PVTP20

PV-Tech.
org
Volume 20 PV POWER PLANT TECHNOLOGY AND BUSINESS August 2019
Backing up the hype

How energy storage is carving out an indispensable role
in tomorrow’s power system. Special report, p.20
PV TECH POWER
Vol. 20. 2019
Market Watch Plant Design and Build Storage &

Inside Latin
Performance How agrophotovolta- Smart Power
America’s solar ics can reap benefits
Inverter testing Batteries ride to the
superpowers, p.51 for farming and solar,
for reliability and rescue in UK power
p.75
durability, p.94 blackout, p.114
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About LONGi Solar

LONGi Solar is a world leading manufacturer of high-efficiency monocrystalline solar cells
and modules. Headquartered in Xi'an, China, the Company has branches in Japan,
Europe, North America, India and Malaysia.
LONGi Solar is a wholly owned subsidiary of LONGi Group (SH601012) - the largest
supplier of monocrystalline silicon solar wafers in the world with 12 GW of wafer capacity
by year-end and plans to expand to 20 GW by 2019. With strong focus on R&D, LONGi is
active in the entire monocrystalline silicon value chain, including solar power plants.
regulars
Published by
Solar Media Ltd.
123 Buckingham Palace Road
London, SW1W 9SH, UK
Introduction
Tel: +44 (0) 207 871 0122
www.pv-tech.org
Publisher
David Owen
Editorial
Head of content:
John Parnell
Managing editor:
Ben Willis
Welcome to the latest edition of PV Tech objectives that cannot be reached without
Senior news editor:
Mark Osborne Power. This is a special issue for a number the development of rigorous standards to
Reporters: of reasons. The journal has now been guide both quality and safety.
Andy Colthorpe, Liam Stoker, José Rojo
Martin running for five years with a growing roster Recycling is another area where the
Design & production of industry experts sharing in-depth know- storage sector has more to do. The
Design and production manager: how on everything from contract law to the consultancy firm Li-Cycle explains why a
Sarah-Jane Lee
pitfalls of east-west module layout. battery powered future means creating
Production:
Daniel Brown It’s also a special issue for us as it is the recyclable products now, or risk jeopardising
Advertising tightest marriage yet of PV Tech’s decade-plus the tech’s positive legacy (p.45)
Sales director: of solar industry coverage and the expert Our regular Storage & Smart Power section
David Evans
Account managers:
analysis and reporting of our sister site also includes a feature from UK editor Liam
Graham Davie, Lili Zhu, Energy-Storage.News. Stoker taking a deep dive into the role of
Will Swan, Adam Morrison
Our 19-page special report in this issue storage and other technologies limiting the
Printed by damage done by a major blackout in the UK
explores both the accomplishments of the
Buxton Press Ltd., Derbyshire
energy storage sector and the ongoing this summer (p.114).
PV Tech Power Volume 20, 2019
ISSN: 2057-438X
challenges. Fittingly, Andy Colthorpe, editor This edition is not universally focussed on
of Energy-Storage.News, sets the scene (p.20). storage however. PV Evolution Labs’ Michael
While every effort has been made to ensure
the accuracy of the contents of this supple- He lays bare the rise in deployment, the Mills-Price and Jenya Meydbray discuss their
ment, the publisher will accept no respon-
sibility for any errors, or opinion expressed,
cost reductions and the regulatory hurdles inverter scorecard report. As the main driver
or omissions, or for any loss or damage, overcome and yet to clear as the industry of corrective maintenance they argue the
consequential or otherwise, suffered as a result
of any material here published. establishes itself and beds in for a boom as case for comprehensive quality benchmarks
The entire contents of this publication are pro-
part of the mainstream power sector. in inverters (p.94).
tected by copyright, full details of which are A paper by Aachen University charts José Rojo looks at two of Latin America’s
available from the publisher. All rights reserved.
No part of this publication may be reproduced, the advances of stationary battery storage most vibrant markets, Mexico and Brazil.
stored in a retrieval system or transmitted in
any form or by any means – electronic, me-
systems and the emerging trends across a He discovers that many of the negative
chanical, photocopying, recording or otherwise variety of applications (p.24). observations made from afar carry no
– without the prior permission of the copyright
owner. Energy storage has been enabling weight when examined close up, with
the ongoing deployment of renewables opportunities outstripping the remaining
in California as it pursues its 2045 challenges (p.51).
decarbonisation goals. A paper in this issue We also have an update on Taiwan’s
from Strategen Consulting explores this and solar market as the focus shifts from pure
Brands of Solar Media: a host of other challenges in the Golden manufacturing to deployment as well (p.59),
State that storage is tackling head on, from a closer look at the impact of the bifacial
growing EV demand to displacing pricy and trade tariff exemption in the States (p.48) and
polluting gas peaker plants (p.32). much more.
Looking ahead we investigate the growing Thanks as always for reading and do sign-
trend for DC-coupled storage systems in the up for the PV Tech and Energy-Storage.News
US in particular and at all scales (p.29). newsletters for all the latest in these two
VDE’s Jan Geder meanwhile, looks at the growing, vibrant and symbiotic sectors.
very necessary technical work going on to
ensure that the energy storage boom is both John Parnell
bankable and insurable (p.40). These are Head of content
Cover illustration by Adrian Cartwright,
Planet illustration
www.pv-tech.org | August 2019 | 3

regulars
Contents
40
70
08-14 News 16
Round-up of the biggest stories in PV
from around the world.
20-46 cover story Storage special rePORt

20-23
24-27
Open season: the next steps for energy
storage
Past successes, future challenges
Market and technology development of stationary
battery storage systems
86
Costs, technologies and business models
29-31 Go big, go DC
DC coupling in energy storage
32-35 Initiatives for California to overcome its
challenges in the sun
The Golden State takes a pioneering role - again
38-39 The Clean Energy Package is here – now what?
Storage-friendly regulatory reform in the EU
40-44 Bankable and insurable energy storage: a
necessary next step for renewable energy
Why storage needs rigorous testing and certification
45-46 Batteries need to be ‘renewable’ too: why
recycling matters now
End-of-life handling of lithium-ion batteries
48-60 Market watch

48-50 Can US double-up on bifacial in wake of tariff
reprieve?
Bifacial solar technology gets favourable treatment
in the US
51-53 Latin America’s moment in the sun
Inside Brazil and Mexico, Latin America’s solar
superpowers 61-74 Financial, legal, professional
54-56 France’s improbable quest to revive EU solar 61-65 Digitalisation and its impact on the solar energy
makers industry
Can Emmanuel Macron spark a Europen PV The solar industry’s digitalisation skills gap
manufacturing revival? 66-69 Growth of US merchant solar primed to
58-60 Taiwan’s PV industry seeks transformation in accelerate in near term
hard times Solar goes merchant in the US and beyond
Why Taiwan’s solar manufacturers are switching to 70-73 Corporate PPAs as a solution
building projects Understanding solar’s corporate PPA boom
4 | August 2019 | www.pv-tech.org

Threephase 3-20KTL_poster_EN Version-1.pdf 1 2019/8/12 10:32:45
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94
54
99
75-83 Design & build
75-79 Technical Briefing Agrophotovoltaics: harvesting
the sun for power and potatoes
By Boris Farnung, Maximilian Trommsdorff and
61
Stephan Schindele of Fraunhofer ISE
82-83 Project construction safety in utility-scale solar
Top tips on solar site safety
86-91 system integration

86-91 Technical Briefing Critical requirements for PV
cabling in the emerging global market
By Mark Froggatt of BASEC
111-124 storage & smart power
114-116 Blackouts and batteries: How storage saved the
94-110 Plant performance UK grid
How batteries came to the rescue in UK power
94-98 Technical Briefing Benchmarking inverter
outage
performance and reliability with a new PVEL
Scorecard 118-120 Flex and flexibility
By Michael Mills-Price and Jenya Meydbray of On the path to a more flexible power grid
PVEL 122-123 Technical Briefing Using batteries to reduce the
99-102 Unlocking solar’s new terawatt opportunity impact of grid maintenance
Technology and O&M considerations in floating PV By Dieter Castelein, Greener
103-110 Technical Briefing Bifacial heterojunction PV
modules: highest energy yield available…and how Regulars
to measure that 03 Introduction
By Eric Gerritsen, Guillaume Razongles, Lionel
16 Products
Sicot, Benjamin Commault, Aude Derrier and
Yannick Veschetti of CEA-INES, Elias Garcia Goma 111 Storage editor’s introduction
and Stefan Roest of Eternalsun Spire 126 Advertisers index

NEWS | from PV-Tech.org
Portuguese markets, where it said especially attractive PPA struc-
Europe tures are sparking a wave of new activity.
Portugal Solar touted as 185,000-job lifeline for Europe’s coal

Portugal claims spot in solar history with record-low auction prices heartlands
Portugal’s latest solar auction concluded this summer with record-smashing low prices, PV Tumbling costs could see PV help Europe’s coal regions navigate
Tech learned from a top official. Speaking before the government formally published the a tough transition away from the fossil fuel, SolarPower Europe
results in August, Energy state secretary João Galamba confirmed the lowest bid at the PV said this summer. Walburga Hemetsberger, CEO of the associa-
tender, made by Akuo’s 150MW project, came in at €14.76/MWh (around US$16). Galamba tion, argued solar can help ensure “no one is left behind” in
described the figure – far below the auction’s ceiling prices of €45/MWh (US$50/MWh) – as the EU’s clean energy shift after an official study described the
a “new world record.” The tender also awarded 149MW worth of contracts to Iberdrola industry as a “lifeline” for the bloc’s coal-reliant economies. The
under a second modality, which saw the firm pay in return for grid space for its first ever analysis, carried out by EU scientists, found installing 580GW of
Portuguese projects. solar across Germany, Poland and other coal hotspots within 15
years would bring 135,000 construction jobs every year, with a
further 50,000 added through O&M work. The boom would offset
much – but not all – of the job losses expected from fully phasing
out today’s EU coal portfolio, the study found.
Germany
German PV calls for scrapping of looming subsidy cap
Europe’s top solar market is approaching a watershed moment,
with capacity nearing a legal threshold where subsidies would
need to be withdrawn. German PV association BSW Solar called
earlier this year for the scrapping of a subsidy cap that will apply
once installed capacity – today surpassing 47GW – hits the
52GW mark. The milestone, BSW Solar warned, could be reached
as early as next year. Carsten Körnig, managing director of the
association, urged MPs to take the “right course” as he noted their
Credit: Solar Media
failure so far to update renewable legislation.
France
Ground-mounted PV auction set to boost France’s
Most PV auction winners were foreign firms, Galamba told PV Tech. capacity by 10%
A major PV auction held by France in August is set to boost the
country’s solar capacity by 10%, with 107 developers reaping
Europe-wide prospects 858MW worth of contracts evenly spread across the country. The
Solar-plus-storage grid parity sweeps through top EU tender, the sixth and final of a government ground-mounted
markets programme, produced average bid prices of €64/MWh (US$71)
The costs of residential solar-plus-storage have already dropped and awarded 76.1MW of the 858MW total to Engie projects. The
or will take little to drop to nation-wide grid averages in Europe, auction brings France closer to its target to boost PV capacity
according to Wood Mackenzie. Storage systems installed across from 9.1GW today to 35.6GW-44.5GW in nine years.
Europe’s homes will boom by a factor of five to hit a cumula-
tive 6.6GWh by 2024, the firm predicted in analysis released in UK
August. According to Wood Mackenzie’s Rory McCarthy, the UK post-subsidy solar pipeline swells to 5GW
momentum will be driven by the “economic tipping point” A flurry of activity in H1 2019 saw the UK’s post-subsidy solar
residential storage is experiencing, particularly around solar- pipeline surge from 3.34GW to 5.16GW, according to the UK
collocated systems. These hybrids are, the senior research analyst Large-Scale Solar Farms: The Post-Subsidy Prospect List report.
explained, fast leaving behind the “challenges” of past years and The analysis, released within days of Boris Johnson’s rise to prime
approaching grid parity status across major European countries, minister this summer, identified 60 new solar farms – 1.8GW
particularly Italy and Germany. in additional capacity all in all – emerging so far this year. Key
drivers of the UK momentum included cheaper modules and
Top utility-scale investor eyes subsidy-free surge in power rating improvements, according to the study.
Southern Europe
Europe’s subsidy-free solar scene is “developing rapidly”, one The Netherlands
of the continent’s top utility-scale investors said over the Grid bottlenecks push Netherlands to renewable
summer. Foresight Solar Fund, which owns more than 700MW subsidy restrictions
of utility-scale solar in the UK, used its interim result disclosure Dutch PV projects opting for subsidies this autumn will need to
on 22 August to explain it is keeping an eye on subsidy-free secure a preliminary green-light from network operators under
developments in Europe after witnessing a surge in subsidy-free new government plans, meant to alleviate grid congestion.
economics of late. It paid particular mention to the Spanish and Renewable applicants for the Netherlands’ SDE+ feed-in premium

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programme will have to formally request connection points and Tesla
produce documents showing capacity exists for their projects, Walmart pins store fires on Tesla solar installs in lawsuit
Economy and Climate minister Eric Wiebes announced over the Walmart linked a string of store fires in recent years to Tesla’s
summer. In a letter to Dutch MPs, the top official singled out PV as alleged mismanagement of solar panel installation and mainte-
a congestion driver, noting that its shorter construction timeframes nance, taking Elon Musk’s outfit to court. A lawsuit from the US
make it harder to predict and adjust to the pace of installations. retail colossus demands damages from Tesla and the full removal
of its solar installs, amid claims that the company’s “systemic,
Inverter Makers widespread failures” were the culprit of a series of rooftop blazes
ABB’s net income plummets after solar inverter pull-out over the past decade. “To state the obvious, properly designed,
Swiss group ABB posted a 91% plunge in quarterly net income installed, inspected, and maintained solar systems do not sponta-
figures this year after paying US$470 million for a buyer to take neously combust, and the occurrence of multiple fires involving
on its solar inverter business. The drop in the Q2 2019 numbers Tesla’s solar systems is but one unmistakable sign of negligence by
– reported even as ABB’s orders and revenues grew – followed Tesla,” reads Walmart’s lawsuit. Shortly after the papers were filed
its move in July to offload its liability-ridden solar inverter unit the two companies said they were looking for an amicable, out of
to FIMER, an Italian group that also manufactures the devices. court, solution.
Contacted by PV Tech, the firm described the inverter business
as a “drag” for margins and said its declining revenues reflects Tesla’s solar installations hit new low as energy storage
“falling demand globally” for these devices, coupled with price hits new high
pressures from China. In reporting second quarter 2019 financial results, Tesla’s solar
installations reached a new record low, while its ‘Powerwall’ and
‘Powerpack’ energy storage products set a new deployment record.
Tesla’s retrofit solar installations plummeted to only 29MW in the
second quarter of 2019, down from 47MW in the previous quarter,
then a new low for the company. In stark contrast, Tesla reported
that it’s Powerwall and Powerpack deployments increase by 81%
in the second quarter of 2019, achieving a record 415MWh. This
comes after being capacity constrained at Gigafactory 1 through
2018 and a complete stop in production allocation of energy
Credit: ABB Group
storage products to meet EV Model 3 demand.
Brazil
Bolsonaro clears Brazilian solar scheme at floating plant
launch
The inverter unit had been a “drag” on broader division Jair Bolsonaro has given the green light to a new solar scheme in
margins, ABB said
Brazil’s northeast, marking its launch as he attended the opening
of a separate floating project. In early August, the president author-
ised ministers to launch an auction programme for solar to power
americas a major water transfer project. The programme will have PV panels
supply the power needed to gravity-pump water from the São
Trade Tariffs Francisco river to drier, poorer northeast areas, mitigating annual
Bifacial panels get a pass on Section electricity costs that could otherwise reach an annual BRL300
201 trade tariffs million (US$79.5 million). The São Francisco River Integration
Bifacial solar modules were exempted from Project – PISF, in its Portuguese acronym – will pump water along
President Trump’s trade tariffs. Modules 477 kilometres of channels and aqueducts to bolster the supply of
imported from all the major producing 12 million people in drought-stricken states.
countries are levied at 25% currently, falling
to 20% in February next year under the Chile
Section 201 measures. A statement by the Chile projects progress continues with fresh finance and
US trade representative in June confirmed construction starts
that the exemption would be entered on Sonnedix marked the launch of construction works for a large-
the Federal Register on Thursday. Many scale solar installation in Chile’s Atacama desert, with a view
Chinese manufacturers face both anti- to power up the plant late next year. Regional authorities and
dumping duties and the Section 201 levies. executives from the IPP including CEO Axel Thiemann attended the
Between January and September 2018, ground-breaking ceremony of 171MW Atacama Solar, in the Pica
Credit: Trina Solar
only 46MW of modules were imported district. Construction, Sonnedix explained, is set to directly create
from mainland China to the US. The latest 400 jobs and see the plant become commercially active by Decem-
twist creates a route to market for China- ber 2020. Financing is being lined up for Chile to deliver a colossal
sourced modules into the US. More on this solar-plus-storage installation in the Atacama desert, paving the
Imports from the Chinese mainland to the
story on p.48. way for construction to start next year. In other news, the Green
US have collapsed in recent years.
Climate Fund (GCF) agreed to allocate US$60 million in fresh

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funding to the Espejo de Tarapacá project, slated for construction
at a site near the Pacific coast. The scheme, the work of Chilean Abu Dhabi
renewable developer Valhalla, is designed to deliver a 561MW solar Abu Dhabi’s 1.17GW Sweihan marks commercial launch
PV plant alongside a 300MW pumped hydro storage system. The One of the largest single-site solar installations ever to be completed worldwide has
overall project is set to cost US$1.094 billion. Elsewhere, Natixis started operations, less than three years after construction contracts were awarded. With
and ARCO 3 SpA have closed senior facilities totalling US$69.1 1.177GW in installed capacity, the Noor Abu Dhabi PV park marked its commercial launch
million for a portfolio of solar PV plants in Chile, with up to 70MW in the United Arab Emirates (UAE) on 30 April, Marubeni Corporation said today. The
of generation capacity. Japanese conglomerate was part of the three-firm consortium hired in 2016 to build the
plant, together with JinkoSolar and the Abu Dhabi Power Corporation (AD Power). The
trio, which prevailed three years ago with a bid of US$0.0242/kWh, remain owners of the
PV park. At 60%, AD Power’s share outstrips Marubeni’s and JinkoSolar’s (20% each).
Credit: Sonnedix
Credit: Jinko Solar

(L to R): Carlos Guinand, Chairman of Sonnedix; Iván Infante
Chacón, Mayor of Pica; Miguel Angel Quezada, Regional Mayor
of Tarapacá; and Axel Thiemann, CEO of Sonnedix.
The Noor Abu Dhabi project.
US policy projects across East Africa. If built, the project will be one of the first
Close to 1,000 solar companies push for extension of US hybrid renewable energy projects in the country and provide grid
ITC support to northern Zambia.
Close to 1,000 companies from across the US solar industry supply
chain sent a letter to Congress calling for the extension of the Investigated former Eskom boss to deploy solar-plus-
Section 48 and Section 25D solar investment tax credits (ITC). The storage in Zimbabwe
ITC was passed by a Republican-controlled Congress in the 2005 A controversial figure in South Africa’s energy sector has been
Energy Policy Act and enacted by George W. Bush. It was extended authorised to develop solar-plus-storage in Zimbabwe, only a
in 2015 with bipartisan support. Abigail Ross Hopper, president year after a probe saw him suspended from Eskom. On Saturday,
and CEO of the Solar Energy Industries Association (SEIA), said: “If Matshela Koko took to social media to hail the decision by Zimba-
you want to show a commitment to addressing climate change, bwe’s energy regulator ZERA to allow a firm he owns to deploy a
you extend the solar ITC.” major hybrid project in the country. According to the ZERA notice
Koko shared on Twitter, Matshela Energy will build, own and run a
Cluster of states offer boost for solar 100MW plant in Gwanda, a two-hour drive north from Zimbabwe’s
A group of states provided a welcome shot in the arm for US border with South Africa. The 25-year licence from ZERA, Koko
solar with a variety of proposals. The Tennessee Valley Authority explained, also covers the potential roll-out of a 240MWh battery
approved its long-term energy plan which includes 14GW of solar energy storage system. The new professional venture follows a
in the next 20 years. North Carolina removed a number of regula- controversial past two years for the engineer, who in 2017 and
tory hurdles for solar including clearing a path for more communi- 2018 was suspended as acting group chief executive of South
ty projects. Wisconsin governor Tony Evers meanwhile set the state Africa’s state-owned utility Eskom.
on a path to zero-carbon energy by 2050. In the more immediate
term, Arizona issued a tender for 400MW of solar and wind power. Africa
Botswana, Cameroon issue tender, sign contracts for
combined 125MW of PV capacity
middle east & africa The African countries of Botswana and Cameroon have taken steps
Solar-plus-storage to add a combined 125MW of installed PV capacity to their respec-
USTDA backs 150MW solar-plus-wind-plus-storage tive national grids. Botswana utility company Botswana Power
project in Zambia Corp has sent out a request for qualification (RFQ) to interested
The US Trade and Development Agency (USTDA) has agreed to companies and other parties for the development of 100MW of
finance a feasibility study for a 150MW hybrid solar, wind and PV capacity, split into two seperate 50MW solar projects. The RFQ
battery plant in northern Zambia. The money was granted by the will look to identify suitable independent power producers for
independent agency to the Zambian subsidiary of Upepo Energy the two sites, which Botswana Power Corp would buy power from
Partners, a five-year-old firm that develops renewable energy under a long-term PPA. Meanwhile, Eneo, a power utility company

