Energy storage is seen as the next enabling technology required to cost-effectively facilitate grid modernization, while allowing for the full potential of renewable energy power generation. The rapid pace of development of new storage technologies and project deployments is widely seen as following the same path as solar and wind with respect to the need for mainstream financing. However, unlike solar and wind—which rely on debt, equity and PPA financing structures with predictable fixed revenues and built-in cost escalators—energy storage projects have the potential for multiple use applications within a given project enabling variable revenue streams. This increased flexibility serves as both an opportunity for creative project development and a risk to realizing full revenue projections.
As more innovative technologies and system control architectures raise the possibilities of less expensive, more cost effective energy storage systems (ESS), market growth depends on understanding and quantifying the associated technology and implementation risks to achieve project financing. Each Stakeholder in the project lifecycle, from the ISO, Utility executive, off take client, project developer, manufacturer, EPC contractor, and lender, must address the real or perceived risks in order to achieve their respective returns.
Third party independent engineering and technical due diligence has long been a requirement of lenders and developers to address risk for power and infrastructure project financing. The need for these services plug into various points in a project lifecycle. For example, EPC contractors and developers rely on Bankability Studies to validate hardware selections, while Lenders require project developers to provide independent engineering assessment reports on the design, integration, construction, contracting, and performance predictions for energy infrastructure projects. New and unique to ESS projects is the reliance on effective control and dispatching software required to optimize the predicted revenue streams. Validation of this key element of an ESS project will become increasingly important in securing both traditional and creative financing mechanisms.
- How does independent testing and technical due diligence accelerate energy storage financing?
- Application Analysis: Does storage pencil out for my needs?
- Owners Engineering : How are systems properly designed to be compliant in a rapidly changing regulatory climate
- Technology Assessments: How can independent Testing and Technology Reviews overcome challenges around new unproven technology?
- Project Development: What is the role of due diligence in project development?
- Project Financing: What is needed to minimize risk?
- Looking for answers to these questions?
On Thursday, January 21 DNV GL hosted an informative webcast sharing insights, experience and real-world perspectives on what it takes to successfully advance energy storage projects. Watch the on-demand video here.
Featured Speakers :
Dr. Davion Hill, Regional Energy Storage Lead – Energy Advisory Americas, DNV GL
Dr. Davion Hill, DNV GL Regional Energy Storage Lead – Energy Advisory Americas. Dr. Davion Hill is 2015 President of NAATBatt International and Energy Storage Leader for DNV GL North America. Dr. Hill has over 10 years’ experience as a contract R&D consultant, serving as Principal Investigator on ARPA-e, NYSERDA, and the California Energy Commission technical R&D programs related to battery energy storage performance and safety. Dr. Hill won and led DNV GL’s first ever ARPA-e award, as well as its second. Dr. Hill also created DNV GL’s first hybrid power for oil & gas operations program in North America. In his tenure with NAATBatt, Dr. Hill founded and led the creation of NAATBatt SD, a strategic development program allowing NAATBatt members to seed-fund precompetitive R&D efforts. Dr. Hill has led, chaired, or participated in multiple panels on the topics of battery safety with NYBEST, NAATBatt, and ESA. He is an accomplished author with over 30+ peer reviewed publications and articles.
Dr. Michael Kleinberg, Senior Consultant – Energy Advisory Americas, DNV GL
Dr. Michael Kleinberg, DNV GL Senior Consultant – Energy Advisory Americas. Dr. Michael Kleinberg is a Senior Consultant in the Distributed Energy Resources group at DNV GL. His work focuses on energy storage modeling, procurement, implementation support, and testing, in addition to advanced distribution system analytics. Michael is currently assisting California utilities developing and assessing their energy storage request for offers (RFOs) and has led development of DNV GL’s energy storage cost-effectiveness model, ES-GRID. He has led multiple technical due diligence efforts to support investments in both large-scale and distributed energy storage projects being developed across the US. Michael has experience with laboratory and field testing of energy storage systems including performance testing, field and factory acceptance testing, and investigation of failure modes. Michael received his M.S and PhD. degrees in Electrical Engineering from Drexel University in 2007 and 2015, respectively.
Terence Schuyler, Principal Consultant –Energy Advisory Americas, DNV GL
Terence (Terry) Schuyler, DNV GL Principal Consultant –Energy Advisory Americas. Terence (Terry) Schuyler is a Principal Consultant working in the Solar Group to help transition DNV GL’s range of engineering services to address emerging solar storage markets. He has worked in the PV solar industry for 37 years, including solar cell device and PV/storage systems research, sales management, product development, and business development. He has participated in many PV industry growth milestones from the manufacturing of solar cells used in Space applications in the late 70’s, to the pioneering and design evaluations of PV components and systems used in today’s utility-scale solar farms. In addition to research positions with the Solar Energy Research Institute (now NREL) and Sandia National Labs PV Systems Evaluation Laboratory, Terry has served as VP of Sales for several PV and storage system integrators and PV component manufactures. Terry’s consulting, sales and project development include efforts with utilities and NGO’s in the Western US, Africa, Europe, Central America, and the Caribbean.