The EU, together with Australia, the US and Canada, will launch a global energy transition ＂SuperStorage Production Programme＂.
The European Commission has joined forces with the governments of Australia, the United States, and Canada to support a new initiative to promote the use of battery storage in the global transition to low-emission electricity.
The new initiative called the Super Storage Battery Programme, was announced on 6 December in Dubai, UAE, as the UN Climate Change Conference (COP28 UN Climate Conference) continues, and was launched by the Clean Energy Ministers' Meeting, which includes the energy sectors of national governments as members and participants. The initiative was launched by the Conference of Clean Energy Ministers, which includes the energy sectors of national governments as members and participants.
Given the critical role of energy storage in integrating renewable energy sources and improving the stability of the global power grid, the initiative aims to foster international cooperation, align goals, and drive technology deployment and development. It aims to reduce the cost of energy storage technologies and create a sustainable, transparent, diverse, and responsible supply chain, the Clean Energy Ministerial said.
While the European Commission and Australia are leading this new initiative, the United States and Canada are also on board. U.S. Energy Secretary Jennifer Granholm and her Australian and Canadian counterparts have issued statements in support of the SuperStorage Production Initiative, as has EU Vice President Maroš Šefčovič, who has been promoting battery manufacturing efforts at the European level. level to promote battery manufacturing efforts.
Japan's first energy storage industry fund was established
Japan's nascent large-scale energy storage market now has its first dedicated investment fund, co-managed by Gore Street Capital and Japanese firm Itochu. Gore Street, which launched the Gore Street Energy Storage Fund in 2018, announced on 4 December that it had been selected, along with Itochu, to manage the new fund's partners. The fund utilises a public-private partnership with the Tokyo Metropolitan Government (TMG) and was selected through a competitive solicitation. Both parties will be jointly responsible for technical and economic decisions for the fund.
TMG will make an initial investment of JPY2 billion (US$13.63 million). Itochu will also provide funding, while other private investors are being sought to participate. The investment will focus on projects in the Kanto region, which includes the Tokyo metropolitan area and six surrounding prefectures. One of the new fund's main tasks is to establish a new "green financing model" in Japan for investing in large-scale public battery energy storage system (BESS) assets, Gore Street said.
Itochu is a partner in the fund, which covers a wide range of sectors including raw materials, machinery, metals, fashion labels, real estate, food, insurance, and energy. As of the beginning of this year, Itochu was the market leader in sales of residential battery storage systems in Japan, with sales of about 55,000 units. Itochu has entered the large-scale BESS field. In June this year, it announced the launch of its first 11MW/23MWh project in Osaka Prefecture, western Japan, in partnership with Osaka Gas. The company also partnered with Australian developer Akaysha Energy to announce a large-scale BESS project in Japan last September.
Global Energy Alliance helps low-income countries deploy 5GW of battery energy storage systems
Eleven countries joined a global consortium aiming to secure 5GW of battery energy storage deployment in low- or middle-income countries at COP28 last week.
In April this year, the Global Energy Alliance for People and Planet (GEAPP) launched the Battery Energy Storage Systems Consortium (BESS Consortium), supported by the Global Leadership Council (GLC), a so-called "senior alliance of global leaders". The Consortium's focus is to promote the rapid growth and development of grid-connected energy storage in low- or middle-income countries and the development of off-grid renewable energy aggregation technologies.
The latest announcement is in this first area of focus. The consortium's milestone for 2023-2024 is to obtain commitments from utilities and governments from more than 10 countries to deploy energy storage facilities on their grids.
Danish renewable energy investment company CIP confirms construction of 500MW energy storage project in Scotland is about to start
Renewable energy investment company Copenhagen Infrastructure Partners (CIP) has confirmed that it is ready to start construction on its 500MW / 1,000MWh Battery Energy Storage System (BESS) in Scotland, UK.
The project, which is being developed by network solutions company Alcemi through CIP's flagship fund, has been given a 'go ahead' notice and will be constructed at Coalburn, southeast of Glasgow. Operations are expected to commence in Q4 2025, with Alcemi and CIP partnering in March 2022 to develop, build, and operate a 4GW portfolio of energy storage assets in the U.K. Alcemi has also confirmed that E-Storage will supply its SolBank battery system for the two-hour project. Engineering firm H&MV will be responsible for the balance of work.
Canadian Solar's e-Storage, a subsidiary of this vertical PV manufacturing company CSI Solar, launched SolBank in September 2022. The technology utilizes liquid-cooled lithium-iron-phosphate (LFP) cells, complete with active cell balancing, fire protection systems with multiple levels of protection, and more.
Notably, Solbank is being used to lead Copenhagen Infrastructure Partners into the Australian market, where the company recently announced the expansion of its 240MW / 480MWh Summerfield energy storage project in South Australia.