NEWS
in Cameroon, has signed off on a memorandum of understanding
(MoU) with a consortium of renewable energy developers for the China market bonanza
development of two PV projects with a total installed capacity of China’s new FiT scheme to support nearly 22GW
25MW. This consortium includes Scatec Solar, Izuba Energy and China’s National Energy Administration (NEA) approved nearly 22GW of solar capacity for
Sphynx Energy. the country’s new feed-in tariffs scheme, announced in mid-July. According to Asia Europe
Clean Energy Advisory (AECEA) this could see 38-42GW installed in the country this year.
Scatec Solar links Mozambique’s utility-scale PV frontrun- The lowest bid came in at RMB0.2795/kWh, just over US$0.04. The long-awaited new FiT
ner system awards capacity through a reverse auction with interested parties bidding for a
Scatec Solar has powered up what it claims is Mozambique’s premium to be paid on top of regional benchmark electricity prices. It replaces the old
first utility-scale solar project, signalling the end of a devel- scheme halted suddenly in May last year, the so-called 531 New Deal. While the estimates
opment process going back at least to 2016. The Norwegian for 2019 would still fall short of last year’s 44GW, it is a vast improvement on some expecta-
group said this week its 40MW scheme near Mocuba, a city in tions earlier in the year. Q1 installations were down 46% year-on-year. The successful bids
the country’s north, is now operational after being connected included 366 ground-mounted utility-scale projects with a combined capacity of 18.12GW,
to the grid. The commercial launch comes almost three years therefore accounting for the majority (79.5%) of projects. A total of 3,082 self-generation/
after the project inked a 25-year power purchase agreement self-consumption/excess capacity projects were accepted with a combined capacity of
(PPA) with Mozambique’s state-run utility EDM. Last March, 4.10GW and accounted for 18% of the total.
Scatec Solar explained Mocuba would cost around US$76
million, US$55 million of which was project debt raised that
month from the World Bank’s IFC and Investec’s African fund
EAIF.
Engie’s 60MW Scaling Solar duo hits financial close in

Senegal
A 60MW duo touted as a success marker for the Scaling Solar
programme is ready for construction in Senegal after reaching
financial close. The World Bank’s International Finance Corporation
Credit: United PV
(IFC), the European Investment Bank (EIB) and France’s Proparco
will back two ENGIE projects with €38 million (US$43 million) in
senior loans. The schemes – a partnership between Engie, investor
Meridiam and Senegal’s sovereign wealth fund FONSIS – can now
start construction at sites by the West Senegal towns of Kael and China’s 2019 installs are set to be heavily back-loaded into the second half of the year.
Kahone.
Gulf Oman launches tender for 1.1GW

All systems go for Saudi Arabia’s top ground-mounted PV The Oman Power and Water Procurement Company SAOC (OPWP)
plant kicked off on Tuesday the tendering process for two independent
A ground-mounted solar project billed as Saudi Arabia’s largest to power projects (IPP), with a combined output of 1.1GW. The Manah
date has reached the finish line, and is now set to power the opera- Solar I IPP solar facility and the Manah Solar II IPP are planned 95
tions of a food and beverage conglomerate. Listed firm Almarai miles southwest of Oman’s capital Muscat. They will each have a
Company announced this week the completion of 15MW Al Kharj capacity of between 500MW and 600MW and are expected to be
Solar project, built at costs of SAR44.4 million (around US$12 commissioned in 2022 and 2023.
million). The corporate, specialised in food and drinks manufactur-
ing and distribution, said the 44,000-panel installation will gener-
ate 28GWh of solar power every year.
asia-pacific
Subsidy-free PV a reality across China
Abu Dhabi shortlists 24 firms for 2GW solar plant Solar could be rolled out on buildings across all of China’s
Abu Dhabi utility Emirates Water and Electricity Company (EWEC) major urban centres at competitive prices without the need for
shortlisted 24 out of the 48 international and local develop- subsidies, according to a new study published in Nature Energy.
ers that expressed interest in its latest 2GW solar venture to Researchers from Stockholm’s KTH Royal Institute of Technology
be located at Al Dhafra, according to Reuters. The tender, first released what they claim is among the first sweeping reviews
announced back in February, forms part of a series of projects to date of the grid parity state-of-play for Chinese solar. Where
approved by the higher Committee for the Water and Electricity previous reports predicted the milestone – attained when PV
Sector in Abu Dhabi. The 2GW installation is expected to achieve prices drop to grid-wide averages – would take decades to
commercial operations during the first quarter of 2022. A release arrive for Chinese solar, the new analysis claims the threshold
from EWEC highlighted that this project will be nearly double has already been crossed on the distributed end. Researchers
the size of its other major plant, the 1,177MW Noor Abu Dhabi at modelled costs of subsidy-free commercial and industrial (C&I)
Sweihan completed in April. Once completed Abu Dhabi’s total solar systems across 344 prefecture-level Chinese cities and
deployed solar capacity will hit 3.2GW. Successful bidders will found prices-per-kWh paid by users – a bill including energy- but
hold 40% equity in the project, with the remaining stake held by also transmission- and distribution-related expenses – would
local entities. already match grid averages for all.

India months later, albeit with a monthly cap. The July quota of 3,333 was
India prevails over US in long-running trade dispute snapped up quickly after their release, sparking an industry rally in
India has succeeded in having US solar incentives declared in state capital Melbourne last week to protest against the impacts
breach of World Trade Organisation (WTO) rules, signalling Washing- from rebate rationing.
ton’s defeat after nearly three years of dispute. A WTO panel found
solar tax incentives across seven US states infringed India’s rights Southeast Asia
under the General Agreement on Tariffs and Trade (GATT) of 1994, Philippines turns on 200kW floating solar project
in a decision made public as both countries joined G20 talks in A 200kW floating solar project is now live above one of the Philip-
late June. According to the report, 10 schemes passed in Califor- pines’ largest reservoirs. Norwegian floating solar technology
nia, Connecticut, Delaware, Michigan, Minnesota, Montana and provider Ocean Sun partnered with Chinese solar manufacturer
Washington state meant Indian solar panel imports were unfavour- GCL-SI in June to build the floating solar system in the 1,170-hectare
ably treated versus their US counterparts, in breach of GATT rules. Magat reservoir, found 220 miles north of capital Manila on the
The WTO twist sees India triumph in a dispute it brought before the island of Luzon. It is the Philippines-based renewable energy group
intergovernmental body in September 2016. The current panel was SN Aboitiz Power-Magat’s (SNAP) first non-hydro project. The
formed in April 2018, after conciliatory India-US talks convened in floating system will undergo a 10-month stress-test to ensure it can
2017 failed to settle the conflict. withstand inflows and typhoons and will initially service house load
requirements for SNAP’s Magat hydroelectric power plant. The dam
India’s pipeline boom currently generates 360MW of hydro-electricity.
India had its highest ever capacity of solar projects allocated or at
various stages of development by the end of Q1 2019, suggesting
a significant pick-up in installation activity over the next two years,
according to a report from consultancy firm Bridge to India. In the
‘India Solar Compass 2019 Q1’ report, however, the consultancy said
that a surge in tender issuances is still not being matched by actual
Credit: GCL System Integration

project allocations. During the first quarter of the year, 19 new
utility-scale solar tenders with a combined capacity of 15,733MW
were issued (up 2% from Q4 2018), but only 3,697MW of capacity
was successfully allocated. Nevertheless, the South Asian nation’s PV
project pipeline stood at a record 18,438MW as of 31 March 2019.
While deployment is set to increase, the industry is facing growing
troubles with land acquisition, network connectivity, delayed
payments and tender cancellations, said the report. Meanwhile, the The Ocean Sun system in the Philippines.
commercial and industrial (C&I) segment has been hampered by
policy reversals in rooftop solar and open access regulations. Sunseap, InfraCo Asia complete 168MW solar plant in
Vietnam
Australia Singapore-based clean energy firm Sunseap International and
Authorities back 10GW+ solar colossus partner InfraCo Asia commissioned a 168MW solar farm in Ninh
Australian authorities have rallied behind what is arguably the Thuan province, on the south-central coast of Vietnam. As one of
largest solar-plus-storage project to be conceived in the world’s the country’s largest PV projects to date, it will power the equivalent
history. Northern Territory first minister Michael Gunner confirmed of roughly 192,000 homes under a 20-year solar power purchase
his government has granted major project status to a scheme agreement (PPA), the signing of which was announced last year.
mixing 10GW of solar with 20-30GWh of storage. Designed with The plant was completed ahead of schedule and in time to receive
costs of AU$20 billion (US$14 billion) in mind, the project is slated a feed-in tariff (FiT) of US$9.35 cents per unit under the 30 June
for construction in Tennant Creek, a town in central Northern deadline. The project, which is majority-owned by Sunseap Inter-
Australia. The scheme is the brainchild of Singapore’s SunCable, national, offered employment opportunities to more than 2,000
which wants to use it to shore up the Asian state-city’s power workers.
system and limit its over-reliance on natural gas imports. The
developer intends to set up a 3,800 km high-voltage direct current WoodMac: APAC renewables to outcompete coal within
submarine cable to transfer most of the installation’s output to eight years
Singapore, where it could cover 20% of power needs. Indian and Australian solar will spearhead a grid parity shift set
to take hold of Asia-Pacific renewables within less than a decade,
Fix state support ‘crisis’, Aussie PV industry says according to Wood Mackenzie. Renewables’ levelised cost of energy
Australian associations have joined opposition politicians in urging (LCOEs) across the region’s top 12 markets remains 29% higher than
Victoria State to lift a monthly cap on solar incentives, after claims coal-fired power but the gap will vanish by 2027, the firm predicted
that August’s quota was fully booked within two hours. Operators on Monday. By 2030, the new analysis estimated, solar and wind
shared dismay at today’s swift allocation of monthly solar rebates, will actually be 17% cheaper on average than any fossil fuels across
with the Clean Energy Council and the Smart Energy Council claim- the 12-strong group, spanning India, Australia, China and Japan.
ing they ran out in 106 and 90 minutes, respectively. The incentives Wood Mackenzie research director Alex Whitworth said the shift will
– covering up to AU$2,225 (US$1,566) per solar panel system – were drive a major jump in these markets’ current renewable share of 6%,
halted by the Labor government in April 2019 and re-instated three creating “opportunities” but also “disruption”.

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products
Product reviews
Modules Q CELLS Q.PEAK DUO BLK-G6+ panels to be assembled in US with 345Wp performance
Product Outline: Q CELLS will launch its Solution: thereby increasing energy yields. With the
new solar module, the Q.PEAK DUO BLK-G6+, The Q.PEAK contribution of this function, the Q.PEAK DUO
into the US market in September 2019. The DUO BLK-G6+ BLK-G6+ can generate much more power,
module includes half-cut larger cells which solar module especially on residential as well as commercial
boast dimensions of 161.70mm (full wafer), as is designed and industrial (C&I) rooftops.
opposed to the 156.75 mm cell dimensions specifically for
found in its G5 range, boosting power output the rooftop Applications: US Residential and C&I rooftop
by 6% to 345Wp. The product will be is assem- solar market. markets.
bled in America at Q CELLS’ affiliate’s module The product
assembly plant in Dalton, Georgia. also boasts Platform: The Q.PEAK DUO BLK-G6+ also
optimised offers long-term reliability with a 25-year
Problem: The US residential market is increas- shading product warranty and one of the lowest degra-
ingly shifting to high-efficiency monocrystal- behaviour, which is a vital feature for many dation rates in the industry, which guarantees
line panels that provide the lowest LCOE and rooftop installations. The upper and lower 85% initial performance in the 25th year.
meet prosumer requirements for reliability and sections of the module can operate indepen-
aesthetics. dently, reducing the impact of shading and Availability: September 2019 onwards.
Modules Trina Solar launches 425Wp bifacial TOPCon panel
Product Outline: Trina Solar has launched a technology offers lower degradation and Applications: The half-cut 144 (72-cell)
new high-performance module series using higher reliability. glass/glass module is designed for ground-
large-area n-Type monocrystalline TOPCon mounted utility-scale PV power plants as well
(Tunnel Oxide Passivated Contact) cell technol- Solution: The new i-TOPCon double glass PV as agro-photovoltaics and expressway sound
ogy in both half-cut 144 (72-cell) and modules integrate n-type bifacial i-(Industrial) barrier projects. The 120 half-cut (60-cell)
120 half-cut (60-cell) configurations. The TOPCon cells with at least 80% bifaciality. configuration module can be used in utility-
i-TOPCon double-glass bifacial modules The modules come with multi-busbar (MBB) scale PV power plants using tracker systems.
can achieve performance of 425Wp with design, full square large-area n-type monocrys-
cells of 20.7% conversion efficiency. talline cells, dual-sided and half-cut technolo- Platform: The half-cut 144 (72-cell) layout
gies. The highly efficient modules feature a includes module dimensions of 2031 x 1011
Problem: High-performance modules lower temperature coefficient and low light x 30mm and weighs 26.4kg. The 120 half-cut
are required in a post-subsidy, grid-parity induced degradation (LID), which is less than (60-cell) configuration has module dimen-
environment to reduce overall system 1%, according to the company. The modules sions of 1705 x 1011 x 30mm and weighs
levelised cost of electricity (LCOE). also provide an extra 5-30% power generation 22.0kg.
Bifacial modules offer greater overall from the rear side, and feature a 30-year linear
power output, while n-type mono cell power warranty. Availability: Available since June 2019.
Design DNV GL’s PV power plant modelling software tackles complex terrain issues
Product Outline: DNV GL has developed model to detailed solar plant design.
software for modelling, design and analysis
of solar photovoltaic (PV) plants that can Platform: SolarFarmer software combines
accurately and efficiently handle the demands thoroughly validated PV simulation algorithms
of layouts in increasingly complex terrain. with a user-friendly, modern user interface
allowing quick configuration of PV plant
Problem: As the demand for solar energy designs and simulation of PV layouts. The PV
increases, solar plant design are becoming plant design software has a full 3D shading
more challenging as the terrain becomes more on decades of engineering experience in the and calculation model, submodule electrical
complex. This will require PV plant design solar industry. It can be used for conceptual mismatch and enables sub-hourly energy
software that can perform more reliable and detailed design and analysis for solar PV assessments compared with hourly energy
modelling for accurate energy calculations and plants and is an efficient and traceable method assessment that can lead to errors such under-
submodule electrical mismatch. for modelling in complex terrain. estimating inverter clipping losses during
cloud coverage.
Solution: SolarFarmer software provides Applications: Design and analysis of develop-
unique models designed by engineers based ment of solar PV plants, from conceptual Availability: Available since May 2019.

products
Modules GCL System Integration’s cast-mono panel tops 420Wp power output
Product Outline: GCL System Integration has 158.75mm cells, which have a low degra- of high-quality silicon wafer and polysilicon
launched a new 420Wp ultra-high efficiency dation rate thanks to their low oxygen materials produced by GCL-Poly. By adopt-
cast-mono panel series. The cast mono panels content – 40 percentage points lower ing the ingot casting technology through
combine mono-crystalline PERC (Passivated than monocrystalline, according to the methods such as thermal field optimisation
Emitter Rear Cell) technology with multi- company. The wafer resistivity distribution and the addition of seed crystal, the final
crystalline ingot casting technology to reach a is also more concentrated, translating to product comes out with low electric resistance
panel efficiency of up to 19.4%. higher performance. In addition, the cost rate, high purity, low oxygen content, better
mono module increases efficiency by structure and reduced costs compare to mono
Problem: Striving for lower costs and higher providing 2% more space to absorb light wafers. When integrated with other advanced
efficiency has been a common concern and than standard-sized mono PERC modules. technologies such as Multi-Busbar technol-
key objective of the PV industry. Increasing ogy (MBB) and white EVA, the GCL cast mono
wafer sizes, while adopting half-cut or shingled Applications: Utility-scale, commercial and module has a lower temperature coefficient,
cells to reduce resistivity are low-cost routes to industrial and residential markets. better performance in power generation and
higher wattage panels. less vulnerability to light-induced degradation.
Platform: The cells in the new panel have
Solution: The module adopts 158.75mm x an average efficiency of 21.4% and are made Availability: Available since June 2019.
Modules JinkoSolar’s ‘Swan’ bifacial panel saves weight with transparent backsheet
Product Outline: JinkoSolar has introduced a energy gain Applications: Utility-scale ground-mounted
new bifacial PV panel with new ‘DuPont Clear’ as dual-glass and commercial & industrial rooftop markets.
‘Tedlar’-based backsheet. The ‘Swan’ bifacial bifacial modules,
panel can achieve power output of up to 400W weigh less, are Platform: The ‘Swan’ bifacial panel uses Mono
on the front side and up to 20% energy gain easier to install PERC (Passivated Emitter Rear Cell technology
from the rear side. and include a with wafer/cell size of 158.75×158.75mm. The
30-year power Swan panels come in a 60-cell (120 half-cut)
Problem: The majority of bifacial panels come warranty. In and 72-cell (144 half-cut) format. The 144 cell
in a glass/glass format and have a weight addition, they panel dimensions are 2031×1008×40mm.
penalty that impacts transportation and instal- can generate The ‘Swan’ bifacial panel comes with a 12
lation costs. more system cost savings due to their lower year product warranty, 30 year linear power
weight and decreased cost of installation and warranty and 0.55% annual degradation over
Solution: Leveraging the transparent mounting. The panel weight is 19.5kg in 60-cell 30 years.
backsheet, Swan bifacial panels can produce (120 half-cut) format, compared to 26.8kg in a
the same power output levels and rear-side 60-cell (120 half-cut) glass/glass configuration. Availability: Available since May 2019.
Modules Jinergy launches 72-cell 450Wp heterojunction bifacial panel
Product Outline: Jinneng Clean Energy have excellent performance in weak Platform: With the continuous optimisa-
Technology has released its 450Wp 72-cell light, a temperature coefficient of tion of technology and process, Jinergy HJT
heterojunction (HJT) panel that includes -0.28%/, and ultra-low degrada- cell average mass production efficiency
excellent low-light performance and ultra- tion with n-type silicon wafer. reached 23.79%, and efficiency of new
low temperature coefficient and degrada- Moreover, power generation is experimental cells reached 24.73%. Tested
tion. increased by 8-20% in different by TUV Rheinland, the module efficiency of
application because of bifacial cell Jinergy’s HJT modules has reached 21.9%
Problem: High-performance bifacial panels structure design. Compared with and bifaciality has reached 93%. Front-side
offer subsidy-free LCOE metrics that have the regular high-efficiency modules, the power output of 72-cell HJT module has
ability to drive utility-scale PV power plants power generated in 25 years could reached 406.6W without using technolo-
to become the most competitive renewable be increased by 20%, and power gies such as large wafers and half-cut cells.
energy source. generation per unit area could be The panel is compatible with 1,500V system
increased by more than 40%. voltage to reduce construction cost per
Solution: Jinergy’s HJT module, JNHM72- watt and is available in 60-cell and 72-cell
450, is claimed to offer an increase in overall Applications: Utility-scale ground- formats.
power generation of 44% when compared to mounted and commercial and
regular polycrystalline panels. HJT modules industrial rooftop markets. Availability: Available since June 2019.

products
Product reviews
Modules LONGi Solar’s Hi-MO 4 bifacial module offers 430Wp front side performance
Product Outline: LONGi Solar has launched talline wafers. Hi-MO Platform: Hi-MO4 deploys upgraded PERC
its advanced large-area mono-wafer next- 4 modules configured technology with six busbars and offers
generation PERC (Passivated Emitter Rear Cell) with 72 cells can achieve cell efficiency reaching 22.5%. While the
technology incorporating half-cut cells and six 430Wp performance. front-side power Hi-MO3 is 380W (72 cells),
busbars, with cell efficiency reaching 22.5%. The upgrade to M6 Hi-MO4 increases this to as much as 430Wp.
The Hi-MO4 bifacial module series come with silicon wafer specifica- BOS cost can be reduced by approximately
430Wp front side performance. tion allows a larger light-capture area which 7%, and LCOE by 1.4%. Combined with
increases the power of cells and modules while tracking systems, the LCOE can be further
Problem: Upstream of module production, reducing the manufacturing cost per watt. At a reduced. Hi-MO4 is compatible with a
silicon wafers account for 30-40% of the cost of cost-per-watt comparison, M6 is equivalent to number of single-axis tracker systems,
the module. Hence, advances in silicon wafers M2 and increases the output power by 8.8% vs including NexTracker. Module dimensions are
technology are instrumental in cost reductions M2. With M6, the procurement cost of silicon 1791x1052x30mm. The glass/glass format
and creating more efficient products. wafers is reduced by 4% per watt. weighs 24kg with 2mm tempered glass front
and rear.
Solution: Hi-MO 4 panels are the first to deploy Applications: Utility-scale and commercial and
large-area M6 (166mm x 166mm) monocrys- industrial rooftop markets. Availability: Available since May 2019.
Operations and maintenance Raycatch uses artificial intelligence technology for PV power plant O&M
Product Outline: Raycatch has introduced Applications: PV power plant O&M.

