Page 9 - North American Clean Energy May June 2015

Additionally, FERC order 792 raises New York: With a major policy initiative called Reforming the companies are mobilizing to create and capitalize on this value.
the Fast Track threshold from 2MW to Energy Vision (REV), which includes $5 billion in investments, Working hand-in-hand with renewable generation forms, grid-tied

5MW and includes energy storage in the New York is at the forefront of a number of activities redeining storage will be an important part of deining the grid of the future.
deinitions of an eligible small generating the grid. Additional motivation has been driven by the shutdown
facility. Given that batteries can regulate of substantial nuclear capacity at the state’s Indian Point nuclear Chris hompson is the business unit manager of Grid Power for Eaton
both up and down, this enables 10MW of power plant, making New York an exciting market to watch over Corporation.

total fast regulation to be eligible for Fast the next several years.
Track.
With multiple, powerful forces unfolding, the overall value and Eaton Corporation | www.eaton.com
beneits of storage have dramatically improved. Correspondingly,
The Decreasing Cost of
new investments from existing companies and many start-up
Battery Technology
Battery prices have dropped over the past
few years due to several driving factors.

First, wider global adoption of electric ve-
hicles, including cars, buses, and bicycles,
has increased the global volume of lithi-
um-ion batteries. he massive adoption of

mobile devices, which also utilize lithium-
ion batteries, has also contributed to driv-
ing prices down. Electric vehicle company
Tesla is another factor in the battery price

trend, with the company’s “gigafactory,” a
massive battery production facility, which
is being touted as another tool in reducing
battery costs.

Given the global supply chain with no-
table volume coming out of China, Japan,
and Korea, the industry anticipates both
supply chain costs and global competition

to drive pricing down. Navigant Research
data estimates price drops of 50 percent
over the next few years. Additionally,
lithium-ion batteries are facing increas-

ing competition from new chemistries as
well as from low batteries. For those who
have witnessed the emergence of the solar
market, these price drop curves look very

familiar.

State Mandates and Incen-
tives Inluencing the Power

Mix on the Grid
Last, but certainly not least, many states
and provinces have established their own

local mandates. Although there are too
many to cover comprehensively in this ar-
ticle, several are highlighted below:
California: Expected to be the largest

market over the next few years, California
is continuing to expand its solar roots by
leading the country in battery projects.
A 1,325MW mandate for the investor-

owned utilities is the largest in the nation.
In addition, the Self-Generation Incentive
Program (SGIP) enables developers to use
distributed, behind-the-meter storage.

Hawaii: With high electricity prices and
increasing renewables penetration, stor-
age has high potential value in Hawaii.
Hawaii also has more than three years

of experience with multiple utility-scale
battery storage systems that have been
softening the impact of wind farms.
Puerto Rico: Similar to Hawaii, Puerto

Rico has a lot of sun and high electricity
prices, making storage a valuable asset on
the island. Local interconnection require-
ments, known as Minimum Technical

Requirements (MTRs), mandate storage
to both regulate frequency, and manage
ramp rates.

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