Month: December 2021

Energy storage methods are a hotly debated topic in the renewable power industry, particularly which solutions will help plants meet both their peaking and baseline needs.

From Compressed Air Energy Storage (CAES) to Battery Energy Storage Systems (BESS), experts from all sides are advocating for their technology to be the go-to form of energy storage.

While many renewable power plants have historically looked toward BESS to solve their baseload and peaking needs, the surge of new, more efficient CAES technology coupled with the advancement of international initiatives to reduce carbon output has many renewable plants asking themselves: “How can I improve energy storage that will reduce my overhead AND my carbon footprint?”

This balance of budget & clean energy can be achieved through compressed air energy storage.

In this article, we are going to dissect the main differences between these two prominent energy storage options and explore how Compressed Air Energy Storage (CAES) is able to provide significantly more value for your business (and the environment) than its Battery Energy Storage System (BESS) counterparts.

3 Problems Within the Space of BESS Technology

Recently, lowering costs of lithium-ion batteries has prompted many power plants to invest in battery energy storage solutions.

In fact, battery energy storage solutions are being used in place of “peaking” power plants, where the stored energy would only be harnessed when energy prices and demand were at their highest.

Today, there are multiple efforts across the world to create massive battery energy storage that go beyond this measure.

However, this may actually be a big mistake, as BESS is not a long-term solution for all renewable energy power plants.

Not only would the cost alone create hesitancy, but there are other factors to bear in mind such as short battery lifespans and costly replacements. Keep reading to understand the current problems facing BESS.

1. Battery Lifespan is 3-5X Less Than CAES

On average, the lifespan of a battery is 3-5 times less than that of a CAES system.

With most battery systems’ shelf lives hovering around 5 to 10 years, the ability of a battery to store energy tapers off dramatically and thus causes efficiency concerns.

According to a BESS study on IE Explore, the average lifespan of a battery is 8.31 years.

Capacity energy loss is affected by a number of factors, including:

• Ambient temperatures
• Discharge C-rate
• State of charge

The battery will lose its ability to store energy and will need to be entirely replaced, which is a costly and environmentally-hazardous endeavor, as there is currently no good solution for battery disposal.

2. Government Incentives May Fall Short

Today, governments worldwide are providing massive financial incentives to develop this type of energy storage system, significantly driving down the cost of batteries. The current U.S. administration, for example, which has launched their Net-Zero America initiative, will invest hundreds of billions in battery-dependent sectors nationwide.

But there’s a catch: Once renewable plants opt for a BESS solution, they will then be responsible for the costly endeavor of continuously replacing and disposing of the batteries – a topic which is often ignored in the acquisition process.

Furthermore, there is no real guarantee that there will be government incentives 5-10 years out from now, given alternative technologies with far greater value propositions.

And if this was the case, power plants could very well be left on their own to pay the entire cost of battery replacements, which certainly would not be cost effective.

3. Potential Breakdown is a Major Concern

There is always the chance that batteries will overheat and even catch on fire. In energy storage, excess thermal energy going in or out of the battery can create a gas bottleneck, which can rupture the battery and lead to combustion.

Additionally, if one battery fails, this increases the risk of failures in other batteries all across the grid. The reality is that this could be the result of several factors, including battery design and the control systems at work.

Solid-State Batteries May Take Years to Become Commercially Viable

Advanced battery energy storage systems, such as solid-state batteries, are years or even decades away from becoming commercially viable.

While the energy industry seems to dream that a new battery storage technology will hit the market at the perfect moment to save the day, this is optimistic thinking and batteries may not serve grid farming the way many had hoped.

Instead of BESS, compressed air energy storage (CAES) has the potential to solve peaking and baseline problems.

4 Ways Compressed Air Energy Storage Systems Offer More Value Than BESS

Instead of storing excess energy in a battery, CAES systems allow you to store surplus energy during low-demand hours in the form of compressed air. This creates a stream of clean energy that can be accessed on-demand, significantly lowering overall energy costs and cutting certain emissions in half.