‘DeepSolar 2.0’, a fully automated, AI-based
diagnostic software program for cost- Platform: DeepSolar 2.0 comprises features
optimised maintenance and monitoring of that make it possible to successfully identify
photovoltaic power plants. Raycatch, which and break down all components affecting
is backed by BayWa r.e., developed the next- solar plant performance – and group them
generation of DeepSolar, its AI-based Software back together to create an extensive, coherent
as a Service (SaaS) solution. picture. The software supports solar plant
owners by providing them with compre-
Problem: PV project owners require increas- PV power plants. The AI-based algorithm uses hensive ROI information and data-driven
ingly sophisticated tools to sift and evaluate data generated by existing monitoring systems operational insights. In addition, the diagnostic
large volumes operational data from plants, to enable optimisation of O&M – replacing system can identify the sources behind techni-
identify faults and make decisions on how best interval-based maintenance with a cost- cal issues, suggest solutions, evaluate costs and
to maintain their assets. efficient responsive approach that is designed make prioritised recommendations based on
to analyse and perform accurate diagnostics plant owners’ respective needs.
Solution: DeepSolar is a diagnostic software on the high influx of complex data from PV
program for cost-optimised maintenance of systems. Availability: Currently available.
Modules REC Group’s ‘Alpha’ series PV panel offers power output of up to 380Wp
Product Outline: REC Group has unveiled the HJT, REC combines the benefits need 50 modules, or roughly 100m².
‘Alpha’ series PV panel using n-type heterojunc- of crystalline silicon solar cells
tion half-cut cells with power output of up to with those of thin-film technolo- Applications: Residential rooftops.
380 watt-peak (Wp). gies for much higher efficiency
and energy yield, even at higher Platform: The Alpha panel uses 120 half-cut
Problem: Reducing the balance of system temperatures. The REC Alpha HJT cells, with six strings of 20 cells in series. It
(BoS) costs for residential rooftop markets is Series offers 20% more power features 3.2mm solar glass with anti-reflection
key to continued adoption. High-performance from the same area and the same surface treatment and backsheet. Two
panels are the best option, especially when number of panels. For a 20kW versions are available: with white backsheet
there is limited rooftop space. solar installation at a multi- (up to 380Wp), and as a full-black panel (up to
apartment property, for example, 375Wp). Panel dimensions are 1,721 x 1,016 x
Solution: The Alpha is built around 120 half- 70 panels with 300Wp, or an area 30mm and weight, 19.5kg.
cut heterojunction cells (HJT) and advanced of 140m2, would be required. But
connection technology, designed by engineer- with the 380Wp of the REC Alpha Availability: The Alpha Series is scheduled to
ing experts from Germany and Singapore. With Series, the building would only go into production in Q4, 2019.

products
Modules Risen Energy’s JÄGER series panels hit 340Wp
Product Outline: Risen Energy’s JÄGER series vated PERC (Passivated Emitter Rear Cell) area, enhancing the ability to collect carriers
PV panels using its proprietary cast-mono 5BB technology with Light Reflecting Film while reducing the incidence of cracks and
cell have achieved an efficiency of 22.05% (LRF) ribbon as well hi-spec white EVA and contributing to a higher conversion efficiency.
while its MBB monocrystalline cell has realised narrow distance between connected cells At the same time, a further cost reduction is
a maximum conversion efficiency of 23.08% to reduce cell to module (CTM) losses. The realised with decreased use of silver slurry.
and an average efficiency of 22.73%. cast-mono five-busbar cell uses a series
of efficiency enhancement technolo- Applications: Utility-scale, commercial &
Problem: The need to reduce the levelised gies including double-sided passivation, Industrial and residential markets.
cost of energy (LCOE) continues to drive cell antireflective films, electro-injection
and module conversion efficiencies, while passivation and slurry improvement. Platform: JÄGER series PV panels use
achieving cost effective manufacturing at scale. This is the first time that a cast-mono 158.75mm x 158.75mm 5BB PERC cells in a 120
The adoption of large-area high-purity wafers 5BB cell has exceeded 22% in efficiency. half-cut format. Panel dimensions are 1689 x
and multi-cut cell configuration and bifacial Compared with the 5BB cell, the MBB 996 x 35mm. Front side glass uses tempered
cells further increase efficiencies. monocrystalline cell features a more ARC with a thickness of 3.2mm.
optimised metallised contact technology,
Solution: The cells are ALD-AlOx passi- which effectively reduces the shading Availability: Currently available.
Modules Seraphim’s high-performance ‘Blade Bifacial’ panel has reduced hot spot potential
Product Outline: Jiangsu Seraphim Solar mismatch losses, internal power losses and half-cut and 72 (144 half-cut cell) formats.
System Co has recently rolled out an new shadow effects.
bifacial solar panel, ‘Blade Bifacial’. According Platform: The Seraphim Blade Bifacial module
to Seraphim, the new product integrates Solution: The integration of the half-cell is much lighter as it uses the 2.0 mm double
industry-leading half-cell technology and technology and the bifacial PERC cell technol- AR coating tempered glass, instead of the 2.5
latest bifacial PERC cell technology, allow- ogy is an important route to develop the PV mm glass used by most PV manufacturers. It
ing it to have such features as low internal module technology and adapt to the needs features an IP68 protection class junction box
power loss, reduced hot spot potential, of the PV industry. The module yields up with multiple diodes integrated to reduce
higher power output and improved to 30% more energy from back side power hotspot risk. Unobstructed view of cells
reliability. generation, depending on the albedo/reflec- improves safety and power generation. The
tivity of each individual project site. Blade Bifacial panel comes with and extended
Problem: Compared to traditional modules, product warranty of 15 years.
half-cell modules have lower current and Applications: Utility-scale and commercial
series resistance, which can minimise & industrial rooftops. Available in 60 cell 120 Availability: Available since May 2019.
Inverter Sungrow’s SG250HX 1500V string inverter is optimised for bifacial modules and tracker systems
Product Outline: Sungrow Power Supply has in complex with 12 MPPTs it can adapt to complex terrain
introduced the SG250HX, the world’s most environments, conditions and enables 26A input current per
powerful 1500Vdc string inverter, which is such as hilly, string, perfectly matching bifacial modules.
optimised for hilly utility-scale installations coastal or desert SG250HX also provides reserved power
and designed for bifacial modules and tracker areas. supply and communication interface to the
systems. The system, resilient to harsh condi- tracker system.
tions, is characterised by 12 MPPTs, maximum Solution: The
efficiency of 99%, anti-PID, IP66 and C5 global market Applications: Utility-scale PV power plants
protection and allows for up to 6.3MW block for large-scale
design, enabling high yields. PV installations Platform: Sungrow can supply 6.3MW MV
is shifting to bigger block design to reduce Station which integrates LV switchboard,
Problem: The application of new technolo- the LCOE. Based on the cost comparison transformer, RMU, communication device and
gies such as bifacial modules and tracker of different capacity block, 6~7MW block auxiliary power supply in a 20-ft container.
systems are intended to significantly reduce enables lowest cost, according to Sungrow. Also, SG250HX and communication device
LCOE metrics in PV power plants. However, The SG250HX inverter is suitable for any block supports PLC (Power Line Communication),
these new technologies require advances in size between 3MW to 6.3MW and can run at which decrease communication cable cost.
PV inverter technology to maximise the IRR. full load for a long time due to component
PV inverters also need to adapt to installs selection and advanced design. Additionally, Availability: Available since May 2019.

cover story STORAGE SPECIAL REPORT
Open season: the next

steps for energy storage
Storage | Despite the huge strides energy storage has made, significant hurdles remain before the
technology in its many guises can be claimed to have fulfilled its massive potential. Introducing
a PV Tech Power energy storage special report, Andy Colthorpe assesses the key successes and
ongoing challenges for this indispensable part of the future power system
Credit: Anesco
T
he world has watched on as some of the grid but the ways in which we think Large-scale battery sites have been built in regions including
of its leading regional markets, about energy markets too. Everyone the UK (pictured). But are they doing enough and should there
be commercial impetus to build more?
China, South Korea, Australia, seems certain energy storage is a key part
Japan, parts of the US, the UK, and many of the decarbonised energy system, but
parts of Europe have raced ahead in no one seems certain when we will be A quick case study of a utility in one of
deploying energy storage in the last able to breathe a sigh of relief that that those ‘leading regions’ is municipal power
five years, mostly, but not only, lithium- place is assured. And of course, there’s provider LADWP in California, which over
ion batteries. IHS Markit says that the the question of whether success in these the next few years will deploy enough
US in 2019 will deploy around 712MW, leading markets can be replicated all over batteries to cover more storage output and
becoming the world’s largest market for the world. capacity than its existing 1.5GW pumped
grid-connected batteries this year, while In those leading regions, the rapid rise hydro plant (see box, p.23). We also asked
another research firm, Wood Mackenzie is happening both in front of and behind Janice Lin and Jack Chang at consultancy
Power & Renewables, has predicted that the meter, with economic cases that are Strategen, itself based in California, to write
4.3GW could be installed worldwide finally starting to make sense and often about the ‘challenges in the sun’ California
during 2019. – but not always – with specific policy faces and some of the initiatives, both
Record-breaking figures have been support. And while solar industry investor private and public, that are seeking to
reported in the US and other territories and commentator Jigar Shah predicted overcome them (see p.32).
such as the UK, year-on-year. Yet from confidently that utilities would try to take Meanwhile in Australia, major utility
other territories reports come in of ownership of energy storage as much as AGL is now offering rebates of up to
interminable delays, of hotly contested they could themselves at the beginning AU$7,000 off the cost of residential ESS
jurisdictional rights, the difficulty in of 2018, it seems as though 2019 was the purchases, as well as a virtual power plant
overhauling not only the technical design year that this really took shape. programme which benefits homeown-

STORAGE SPECIAL REPORT cover story
ers in some states to the tune of AU$280 reduction in cost of software, but much of
credit for a year for enrolling. this has already been squeezed out, Eller
They and others are pushing ahead in says. Still, software is key in another vital
areas where there may be high electricity way – the role it plays in complete system
prices and high grid congestion, falling integration.
feed-in tariffs and favourable tax regimes. This year, product launches on the
Whatever the reason, circumstances have global market have included a 2.5MWh
come together to reduce the risk and containerised solution from Saft and
improve the return of procuring, owning later a 3MWh ‘Megapack’ from Tesla.
and operating energy storage in some Offering more fully integrated, modular,
territories. all-in-one units that include the battery
management system (BMS) and safety
Fear of missing out and protection features delivered in a
Other utilities in other territories face single container from a single vendor can
totally different circumstances, such as lower costs significantly, Eller says, noting
Xcel Energy, which operates as a near- that NEC’s Energy Solutions division and
monopoly in Colorado, USA. Holding an Fluence are also now marketing “specific,
Credit: Andy Colthorpe

all-resource, all-technology bid for new defined products” to the market. Stand-
capacity a couple of years ago, in addition ardisation within individual vendor’s
to picking out wind power projects, the offerings is certainly encouraging, the
utility also selected three solar-plus- Navigant analyst says.
storage projects, Alex Eller, analyst with In the long term, Eller says storage
Navigant Research says. Despite futuristic concepts and design, battery energy companies should aim to offer more
The utility hasn’t done much in the storage is about functionality for both grid and end “plug-and-play” products to utilities, that
way of standalone storage, because Xcel customers. will be “faster and easier to deploy” than
hasn’t yet found “other use cases where more specialised equipment.
storage was economical for distribution big way and in other regions solar-plus-
upgrade deferral and things like that”, storage makes sense, will it be enough? The edge of profitability
Eller says, and so in Colorado, where land And if, as we suspect, it might not be, Stationary energy storage systems are
is fairly cheap and so is electricity, it’s the what are the challenges and barriers in on the “edge of profitability in many
competitive economics of solar – now the road ahead? market segments today”, we hear in this
dispatchable with the addition of storage special edition of the journal from Dr.
– that appeals, rather than storage in its More to cost reduction than Kai-Philipp Kairies, Jan Figgener and
own right. Being a vertically integrated batteries themselves David Haberschusz of RWTH Aachen
utility, Xcel could later use the batteries at A lot of emphasis has been placed on the University (see p.24).
its solar-storage plants, each of which will cost of the batteries, which as we all know Yet markets that reward the benefits of
have in the region of 50MW of batter- continue to enjoy a decline. Navigant’s energy storage are drastically underdevel-
ies, for frequency regulation and other Eller has previously predicted a fall to oped. Many in the US are looking to the
balancing services, but the main impetus around US$76 per kWh by 2030, rival bipartisan ruling FERC Order 841 from the
is the deployment of renewables to analyst Logan Goldie-Scott at Bloomb- Federal Energy Regulatory Commission,
replace fossil fuels. ergNEF conversely says that an “average” which instructs regional grid operators to
It is an interesting snapshot of the lithium-ion battery pack could cost as low open up wholesale markets to the partici-
wider picture across much of the US, Eller as US$62 per kWh by that year. pation of energy storage and is intended
says. Many utilities now procure storage Beyond the cost of the battery as well, to be a game changer for the industry.
alongside solar as a low-cost generation power electronics components could still Many of the regional ISOs of the US
source. Backed with PPAs, they offer the enjoy improvements in design and lower- have already responded by drafting their
most certainty of use cases for energy ing of costs, Eller says, with much of that initial plans to comply with the Order.
storage on the US grid so far. Elsewhere, to centre around the standardisation of However, says Jennifer L. Key, a FERC
some standalone storage is deployed battery inverters, which the analyst says lawyer with law firm Steptoe & Johnson
increasingly by municipal utilities, which were “pretty customised” in the past. LLP, there have been “somewhat surpris-
have a certain degree of autonomy – in One area Eller highlights is the growing ing legal challenges…from both the state
other US regions such as New England, interest in DC-coupled storage, explored and public power and even parts of the
where the regional Independent System in more detail in Sara Verbruggen’s utility industry dealing with jurisdictional
Operator (New England ISO) has also piece on storage system architecture fights over storage, between FERC and
opened up some of its markets to energy later in this special report (see p.29). the states”.
storage. “[That] reduces the cost…because the A “uniquely American problem”, Key
So, even with this seemingly positive DC converters are much cheaper than says, of dual state and federal regulation,
picture, where in some areas electric full grid-tied inverters are. So I think that is holding up FERC Order 841 before
system stakeholders of various kinds and certainly helps bring prices down,” Eller the details are even put on the table for
local and even national governments says. discussion. A lot of the disagreement
are getting behind energy storage in a On the system side, there’s also the essentially stems from “whether FERC

or the state should have control over all

things wholesale going on on the distri-
bution system because a lot of storage
is being connected to the distribution
system – as opposed to the transmis-
sion system”, Key says. “A large swathe” of
distribution system companies and state
Credit: Wasatch Group/ Sonnen/Rocky Mountain Power

commissions have “filed for an appeal of
Order 841 on jurisdictional grounds”.
“What’s interesting is that you have
some states that are fully supportive of
storage, that don’t mind at all that FERC
is taking a lead and you have utilities and
distribution system owners who don’t
care who has jurisdiction; the storage
that’s coming in, they’re dealing with it,
they’re doing the right thing to get the
storage interconnected.
“[Then] you have this whole entire
pushback and it’s unclear if that’s because Soleil Lofts, a 600 apartment development in Utah where Sonnen will deploy 12.6MWh of batteries in
the states want to control the entry and new homes
use of storage,” Key says. Whether that
is because individual state commission- huge, huge stumbling block for grid- energy storage. As a lawyer, Massie says
ers believe they could do it better than connected energy storage (see p.38). she looks closely at developments in the
FERC perhaps, or believe that distributed In the UK, too, a regulatory definition UK, Europe, the Middle East and Africa,
storage could interfere with operations for energy storage has only just been but also works closely with colleagues in
of their electric system somehow is also proposed by the regulator, Ofgem. At the US and Australia.
unclear, Key adds. present, energy storage is quite often still “What I’ve found very interesting is
categorised as generation, Kirsti Massie, a that the issues that we are talking about
Regulation, regulation, regula- UK-based lawyer with White & Case, says. and that the industry and the regulator
tions Not having a dedicated definition or even is trying to get their heads around in the
Jennifer Key and others argue that when a licence for energy storage, has “implica- UK are the same issues that you see in
FERC Order 841 does come to pass, it tions across a number of pieces.” various markets in the US and in Australia.
really will be a game changer partly “If you have a generation licence it We’ve got a commonality of issues, in
because “it is compelling the organised means in the UK certainly, as a transmis- terms of questions people are trying to
markets in the US to develop and make sion system operator or distribution answer.”
sure that their systems whether it’s their network operator, you’re not also going
software, or their market systems, have a to be able to own and operate storage The customer will always come
place for energy storage which compen- facilities because they can’t become part first
sates”. of the grid because the way their licens- Deployed energy storage capacity around
“One of the issues [Order 481] is raising ing is structured,” Massie says. the world largely remains pumped hydro
is: can storage obtain enough compensa- “As a generator you’re often looking to while lithium-ion is the current flavour
tion in the market, especially in markets smooth out intermittency to renewables. of choice. Coming in all shapes and
where it’s hard for storage unless paired That’s fine but storage can do a lot more stackable up to hundreds of megawatts,
with something else (such as solar PV) to than that and it can provide grid services the advantages of lithium-ion battery
provide a capacity product? – it’s not just an add-on to generation. systems include how quickly they can be
“But it’s opening up, setting the rules Grid services are hugely important and deployed and their rapidly falling cost.
of the organised market so that they can become increasingly important as more One of the challenges from a big picture
make accommodations as needed for renewables come on the wires,” Massie perspective is going to be figuring out
storage and also the clarity of permitting says, while, as with mainland Europe, how much energy storage capacity is
storage devices to charge at wholesale double-charging still exists. needed in front of the meter, providing
[prices].” “Also as a generator you will pay services to the grid and capacity to utili-
On the subject of clarity, while the system charges when you’re charging ties, and how much of it goes behind the
FERC Order 841 saga and in particular up your battery but you’ll also pay when meter, at customer sites.
the recent pushback continue, in Europe, you’re actually discharging the power These behind-the-meter sites are
in both the UK and mainland Europe, a from the battery. You’re getting hit both increasingly being aggregated to create
more basic regulatory issue continues to times.” energy trading opportunities and virtual
play out. As we hear from the continental Grid service markets are not often power plants (VPPs). In much of the US,
European Association for the Storage enough structured in such a way to take however, residential net metering for
of Energy (EASE) in this special report, advantage of the fast-responding, low solar obviates much of the financial case
so-called ‘double-charging’ remains a carbon generation-enabling qualities of for batteries in the home while in other

territories, feed-in tariffs still reward

LA’s big ambitions
customers well for energy delivered to
the grid. By Janice Lin & Jack Chang, Strategen Consulting
“It (net metering) effectively pays the Even in progressive California, Los Angeles stands out with its bold plans to
decarbonise its power sector. The city’s municipal utility, Los Angeles Department of
homeowner the fully delivered cost of Water and Power (LADWP), is the United States’ largest publicly owned utility. LADWP
power. So I don’t think you’re going to is fully embracing energy storage as a critical tool for achieving the city’s clean and
get this notion of all these distributed affordable energy goals.
residential resources getting together to LADWP is already very familiar with the benefits of energy storage. It operates
a 20MW lithium-ion battery storage system at its Beacon Solar Plant as well as a
sell power because they’d have to give up 1,500MW pumped hydro facility at Lake Castaic. In February 2019, LADWP announced
the benefits of net metering,” Jennifer Key it will not be replacing three gas-fired power plants scheduled to close by 2029.
says, with some 40 US states still running Instead, the utility will employ clean-energy alternatives such as solar and energy
net metering programmes. storage to make up for their 1,660MW of generation capacity. In July, LADWP
proposed building the largest capacity utility-scale solar battery project in the country
So again, there will be some to date. The plan, submitted by developer 8minute Solar Energy, would build as much
specific parts of the US adopting VPP as 400MW of solar capacity and 300MW of energy storage at the historically low price
programmes earlier than others: Energy- of US$19.97 per MWh. As of early August, approval is pending at the LADWP board.
Storage.news reported on a 12.6MWh These moves are aligned with the city’s Green New Deal, which lays out ambitious
sustainability targets and devotes billions of dollars for new infrastructure. The plan
VPP in Utah from Sonnen and utility calls for increasing cumulative energy storage to as much 4,000MW by 2050 – far
Rocky Mountain Power across 600 larger than the current target for the entire state of California (1,500MW). Driving all
apartments as this edition went to press, that energy storage demand is the city’s goal to supply 55% of its electricity needs
for example. In other global markets with renewable energy within six years and 100% by 2045. Much work remains but
given the leadership of the city and state, Los Angeles is well poised to succeed in
however such as Japan, Australia, the achieving its clean energy goals with storage.
UK and Europe including Germany, the
cutting of feed-in tariff support is inspir- Year Cumulative energy storage (MW)
ing homeowners with solar to ‘go battery
2021 1,524
storage’ too.
A recent blackout in the UK which 2025 1,750
affected one million electricity customers 2035 3,000
was responded to by frequency response
2050 4,000
assets including 6MW of aggregated
residential storage, acting as a VPP, LA’s energy storage goals to 2050
from independent utility Social Energy.
To be able to do this on a grand scale in emerging markets from major energy framework, I think, limits the value [of
and as the norm, using both large and companies means that energy storage for energy storage],” Massie says. “You’re not
small ESS assets, will not only require energy access is also a reality. going to be able to take full advantage
more simplified and readily accessible At Solar Media and in particular of the flexibility that storage can offer, if
revenue streams for grid services, it will through Energy-Storage.news, we’ll be you’re constraining it within a regulatory
also require coordination of effort and looking at some of these challenges in framework that dates way back before
engagement with the end customer. the coming months, as well as others we some of these technologies were even
“Decentralisation, decarbonisation is have barely mentioned, including the thought of.”
the right thing to do, but we can’t forget supply chain and end of life manage- As Massie says, there’s been a huge
the consumer in all of this because the ment (although you can read about amount of progress and it’s certainly not
consumer is fundamental,” says Faisal the efforts of one company, Li-Cycle in a negative picture out there today for the
Hussein of UK industry body Flexi ORB Canada, to create an effective system for energy storage industry. If we are to meet
(Flexible Energy Oversight Registration battery recycling on p.45). There’s also policy goals in reducing carbon emissions
Body). the integration of data and fire safety, the and transitioning to renewable energy,
“In our focus on decentralisation choice of technologies, whether batteries, however, “energy storage inevitably
and decarbonisation, we’ve got to be lithium batteries, or otherwise. is going to have to play a bigger role”,
careful that we don’t leave the consumer We’re certainly encouraged to see so Massie says.
behind.” much proactive discussion of how many “In order to play a bigger role, you
of these problems can be solved, and need people who are willing to invest
If the industry is ok, is that for many of our readers coming from a and to invest and develop at scale. One of
enough? renewable energy background, a difficult the key things that then will arise, is, how
Despite some significant challenges, challenge is nothing new. In regulation are you going to finance this? If you’re
the adoption of energy storage as both and many other areas however, “we’ve not able to really leverage off all of the
an essential companion for renewables got away with a sticking plaster approach benefits that storage can bring, the full
and as a flexibility resource for the grid so far”, Kirsti Massie of White & Case says, flexibility of the storage offering, you’re
in its own right appears healthy enough but the existing frameworks in the UK and kind of limiting your revenue stream and
to suggest that in key markets adoption many other regions still need to catch up that makes it more tricky and difficult to
will only increase. Elsewhere, off grid, the to the progress – and promise – of energy attract financing and I think will get in
economics are even better, and recent storage technology. the way of the real, scale deployment of
interest in microgrid companies active “Trying to shove it in an existing storage that is going to be key.”

