in concert, software that runs power control systems (PCS) enables a BESS to interact with an always-changing grid and bidding algorithms solve complex problems over increasingly narrow intervals to maximize the asset’s value.

As software, algorithms, and continuous data processing increasingly define modern energy storage, the rapid evolution in software and controls has significantly improved energy storage systems. This webinar will provide a window into recent and expected developments in software and controls that will enable increased performance and value capture of energy storage systems.

Host: Marc Chupka, VP, Research and Programs, U.S. Energy Storage Association

Speakers:

Joshua Lehman, Senior Director of Product Management, Stem
Alan Cordova, Senior Director of Business Development, Fluence
Daniel Crotzer, CEO, Fractal EMS

This webinar has passed but can be accessed at the following link.

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Fractal EMSAssuming Control: The Software Revolution in Energy Storage – ESA Webinar

Maine Announces Energy Storage Target

by Judy McElroy on June 23, 2021

Welcome to the energy storage team Maine. We’ve been waiting for you. On June 22, 2021, the state of Maine became the 9th state with an energy storage target. Governor Mills signed LD 528 into law, establishing a goal of 400 MW of energy storage by 2025, and 500 MW by 2030. Let’s update the team roster!

California

  • Assembly Bill (A.B.) 2514 (2013) directed the state’s three investor-owned utilities (IOUs) to procure 1,325 MW of storage by 2020 with installations operational by 2024 (580 MW from SCE, 580 MW from PG&E, 165 MW from SDG&E).
  • A.B. 2868 (2016) directed the same utilities to add an additional 500 MW of additional storage to be rate-based. No more than 25 percent of the capacity could be behind-the-meter (BTM).
  • S.B. 801 (2018) required SCE to deploy 20 MW energy storage to meet energy reliability requirements in the greater Los Angeles area associated with the Aliso Canyon gas explosion.

Connecticut – Newly added May 20, 2021

  • S.B. 952 (2021) set a target of 1 GW of energy storage to be achieved by 2030. Sets interim targets of 300 MW by 2024 and 650 MW by 2027.

Maine – NEW

  • LD 528 (2021) set a 400 MW energy storage target to be achieved by 2025, and 500 MW by 2030.

Massachusetts

  • House Bill (H.B.) 4857 (2018) established a 1,000 MWh energy storage deployment target to be achieved by 2026.

Nevada

  • S.B. 204 (2017) directed the Public Utilities Commission of Nevada to establish biennial targets for NV Energy Inc.’s procurement of energy storage systems, starting at 100 MW by the end of 2020 and increasing to 1,000 MW by the end of 2030.

New Jersey

  • A.B. 3723 (2018) set targets of 600 MW of energy storage capacity within three years and 2 GW of capacity by 2030.

New York

  • S.B. 5190 and A.B. 6571 directed the New York Public Service Commission (PSC) to develop an Energy Storage Deployment Program, including 3,000 MW by 2030 with an interim goal of 1,500 MW by 2025.

Oregon

  • H.B. 2193 (2016) required Portland General Electric (PGE) and PacifiCorp to each have a minimum of 5 MWh of energy storage in service by January 2020.

Virginia

  • H.B. 1526 and S.B. 85 (2020) had Virginia Governor Ralph Northam signed the Virginia Clean Economy Act (VCEA) mandating a 3.1 GW energy target and a goal to achieve 100% renewable and clean energy by 2050.
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Judy McElroyMaine Announces Energy Storage Target

Connecticut Advances 1 GW Energy Storage Target

by Judy McElroy on May 21, 2021

The state of Connecticut looks to become the 8th state with an energy storage target. On May, 20, 2021 the Connecticut Senate passed Senate Bill (S.B.) 952, which will set a target of 1 GW of energy storage to be achieved by 2030. Energy storage targets are on the rise across the country. Let’s look at state energy storage targets to date:

California

  • Assembly Bill (A.B.) 2514 (2013) directed the state’s three investor-owned utilities (IOUs) to procure 1,325 MW of storage by 2020 with installations operational by 2024 (580 MW from SCE, 580 MW from PG&E, 165 MW from SDG&E).
  • A.B. 2868 (2016) directed the same utilities to add an additional 500 MW of additional storage to be rate-based. No more than 25 percent of the capacity could be behind-the-meter (BTM).
  • S.B. 801 (2018) required SCE to deploy 20 MW energy storage to meet energy reliability requirements in the greater Los Angeles area associated with the Aliso Canyon gas explosion.

Connecticut – NEW

  • S.B. 952 (2021) set a target of 1 GW of energy storage to be achieved by 2030. Sets interim targets of 300 MW by 2024 and 650 MW by 2027.

Massachusetts

  • House Bill (H.B.) 4857 (2018) established a 1,000 MWh energy storage deployment target to be achieved by 2026.

Nevada

  • S.B. 204 (2017) directed the Public Utilities Commission of Nevada to establish biennial targets for NV Energy Inc.’s procurement of energy storage systems, starting at 100 MW by the end of 2020 and increasing to 1,000 MW by the end of 2030.

New Jersey

  • A.B. 3723 (2018) set targets of 600 MW of energy storage capacity within three years and 2 GW of capacity by 2030.

New York

  • S.B. 5190 and A.B. 6571 directed the New York Public Service Commission (PSC) to develop an Energy Storage Deployment Program, including 3,000 MW by 2030 with an interim goal of 1,500 MW by 2025.

Oregon

  • H.B. 2193 (2016) required Portland General Electric (PGE) and PacifiCorp to each have a minimum of 5 MWh of energy storage in service by January 2020.

Virginia

  • H.B. 1526 and S.B. 85 (2020) had Virginia Governor Ralph Northam signed the Virginia Clean Economy Act (VCEA) mandating a 3.1 GW energy target and a goal to achieve 100% renewable and clean energy by 2050.
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Judy McElroyConnecticut Advances 1 GW Energy Storage Target