And that’s not all. Let’s address all of the ways that CAES systems may, in fact, offer additional benefits over traditional battery storage.

1. Modern CAES Systems are Power Dense & Easy to Site

Older CAES systems were once limited by location, as they stored compressed air underground, meaning significant setup and excavation overhead.

This is not the case with modern CAES systems. Take our FastLight Energy Storage, for example. This modular technology can be added directly onto an older gas turbine, transforming that combustion engine into an above-ground energy storage system that also works as a peaking asset.

The easy site ability and cost-effectiveness of this system can be installed in nearly every power plant in the world, without cumbersome construction or overhead.

2. Longer Lifespan Increases Economic Viability & Reduces O&M Costs

Compressed air energy storage typically has a much longer lifespan compared to battery energy storage. These systems can last as long as 30 years and don’t require any toxic disposal.

Furthermore, renewable energy can be stored in the compressed air energy storage for much longer units of time than a battery, from 4 hours to 4 days, greatly increasing the lifespan of the excess energy itself.

And now, unlike batteries, power plants can even lease modular CAES technology instead of purchasing the equipment outright – meaning less capital and faster return on investment. To learn more about how you can lease our CAES storage system, reach out to a member of our team.

3. Better Efficiency Features Fulfill Fluctuating Demand

Modern CAES systems have the ability to smooth peak energy by absorbing and storing energy when demand is lower. Later on, the system can turn around to be used to resupply energy during peak demand.

With that being said, CAES systems have the ability to both power up from shut-down conditions depending on the power grid’s needs and are able to reach capacity within minutes after starting up.

4. CAES Addresses Inertia, Leading to Greater Output

Battery storage systems fail to address a critical problem in the electrical grid equation: inertia.

Even if batteries can store surplus energy for a short period of time, they do not provide the inertia to physically push the electrons down the transmission line, meaning they still require mass spinning generators to feed that stored energy to the grid, thus compromising output.

That’s why sophisticated CAES technology, like the FastLight Storage Engine, utilizes existing gas turbines to both store energy and deploy it back to the grid on-demand, solving for the problem of inertia and offering exponentially more output.

Renewable Power Plants Should Consider Their Next Investments Carefully

Modern power plants should carefully consider which energy storage method to invest in.

Battery storage may work in some cases, such as “peaking” power plants, but most renewable energy power plants require a different solution. The brilliant design of CAES systems provide a solution to handle both the peaking and baseline power needs of most renewable energy power plants.

To learn more about how CAES systems can provide clean energy and a stable grid at a fraction of the cost, head to our Fastlight Energy Storage page and get a glimpse into our modern CAES model.

In 2021, savvy companies want to switch to renewable energy. Doing so helps them to save money through tax deductions and establishes them as environmentally friendly companies.

But businesses often question whether or not the cost of using more environmentally friendly processes is worth it.

Well good news; switching to renewable energy can definitely be worth it! We’ll show you how you can get $18/MwH (megawatt an hour) while reducing your net carbon footprint.

How Do You Calculate Renewable Energy Cost?

Most people know that renewable energy is our future, and think that it is overly expensive since the government is pouring in tax benefits for scaling renewable energy.

For pragmatists, the answer is, “whatever the cost, can we afford not to?” But what if it is cheaper than you actually think?

For the purpose of this article, we’ll discuss renewable energy in terms of megawatts and identify real life examples of the costs involved. What we uncover may surprise you, so keep reading!

The Cost Factors of Renewable Energy vs. Fossil Fuels:

A Side-by-Side Comparison One of the easiest ways to look at renewable energy costs is to compare it to something we are more familiar with: fossil fuels.

The International Renewable Energy Agency (IRENA) reported in 2019 that the energy produced from renewable sources was comparable in price to that of fossil fuels.