Market and technology development

of stationary battery storage systems
Economics | The business models and technologies underpinning the development of stationary
energy storage markets are evolving rapidly. Dr. Kai-Philipp Kairies, Jan Figgener and David
Haberschusz look at some of the key trends driving the sector forward
T
he international market for station-
ary battery storage systems (BSS) is
growing rapidly. Within less than a
decade, grid-connected BSS have evolved
from a niche product to a mass market
in which today international energy and
automotive companies are competing for
market shares. According to a recent study
by BloombergNEF, almost 4GW of new
battery storage systems went online in
2018 worldwide – and the market research-
ers expect this number to double by 2020
[1]. Accordingly, the International Renew-
able Energy Agency (IRENA) predicts that a
total storage capacity of up to 420GWh will
be installed by 2030 (see Figure 1).
Grid-connected storage systems today
are used for a multitude of purposes,
ranging from small-scale applications,
such as residential home storage systems,
to multi-megawatt batteries that provide
balancing services and mitigate grid
Credit: SPP
congestion problems on all voltage levels.
In this article, we will cover the three
main market segments of stationary Battery systems sitting alongside solar projects, such as the UK’s Clayhill, will become more common as
storage systems in Europe – private house- storage plays an increasingly important role in grid balancing
holds, commercial buildings and storage
for balancing services – and shed some systems. These so-called home storage 2.5 without having to upgrade the electri-
light on the business models and profit- systems (HSS) store excess solar energy cal equipment. In some cases, HSS can
ability of these systems. during the day and make it available for also benefit from time-of-use schemes by
self-consumption in the evening and at offsetting higher tariffs at night and thus
Home storage systems night. They provide a twofold benefit for generate additional revenues.
Over the last five years, more and more the battery operator and the distribution The market for HSS has seen a massive
households have adopted battery grid: on the one hand, the operator of a growth in areas such as California,
storage in combination with photovoltaic HSS decreases the amount of electricity Australia, Italy and Germany. Japan could
bought from the grid, thereby reducing his also emerge as a new, important market
electricity bill. On the other hand, HSS can for HSS as rooftop PV installations become
stabilise power grids with high amounts of increasingly popular while electricity
renewable energy generation. By storing rates are comparably high. The German
PV power during peak generation periods, market for HSS is unique, and a research
local problems with voltage stability or team of Aachen University, one of Europe’s
thermal overloading of electric equipment largest technical universities, has closely
can be mitigated. Several studies have monitored its development from the very
shown that the use of HSS can reliably limit beginning. In the scope of a scientific
the maximum feed-in of PV installations monitoring programme, datasets of more
to just 40% of their rated power without than 23,000 individual HSS were collected
curtailing undue amounts of renew- that allow a deep insight into the mechan-
able energy [3]. This means that HSS can ics of this emerging market. Some of the
Figure 1. Development of stationary battery storage systems increase the maximum PV penetration of a key findings of this ongoing evaluation are
according to IRENA [2] given distribution grid by a factor of up to presented below.

power plants was initiated over the last payback times for HSS today are in the
years, making it one of the hottest topics in range of 20 years for most households
energy research. – a timespan that exceeds the expected
Much has changed since the commer- lifetime of typical lithium-ion batteries by
cial success of HSS began in 2013. One about one third. Even taking public finan-
major technical development was the cial incentives into account, most solar
battery of choice. While in the early days batteries today fall short of a break-even.
of the market, more than six out of 10 HSS Whey, then, are consumers still so
were using traditional lead-acid batteries excited about it? To get a better under-
as their storage technology, lithium-ion standing of the market mechanisms
Figure 2. Development of HSS installations in Germany
batteries quickly gained market share. behind the HSS boom, participants in the
Since 2017, they account for more than scientific monitoring programme were
99% of all newly installed HSS. The reasons asked a couple of yes-no questions regard-
for this remarkable success of lithium-ion ing their purchase motivation (see Figure
over lead-acid batteries are diverse: techni- 5). More than 80% of the respondents in
cally, lithium-ion batteries offer a mainte- Germany stated that the main reasons
nance-free operation, promise longer for investing into a home storage system
lifetimes and feature better roundtrip are to hedge against future increases in
efficiencies. However, from a customer’s electricity prices and the desire to proac-
point of view, two main advantages seem tively participate in the transitions towards
to outweigh all other aspects. Firstly, due renewable energies (“Energiewende”). In
Figure 3. Development of retail prices (incl. VAT) for home to their very high energy densities, lithium- addition, a “general interest” in the technol-
storage systems in Germany
ion HSS are much more compact and can ogy was a major purchase argument
Since 2017, every second new residen- be mounted to walls, which allows a more for more than 55% of the home storage
tial PV installation in Germany has been efficient use of space and is sometimes operators. By contrast, only 20-25% stated
accompanied with a battery pack. In some perceived to be visually more appealing. that the wish to make a safe financial
federal states, it is more than two out of The second reason is pricing. Between investment or securing against power
three. In total, about 150,000 HSS with an 2013 and 2018, the average retail price for outages was decisive for their purchase.
estimated capacity of about 1GWh and HSS with lithium-ion batteries fell by more The data suggests that the largest propor-
a nominal power of 400MW are installed than 50%, whereas prices for lead-acid tion of HSS operators today fall into the
in Germany today (see Figure 2). These batteries decreased only slightly [4]. The category of “innovators” or “early adopters”.
impressive growth rates also make HSS plummeting costs of lithium-ion batteries These population groups tend to be well
increasingly relevant to German utility not only bolstered their market share, but educated, wealthy and interested in new
companies and grid operators. Accord- also helped to push the whole HSS market technologies, paying less attention to the
ingly, a vast number of research projects segment into the mainstream. profitability of an investment and showing
focusing on the grid effects and the poten- Interestingly, while system prices per a high interest in the details of the technol-
tial use of decentralised batteries in virtual kWh have been cut in half since the start ogy. An additional factor for the rapid
of the scientific evaluation, the average growth of the HSS market can be attrib-
system expenses of HSS remained virtually uted to the sluggish PV market over the
unchanged at roughly €10,000 (incl. VAT) past years. A solar technician can double
over the entire period. The reason for this his sales by selling a battery in conjunc-
can be found in a constant increase in tion with solar panels, so many installers
battery capacity since 2014. Simply put, have pushed batteries to make up for the
customers seem to have invested every drop in solar PV orders. For many, storage
euro saved due to cheaper batteries into has become essential for survival in this
larger storage capacities. The increase in extremely regulation-driven market.
capacities of lithium-ion batteries from
Figure 4. Development of the average usable battery capaci- around 6kWh in 2015 to over 8kWh in 2018 Battery storage for commercial
ties of German HSS are depicted in Figure 4. buildings
A recurring question is the reason for While HSS can be seen as a typical
the ongoing HSS boom and one natural “emotional” B2C product, where profit-
answer seems to be their economic ability often is not a priority, business
benefit. By increasing self-sufficiency and leaders need to make economically
thereby reducing the monthly electricity sensible decisions when investing into BSS.
bills, the investment into a solar battery However, the diversity of possible applica-
should pay off within a few years. However, tions and the complexity of the individual
while HSS are often promoted to be a business models make it difficult to make
financially attractive investment, the reality general statements about the profitabil-
is more complex. With average investment ity of BSS in commercial and industrial
Figure 5. Purchase motivation of home storage systems in costs exceeding €1,000/kWh and typical environments. To allow a first understand-
Germany. annual usages of fewer than 250 cycles, ing of the potentials and challenges of this

revenue streams and further reduce their

amortisation time.
Battery storage for balancing

services
For a stable operation of our power grids,
the generation and consumption of
electricity must be in balance at all times.
Yet, this balance is regularly upset: failures
of power plants and transmission lines
or forecasting errors of renewable power
generation can lead to a sudden over- or
undersupply of electricity. In such cases,
balancing services such as frequency
control or reactive power management
come into play to keep the grid frequency
and voltage within a given range until the
regular operation is restored. Traditionally,
Figure 6. PV installation on a commercial building large generators such as coal-fired power
plants performed these services. However,
market segment, two examples are briefly electricity demand. This use case can be decreasing numbers of fossil-fueled power
outlined in the following. particularly interesting if the company’s plants in our grids spark the demand
electricity price has a significant power for new suppliers. BSS are promising
Increasing solar self-consumption The component or if new loads are added assets for providing balancing services
combination of PV and battery storage that cannot be covered by the existing due to their extremely fast response,
is also an option for commercial build- grid connection. As an example, Figure good scalability and quick deployment
ings with suitable roof surface areas. 7 shows the load profile of a small data time. Although often considered a new
Depending on the system sizing and the centre located in the German state of and upcoming application, utility-scale
individual load profile, up to 50% of the North Rhine-Westphalia. The data centre BSS for grid services are nothing new. In
electricity consumption can be provided is connected to the medium-voltage grid 1986, a 17MW lead-acid battery plant was
through decentralised clean generation. and has an annual peak load of 122kW installed in Steglitz, Germany, to supply
However, complete self-sufficiency from and an annual electricity consumption of frequency control to the then isolated
the grid is usually not feasible due to the 581MWh. According to the grid operator’s (and notoriously unstable) electricity grid
low irradiation values in the autumn and cost tables, annual savings of more than of West Berlin. What is new are the scales
winter months. In addition, the payback €1,000 can be achieved by reducing the and timelines of such BSS projects. In 2017,
periods of these systems usually greatly company’s peak load by 12kW (blue line Tesla built a 100MW/130 MWh container-
exceed the expected service life of the in Figure 7). Using a holistic simulation of ised lithium-ion storage system in Australia
battery storage systems. Nevertheless, different energy storage systems it can be within just three months. Compared to the
many large international corporations shown that a lithium-ion battery of only long planning horizons of transmission
are working intensively on this use-case 8-12kWh would be sufficient to realise grids, this is almost unimaginably fast.
as part of their efforts to increase the use these savings, allowing an amortisation The most important markets for utility-
of sustainable energies and reach their period of about six years. Because the scale BSS in Europe today are Germany and
self-set CO2 reduction goals. Furthermore, battery is only used a few hours of the the UK. In Germany, more than 450MW of
large solar batteries can also be used as a year, additional revenue streams, such as large-scale BSS went online over the last
means to mitigate blackouts or reduction providing balancing power to the grid, can five years. Most of these projects are in the
in supply quality (so-called “brownouts”). be tapped (so-called multi-use or value- range of 5-15MW with storage durations of
Especially for manufacturing companies stacking). By operating flexibly in different about 1.5 hours and operate in the market
even a temporary drop in grid voltage can business models, BSS can optimise their for primary control power (“Primärregel-
lead to considerable follow-up costs. In leistung”). Primary control power is the
paper mills, for example, a brownout can fastest balancing service in the UCTE
lead to multi-day production stoppages, grid and similar to the (dynamic) firm
as the machines need to be cleaned after frequency response in the UK. Together
an unscheduled interruption. Compared to with a handful of other countries, Germany
the potential financial damage of such an is responsible for supplying about 750MW
event, the investment in a battery storage of primary control power to the grid. The
system is often the more cost-effective service is auctioned in daily tenders of
option. 1MW increments at the energy exchange
(EEX) in Leipzig. In order to participate,
Reduction of peak loads Due to their market players need to be able to ramp
Figure 7. Load profile of a data centre in Germany. Annual
extremely fast response times and good savings of more than €1,000 can be realised if the peak demand up to their nominal power in less than 30s
scalability, BSS are ideal for reducing peak is reduced by 12kW (blue line) and sustain a constant power output for

system stability can already become an operations must be coordinated in the

issue: due to a sudden shutdown of a shortest possible time.
gas-fired power plant and a large wind
park in Wales, lights went out for almost Summary
1 million households in early August (see Stationary BSSs are at the edge of profit-
p.114). Increasing amounts of utility-scale ability in many market segments today
BSS can prevent, or at least mitigate, the and will play a crucial role in enabling the
effects of such events by bridging the next phase of the international transi-
power gap until new generation units go tion towards renewable energies. The
online. Accordingly, the UK already intro- practical insights into the operation of
15 minutes, requirements easily met by Figure 8. duced a new ultra-fast balancing service in grid-connected battery systems gained
modern lithium-ion batteries. Development of 2016. The so-called Enhanced Frequency today will also help us to manage growing
Still, BSS might have been just too prices for provid- Response (EFR) requires service providers quantities of electric vehicles in our grids.
ing primary
successful too quickly. The entry of large control power in to ramp up to their nominal power in less We can be curious to see which innova-
numbers of BSS into the market for primary Germany [5] than one second, the most demanding tive applications BSS will open up in the
control power since 2013 turned the conditions for a balancing service, world- coming years.
energy sector upside down and eventually wide. The national grid operator accepted
diminished their own business case. The eight tenders totaling 201MW of capacity References
rapid increase in new market participants at a committed cost of £66 million over [1] BloombergNEF, “Energy Storage Outlook
2019” (2019)
flooded the market with cheap biddings. four years with batteries winning contracts [2] International Renewable Energy Agency,
Between 2013 and 2017, the number of hands down. National Grid expects to “Electricity Storage and Renewables. Costs
and Markets to 2030” (2017)
weekly bids for supplying primary control return an economic benefit of £244 million
[3] J. Moshövel et al, Analysis of the maximal
power increased by 1,400%. At the same in avoided costs over the duration of the possible grid relief from PV-peak-power
time, prices were cut in half, making the contracts [7]. impacts by using storage systems for
increased self-consumption, Applied
business case successively less attractive. In addition to providing balancing Energy, 137, 567-575
In the first half of 2019, weekly volume- services, plummeting costs of lithium- [4] K.-P. Kairies et al: “Market and technology
development of PV home storage
weighted prices fell to an all-time low of ion batteries open up new use cases for systems in Germany”, Journal of Energy
€1,300/MW per week. As other potential stationary storage system. One particularly Storage, 23, 416-424
[5] Regelleistung.net – platform for the
revenue sources for utility-scale BSS with interesting market segment lies in BSS with
auction of control reserve, (online)
short discharge times, such as providing a duration of about four hours. Combina- [6] National Grid, “Future Energy Scenarios”
black start capability or reactive power to tions of such storage systems with renew- (2018)
[7] National Grid, “Enhanced frequency
the grid, are not established in the market able energies, especially PV, are increas- response (EFR)”, (online)
yet, many new projects for this market ingly used to replace gas-fired power
segment of BSS have been shelved. One plants to meet the peak demand. Another
major obstacle to the development of potential use case for multi-megawatt Authors
new business cases for utility-scale BSS is battery storage systems might be evalu- Dr. Kai-Philipp Kairies
regulation. Today, battery storage systems ated in Germany soon. In just a few years, is the head of technical
are considered electricity consumers when massive BSSs with nominal powers of up consulting at the Chair for
in charging mode, and generators when to 500MW could be installed in Germany Electrochemical Energy
Conversion and Storage
discharging, forcing them to pay some to support the transmission grids and
Systems at RWTH Aachen University.
levies twice. While the government has enable the faster expansion of renewable His research focuses on the opportuni-
promised to rectify this issue soon, many energies while at the same time phasing ties of grid-connected storage systems,
legal and operational questions remain out coal and nuclear power generation. optimal charging strategies for electric
open. Three of the four German transmission grid cars and future developments in rural
electrification. He worked as visiting
As an island grid, the UK’s energy operators have submitted applications to
scholar at the University of California,
system has a higher demand for balanc- the German grid regulator to test so-called Los Angeles (UCLA) and acts as a con-
ing services than other countries. While grid boosters, battery storage systems with sultant to several governmental and
Germany is well connected to its neigh- a total capacity of 1.3GW. These battery intergovernmental organisations.
bours, with roughly 40GW of cross-border systems – shortly speaking – add an extra
Jan Figgener and David
trade capacity at 80GW peak demand, the layer of security to the transmission grids
Haberschusz work as
energy exchange between the UK and its and allow a higher utilisation of existing research assistants in
neighbours is limited. With higher shares power lines. Thereby, transmission capaci- the research group “Grid
of renewable power generation, new ties can be increased by more than 30% in Integration and Storage
flexibility options are needed to compen- some cases. In the event of a failing substa- System Analysis” at RWTH
Aachen University. They are
sate the lack of transport capacities. The tion, for instance, BSS can take over until
responsible for the national
system operator of the UK, National Grid, the grid operator completes a redispatch. monitoring program for
calculated that, in order to reach the UK’s At the same time, however, the use of grid home storage systems as
carbon reduction targets, more than 6GW boosters presents grid operators with new well as various research and develop-
of electricity storage are required until challenges, as it requires a more complex ment projects focusing on the use of
modern battery storage systems in
2026 to support the grid integration of network automation. In the event of a
power grids.
renewable energies [6]. But even today component failure, numerous switching

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Go big, go DC
Storage system architecture | New technologies and designs aimed at driving down the cost of
energy storage facilities are currently the focus of intense industry R&D. Sara Verbruggen reports
on DC coupling, an emerging system architecture that many believe will soon become the industry
standard
A
s the costs of solar PV modules both PV and batteries connected to the
continue to reduce, and those of grid via one multiport inverter, a configura-
batteries follow a similar downward tion more common in behind-the-meter
trajectory, solar-plus-storage is in growing DC-coupled systems. But one of the disad-
demand among utilities and solar develop- vantages for the front-of-meter market has
ers. been the cost of multiport inverters.”
The US is leading the trend, where these The newer variation of DC architecture
Credit: Dynapower
types of clean energy power stations are that has emerged for front-of-meter solar-
starting to produce electricity competitively storage, which Gupta is referring to, is a
with gas peaking plants, especially when DC-DC converter. This piece of hardware is
other revenue streams from grid services tied to the batteries and connects to the PV
are factored in. A DC-coupled In DC coupling, the co-located solar inverter along with the PV array, allowing for
To further push down the levelised cost battery at Duke and energy storage assets share the same a single interconnection only.
Energy’s Mount
of energy (LCoE) of solar-plus-storage and interconnection, are connected on the same
Holly test site.
maximise the amount of megawatt hours Expectations DC bus and use the same inverter. They are Reduced capex
(MWh) of solar-generated electricity that are high that DC dispatched together as a single facility. DC Since interconnection can make up
can be fed into the grid, energy suppliers coupling will help coupling reduces efficiency losses, which anywhere between one fifth to over a third
drive down solar-
and developers are turning to direct current occur when electricity current is converted, of BoP costs, DC coupling can help reduce
plus-storage costs
(DC) coupling these installations. such as from DC to AC (Figure 1). these costs. Co-locating different assets, be
Compared with alternating current (AC) According to Wood Mackenzie analyst it solar and storage, solar and wind or solar,
coupling, DC coupling the PV array and Mitalee Gupta: “Hybrid approaches wind and storage, will always reduce BoP
the battery storage system in front-of- emerged in the past where you would see costs, compared with a standalone installa-
meter installations, such as utility-scale
plants, is a much newer, less standardised AC/DC Inverter
approach. This had led some US utilities Solar Array
to begin piloting these configurations to
see how the technology performs. On the Grid
supply chain side, balance of plant (BoP)
equipment manufacturers are delivering
more standardised and simpler to use
power electronics equipment for enabling
DC-coupled plants.
DC- versus AC-coupled solar-plus-

Battery
storage
AC/DC Inverter
In AC-coupled solar-plus-storage installa-
tions there are two inverters, one for the PV
array and another for the battery energy
Grid
AC/DC Inverter
storage system. Solar Array
With this system configuration, both the
battery and solar array can be discharged
at maximum power and they can be
dispatched independently or together,
providing the operator with more flexibility Figure 1.
in terms of how they operate and dispatch Co-located solar
the asset. Located at the same site the solar and storage
array and energy storage facility can either systems, in
AC-coupled (left)
share a single point of interconnection to and DC-coupled
the grid or have two separate interconnec- Battery
(right) configura-
tions. tions DC/DC Converter

cover story STORAGE SPECIAL STORAGE
tion of a solar or wind plant, simply through with AC coupling as an ability to capture
DC microgrids
sharing costs associated with land acquisi- a greater amount of clipped solar energy,
tion or leasing, labour, project management Growth in solar and other distributed generation as well as combined with a higher round-trip efficien-
energy storage has helped fuel demand for microgrids, which
and permitting. cy (charging to discharging). However, it
can offer buildings and communities power resiliency.
The US National Renewable Energy According to Eaton’s distributed energy segment leader acknowledges that AC coupling approaches
Laboratory (NREL) estimates that by 2020, EMEA, Louis Shaffer, by adding a smart operating system are better known and understood. As both
BoP costs for co-located DC-coupled solar- over the top of integrated distributed generation and loads, projects continue, NextEra says it will adapt
to create a microgrid, minimises overall peak demand, so the
plus-storage will be 40% lower and those its assumptions.
main grid becomes a source of back-up only.
for AC-coupled solar-plus-storage will be Losses can be significantly reduced in DC microgrids, Dynapower has also supplied its DC-DC
30% lower. compared with AC. Clean distributed generation sources, converters to pilots undertaken by Duke
including solar, batteries and also wind turbines, generate Energy. They include an installation at
DC power, while loads, such as certain types of machinery,
Business case for clipping recapture Duke’s premises in Mount Holly, North
appliances, LED lighting and computing devices, run off DC
According to analysts IHS Markit, return power. The growing availability of critical components, like Carolina, as part of a microgrid, which
to stronger global solar growth in 2019 is DC-DC converters, is simplifying design and development of includes a 150kW solar array coupled to a
occurring, driven by declining PV module DC microgrids. 240kW/122kWh Total (Saft) battery system
Shaffer sees decarbonisation of cars and transport as a key
prices, which have fallen by 32% on average with Dynapower’s 250kW DC-DC converter.
driver for DC microgrids. Since electric car chargers run on
in the past two years, while average PV DC power, EV charging could become a significant load for a This August, Duke Energy will commis-
inverter prices have also been falling, by building complex or campus that dedicates a percentage of its sion another DC-coupled solar-storage
18% over the same period. As the cost car parking area to charging. “So, the rationale increases then installation using alternative battery
for designing a microgrid based on DC architecture,” he says.
of modules continue to come down, DC chemistry at its McAlpine facility, also in
Dynapower’s marketing director Richard Morin says the
coupling becomes increasingly advanta- company is seeing growing interest for its DC-DC converters North Carolina. Eos Energy Storage has
geous when designing a solar-plus-storage for different types of microgrid applications. “DC coupling supplied a 30kW/120kWh energy storage
plant, in order to outsize the plant’s solar loads and generation eliminate efficiency losses. We are system, based on its aqueous, zinc battery
having early stage conversations with companies in various
capacity. technology, which is integrated with
industries, from manufacturing to mining.”
Eos Energy Storage business develop- Dynapower’s DC-DC converter technology.
ment manager Philippe Bouchard says: “As Dynapower marketing manager Richard
well as capturing more cheap solar energy programme, an owner of a solar-plus- Morin says: “These projects are exciting
for sending to the grid, you also have a storage system comprising a 3MW PV because, until now, what’s slowed the flood-
dispatchable power plant and are able to array, a 2MW (AC) PV inverter, which is DC gates for DC-coupled solar-plus-storage
maximise its output too. Power is being fed coupled to a 1MW/2MWh energy storage is that it presents a new technological
into the grid in the morning, in the day and system, will be able to capture 265,388kWh approach to doing these types of projects,
in the evening.” of clipped solar energy annually, resulting in but with these pilots utilities are putting the
One company that has done modelling US$1.5 million of additional annual revenue, benefits of DC-coupled architecture to the
around clipping recapture is US power compared with an AC-coupled solar- test, ahead of wider adoption.”
electronics company Dynapower. Through storage system. The return on investment is To expedite the rollout of DC-coupled
its activity in the energy storage business estimated to be 5.6 years. solar- plus-storage projects in the future,
during the past 10 years, the company Dynapower is partnering with large,
saw the advantage of DC coupling, before Pilots global manufacturers of central inverters.
developing conversion hardware to enable Dynapower has worked on several pilots “We are kind of behind the scenes with
these types of installations. Dynapower with utilities that are first movers in doing our converter. We have designed it to be
launched the first DC-DC converter aimed DC-coupled solar-plus-storage installations. compatible with different PV inverter makes
at the utility-scale solar-plus-storage market These include NextEra and Duke Energy, and pave the way for more plug-and-play
in 2018. which have deployed the company’s DC-DC type offerings, so we are in the process
In AC-coupled solar-plus-storage converter technology. now of partnering with global suppliers of
configurations optimal PV inverter loading In the Citrus project in DeSoto in Florida, utility-scale PV inverters, including SMA,”
ratios are around 1.30 for the PV array (DC NextEra subsidiary Florida Power & Light says Morin.
rating) to 1.0 for the inverter (AC rating). has installed a 4MW/16MWh lithium-ion One often-cited disadvantage of doing
Using the example of a 100MW AC inverter battery system DC-connected to a PV array, DC-coupled projects is that the batteries
connected to a 130MW DC solar array, the which has been in operation since late 2018. have to be installed in a distributed way
plant’s output is 100MW, resulting in many The utility is comparing the benefits of the throughout the solar array, compared
megawatt hours of clipped energy annually. Citrus facility against a 10MW/40MWh AC with an AC coupled installation where one
Connecting energy storage to the PV coupled solar-storage plant, Babcock Ranch, central container of batteries is installed.
array by DC coupling allows for the PV-to- in Charlotte County, also in Florida. While it is technically possible to do a
inverter ratio to be significantly increased, In these pilots NextEra is interested in DC-coupled central battery storage system,
and output otherwise clipped and lost how storage paired with a PV facility can it would entail a high number of long cable
in the more conventional AC-coupling capture a portion of the solar megawatt- runs, making it more practical to co-locate
approach is used to charge the battery. hours that are clipped during peak solar the batteries with the central inverters
According to financial and technical output hours for delivery to customers later distributed throughout the installation.
analysis undertaken by Dynapower for in the day. Gupta says: “If a site is space constrained,
DC-coupled solar-storage under the Solar The utility sees the advantage of it may be better to do AC coupled. With
Massachusetts Renewable Target (SMART) DC-coupled solar-plus-storage compared DC coupling, blocks of energy storage are