Abu Dhabi sovereign investor Mubadala announces strategic investment in UK-based Zenobē
Abu Dhabi sovereign investment company Mubadala Investment Company has announced a strategic investment in Zenobē, a UK-based provider of battery energy storage and electric vehicle fleet solutions. Backed by Mubadala, Infracapital, M&G's infrastructure equity arm, is investing £270 million ($440 million) to boost the business in the UK and globally.
US-listed private equity firm KKR has also announced a £600m investment to become a co-major shareholder in Infracapital. In total, this means £8.7bn will be injected into the business, equivalent to $1.095bn. The company was the leader in venture capital deals in the battery storage sector as of the end of the third quarter, according to research by Mercom Capital.
Mubadala's strategic investment will give Zenobē access to a total of £870 million from Infracapital and KKR, fuelling its expansion in the UK and globally. This investment is a positive response to the huge growth potential of the battery storage industry.
NHOA completes 311MWh large-scale battery energy storage system in Taiwan Specifically designed to engage new auxiliary
Italian-headquartered energy storage systems integrator and electric mobility solutions company New HOrizons Ahead (NHOA) announced earlier this week that it has successfully commissioned a 311MWh battery energy storage project in the Hualien Peace Industrial Park in Hualien County, Taiwan, designed specifically to participate in a new ancillary service opportunities.
The Italy-based energy storage system integrator and electric mobility solutions company announced earlier this week (5 December) that the 311MWh capacity project had been successfully commissioned in the Heping Industrial Park in Hualien County, Taiwan.
NHOA claims this is the largest operational battery energy storage facility in Taiwan to date. The energy storage market in Taiwan has been growing since 2020 when Taipower introduced an auction for the procurement of frequency regulation ancillary services.
The Peace Industrial Park is an industrial facility of NHOA's parent company, Taiwan Cement Corporation (TCC). Last year, TCC bought a majority stake in NHOA from European energy company Engie, which further enriched the company's portfolio, which also includes Taiwanese lithium battery maker Molicell. In a speech, TCC chairman Nelson Chang said last year that batteries are "the key to the future of energy," noting that Taiwan needs to be able to use them. In a speech last year, TCC chairman Nelson Chang said batteries were "the key to the energy of the future," noting that Taiwan would need around 9GW of energy storage, equivalent to 20 percent of the country's 2030 renewable energy target, to integrate new clean energy capacity into the grid.
Spain's first tender for an 880MW/1,809MWh energy storage project targets Synergistic development of renewable energy and energy storage
The Spanish government, through the Agency for Energy Diversification and Energy Efficiency (IDAE), has allocated 880MW/1,809MWh in its first energy storage project deployed in synergy with renewable energy.
Companies that have won awards from Spain's Strategic Project for Economic Recovery and Transformation (PERTE) program include power utilities Iberdrola, Naturgy, Enel Green Power, and renewable energy developer Fotowatio Renewable Ventures (FRV), among others. The results of the tender were announced in mid-November, with a total of 34 projects awarded capacity across the country, including one each in the Canary Islands and the Balearic Islands, but with the majority of the capacity concentrated in Spain's central provinces, as shown in the chart below.
This first tender aims to deploy energy reserves in synergy with other renewables, mainly solar PV, and to provide €150 million ($162 million) in capital expenditure for the projects.
Subsidies will cover 40-65% of project costs, depending on the size of the applicant company, and nearly €160 million was ultimately allocated to the winning projects.
Germany's SUSI Partners and SMT Energy Accelerate Acquisition of Additional 100MW of Battery Energy Storage Projects in Texas ERCOT Market
Investors SUSI Partners and SMT Energy have added 10 Battery Energy Storage System (BESS) projects totaling 100MW of installed capacity in the ERCOT, Texas market, an extension of their 100MW portfolio already operating in the state.
The acquired BESS projects are located near Dallas and Houston, which SMT said complements its operating portfolio, which is primarily located in South Texas. Construction of the new projects will begin in early 2024, with commercial operations expected in late 2024 and the first half of 2025. The projects are being developed, constructed, and operated through a joint venture (JV) partnership between the two, which has commissioned the 100MW of assets to date. Tax equity financing for the 100MW project was secured in August from tax equity specialist investment firm Greencoat Capital.
Yann Brandt, chief commercial officer of systems integrator FlexGen, which deployed JV's commissioned project, tweeted to congratulate the two companies on their continued partnership and this new 100MW acquisition. Texas is one of the busiest markets for energy storage in the U.S. According to ERCOT, approximately 750MW of energy storage projects will be commissioned by the third quarter of 2023, with 9.5GW coming online by the end of 2024. Most projects being commissioned and built are two-hour projects to capitalize on more energy-intensive revenue streams and to manage new SOC (state of the cell) requirements for energy storage systems.
New projects being advanced by SUSI and SMT may be 9.9 MW or less. Projects of this size benefit greatly from ERCOT's grid-connectivity process and can come online up to two years earlier than larger projects.
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