Comparing the cost of electricity alone, we can see very similar costs per kilowatt (kWh). According to an article by Forbes, the cost of electricity from developing fossil fuel plants varies in price from $0.05/kWh to $0.15/kWh. Here are the comparable prices of renewable sources of energy:

Hydroelectric: $0.05/kWh

Onshore wind, solar voltaic, biomass, and geothermal: Less than $0.10/kWh

Offshore wind: $0.13/kWh

*It’s important to mention that these costs are worldwide averages and prices can vary wildly based on the specific scenario.

There are several costs that are associated with the cost of energy which we will quickly explore in this 10,000ft comparison.

Average Renewable Energy Costs

While coal is at $102/MWh – on average, renewable energy costs in comparison are as follows:

• Wind power: $20/MWh
• Solar power: $37/MWh
• Hydro power: $85/MWh

At Powerphase our Fastlight storage-engine costs are lower than any of the renewable energy costs above. Fastlight comes in at just $18/MWh due to its hybrid combination of renewable powered compressed air.

Fastlight stores renewable energy in the form of compressed air and provides a firm, baseload renewable energy to the grid. When storage is depleted, the system also functions as an efficient peaker asset to deliver power as needed.

Economic Costs Associated with Renewable Energy

Clean energy can help the economy in the long term. Renewable energy reduces the cost of energy, creates jobs, and reduces pollution. As time passes and technology continues to improve, renewable energy will become more and more affordable for businesses and households alike. Renewable energy also requires more workers per unit of energy than fossil fuels, thus creating more jobs.

Some experts believe that the world will reach 100% renewable energy use in the future. The exact date is yet to be determined but some experts say it could happen as early as 2032. That means the potential for jobs in renewable energy is rising.

A Comparison of Different Renewable Energy Technologies

All of the renewable forms of energy are much safer than nonrenewable sources according to this illustration from “Our World in Data”. If we look at the top four we can see the death toll is very low in hydropower, wind, and solar, with nuclear energy only being slightly more harmful.

The main takeaway is that the cleanest sources of energy are nuclear, wind and solar, with nuclear energy being marginally cleaner than wind energy. Fastlight Storage Engine comes in at about 200 tonnes per gigawatt hour of energy. Although it is not as low as renewable energy, the Fastlight Storage Engine has the capability to generate 50% of its energy with renewable energy even when the renewable energy is not available through its energy storage system.

How Renewable Energy Technologies Tackle Intermittency

Lasting 30+ years, our FastLight Storage Engine technology is a long-term storage asset that diminishes the need for battery replacement and disposal. With superior durability and storage capacity, compressed air storage offers a more flexible and environmentally-friendly alternative to batteries at a fraction of the levelized cost of energy. Intermittency in the use of renewable energy can be a thing of the past with FastLight.

Renewable Energy Can Have A Low Cost When Using the Right Technology

As you can see, renewable energy can in many cases be less expensive than nonrenewable renewable energy. It is also, on average, cleaner and safer than other energy sources. To save even more money, & reduce intermittency, we recommend our FastLight Storage Engine to get $18/MWh using compressed air.

Renewable Energy Can Have A Low Cost When Using the Right Technology

As you can see, renewable energy can in many cases be less expensive than nonrenewable renewable energy. It is also, on average, cleaner and safer than other energy sources.

To save even more money, & reduce intermittency, we recommend our FastLight Storage Engine to get $18/MWh using compressed air.

Baseload Renewables in 2 Years Time

As the energy world grapples with oncoming climate change legislation, a rapidly increasing number of utilities worldwide are attempting to successfully integrate renewables into their energy portfolios. This change, albeit welcome, comes with a number of inevitable challenges, including baseload renewables.

Power plants are expected to consistently generate baseload electricity in order to meet energy demands. Any lower amount can result in blackouts and incurring additional costs

from purchasing electricity from other electric grids.

So how can intermittent sources of renewable energy successfully and consistently produce baseload electricity?

Renewable energy storage. 