distributed over the site and are connected (BMS) and DC solar array operating together projects, on DC-coupled designs. Most
to blocks of storage.” to deliver maximum, dispatchable energy clients of Fluence are at the stage where
Other perceived disadvantages of DC when called upon. this is their first DC-coupled solar storage
coupling, compared with AC-coupling, In most cases, all these components, project, indicating the market is still at an
include increased connection costs. Opera- including Eos’ own BMS, use the same early phase.
tions and maintenance costs could also be communication platform and what is Bouchard says: “As the US is by far the
impacted, if technicians spend time getting known as SunSpec communication biggest market for solar-storage, naturally
to and checking or working on various protocols, which have been developed by it is where DC coupling is happening first.”
battery containers spread over a solar field. an alliance of solar and storage distributed In five years’ time, he thinks it will be more
However, Morin says: “We have found energy industry companies, including SMA, widely deployed in US and also in other
that in speaking with our customers they NexTracker, Engie, Fronius and NEC partici- markets.
prefer containerised distributed batteries pants, to support system interoperability. “We are seeing interest in India, Australia
for safety and risk mitigation. By distributing While there is ongoing development and especially Middle East, where you need
the batteries, if there was a thermal event, it work required in the EMS space to optimise a large solar-storage plant able to cover the
would be contained to the singular battery dispatch according to contract or market evening load. In domestic terms interest is
container, reducing the scale of the event requirements, Bouchard says that getting growing in south-west US and also Califor-
and loss of battery assets.” these systems to ‘talk’ to each other is not nia, as well as North Carolina, which is one
He adds: “Additionally, the types of difficult. of the fastest growing solar states in the US.”
large-scale solar installations that we are “Once you’ve done it the first time, you Bouchard says the company is supply-
discussing typically do not require a lot can leverage the interface development and ing a DC-coupled solar-storage project
of maintenance. The economic advan- register mapping to replicate and scale for in a market outside the US, though won’t
tages of the DC-coupled approach, such much larger projects,” he says. provide further details at this stage.
as improved roundtrip efficiency, reduced According to Wishnick, specifics Morin says Dynapower is seeing
installation cost and clipping recapture of individual projects are influencing global interest for its DC-DC converter
capability, far outweigh any additional costs decisions on whether to DC- couple or not. for DC coupling solar and storage, noting
for maintaining multiple battery structures.” “Site layout, interconnection costs and Australia in particular, where electricity
considerations can all have an impact on market changes are facilitating demand for
Demand drivers for DC coupling whether DC coupling or AC coupling is the DC-coupled solar-storage plants.
According to Fluence Energy’s managing best approach to take,” he says. He is bullish about the prospects for
director Daniel Wishnick, the US is the only Fluence is working with several custom- DC coupling. “In the next five years it will
market where DC-coupled solar-storage ers, mainly developers of front-of-meter, be mainstream. If you look at the market
is in demand at present. “These types of ground-mounted solar-plus-storage research up to 2025, that is the trend.
installations are tax-advantageous,” he says,
referring to the federal investment tax credit
SolarEdge readies for rise in demand for DC coupling in
(ITC).
residential solar-plus-storage
Gupta says that even with the ITC
stepdown in 2021, DC coupling demand Another market where DC coupling is seeing more
will continue as the industry becomes more demand is in the residential PV market, where
adding batteries increases self-consumption of
comfortable with these types of projects
solar-generated electricity.
and look to optimise revenues from clipping According to SolarEdge founder Lior
recapture and other streams. Handelsman, DC coupling behind-the-meter
“The number of integrators and working solar and batteries for residential markets results
in more energy production and increased return
on DC-coupled projects is growing, includ-
on investment, because there is only the one
ing Fluence, GE and Greensmith, while more conversion to AC after energy is discharged from
vendors are launching DC-DC converters the battery. AC coupling requires three conversions.
and DC-integrated solar-storage solutions in “The reduced number means increased efficiency
and energy loss is minimised,” he says.
the past 18 months. That said, at this stage
Depending on upfront costs, AC coupling can
the market has not achieved the same level make more sense when retrofitting an existing PV
Credit: SolarEdge
of standardised, or ‘plug-and-play’ systems system to include energy storage. But, Handelsman

that AC-coupled projects benefit from,” says: “DC coupling is becoming increasingly popular
as more new PV systems are initially being installed
Gupta says.
with a battery. This is due to decreasing PV and
Regarding integration, Bouchard points battery costs, increasing electricity prices and
out that the real development work being evolving incentive structures.” DC coupling residential
done with these first projects is establish- DC coupling also provides a number of other solar and batteries results in
benefits. “A DC-coupled system requires only one more energy production and
ing the code and control interface to allow
inverter, which means simpler installation and increased return on investment,
a system of components to interoperate reduced costs. Additionally, one inverter to manage according to SolarEdge
seamlessly. the system means functionality benefits, such as
“In a typical DC-coupled solar-plus- simpler synchronisation and coordination of advanced features,” he adds.
In addition, a DC-coupled solar and battery installation allows the system owner
storage project, you have the AC inverter,
to use PV power above the inverter rating and the inverter does not limit power, in
DC-DC converter, energy management other words act as a bottleneck for the power flow due to energy conversion.
system (EMS), battery management system

Initiatives for California to

overcome its challenges in the sun
Technology | California’s success in embracing renewable energy technologies, particularly solar,
has brought with it challenges around reliability of supply to consumers. Janice Lin and Jack Chang
of Strategen explore how the Golden State is pioneering the deployment of energy storage as it
pursues its goal of complete energy decarbonisation by 2045
C
alifornia is embracing energy
storage as a reliability solution
for an electrical grid that’s
adopting more renewable, intermittent
generation. Public agencies such as
the Los Angeles Department of Water
and Power have set ambitious energy
storage targets while companies across
the state are developing cutting-edge
storage technologies such as zinc-air
batteries and renewable hydrogen. The
goal is to ensure a dependable energy
supply for the state as it races toward
its target of 100% carbon-free energy
by 2045.
For more than two decades, California
has overcome a series of unforeseen
challenges that have threatened to
Credit: Doosan GridTech.

derail the state’s transformation to
clean, reliable energy. Whether it was
cheap natural gas challenging the
economics of renewables or California’s
push to implement the country’s tough-
est auto emissions standards, state
policymakers have untangled regula- A planned 20MW battery energy into the market and then retreats.
tory and economic clean energy knots storage system project for LA Depart- Visually, instead of the smooth,
ment of Water and Power with Doosan
years before other states or countries almost lazy “U” of diminishing and rising
GridTech
were even aware of them. In doing demand, the state now rides a daily roller
so, California reduced carbon dioxide coaster as millions of solar cells begin to
emissions by 13% from 2004 to 2016 generation over the past nine years in generate power in the morning and then
while its economy grew by 63%. the state has exacerbated that curve by taper off production in the late afternoon
With the ramp-up of renewable steepening its slope over the course of – just as households turn on their TVs,
energy generation, one of the trickiest the day as ever more solar energy floods washing machines and other appliances.
challenges bedevilling state policymak-
ers has been how to supply reliable
energy to consumers despite the inter-
mittent nature of solar, wind and other
forms of renewable generation.
The California Independent System
Operator, CAISO, christened this pattern
the “the Duck Curve” to describe the net
electricity demand they must serve after
Source: Strategen
netting out daily solar and wind energy

generation. The resulting net load has
a regularly recurring daily dip and rise
that looks like a duck. The addition of Modelling of daily net energy demand in California sees what CAISO christened the ‘duck curve’ become
20,000 megawatts of new renewable even more steep.

that promise and have already created million to support commercialisation of

promising new storage technologies as the next generation of energy storage
well as a successful regulatory frame- technologies. Focusing on diverse
work for enabling energy storage in all battery chemistries, innovative energy
its diverse forms. Storage is transforming management software, as well as thermal
California’s power sector while helping and mechanical storage technologies,
the state achieve its ambitious clean the CEC aims to deploy storage that will
energy policy goals. meet a variety of use cases. Addition-
We at Strategen present here a ally, this past April, the commission
shortlist of public and private energy awarded US$11 million to four energy
Source: Strategen
storage initiatives in California that we storage technology research projects in

believe have a good shot at bringing its latest round of its BRIDGE, or Bringing
more reliability to the grid. Taken as a Rapid Innovation Development to Green
whole, efforts of both state agencies Energy, project. The commission funding
and companies are working with supported an electric vehicle charging
lots of creativity and daring to make and energy storage programme from
widespread energy storage a reality: Natron Energy, a zinc battery storage
project from Eos Energy Storage, a
Public initiatives large-scale sulphur thermal battery
In 2018, Sacramento lawmakers went demonstration project from Element 16
all-in on clean energy by passing Senate Technologies and a redox flow battery
Bill 100, which requires 100% of the from UniEnergy Technologies.
state’s energy come from carbon-free
sources by the end of 2045. That legisla- Private sector
Source: Strategen
tion has spurred cities across the state Companies across California are tackling
to incorporate storage in their energy the storage challenge with the same
plans, the most notable example coming type of scrappy start-up spirit that has
from the Los Angeles Department of reshaped the technology sector, and by
The Duck Curve over the course of a week in May 2017 (actual) Water and Power’s Green New Deal. L.A.’s extension, the world. The research and
and May 2030 (predicted) shows ‘icicles of opportunity’ on the ambitious initiative calls for increasing development action is happening at
grid. cumulative energy storage by 18% to as more established companies as well such
much as 1,524MW. It also identifies and as the Malta molten salt energy storage
Viewed on a weekly or monthly scale, prioritises solar and microgrid backup project launched at Google X, the tech
the dramatic peaks and valleys of this power projects at municipal facilities, giant’s “Moonshot factory.” Paired with
peaking power profile appear something streamlines permitting and intercon- forward-thinking policy coming out of
like multiple stalagmites rising from a nection processes for energy storage Sacramento, the conditions are right for
cavern floor. projects and launches pilot technology real storage breakthroughs.
for dispatchable and customer-side
At the leading edge – of a complex storage. Hydrogen
energy problem Additionally, the state has launched Hydrogen fuel cells are already power-
The addition of thousands of megawatts a variety of incentive and pilot projects ing thousands of buses and cars all
of solar energy has not only made the supporting energy storage. over California, so much so that the
grid harder to manage, it has increased technology is often linked principally to
reliability on expensive, inefficient and SGIP transportation. That’s changing, however,
polluting natural gas peaker plants to By the end of 2017, the California Public as hydrogen is increasingly considered
meet the ramp, which has hampered Utilities Commission’s Self-Generation a potential long-duration, multi-day
greenhouse gas reduction efforts. Incentive Program had funded 1,768 and multi-energy storage solution that
So California once again finds itself at projects representing over 568MW can help flatten daily load. Companies
the leading edge of a complex energy of rebated capacity and supporting are experimenting with new ways to
problem, and its success or failure is technologies such as advanced energy produce hydrogen such as through the
likely to impact the renewable energy storage and fuel cells. Known as SGIP thermal conversion of garbage. Another
efforts of other states and regions and introduced to primarily support big opportunity is to convert water
around the world. That transition to a solar generation equipment purchases, to hydrogen gas and oxygen through
smoother energy profile requires storage the programme paid more than US$845 electrolysis by harnessing solar and wind
because of its core ability to take energy million in incentives for completed energy.
from one period and dispatch it when projects. As prices for solar and wind continue
needed in another period, freeing the to plummet, this cheap, abundant
grid from the constraints of renewables EPIC and clean electricity could produce
ramping up or down. The California Energy Commission has climate neutral (non-GHG) hydrogen
Leaders in both the state’s public already spent more than US$5 million gas at scales large enough to eventually
and private sectors have recognised and earmarked an additional US$30 displace natural gas in some cases and

Google’s Nest smart thermostat (and others)

will vie to become useful to the grid as well
as to the homeowners that install them.
Credit: Raysonho @Open Grid Scheduler/Grid Engine

even serve as a peaker resource. Renew- transform the fuel source as a high rechargeable zinc-air battery storage
able hydrogen could also come from volume and seasonal storage medium. systems as cheaper than lithium-ion
Mitsubishi-manufactured turbines that The state already requires that at least a systems – about US$100 per kilowatt
run on a blend of gas and hydrogen, with third of the hydrogen sold at California hour versus as much as US$500 per
the goal of running on 100% hydrogen stations be renewable. Building out kilowatt hour for lithium-ion batter-
within a few years. Such technology used that infrastructure at the needed scale, ies. NantEnergy is already installing
at scale could repurpose for renewable however, is seen as a potential challenge its battery systems in dozens of rural
hydrogen existing infrastructure such as to hydrogen playing a viable role in any communities in Africa and Latin America
gas pipelines and interconnections. state-wide storage solution. as a proof of concept. The company has
If the falling price trajectory of solar already raised more than US$200 million
and wind energy is any indication, Long-duration storage in funding.
renewable hydrogen has the potential to More renewable energy coming online The systems are often installed along
become economically competitive with will mean a growing need for long- with solar panel-powered microgrids run
natural gas-derived hydrogen. duration storage that can even out the by advanced monitoring systems that
That means renewable hydrogen intermittency of solar and wind genera- help users analyse and adjust generation
could displace gas use in industrial, tion and bring reliability to a renewables- and load profiles in real time to better
electric generation, agriculture, long- dominated grid. For grid operators, long- meet demand. The batteries use solar-
haul transportation fuels and other duration storage offers more flexibility in generated electricity to separate zinc
applications. To push the hydrogen ball integrating wind and solar energy gener- oxide into zinc and oxygen, with the zinc
along, the state’s Public Utilities Commis- ated during different times of the day. later combining with air when needed
sion is considering a new docket that That’s especially important as gas-fired to produce energy. For zinc-air boosters,
will analyse the feasibility of hydrogen generation makes up a smaller portion of the best argument in their favour is that
injection in the natural gas pipeline and state-wide generation and capacity. companies are already producing the
further define renewable hydrogen and Zinc-air batteries have received units, the technology has been deployed
its potential use as a storage as well as attention as a long-duration storage around the world and it has shown itself
a natural gas substitute. The California alternative with the high-profile growth to be a viable long-duration storage
Fuel Cell Partnership, a public-private of El Segundo-based NantEnergy and option.
group, argues that the state can lever- its leadership under chairman Patrick Google X spinoff Malta Inc is exploring
age its 60-plus hydrogen fuel stations Soon-Shiong, the billionaire owner of another long-duration storage pathway
in operation or in development to help the Los Angeles Times. NantEnergy touts with its pioneering use of heat-trapping

molten salt. The Malta process uses state’s three main investor-owned utili- gas and have them use electric appli-
renewable electricity to power heat ties – Pacific Gas & Electric, Southern ances instead. Electric water and space
pumps that store heat in molten salt and California Edison and San Diego Gas & heaters tapping an increasingly clean
cold in chilled liquid. When needed, a Electric – have taken the lead nationwide grid are seen as the linchpin to creating
heat engine converts the temperature in developing rate structures specifically carbon-free households. On top of that,
difference between the stored heat and to help electric vehicles charge when heat pump technology, when fitted with
cold back into electricity. The company electricity is cheapest as well as to help software that matches heating times
says the technology can store energy pay for electrical upgrades at residential with dips in energy prices, also make for
for more than six hours and be charged homes installing electric vehicle charging excellent energy storage devices that can
thousands of time before its perfor- infrastructure. store hot water for later use.
mance degrades. The simplicity of its Beyond charging, state planners are In July of this year, Google-owned
materials – salt, steel, anti-freeze and air studying electric vehicles as load- Nest announced it was pairing up with
– gives the system an estimated 20-year management and energy storage Leap, a San Francisco-based firm that
product lifetime. Malta CEO Ramya resources especially as the state’s EV runs a universal distributed energy
Swaminathan and principal engineer Raj fleet balloons. For example, smartly exchange. Nest’s smart thermostats will
Apte are scheduled to deliver keynote charging EVs system-wide during low deploy energy to meet demand response
addresses at ESNA on the future of long- energy-use periods alone could save the capacity on Leap’s exchange. Already,
duration energy storage. state US$1.45 billion to US$1.75 billion some 2,500 thermostats across the state
Other forms of long-duration storage in stationary storage investments that are turning on and off in response to
such as pumped hydro and compressed would otherwise be needed to meet energy price signals sent from the Leap
air require millions of dollars in infra- California’s clean energy goals. The exchange. Multiply those thermostats’
structure investment to operationalise, next step will be to encourage V2G, or numbers many times over and those
but that hasn’t stopped California Vehicle-to-Grid, policies and infrastruc- stalagmites of energy demand will really
utilities from jumping in. Pacific Gas & ture that can help EVs send power back start shrinking.
Electric (PG&E), the state’s biggest utility, into the grid. System-wide V2G balancing
is studying building a compressed-air capabilities would help the state avoid Forward movement with clean
storage facility in the agricultural San an estimated US$12.8 billion to US$15.4 energy
Joaquin Valley that would use energy billion in stationary storage investments. With these initiatives, California is
during low demand periods to inject air San Diego-based Nuuve is already tackling the challenges of building a
into sand deposits or other porous rock selling its patented V2G bidirectional AC more integrated, reliable electrical grid
formations. That air is then tapped to and DC charging stations that ensure that makes full use of renewable genera-
spin turbines and generate electricity vehicles have enough charge to complete tion and energy storage. Public agencies
when demand is highest. trips and also let them sell energy back are creating the incentives and regula-
Further south, the Los Angeles Depart- to the grid if the price is right. Nuuve is tory framework that can inspire private
ment of Water and Power is already collaborating with auto giant Honda to companies to invest in and develop the
operating a pumped hydro system in demonstrate the viability of such vehicle latest solutions to long-duration storage,
the Los Padres National Forest above grid integration. demand management and other pieces
the L.A. basin that pumps water from of the reliability puzzle.
Castaic Lake 7.5 miles uphill to Pyramid Household appliances Many of these programmes and
Lake during low demand times. When Taken individually, a water heater or a technologies will be on display at Energy
the electricity is needed, the system home thermostat doesn’t make a big Storage North America Conference &
releases the water back into Castaic Lake impact on total energy load. Together, Expo (ESNA) in San Diego on November
where turbines await. The department however, millions of residential devices 5 to 7, 2019. In its 7th year, the event is
is looking at implementing a similar switching on or off in unison could be a celebrating innovation in energy storage
storage system at the Hoover Dam. real game changer. That’s the idea behind alongside government leaders of Califor-
moves both in the public and private nia and Germany, two of the world’s
Electric vehicles sectors across California to get thermo- most clean energy-forward places, as it
With more auto manufacturers shifting stats, heaters and other appliances into hosts the California-Germany Bilateral
to the electric vehicle market, successful- the storage and demand response game. Energy Conference.
ly integrating all those Teslas, Bolts and For example, California lawmakers are
Leafs into a dispatchable grid promises trying to transform millions of electric Authors
enormous benefits. As usual, California water heaters across the state into Janice Lin is the founder and managing partner of
is leading the way, having already set a both mini-energy storage devices and Strategen Consulting, where she brings more than
goal of putting 5 million zero-emission replacements for natural gas-generated two decades of experience in clean energy strat-
vehicles on the road by 2030 and install- heat. Last year, the state Legislature egy, market development, and corporate strategy.
ing 250,000 electric vehicle charging passed State Bill 1477, which dedicated
Jack Chang works with Strategen’s consulting
stations by 2025. The state’s utilities have US$200 million over four years to help team helping with analysis, regulatory research,
also been mandated to develop targeted advance low-carbon space and water project and business development support and
EV plans establishing clear guidelines heating technologies. The big-picture other duties in energy regulation and policy. Jack
for charging by residential, commercial goal is to decarbonise residences across is also project manager for the Climate Impact Lab
and the Global Policy Lab at UC Berkeley.
and industrial vehicles. As a result, the the state by weaning them off natural

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The Clean Energy Package

is here – now what?
EU policy | The EU’s clean energy policy framework for the first time recognises energy storage as
a key part of the future energy system. It is far from perfect, but lays the foundation for storage to
become an integral part of efforts to decarbonise the energy system, writes Brittney Elzarei
O
nly 10 years ago, the value of hydro storage, power-to-gas, power-to-
energy storage for the energy heat, liquid air, batteries, supercapacitors,
system was not at all recognised flywheels and others. This technology-
by European Union policymakers. In the neutral definition ensures that both current
Third Energy Package, the 2009 package technologies and those that may be
of EU energy legislation, there was no developed in the future are covered by the
mention of energy storage. In an energy legislative framework.
system and regulatory framework built Second, the Clean Energy Package
Credit: Belectric
around the traditional assets of generation, clarifies the important issue of regulated
transmission/distribution and consump- entities owning and operating storage
tion, energy storage was seen as a rather facilities. As a general rule, transmission
unimportant niche technology. and distribution system operations (TSOs
Just as the energy storage market has and DSOs) should not own and operate The role of energy via aggregators.
grown in leaps and bounds, the thinking storage, unless they are considered “fully storage facilities Although the CEP is a significant step
in providing grid
of policymakers across the EU has evolved integrated network components”. However, forward for the industry, it does not
services is more
since then. The European Commission in situations where there is no market clearly defined in address all of the issues that are holding
now recognises that “Energy storage has a party willing to build a storage device, the the Clean Energy back storage deployment. For instance,
key role to play in the transition towards a National Regulatory Authority (NRA) may Package energy storage will require at least some
carbon-neutral economy, and it addresses introduce a derogation. Prior to the CEP, investment certainty in the form of long-
several of the central principles in the Clean the lack of clarity on ownership of storage term contracts for storage services. Yet
Energy for All Europeans package” [1]. held back the development of storage the CEP limits the duration of balancing
This package of legislative and devices; addressing this point therefore services, which could reduce investment
non-legislative proposals, commonly represents an important step forward. certainty. This means that there are ever
referred to as the CEP, ushers in a new era The CEP also focuses on the evolving fewer longer-term revenue streams on
for the energy storage industry. The CEP for role of TSOs and DSOs more broadly: which storage operators – and investors
the first time in EU law formally recognises TSOs and DSOs must consider energy – can rely.
energy storage as one of the key players in storage in their network planning and are Another key issue is that grid fees, taxes
the energy system and seeks to address the encouraged to move towards market- and tariffs applied to energy storage may
main barriers that have hampered storage based tendering of flexibility services as an be higher than on other devices, as storage
deployment. alternative to grid expansion. This will allow is sometimes taxed when ‘consuming’
energy storage to access more revenue electricity and then again when ‘generat-
Clean Energy Package: game streams, building a more robust business ing’ electricity. This point is not adequately
changer for storage? case and creating a level playing field addressed in the CEP, since taxation
The CEP is undoubtedly positive for the between the different flexibility options. remains an EU member state competence.
storage sector. By establishing a binding In addition, the CEP emphasises the
renewables target of 32% by 2030 – along changing role of consumers in the energy Beyond the CEP: new policy initia-
with targets for renewables in transport, system. Instead of being passive players tives and challenges for storage
heating and cooling – the package sets in the energy system, consumers can Although the CEP addresses some of the
a high level of ambition that can only be choose to play an active role, deploying key high-level principles that are needed
achieved with the widespread deployment renewables and storage and participating to formalise the role of energy storage and
of flexibility solutions such as storage. in different electricity markets. The package ensure access to new revenue streams,
Within the CEP, the recast Electricity formally recognises the right of “active there are many more topics that are still up
Directive and Regulation tackle some of customers” and “citizens energy communi- for discussion.
the most pressing challenges for storage ties” to own and operate energy storage One key challenge is that the implemen-
technologies. First of all, they establish a devices. These customers and communities tation of the CEP provisions may not be
definition for energy storage that covers should be able to offer the flexibility of uniform across all member states. Some
all of the different technologies: pumped their storage devices to the grid, including markets that are now closed to energy

storage technologies (for example, the still ongoing, as the growing number of and losers among the technologies. For
Czech Republic, which does not allow EU Member States that support a target instance, significant attention is paid to
stand-alone grid-scale storage facilities to of net-zero emissions by 2050 have been li-ion batteries and hydrogen, potentially
be built), may still lag behind in terms of blocked by a minority. There is also a shutting out some of the other promising
implementing the package. Urging govern- debate about potentially revising the energy storage technologies that will be
ments to implement the CEP as quickly as 2030 greenhouse gas emissions reduction needed for the energy transition.
possible is therefore a key priority in order targets to reflect a higher level of ambition. Not only is the diversity of energy
to have a harmonised EU market. For behind-the-meter storage, there are storage technologies not considered,
While CEP implementation is important, ongoing discussions in various member but also the diversity of services storage
there are also many new EU policy initia- states about the grid fees and tariffs can offer is difficult for policymakers to
tives that can benefit storage. Next year, that customers should pay, and several take into account. This is noticeable, for
the Commission is expected to propose countries and regions are considering instance, when looking at the modelling
changes to the EU’s gas legislation. The incentive schemes for storage behind-the- used by EU policymakers to support the
‘Gas Package’ will cover a range of gas meter. Another interesting development 2050 targets, or the discussions around the
market design issues, notably the role of is the Smart Readiness Indicator [4], one Smart Readiness Indicator for buildings.
power-to-gas. Definition of renewable and of the proposals contained in the Energy Since the European elections in May,
low-carbon gases, guarantees of origin and Performance of Buildings Directive (part new members of the European Parliament
certification schemes will have an impor- of the CEP). European policymakers are have come to Brussels, and a new College
tant impact on the storage sector [2]. currently defining the methodology to of Commissioners is being formed to take
Over the past two years, there has assess the smart readiness of buildings, up its activities in November 2019. There is
also been a flurry of Commission activity which will include measuring the ability no guarantee that these policymakers will
focused on supporting the batteries sector of buildings to provide flexibility to the continue the positive efforts of the current
in Europe. Commissioner Maroš Šefčovič, grid and support electric vehicle charging. Commission – and, to a lesser extent, the
vice-president of the European Commis- Deployed alongside energy performance European Parliament – when it comes to
sion in charge of the energy union, has certificates, the smart readiness indicator energy storage.
repeatedly emphasised the strategic of buildings could be a valuable way to Continued engagement with policymak-
importance of a strong EU value chain communicate the added value of smart ers at the local, regional, national and EU
for batteries. At his initiative, a European energy technologies – including energy level is therefore essential to ensure that
Battery Alliance was established to storage – to consumers. they understand the complexity of the
enhance collaboration between industry Finally, there are also developments energy storage business case and the many
and policymakers. This has led to a number related to DSO-TSO cooperation, for different services that energy storage can
of other activities including a proposal for example to define new services such as provide – and should, ideally, be remuner-
sustainability criteria for batteries, a battery congestion management that could be ated for. Industry and policymakers must
working group in the European Parliament, provided by services, and around the EU work together to design smart and effec-
and additional funding for battery R&D electricity network codes. The revision tive policies to ensure that energy storage
projects. of the grid connection codes to include can reach the levels needed to achieve the
This year the European institutions have battery storage and other storage technol- 2030 and 2050 decarbonisation targets.
also been debating the EU’s 2050 strategy ogies (of which currently only pumped
for greenhouse gas emissions reductions. hydro storage is included in the codes) is
The Commission’s proposal, issued in an important step that could help create References
November 2018, envisaged that power a more harmonised regulatory framework [1] European Commission Website, August 2019: https://ec.europa.eu/
generation be fully decarbonised by 2050, for storage across the EU. energy/en/topics/technology-and-innovation/energy-storage
with a share of variable renewables in gross [2] For more information on this topic, please see EASE’s
Recommendations on Certification of Renewable and Low-
electricity generation of 81-85% [3]. What’s next for storage? Carbon Hydrogen, published May 2019, at http://ease-storage.eu/
The Commission’s analysis of the differ- While the CEP is a big success for the recommendations-on-certification-of-renewable-and-low-carbon-
hydrogen/
ent options to reach this target underlined storage industry, now is not the time to [3] European Commission Communication “A Clean Planet for All” and
the vital role of energy storage: stationary rest on one’s laurels. As the energy storage the In-Depth Analysis, published November 2018, available at
https://ec.europa.eu/clima/policies/strategies/2050_en/.
storage use is expected to increase from industry matures, and as the energy [4] See https://smartreadinessindicator.eu/
about 30TWh today to 70TWh in 2030 and transition accelerates, engagement with
170-270TWh in 2050 to achieve 80% green- policymakers will be essential to ensure
Author
house gas reductions compared to 1990 that the right policies are put in place to
levels. This is a massive increase in energy support storage deployments. A few key Brittney Elzarei is senior policy officer at EASE, the
storage deployments, which will require risks are worth mentioning, which could European Association for Storage of Energy. Since
significant investments in the sector. derail some of the advancements made in joining EASE in 2016, she has supported the associa-
tion’s advocacy efforts and activities across a range
However, this analysis only considers recent years.
of topics: energy storage technologies, applications,
some storage technologies and does not One risk, as highlighted above, is the business cases, R&D needs, storage in the EU electricity network
quantify the flexibility that can be provided tendency of EU policymakers to discour- codes and the ‘Clean Energy for All Europeans’ Package. Prior
by behind-the-meter storage or – poten- age longer-term contracts for flexibility to joining EASE, she worked in a Brussels-based public affairs
tially – smart charging and vehicle-to-grid services, which could reduce certainty for consultancy on projects in the agri-food and pharmaceutical sec-
tors. She obtained her degree in political science from the Free
solutions. energy storage investors. Another risk is
University of Berlin in 2012.
The discussion about this strategy is that policymakers tend to pick winners

Bankable and insurable energy

storage: a necessary next step
for renewable energy
Finance | The rapid acceleration in energy storage deployment expected over the coming years will
require innovation in the quality and safety standards underpinning new battery and associated
technologies. VDE’s Jan Geder looks at the technical work underway to ensure the coming storage
boom has firm bankability and insurability foundations
systems as battery systems can be placed

at three different levels: at distribution level,
at transmission level and behind the meter.
The latter, customer-sited and most decen-
tralised systems, are also capable of provid-
ing the largest variety of services to grid.
The case for bankable battery

energy storage systems
Projections for Germany [6] predict that
110-190GWh of energy storage systems
would need to be installed by 2050 in
order to meet energy transformation goals.
Based on nine different scenarios, this is
divided into 70GWh of pumped storage
and 40-120GWh of battery energy storage
Credit: VDE
systems, and excludes heat storage and

power-to-fuel systems. These storage
systems would be integrated in a grid with
R
enewable energy is taking up an [2]. According to Eurostat, the share of Stringent testing an installed capacity of renewables between
increasing share in the global energy renewables in European Union’s energy mix of storage 193 and 536GW, of which 122-290GW
technologies will
mix. Utilities, distributors and users of 2017 amounted to 17.5%, an increase by would belong to PV systems, according to
be critical to the
are facing the increased need to supple- two thirds since 2007 [3]. At the same time, sector’s future the same projections.
ment renewables with energy storage the share of renewable energy has been bankability Battery energy storage systems play a
systems to tackle the intermittency of these increasing in developing markets as well. significant role in future rural electrifica-
sources and ensure stable supply. Bankabil- This is particularly the case for PV systems, tion in developing countries. They are
ity and insurability of renewables, particu- which are set to break the 100GW milestone namely expected to enable deployment
larly photovoltaic systems, is nowadays of newly installed capacity in 2019 [4]. This is of renewable energy-based microgrids
a common concept with clearly defined driven mainly by rapid growth in the devel- where photovoltaic system would play
criteria and processes. As the viability and oping markets of Latin America, Middle East the major role in power generation.
availability of energy storage becomes the and Africa. Reliable battery systems would therefore
crucial factor in further growth of renew- Increasing solar capacity and its share eliminate the need for costly infrastruc-
able energy generation, it is necessary to in the overall electricity mix requires an ture investments aimed at connecting
ensure bankable and insurable solutions increase in energy storage capacity. This remote and insular areas to the grid.
for deployment of energy storage systems. is due to the intermittent nature of solar Furthermore, efficient and sustainable
This article explores the status and outlook irradiation, which rarely corresponds to microgrids would reduce the current
for bankability and insurability of battery required grid demand in real time. A 2015 dependency on diesel generators and
energy storage systems. report by the Rocky Mountain Institute their sensitivity to the logistics of the fossil
Recent years have seen a stellar rise in lists 13 different services that battery fuel supply chain and its price volatility.
the generation of electricity from renew- energy storage system can provide to the Both cases mentioned above face the
able sources. In the first half of 2019, 47.3% grid [5]. These services can be provided to challenge of acquiring financing for the
of net electricity generation in Germany system operators and utilities, as well as to construction, commissioning and operation
came from renewables [1], an increase of end-customers. There is a clear distinc- of battery systems. At the utility scale, one
9.1 percentage points (23.8%) since 2017 tion between centralised and distributed expects to deal with large systems on which

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the reliability and stability of the grid shall manner may lead to much higher total
depend. In the case of microgrids, the global damages. It is therefore critical to devise
majority of potential implementation sites rigorous processes of safety and quality
are located in developing countries, where assurance in order to gain the confidence
the low purchasing power of consumers of insurance companies, banks and inves-
may hinder the initial investment. For both tors. As the track record of such processes
cases, it is therefore equally important to is yet to be established, it is critical that all
ensure high-quality technical foundations stakeholders get on board and enforce the
that help ensure the profitable operation best practices in design and operation of
of battery systems, which is crucial for battery systems.
enabling the financial sector to provide
financing products at reasonable conditions Development of technical criteria to
for these systems. support bankability and insurability
Figure 1. Price per manufacturing lines). However, the rate of The basic idea of bankability and insurability
What makes batteries different from kWh of lithium- price decline may slow down in the future is presented in Figure 2. Quality assurance
ion storage
solar panels? due to several factors: is understood as a wide range of measures
capacity adjusted
In the timeline of renewable energy to 2018 US dollars • Increasing price of relatively scarce aimed at securing the technical foundations
development, batteries are commonly seen [7] resources such as lithium and cobalt; for insurability and bankability of a project.
as the next big thing after the success of • Increasing demand for batteries from the Furthermore, it is important to recognise
PV at the beginning of 21st century. Cheap electric vehicle industry; that the quality assurance requirements
and reliable storage is believed to deliver a • Consolidation of the industry with a few of an investor or an insurer can go beyond
much-needed boost to the solar-powered globally dominant manufacturers. the requirements of a lender. There are two
renewables boom which is happening main objectives of quality assurance with
globally. To follow the successful path Parallel to improvements in energy regards to project economics and financing:
of PV deployment, battery storage also density and price declines, there has also 1. Understanding, mitigation and control
needs to become bankable, insurable and been a shift towards safer lithium-ion of risks in order to make the residual risks
investable. Although adding battery storage technologies. Safety of lithium-ion cells of the project acceptable for insurers and
to the equation does not require us to has marginally improved since their first investors;
completely reinvent the ideas of bankability commercialisation in the 1990s, though 2. Performance and efficiency analysis,
and insurability, it is worth noting several there is currently still no such thing as a reviews and tracking to ensure
important technical aspects of batteries that “safe” lithium-ion battery. A state-of-the art profitability of the project.
affect and influence the financing decision- lithium-ion battery is a thermodynamically
making process for energy storage. meta-stable system whose failure modes The origins of technical risks in a
The most obvious distinction between may lead to grave consequences in the battery system can be divided into four
batteries and PV systems or wind turbines forms of explosions and fires. Recently, more major sources: components, system
is that batteries only store energy for later than 20 battery storage system fires made design, installation site and management/
consumption and do not generate power headlines in South Korea [8]. These incidents operation. They affect three crucially
themselves. The reality of bi-directional caused hundreds of energy storage interconnected system characteristics:
energy flows to and from battery systems systems country-wide to be suspended safety, performance/efficiency and lifetime.
requires careful dimensioning with regards from operation and inflicted millions Various risk sources require different
to expected load profiles on both the of dollars’ worth of damage to adjacent approaches to quality assurance. On the
charge and discharge sides. Energy storage facilities. Investigations conducted by local component level (e.g. battery module,
systems therefore need to be planned to authorities suggest that the fires were power conversion system), one can rely on
operate with regards to generation and caused by poor site management [9]. a large number of applicable international
consumption characteristics of the grid. This Figure 2. Such prospects raise the issue of insur- and national norms and standards, for
includes accounting for future upgrades Bankability and ability of battery energy storage systems to example IEC 62619 for battery modules,
insurability of a
based on the grid’s needs. a much higher degree than in the case of IEC 62909 for bi-directional converters
project in terms
On the costs side, there are further of cash flow PV systems – the tendency of lithium-ion and VDE-AR-E 2510-2 for battery systems
differences between battery systems and projection batteries to catch fire in an uncontrollable intended for low-voltage grid connection.
PV systems. “Lithium is not silicon” is an Component conformity is the cornerstone
oft-invoked saying when the long-term of quality assurance and the very founda-
price prospects of lithium-ion battery tion of risk management. Basic compo-
systems are discussed and compared to the nents, such as cells, modules and auxiliary
last two decades of price development for systems (e.g. cooling systems, monitoring
PV modules. In fact, the lithium-ion cell price systems) shall be tested and certified to the
per kilowatt-hour dropped 85% between above mentioned standards. However, with
2010 and 2018, with an average annual increasing levels of component complex-
decline of 20%. This happened mainly due ity, design reviews are gaining importance
to technical improvements on the product as a supplement to pass-or-fail tests. This
side (higher energy density electrodes) is particularly true for components such as
and the process side (larger, more efficient the battery management system or energy

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involvement of financial institutions will

become indispensable to provide the
necessary financing and insurance for
storage systems. Testing, inspection and
certification institutions and technical
consultants are developing processes and
criteria to secure technical foundations
for bankability and insurability of battery
systems. In this case, the experience and
progress with PV bankability and insur-
management system, which are critical for following practices into their processes: Figure 3. ability can serve as a basis and reference
functional safety. • A guideline of compliance requirements Visualisation of point.
risk sources and
Going beyond components, the and best practices for designing, installing As was the case with PV systems in
affected system
complexity of quality issues surpasses the and managing battery energy storage characteristics the past, many challenges lie ahead
pass/fail dichotomy of the standards and systems; on the way to establishing a track
related tests and reviews. As the publication • A criteria catalogue or checklist based on record for reliable quality assurance for
of relevant international standards, the guideline that enables evaluation of energy storage systems. Well-known
such as those from the International each system considered; safety issues of lithium-ion systems
Electrotechnical Commission (IEC), lags • A procedure of inspections of system and the related pricing develop-
behind the need for quality assurance on sites, preferably conducted by independ- ment are perhaps the most pertinent.
the ground, one needs to increasingly rely ent engineers, to regularly evaluate risks On the other hand, there are many
on empirical “best practices” and other arising from the above-mentioned risk opportunities to capitalise on the
tailored criteria. With these, overall system sources. lessons learned. Furthermore, battery
design and the battery system installation energy storage may become even
site can be evaluated. The described process of defining more economically attractive with the
Finally, it is important to look at how the the criteria is visualised by the “VDE concept of repurposing used batteries
battery systems are managed on a day-to- Quality Pyramid” as seen in Figure 4. The from electric vehicles for stationary
day basis. This includes keeping the system fundamentals (first level) are the standard storage (i.e. second-life applications).
and its environment consistently in proper market entry criteria in the form of nation- Needless to say, this concept will again
condition, conducting regular maintenance, al or international standards. These make require stringent quality assurance
adhering to plausible risk management sure that core components are compliant and risk management tailored to the
principles, and implementing strict control with basic regulations, but do not always application.
of documentation and record-keeping for follow the state-of-the-art developments
the system. With proper practices, system in the market. Therefore, the test/evalu-
risks are kept under control even as the ation criteria are expanded to address
References
system ages with time and inevitably requirements of the highly competitive [1] Burger, B. 2019, “Stromerzeugung in Deutschland im ersten
Halbjahr 2019”, report by Fraunhofer ISE, www.ise.fraunhofer.de/
decreases in performance. market and industry, rather than only content/dam/ise/de/documents/publications/studies/daten-zu-
There are several best practice those from the legislator/regulator point erneuerbaren-energien/ISE_Stromerzeugung_2019_Halbjahr.pdf
[2] Burger, B. 2017, “Power generation in Germany – assessment
documents and norms dealing with various of view (second level). At the top level, of 2017”, report by Fraunhofer ISE, https://www.ise.fraunhofer.
individual segments of the above described tailored criteria are introduced to address de/content/dam/ise/en/documents/publications/studies/
Stromerzeugung_2017_e.pdf
processes. However, taking into account the the specific requirements and purpose of [3] ec.europa.eu/eurostat/statistics-explained/index.php/Renewable_
lessons learned from bankability in the solar the project/system. energy_statistics#Renewable_energy_ produced_in_the_EU_
industry, it is important to take a holistic increased_by_two_thirds_in_2007-2017
[4] Heggarty, T. and Attia, B. 2019, “Global solar PV markets: Top 10 trends
view of quality assurance for the entire A look into the future of financially to watch in 2019”, report by Wood Mackenzie Power & Renewables
system and project. A stakeholder that is sound battery energy storage [5] Fitzgerald, G., Mandel, J., Morris J. and Touati H. 2015, “The Economics
of Battery Energy Storage”, report by Rocky Mountain Institute
looking to secure technical bankability As the demand for safe and reliable energy [6] Henning, H.-M. and Palzer, A. (2015), “What will the energy
and insurability through quality assurance storage steadily follows the increase transformation cost?”, report by Fraunhofer ISE
[7] Bloomberg New Energy Outlook 2019: https://about.bnef.com/new-
would be best advised to implement the in renewable power generation, the energy-outlook/
[8] http://www.koreatimes.co.kr/www/tech/2019/05/133_268188.html
[9] http://www.koreaherald.com/view.php?ud=20190611000679
Authors
Jan Geder is a chemical engineer with extensive
experience in energy storage and lithium-ion bat-
teries. His main focus is consulting and managing
industrial R&D projects for various clients. In 2016,
he and his team successfully spun off their academic
research lab to become a commercial R&D and testing facility.
Since 2017, Jan has served as head of energy storage systems
at VDE Renewables Asia, and leads the VDE’s Energy Storage
PrimeLab in Singapore.
Figure 4. The VDE Quality Pyramid concept