Power plants can store different forms of renewable energy in order to meet varying energy demands. Storing renewables to meet baseload electricity requirements is more feasible

now than ever before, particularly with advancements in compressed air energy storage technologies that can be implemented within an existing plant in 2 years.

But first, let’s set the stage with why non-renewable baseload energy is an issue.

The Issue With Non-Renewable Baseload Energy

The term “baseload” is often misunderstood, as the term has historically referred to energy-producing resources, such as coal, that provided low-cost electricity to meet expected minimum energy levels. This requires coal and gas to be heated throughout the night in order to meet the required energy threshold.

Typically, these are believed to be the limitations of the different types of energy (baseload, intermediate peaking, & fast peaking):

However, the above are not – in fact – the only effective sources of baseload.

The issue is that coal, natural gas, and nuclear energy are incapable of ramping output down on short notice, resulting in a preponderance of energy when it is not required. When baseload from these sources is higher than actual energy demand, energy is wasted.

Additionally, power plants often cannot measure grid outputs as necessary.

The Myth About Baseload Renewable Energy

Renewable energy baseload is even more misunderstood. There is a prevalent myth that renewables cannot provide baseload, as the sun is not always shining and the wind is not always blowing.

This myth is simply not true, as multiple studies have shown that renewable energy can power entire electrical grids.

This study from ECOFS details how renewable energy could be used for effective energy production over time:

But, how can power plants achieve baseload renewable energy?

Renewable energy is susceptible to some volatility, as the energy-producing structures are at the whims of nature.

However, power plants can reduce instability by storing off-peak renewable energy in batteries or in highly flexible compressed air energy storage, resulting in clean energy generation on-demand and a stable grid. Flexibility is the key to achieving baseload renewable energy.

Harnessing Baseload Renewables Through Energy Storage

When renewable plants think about storing energy, battery storage is often the default solution proposed.

However, in a recent article comparing CAES vs. BESS, we uncovered that despite aggressive government incentives to invest in battery storage energy systems, they are still not a feasible solution for many power plants due to the excessive overhead and replacement costs associated with them, not to mention the disposal conundrum.

Utilities and power plants have often experimented with multiple forms of energy storage, but have not been able to achieve a rate at which baseload renewables are possible.

However, now, in just two years, baseload renewables are within reach with above-ground CAES.

Compressed Air Energy Storage as a Key Solution to Reaching Baseload Renewable Energy

Compressed air energy storage (CAES) technology is transforming the landscape around baseload energy. The idea to use compressed air as a potential storage solution for power plants has been around for decades, but recent advances in technology have made this idea possible for many power plants.

The logic behind compressed air renewable energy storage is simple: excess clean energy powers an air compressor to store compressed air in the appropriate CAES system, which can then be deployed on demand to power a turbine. The heat from the air can also help accelerate the turbine process.

Above-Ground CAES (Compressed Air Energy Storage) Technology is Transforming the Industry

Historically, compressed air was stored underground, which added complexities and costs to the storage process. However, new renewable energy storage technology, like our FastLight Storage Engine, can leverage existing combined cycle infrastructure, such as gas turbines, to significantly lower energy storage costs and overhead.

Additionally, the FastLight Storage Engine lasts up to 30 years, reducing turnover and O&M costs.

Baseload Energy in Just 24 Months

The FastLight CAES system can be implemented into an existing combined-cycle power plant in just under two years, allowing plants to achieve renewable baseload power once fully installed.

Electrical grids can harness the power of this technology in order to reduce the amount of wasted energy and lower costs per kWh.

A Greener Energy Future

As utilities expand their renewable generation, they must prepare themselves for a renewable baseload future.

Surplus renewable generation can be stored by the FastLight Compressed Air Energy Storage for later use during on-peak hours.

Not only does it result in a more efficient power grid, but also hundreds of millions per year in ratepayer savings and significant reductions in CO2 emissions, which are all desirable benefits to utilities, ratepayers and the environment.