Batteries need to be ‘renewable’

too: why recycling matters now
Recycling | The huge upsurge in lithium-ion battery deployment expected over the next two decades
poses a problem: what to do with cells that have reached the end of their useful life. Stefan Hogg
investigates the importance of lithium recyling in the transition to a low carbon energy system
The growing quantities of li-ion batter- collection supply chains for some analo-
ies being placed on the market accelerates gous industries such as lead-acid battery
the urgency with which the world must recycling are well established and mature
find an economically viable, commercial- by comparison, the li-ion battery recycling
scale recycling solution for end-of-lifecycle supply chain continues to be fluid.
li-ion batteries to be recycled at a ‘mega’ Spent li-ion battery sources can be
scale. This article will take a closer look at broadly segmented into portable/’small
some of the challenges that exist today format’ and ‘large format’, which corre-
within the li-ion recycling sector and sponds to the relative voltage of li-ion
where opportunities exist to overcome the batteries (i.e. low voltage and intermediate
current roadblocks. to high voltage, respectively). Each of these
types of batteries has a diverse group of
Credit: Li-Cycle
Li-ion recycling industry challenges stakeholders – from manufacturers, to the

Feed sourcing dealer network, recycling programmes,
Secondary resource recovery (i.e. electronics and vehicle recyclers. In the
recycling) has a set of unique operational context of the energy storage sector, its
I
n 30 years since commercialisation, Output shred challenges that need to be addressed own diverse group of stakeholders exists
lithium-ion (li-ion) batteries have been product from concurrent to the development of an – battery technology provider, energy
the first stage of
used in an increasingly diverse range of economic, advanced technology. For the storage integrator, project developer and
Li-Cycle’s resource
products, starting from early generation recovery process purpose of recycling, feed materials are asset owner. Managing the inherently
handheld electronics to powering cars typically inherently distributed, making heterogenous nature of li-ion batteries
and buses. Additionally, these batteries it difficult to collect a high volume of from a wide range of stakeholders remains
are increasingly sought after for utilisa- feed for a processing plant. Although the a central challenge for companies in the
tion in energy storage applications, often li-ion resource recovery industry.
paired with renewable energy genera-
tion. The continued decline in battery Logistics and regulations
prices combined with the global trend Li-ion batteries are currently classified as
toward energy grids being powered by Class 9 Dangerous Goods due their dual
renewable energy sources is predicted to chemical and electrical hazard. Li-ion
increase the world’s cumulative energy batteries can possibly undergo thermal
storage capacity to 2,857GWh by 2040 runaway, typically resulting from internal
[1], a substantial increase from the current shorting, leading to fire or explosion.
capacity of ~545MWh [2], according to There are numerous factors that can cause
recent estimates by Bloomberg New thermal runaway, including but not limited
Figure 1. Global cumulative li-ion battery storage deploy-
Energy Finance. ments. Source: BloombergNEF to overcharging, environmental condi-
These staggering projections paint an tions (e.g. extreme external temperatures)
encouraging picture for how prominent and manufacturing defects. At the onset
li-ion-driven energy storage applications will of thermal runaway, the battery heats
become in the future as the world increases in seconds from room temperature to
its usage of renewable, clean energy sources above 700°C. As part of this complex set of
to power energy grids worldwide. Driven chemical reactions, the electrolyte solvent
increasingly by electro-mobility as well as in lithium-ion batteries – typically alkyl
grid-scale energy storage applications, the carbonate-based – acts as a ‘fuel’ source for
volume of li-ion battery cells being sold is combustion.
set to surge. The graph in Figure 2 contex- Added care must also be taken when
tualises the relative volume (in tonnes) of handling critical or damaged/defective
new li-ion battery cells forecasted to be sold Figure 2. Global lithium-ion battery cell sales, 2008 to 2025. batteries as there is an increased risk of
through to 2025. Source: Bloomberg and Circular Energy Storage, 2018 thermal runaway. Specialised systems (e.g.

Genius Technology’s LionGuard container storage and other applications is set

for intermediate to high voltage lithium-ion to increase steadily over the next two
batteries [3]) are typically used in tandem decades, underscoring the necessity for a
with non-flammable packing material to sustainable end-of-life pathway for these
safely transport these batteries. As the batteries both now and into the future.
overall volume of li-ion batteries increases, Li-Cycle is on a mission to leverage its
the quantity of critical or damaged/defec- innovative solution to address an emerg-
tive batteries is expected to increase across ing and urgent global challenge. Li-ion
a broad swath of applications. batteries are increasingly powering our
As the li-ion battery resource recovery world and there is a need for improved
Figure 3. An example li-ion battery composition. Source:
industry is still maturing, regulations vary Diekmann et al technology and supply chain innova-
significantly around the world. These tions to better recycle these batteries,
regulations can also change significantly batteries presents a unique challenge and to meet the rapidly growing demand
from year to year, as new industry and compared to traditional primary metal for critical and scarce battery-grade
research reports are released. As a result, it resources due to the highly heterogene- materials. Scalability, low-cost, safety
is important to keep close track of regula- ous nature of the feed material. Currently, and environmental sustainability are
tory (including logistics) considerations there are at least 14 different types of li-ion core tenets of commercialising Li-Cycle
concurrent to process development. battery cathode chemistries currently Technology. In turn, Li-Cycle seeks to
existing in the market [4], each of which enable the global transition to electro-
Safety and storage has even further permutations when mobility and reduce greenhouse gas
The challenges of logistics and changing considering specific constituents. With emissions worldwide.
regulations typically revolve around one traditional metal resources the primary Lithium-ion batteries will continue
key factor – safety. Safety is paramount concentrate stream might have one to to electrify our world, now and into the
for those who handle, transport, store four elements to be recovered (e.g. copper, foreseeable future. As a key driver of the
and process li-ion batteries, as there is gold, silver and platinum). Li-ion batteries transition away from a carbon-based
a risk of thermal runaway. This raises may however contain over 20 elements economy, li-ion batteries are integral to
another unique challenge for processors that demand consideration for recycling as the opportunity to drastically reduce
and consolidators, relative to the primary illustrated by the example composition in greenhouse gas emissions worldwide.
production of commodities and specialties. Figure 3 [5]. However, to ensure a truly positive
Specifically, the safest approach is to have In addition, the metal values are impact over their lifecycle, we must
the lowest amount of spent li-ion batteries typically contaminated with inorganic ensure a closed-loop system is in place
on site as possible, in order to mitigate the materials, organic materials and plastics, to safely handle and recycle spent li-ion
risk of a thermal runaway event occurring. further complicating the recycling batteries at scale. This will enable the
However, this is contradictory to the require- process. To be able to separate out the reintegration of critical battery materials
ment to secure significant amounts of feed valuable constituents typically requires into the li-ion battery supply chain and
for processing purposes. The development complex process flowsheets with many the broader economy, while prevent-
of safe storage is further complicated by the individual unit operations. Under this ing negative environmental and safety
currently prominent format factor of spent scenario, it is critical that the physi- impacts.
li-ion batteries, i.e. portable/small format cal test-work required to develop the
batteries (e.g. from mobile phones, laptops process flowsheet is well focused and
and other consumer products). Portable driven by techno-economic analysis.
References
li-ion batteries are typically consolidated Li-Cycle is one company with a strong
[1] Munuera, Luis (2019) Energy Storage – Tracking Clean Energy
in drums and could be mixed with other focus on technology for resource recov- Pro gre s s h t t p s : / / w w w. i e a . o rg / tc e p / e n e rg y i n te gr a t i o n /
battery types. ery of end-of-lifecycle li-ion batteries. energystorage/
[2] Bloomberg New Energy Finance (2018) Energy Storage is a $620
Upon an initial inspection, the state of all Since incorporation in 2016, Li-Cycle Billion Investment Opportunity to 2040 https://about.bnef.com/
collected batteries within a single drum is has developed and validated a unique blog/energy-storage-620-billion-investment-opportunity-2040/
[3] Genius Group (2019) https://www.genius-group.de/en/products/
not always clear (i.e. whether undamaged or process to recover 80-100% of all li-ion genius-transport-containers/. Accessed 28 August 2019.
damaged) and often only becomes appar- battery constituent materials using a [4] Nitta N, Wu F, Lee JT, Yushin G (2015) Li-ion battery materials: present
ent when the drums are tipped for sorting two-step mechanical and hydrometal- and future https://www.sciencedirect.com/science/article/pii/
S1369702114004118. Accessed 10 September 2018
or processing. As a result, strict protocols lurgical system. This advanced resource [5] Diekmann J, Hanisch C, Frobose L, Schalicke G, Loellhoeffel T, Folster
must be implemented regarding the pallet/ recovery process, alongside concentrated AS, Kwade A (2017) Ecological recycling of lithium-ion batteries from
electric vehicles with focus on mechanical processes Journal of The
container spacing, total storage density and efforts focused on battery sourcing Electrochemical Society 168 (1): A6184-A6191
application of appropriate fire suppression from various supply chain players and
systems within any li-ion battery storage a continuous prioritisation of safety,
space in order to mitigate the risk associated are fundamental elements supporting Author
with thermal runaway and fire Li-Cycle’s goal of global commercialisa- Stefan Hogg works in business development and
tion of Li-Cycle Technology. operations for Li-Cycle, a Canada-headquartered a
Secondary resource processing clean technology company on a mission to solve
the global end-of-life lithium-ion battery problem
challenge Opportunities and future outlook
and meet the rapidly growing demand for critical
From a process development standpoint, It is evident that the global volume battery materials.
the recovery of constituents from li-ion of li-ion batteries deployed in energy

Market watch
Can US double-up on
bifacial in wake of tariff
reprieve?
Bifacial | The US announced an exemption from Section 201 trade tariffs in June. But with a limited
bifacial project pipeline in place and questions around supply, will the ruling really open the door to
the technology? John Parnell investigates
I
n mid-June, the US solar industry
scored a lobbying victory, winning an
exemption for bifacial modules from the
Section 201 trade import tariffs. The move
hands an advantage to a nascent technol-
ogy with little track record in the US.
With the phase-out of the investment
tax credit (ITC) imminent, many developers
are keen to build out as many megawatts
as possible. The question is whether the
most efficient way to do that is to stick to
tried and tested monofacial panels or twist,
and bank the rearside power, while the
exemption offsets the price differential.
The exemption is an effective 25%
discount versus standard modules affected
by the tariff. From February 2020 that will
fall to 20% before dropping to 15% in 2021
and lapsing entirely in 2022.
To take advantage though, developers
Credit: John Parnell

will need to be ready now.
“I’m only aware of one operational
[bifacial] project in the US, the Southern
Oak project in Georgia,” says Xiaojing Sun, a
senior research analyst, at Wood Macken-
zie. “The sentiment I feel talking with our ing regular solar projects and they are A LONGi bifacial was involved in the efforts to win the
clients, and a lot of our clients are EPCs and confident that bifacial solar projects can be array. The US has exemption. He describes the process, and
an opportunity to
developers, is that a lot of companies are financed through tax equity,” says Sun, who ongoing lobbying work, as unpredictable.
embrace bifacial
looking at [bifacial] but Georgia Power was expects debt providers to be a little more solar technology “The current administration is more of a
the first mover. cautious. Despite that, the developers she thanks to recent wildcard than administrations of the past.
Southern Oak was grid connected in has talked with are making plans now. tariff exemptions It’s important to note that the lobbying
February with LONGi’s bifacial modules “A lot of the projects our clients are for this didn’t start six months ago, this is
used. The finance arranged will largely considering would be coming online as a piggyback on some of the original trade
ignore the rearside power in the early early as next year and we could see a lot cases surrounding import duties. It’s been
years of the project’s life, before a in 2021. The developers I’ve talked to are ongoing for some time,” reveals Liardon. “It
‘re-mortgaging’ of sorts, once project- comfortable with the technology.” was less a case of a laser-focussed target
specific data has been gathered on those on this as a possible exemption versus
rearside kilowatt hours. The exemption going after a number of exemptions and
“Two tax equity investors I’ve spoken Gary Liardon is COO at Petersen Dean’s this being the one that landed.
with don’t really think of it as being that roofing and solar consumer division. “Other exemptions are ongoing but
different from a regular monofacial solar As a board director of the US Solar we don’t have huge confidence that we’ll
project. They have many years build- Energy Industries Association (SEIA) he get other exemptions, particularly around

Market watch
China, which is being targeted with duties. on utility-scale solar. That’s the main appli- levelised cost of electricity (LCOE): “I think
The exemptions are more about specific cation and where the excitement is that that means we’ll see a lot of mono-PERC,
countries than specific products. The real we hear from our clients. The utility-scale that’s the sweet spot; I’m not so bullish
headway there is if we can get exemptions market will be 6-7GW this year and higher about bifacial in China without the Top
but also to make sure tariffs aren’t applied again in 2020,” she says. Runner programme, however.”
to countries that don’t have them today,” “You need to keep in mind that there With solar products from mainland
he adds. is also a step-down in the 201 tariffs and China facing section 201 and section 301
With no substantial capacity for bifacial by the end of four years they will go away tariffs, Sun expects some existing mono-
cells or modules in the US and certainly completely. That means the advantage of PERC capacity in Southeast Asia to be
none to speak of during time period that the exemption can only last two and half converted to bifacial.
“harm” was measured for the previ- years then we’re back to a level playing “It is not a very difficult process, it can be
ous trade tariffs, opening the door to field. But I think those two years are done in two to four months. The exemp-
bifacial modules makes sense. Domestic enough for utility-scale developers to jump tion came out in mid-June and we’re likely
manufacturing damage is minimal and US on the opportunity as those two years also to see from 2020 more bifacial products
developers can exploit the benefits of the coincide with the ITC step-downs and the in the US from Chinese companies that
emerging technology. rush to build.” can circumvent both 201 and 301 tariffs,”
“The industry is still tiptoeing around says Sun. That would bolster the volume
bifacial,” says WoodMac’s Sun. “The majority China: shifting supply, sagging available to the US market where suppliers
of those [projects] that have been built are demand could expect to receive a higher price than
in China via the Top Runner programme. Tackling the supply problem that Song at home.
They were incentivised. That means a lot of highlights requires a more in-depth look But the US won’t have an entirely clear
the project knowhow is in China and the not in the US but in China. run at that capacity. Sun says the biggest
US is a relative newcomer. When things are With China’s old subsidy regime pipeline for bifacial projects right now
new it’s reasonable for people to demon- sidelined, support for bifacial solar is now is in Latin America. If those are financed
strate a little caution.” minimal. The new system saw develop- and shovel ready before US projects, they
With the exemption in place and the ers bid for a premium over and above the might find themselves at the back of that
ITC sunset, Sun believes the stars could be benchmark price in each area. With the queue. Bifacial projects are finding their
aligning nicely for an initial rollout that will result not out until earlier this summer, way onto rooftops in Malaysia, the green
pave the way beyond 2022. they face very tight construction deadlines fields of England’s North West and sections
“The next two years we’ll see it become before automatic step-downs in the of the massive Benban solar park complex
that bit more normal to developers and support they receive begin to chip away at in Egypt. Momentum is growing and the
financiers. It could pave the way for the project economics. US has an opportunity to embed bifacial
normalisation of bifacial post-2022,” she Sun expects this will see developers knowhow and build a bank of project data
suggests. looking to balance capex and high perfor- in good time for the potential end of the
“The more bifacial products there are mance but not adopting a pure focus on ITC. It should grab it with both hands.
the more comfortable people will be with
the technology, even after the 201 tariffs
Bifacial rooftop prospects looking up
have gone,” she says. The question of how
much gain to factor in from the rearside is Rooftops are not the obvious place for bifacial modules to make an early mark but PetersenDean’s Gary Liardon
a nice problem to have. Sun says if devel- believes there is an opportunity brewing in California.
From 2020 all new homes in California will need to include solar one way or another. The combination of
opers and lenders can build confidence in
smaller plot footprints and changing preferences in architectural style is opening the door to bifacial modules.
a gain of even 5%, it will represent great “From a roofing efficiency standpoint, it’s driven by design,” explains Liardon. “The traditional Santa Barbara-
progress. style housing has moved towards something more contemporary, sleeker lines, and that lends itself to these
In the immediate wake of the exemp- very simple rooflines, so were seeing more use of low-slope roofing with this reflective membrane and perhaps
small portions in tiles. But the trend is for the primary functioning part of the roof to be low-slope.
tion, Joe Song, director of project
operations at developer Sol Systems was
Credit: PetersenDean
not confident of an immediate bump for

Roofing & Solar
bifacial.
“It’s important to note that just because
an exemption was put in place, it will not
result in a sudden increase in product
availability for the next nine to 12 months.
We still face a supply-constrained market,
which means pricing is unlikely to drop
meaningfully,” he told PV Tech in June.
But Sun believes that as the utility solar
market swells in the US, and the new
Chinese subsidy regime kicks in, there are
opportunities for bifacial.
“The bifacial exemption from the 201
The door is opening for bifacial modules on solar rooftops in California
tariffs will have a pretty significant impact

Market watch
Latin America’s moment

in the sun
Emerging markets | The global solar boom is taking foreign players to Brazil and Mexico but the
journey may not be for the faint hearted. Approached by José Rojo, operators of Latin America’s top
two markets are keen to dispel myths of a region they say entails risks but also opportunities
Credit: Scatec Solar
Despite political headwinds, PV in Brazil continues to enjoy

high-level support, reflecting its huge potential in the country
“W
ith PV panels we will spend come to office with an open mind, to hear standing in the eyes of global solar, already
zero … and we will still what is actually going on and act based busy making major inroads – from Light-
inject the surplus energy on technical knowledge, not political source BP’s 1.9GW to Solatio’s 7GW – in a
into the grid … This is a very smart project influence.” market that doubled installed PV capacity
and a very welcome one.” Asked to identify Decisions to date do suggest solar to 2GW-plus last year. “Solar’s future looks
which Latin American head of state uttered is warmly viewed among those Sauaia very bright in Brazil,” says Sauaia. “The shift
these words in 2019, few Western solar describes as “deep-knowledge electricity in the following decade will be significant.”
observers would likely guess it was Brazil- specialists” in the government. Bolsonaro Faith in solar’s
ian president Jair Bolsonaro. The former has so far found the time to cut the red cost-cutting Political curves ahead for Mexican
army captain who threatened to withdraw ribbon of a floating PV plant in the potential has solar
made an industry
Brazil from the Paris Agreement on climate northeast, personally spearhead a scheme Some 7,000 miles to Brazil’s northwest,
champion of
change, build an Amazon highway and where solar will power a major water green sceptic Jair the headlines faced by Mexican solar are
expel foreign green NGOs is also, it turns transfer – see the statements opening this Bolsonaro decidedly bleaker. Last year’s rise to power
out, an outspoken champion of one of the feature – and amend the so-called A-6
world’s key low-carbon technologies. power auction scheme to ensure solar
To those raising their eyebrows in disbe- can take part. “It’s a clear result of the new
lief, local solar body ABSOLAR urges to look mindset,” says Sauaia. “The government
again. When PV Tech Power catches up with saw that adding PV [to A-6] would reduce
the association’s CEO Rodrigo Sauaia at tariffs for end consumers.”
Credit: Palácio do Planalto/Flickr
Intersolar 2019, he is keen to bust a “myth” Solar’s average prices of BRL67.48/MWh

he says remains apparent. “Some of the (around US$17.5/MWh) at the separate
people I meet talk about Brazil’s tough renewable-only A-4 tender, held two
politics after the elections,” he says. “There months after the A-6 inclusion, can only
may be scepticism with climate policy but have strengthened Bolsonaro’s faith in PV’s
this is a liberal government interested in cost-cutting potential. The vastly oversub-
efficiency and competitiveness. They’ve scribed auction further cemented Brazil’s

Market watch
of left-wing president Andrés Manuel expensive” – has been “ideological” in its

Lopez Obrador – widely known under the approach. However, he says his firm has
AMLO acronym – was followed this year not witnessed the reopening of any old
by the cancellation of Mexico’s renewable auction contract by CFE despite its promis-
auction, a core pillar of the energy reform es in that direction. Making good on its
enacted by his pro-market predecessor threat could land the utility into trouble,
Credit: Atlas Renewable Energy

Enrique Peña Nieto. The move by state-run Nieto-Vázquez says. “One of the president’s
utility CFE in April to re-open auction priorities is ensuring power prices remain
contracts it said it had been “forced” to low,” he adds. “If by trying to reconquer
enter did little to dispel the misgivings of power generation and transmission CFE
renewable players. is unable to offer competitive tariffs, there
Some on the ground are feeling the will be problems.”
bite of political volatility. The comings and
This year’s linking of Atlas’ auction-backed 129MW Guajiro
goings of Mexico’s energy policy – from Auctions will only take you so far
solar plant followed Mexico’s decision to put further tenders
statist approach to liberalisation, followed on hold Despite their seemingly disparate political
by an abrupt standstill – are written all outlooks, Brazilian and Mexican solar face
over the double-digit-megawatt pipeline 130MW, EDF’s 119.6MW and Risen a shared obstacle – project finance – on
a certain firm has tried, without success, Energy’s 117MW, the list of utility-scale their way to mass-scale success. However
to deploy for years. Approached by PV ventures marking building and funding eye-catching, auction victories do not
Tech Power, the firm explains it bought milestones so far this year shows shovels guarantee funding: at a respective 5.2GW
the schemes in the mid-2010s but failed are ploughing on ahead regardless of who and 4.3GW, Brazil and Mexico ranked first
to reap auction contracts as the projects occupies Mexico City’s Palacio Nacional. and third on this year’s BloombergNEF
could not outcompete larger, clustered One of the latest newsworthy moves – the global charts for countries with the largest
rivals. The ensuing expiry of interconnec- powering-up of Zuma Energia’s 162MWp volumes of auction-backed renewables
tion permits pushed the pipeline into a La Orejana – took place with a minister in in need of finance. Argentina (2.7GW)
development limbo, the firm adds. attendance. Has AMLO’s power – or indeed and Chile (2.6GW) placed fourth and fifth;
“We’ve tried to get a deferment but his will – to undo renewable progress India, second with 4.7GW, was the only
authorities, especially the CFE, have been overstated? non-Latin American top-five entry.
refused,” says a project manager at the Marco Nieto-Vázquez, partner and That financing is the one fly in the
developer. “If the deadline had been director of economics at Baker McKenzie ointment of an otherwise promising Latin
extended, it’s likely the projects would Mexico, believes some of the headlines American solar future is echoed by some
have been deployed as there was a written since last December are hyper- of the newcomers. Pablo Otin, CEO of
window in 2018, with huge investor inter- bolic. “This is like any other handover – a Powertis, a firm that entered Brazil in early
est in the market.” According to the firm, it new government comes in, halts things 2018, says the reliance on the country’s
is currently rethinking its strategy with its while prior policies are revised. It’s a learn- two main financiers, BNB and BNDES,
stranded pipeline, eyeing the possibility ing curve, where authorities are trying to can somewhat limit developers’ options
of finding a major final user. “But we’re understand the new dynamic,” he says. despite both banks’ “good work” in adapt-
still waiting as Mexico seems rather stuck “From our end, what we try is monitoring ing to a changing market. Volatility around
since the government change,” they add. what the government does, not what it currency – which CEO Otin describes as
“There’s not a clear outlook of how things says and so far I don’t see the dramatic one of Brazil’s defining features – compli-
might evolve.” change some talk about – on the whole, cates turning to foreign financiers unless
Nicolás Escallón of private equity outfit this energy market continues to operate they have the ability to transact in Brazil-
Actis similarly echoes the talk of uncer- as before.” ian reais, he adds.
tainty after the auction stalemate. “It’s Nieto-Vázquez plays down the actual Powertis, the sister business to Spanish
true there are currently elements that are impacts of the auction freeze. “It’s true group Soltec Trackers, is working on a
less favourable, and which are triggering there was a certain inertia carrying over 770MW AC/1GW DC solar pipeline in
uncertainty in the renewable sector,” the [from Peña Nieto’s auction calendar] but Brazil’s central region. According to Otin,
Mexico City-based energy director tells a new government has come in, with the the tentative plan is to start building
this publication on his way to the opening right, I expect, to revise things,” he argues. two clusters of 90MW in H1 2020, with
of 129MW Guajiro this summer, a PV plant He brushes off claims that the postpone- the remainder – including a 500MW
part of Actis’s Latin American platform ment will put sticks in the wheels of hub – following in 2021. Powertis, its CEO
Atlas Renewable Energy. “The impact Mexico’s renewable progress, noting that explains, steered clear of July’s renewable
was on the whole country. Auctions were arranging future tenders is compulsory A-4 tender after observing the auction
Mexico’s highly efficient way to grow for national electricity market opera- was small yet oversubscribed. Accordingly,
renewables at scale.” tor CENACE. “Auctions are the only way the firm’s participation in the A-6 tender
energy can be purchased to meet basic later in 2019 will be decided by how much
Debunking the worse-under-AMLO supply,” he says. “What we have now is a capacity is on offer, Otin adds.
narrative just a delay.” However large, the five other A-4 and
Political headwinds or not, Mexican solar The partner at Baker McKenzie A-6 auctions pencilled in until 2021 cannot
remains in ruddy health. From Engie’s concedes state utility, CFE – which this sate the global appetite for Brazilian
746MW to Neoen’s 375MW, Northland’s year branded solar and wind as “very solar. The numbers are dizzying: PV bids

Market watch
of 26.2GW were tabled for this year’s A-4 ity. Baker McKenzie’s Nieto-Vázquez says tions that the industry will be politically
auction alone, of which just over 200MW his firm has advised during various PPA safer in Brazil but the reality may be more
was awarded. As ABSOLAR’s Sauaia notes, negotiations – representing off-takers, for nuanced. Finding the time to open Zuma
official stats place Brazil’s technical solar the most part – at prices he describes as Energía’s 162MWp La Orejana PV plant
potential at an astounding 28.5TWh, “competitive”. Quizzed over timeframes, in mid-August, Mexico’s Energy minis-
178 times the size of the country’s entire the partner explains the deals seen to date ter Rocío Nahle stressed AMLO’s new
power matrix. Even if doubled to 2GW as remain fairly short-lived. “There’s often an renewable policy will not be “constrained,
ABSOLAR recommends, annual auction explanation, though,” he says. “Some firms compressed nor inhibited”, just “different”.
contracted volumes cannot hope to fill can self-finance and thus have little incen- Mexico will continue walking towards
that gap. Can a Latin American PPA revolu- tive for longer PPAs.” clean energy, albeit at a “responsible” and
tion save the day? Nieto-Vázquez does foresee trouble for “orderly” pace, Nahle added.
Mexico’s PPA scene if grids do not keep The clearest takeaway to emerge after
Cracking the Latin American PPA up with a swelling development pipeline. hours of conversation with local experts
code “Solar may be very competitive but if is that making the most of Latin America’s
Those still classifying Brazilian and transmission is not promoted at the same multifaceted solar markets will require
Mexican solar as “emerging” might find speed, energy prices will be high, impact- challenging one’s preconceptions. Inter-
that either market is, as far as the indus- ing on end consumers,” he says, pointing viewees acknowledge the region requires
try’s three-letter obsession is concerned, some acclimatising – as ABSOLAR’s Sauaia
more advanced than headlines might concedes, Brazil is “not for beginners” – but
suggest. In Brazil, the talk is now of a “As ideological as the govern- all urge to rethink risk perceptions. “Brazil’s
PPA-driven “free” electricity market, able
to accommodate domestic and foreign
ment may yet become, energy electricity system and regulatory frame-
work are both very well run. The grid’s
PV interest in volumes no auction can will be needed and solar’s costs development is far superior to many other
match. According to ABSOLAR’s estimates, states,” says Powertis’ Otin when asked to
the pipeline of direct solar purchases are very attractive” compare the country with the firm’s home
being negotiated with large industrial market of Spain. “The country has been in
and commercial customers reached 2GW the renewable business for over a decade
this year. at AMLO’s axing this year of two major and has learned a lot.”
Powertis, it turns out, is among those transmission projects in Baja California The uncertainty Mexican players have
driving the momentum. The firm, CEO and Oaxaca. Actis’s Escallón says the learned to live with has not majorly
Otin reports, has executed PPAs for its market needs “clarity” after the cancella- dented their faith, either. “This is Latin
entire 1GW solar pipeline and has seen tion, noting the rise of grid bottlenecks. America’s second largest market and one
“significant volumes” being inked by other Much-needed upgrades would represent of the most attractive,” says Actis’s Escallón,
solar players. “There may be some reserva- a “great investment opportunity” if the who advises PV players to nail environ-
tions around Brazilian PPAs more broadly government allows it, he adds. mental and social aspects to ensure
but our belief is – as evidence continues For its part, Brazil’s grid may have differentiation in a low-entry-barrier indus-
to emerge that these PPAs are bankable been spared from high-profile expan- try. Even the developer of the stranded
– that there’s demand for them from both sion u-turns but is not challenge-free. Mexican pipeline feels bullish. “We will still
off-takers and investors, and that once According to Sauaia, ABSOLAR sees “room bet on Mexico,” says the project manager
price-adjusted returns match expectations for improvement” with grid bureaucracy approached by PV Tech Power. “Foreign
from the investment community, the free and is lobbying to ensure auction-backed investors might not be that well-disposed
market will skyrocket,” he says projects are not automatically prioritised today but it’s still a great time for us
According to ABSOLAR’s Sauaia, the PV for connection points as per the current developers to take up positions, map out
body’s priorities for the new PPA era are rules. However, he argues, the overall the best spots for projects and wait for the
twofold. First is de-risking the short-term system does not face the congestion right time to jump in meaningfully.”
deals seen in today’s market – average risks plaguing Spain and other global The parting words of Baker McKenzie’s
lifespans range from three to 10 years, the solar hotspots. ”There’s been good work Nieto-Vázquez could easily resonate with
CEO says – by engaging with financiers, interconnecting practically the entire firms keen on Latin America’s potential,
and replicating the auction-plus-unregu- country around a single operator,” he says. but wary of the volatility. “The big problem
lated mixed approach some wind players “A well-distributed solar resource means I see today is many developers believe
are already following. Second, Sauaia PV can target states with points available – the way they operated before AMLO is
explains, is slashing red tape. “Free-market it’s an advantage.” the only way, they see everything as a risk
schemes face more hurdles than regulated and struggle to adapt to the new reality.
peers, such as for instance slightly stricter Latin America’s hour We must accept that things can never be
environmental requirements,” he says. Coupled with the PV cost plunges the same,” he says. “As ideological as the
“We’re trying to equalise conditions.” observed worldwide, Mexico’s and Brazil’s government may yet become, energy
mix of strong solar resource and rising will be needed and solar’s costs are very
The long shadow of grid u-turns power appetite from a changing society attractive. It’s time to be flexible, to listen
For Mexican players, private PPAs offer looks set to guarantee PV a role in both beyond the show in the media, to realise
today a chance to extricate part of one’s countries’ future. A cursory glance at that change does not mean opportunities
revenues from the grip of political volatil- media headlines may create assump- are gone.”

Market watch
France’s improbable quest

to revive EU solar makers
Upstream | Europe’s centrist star Macron has ambitions to lead a continent-wide comeback
of solar manufacturing. Can political will alone shatter the dominance of low-priced Asian
rivals? Paris’ plan is either Europe’s second chance or a quest doomed to fail, depending on
who José Rojo asks
Credit: Walkerssk/Pixabay
T
he vast to-do list assembled by other Asian players over European peers France under second race coming,” he tells PV Tech Power.
Emmanuel Macron in his first two was paraded in full view at this year’s its president, “It gives me hope.”
Emmanuel
years as French president illustrates Intersolar. France-led or otherwise, has the Bett believes the current boom in
Macron, is
the 41-year-old centrist’s appetite for insur- quest to rescue European manufacturing looking to lead a Europe’s solar downstream means 2019 is
mountable causes. Take his controversial come too late? revival of Europe’s ideal to restart manufacturing. In this, he
structural reforms to breathe new life into solar manufactur- is mirrored by Walburga Hemetsberger,
ing industry
France’s stagnant economy, his proposals The window of Europe’s CEO of trade body SolarPower Europe
for an EU finance minister and Eurozone downstream boom (SPE). “Our figures point at 36% installation
budget to fuel a “European renaissance”, as While bold in ambitions, France’s plan is growth in 2018 and even faster deploy-
well as his calls for a dedicated global bank light on specifics. Led by ministers Bruno ment in years to come,” she comments.
to combat global warming. Le Maire (economy) and François de Rugy “We really are in a new era of growth, and
However niche, or unnoticed beyond (environment), the government vows to with demand spurring, we think it is a good
the PV ranks, the crusade his govern- foster French and EU legislation to unlock basis for European manufacturing to gain
ment launched this year to revive solar large-scale funding for PV manufacturing. ground.”
manufacturing could prove no less daunt- From EDF to Engie and PhotoWatt, the Bett acknowledges European success will
ing. The pledge to bring back upstream industry chips in by mapping out best require size – a major PV maker supporting
“champions” home and abroad, part of practices and disruptive technologies. Both an initial 1GW or so would be essential, he
a broader reindustrialisation blueprint, sides commit to a dilated timeframe – 10 agrees – but believes interest is building
comes underpinned by a rather optimistic years – for the plan to deliver a tangible as the economic case of local production
premise: European manufacturing could return of industrial champions. becomes clearer to investors. For her part,
regain ground lost to Asia in recent years The lack of small print has not stopped Hemetsberger too thinks investor attention
if only government and industry pushed some from viewing France’s plan positively. is mounting and urges EU policymakers to
together on policy and research. “I’m very pleased that France is taking the boost the momentum with push measures.
Outside the confines of abstract policy- lead for Europe,” says Dr. Andreas W. Bett, Tax incentives, lower administrative barriers
making, the day-to-day reality of European director of Fraunhofer ISE, who describes and funding guarantees from EU bank EIB
PV makers remains bleak, however. The Macron’s support as “very important” to could all help, she says.
phase-out of EU tariffs for Chinese imports the cause. Recent analysis by his employer
devastated the ecosystem, and the inter- revealed cost differences between Europe A tough business to be in
vening months have done little to improve and Asia have become very small. “Europe Not all are equally convinced that Macron’s
matters. The dominance of JinkoSolar and lost the battle in the past but there’s a upstream crusade will be successful, or at

Market watch
“If enough people put money into it sales dropping by 27% where they rose hofer ISE does maintain that a particular
by 10% for chemicals – were telling of the European ecosystem – that of its post-
perhaps it can succeed, but what is challenges ahead. industrial regions – would make an excel-
lent home to new solar factories. Croatia
the point of putting so much effort if A clean slate for Europe’s coal and Germany’s coal heartlands as well as
it could be costlier that just import- heartlands France’s nuclear hubs all face upheaval
By the time France arrived to the cause, and would benefit from a second chance.
ing the modules? Solar manufac- another player had already spent months “Look at France’s Fessenheim, with a
lobbying for the renaissance of European nuclear plant now nearing shutdown,” says
turing is a pretty dismal business to solar makers. Last September, Fraunhofer’s Bett. “Filling the gap with new technology
be in. Half the companies I’ve ever Bett and others launched the European would be a nice side-effect.”
Solar Manufacturing Council (ESMC) to
written about have gone bankrupt” refloat the industry after the minimum Playing up R&D, green credentials
import price (MIP) debacle. At its heart lies Perhaps the card Europe ought to play
a vision: the investment of €1.935 billion to to restore its battered upstream solar
all desirable. “To be honest, I don’t think set up a 10GW wafer-to-module produc- industry is not size, but specialisms. The
it makes sense to manufacture solar in tion line in Europe that would create 7,500 continent should, according to Fraunhofer
Europe, I don’t see much of a strategic new jobs across the continent. ISE, capitalise on its present status as
advantage to it,” Jenny Chase, solar analyst Before it gets that far, the ambitious global PV’s R&D powerhouse via centres
at BloombergNEF (BNEF), tells PV Tech roadmap must confront the tough reality including Freiburg, INES, IPVF and ZSW.
Power. “PV manufacturing is not neces- painted by statistics. The latest available Research paragons such as the perovskite
sarily a high-technology sector any more. figures from IRENA, going back three cell work of university spin-off Oxford PV,
Does it really create the kinds of jobs that years, show that Chinese players vastly NexWafe’s kerfless wafering technology
Europeans want?” dominated their European peers even and Photowatt’s quasi-mono crystallisa-
Asked whether France could deliver its while the latter still operated from behind tion process should all be nurtured going
blueprint if enough people rally behind the safety of EU import duties: in 2016, forward, the institute believes.
it, Chase appears sceptical. “I mean, it’s China’s €6 billion solar net trade surplus “Most innovation is already happen-
probably feasible – if people put enough vastly towered over that of Germany, while ing in Europe and there’s a good chance
money into it perhaps it can succeed, the UK actually ran a deficit. for the continent to step in again,” says
but what is the point of putting in so That Germany was in the black at all, Bett. “There’s still much research left to do
much effort if it could be costlier than just however small the margin, suggests that around building-integrated PV for instance,
importing the modules?” she ponders. “The the original host of Intersolar should be which requires changing the technology
other problem is solar manufacturing is central to any attempt to revive European and module design.” BNEF’s Chase points
a pretty dismal business to be in. Half the manufacturing. France may be trying to at Intersolar as an example of Chinese
companies I’ve ever written about have lead the new push but Bett believes that all firms still choosing Europe to talk business
gone bankrupt.” EU markets, big and small, could potential- and innovate. “Europe does lead in terms
Recent events appear to underscore ly play a role as hosts to the new industry. of O&M, EPC so it still has a lot to say,” she
Chase’s bleak outlook. Switzerland’s ABB “I don’t have any preference for now as no says. “But then again, of course, China does
Group was so keen to part ways with solar single region will be the answer,” he says, its own R&D too.”
inverters it agreed in July to pay US$470 adding that markets must be assessed on a At a time of rising concern for renew-
million to sell its unit to Italian maker case-by-case basis with investors. able supply chains – including silver-
FIMER. Contacted by PV Tech Power, ABB Despite its country-agnostic take, Fraun- hungry solar PV panels – another avenue
spokesperson Daniel Smith linked the
decision to falling global inverter demand,
coupled with “severe” price pressure from
China. The firm’s retreat was likely hastened
by its discovery of hundreds of millions
worth of warranties owed to customers
by Power-One, an inverter maker it had
bought in 2013.
And yet – not all have pulled the plug.
There is inverter maker SMA Solar, as well
as module specialists SolarWatt and Enel’s
3SUN. RECOM, Europe’s self-styled largest
solar manufacturer, is too ploughing on
through cell factories in France and abroad.
Credit: Photowatt
As Chase notes, Germany’s Wacker remains

“hugely competitive” but is vulnerable,
via the panel-making countries it exports
its polysilicon into, to tariff impacts. Its Europe still leads the way in solar technology innovation, through companies such as
2018 financial results – with polysilicon EDF subsidiary Photowatt

Market watch
for Europe to explore is, some say, green

differentiation. The continent, Fraunhofer
ISE feels, should remind its downstream
players that Europe-made products face
stricter emission rules and do not require
shipping across the globe. “If you really
want to follow the high-level goal of reduc-
ing emissions, then transport CO2 must
be somehow reflected,” says Bett. “If more
carbon taxes are adopted worldwide, then
it’s a logical development.”
Bett believes appetite for greener
components could rise as more countries
– first France, then the Netherlands – start
factoring panel footprint into subsidies.
Europe, he adds, could seize the window
by supplying the sustainable solar
products the world will want but so could
China if it so wishes. SPE’s Hemetsberger
agrees the green avenue is an opportunity
but urges Europe not to explore it via legis-
lating for sustainability mandates. “Market-
based, competitive solutions would still
be the more sustainable approach, I think,”
she says.
For her part, BNEF’s Chase notes green
mandates are the most likely direction
of future European solar trade tariffs
but remains sceptical of their value.
“If mandates are rolled out EU-wide,
companies may spend their money on
certification, on the paperwork, rather
than on making better products – it would
probably just make lawyers some money,”
she argues. Using France’s existing carbon
footprint rules as example, she notes
certification is not impossible, but also not
trivial, for foreign players. “It essentially acts
as a back-door trade barrier into France,”
she adds.
The revolution will be battery

powered
Those interviewed see Europe’s solar
manufacturing future tied to that of a
Credit: Engie
partner sector. That energy storage may

be a good bet is recognised by France – its
plan vows to foster five to seven globally
successful French battery specialists in Energy storage could be an important partner sector for future there is “strong interest” in European
five years – but also BNEF’s Chase. “Solar solar manufacturing in Europe battery making, driven by the transport
panels are not rocket science but batteries industry, and regrets that upstream
are a bit more nascent and interesting. all relatively early-stage,” she argues. As an solar does not enjoy the same political
The complexity, the role of software, may example, she points at a heat pump with blessings. “When I talk to politicians they
create more potential to keep highly a consumption monitor she herself owns. say ‘bring an investor, do it yourself’ but
paid jobs in Europe,” she says, noting this “None of it is optimised, the economics of I wish there was a sense of urgency to
year’s Volkswagen-Northvolt deal to build it depend on whether I can move electric- having solar manufacturing in Europe,” he
battery factories in Sweden and Germany. ity use to when I’m generating it,” she says. says. “Our energy future will depend on
Chase also sees potential in so-called “I’m actually quite disappointed at the these technologies and if we don’t stay
entech ventures more broadly. “Europe is state of it – I feel like Europe is leading and competitive in the long term, if we lose
pretty much leader in software to manage yet is nowhere where it could be.” the knowhow, then we’ll retain a political
things like energy consumption and yet it’s Fraunhofer ISE’s Bett acknowledges dependency on imports.”

Market watch
Taiwan’s PV industry seeks

transformation in hard times
Business | For the past two years, Taiwan’s PV manufacturers have been weathering a heavy storm
prompted by shifting global demand for their wares. But as Carrie Xiao reports, government efforts
to stimulate a local end market for PV is proving to be a potential lifeline
O
ver the past two years, Taiwan’s
solar industry has been thrown into
a gloomy and painful period amid
changes in both PV manufacturing capac-
ity and a shifting competitive landscape,
especially for cells. Leading companies once
providing the world with high-quality cells
have been struggling with losses and are
undergoing restructuring, while Taiwan’s
achievements in wafers and ingots have
gradually been overshadowed by compa-
nies in mainland China. As a result, Taiwan’s
wafer and cell shipments have plummeted
with most enterprises being eliminated,
phased out or transformed. The PV industry
is filled with frustration.
In order to facilitate a stable transition for
the struggling PV industry, the Taiwanese
government has released a series of revitali-
sation policies. Plans such as The Electric-
ity Act, Energy Development Guideline,
Renewable Energy Development Act and so
on, hope to boost Taiwan’s PV industry by
raising the proportion of renewable energy
use and developing local end-markets. is small. Many solar companies began to Taiwanese PV striving to avoid being continuously
On 12 April 2019 the revised Renewable transfer to module manufacturing as these equipment impacted by mainland China.
manufacturers
Energy Development Act was approved policy changes mentioned above created “At present, we find our main business
such as URE are
by Taiwan authorities, setting the goal of domestic demand. turning to project opportunities in Taiwan. Taiwan’s solar
deploying more than 20GW renewables The Taiwan Solar Energy Corporation development in companies in the past two years were
by 2025. Power sources will be distributed (TSEC) says it boasts the largest PV module the face of falling having a hard time,” says Chiang. “We are
international
among gas (50%), thermal power (30%) and capacity in Taiwan, standing at 800MW making adjustments and the local govern-
sales
renewable energy (20%). currently, which it plans to increase to ment has also contributed some positive
These new policies have improved 2GW by 2020. While two years ago, the ideas to support PV industry development
Taiwan’s solar market environment to a company’s main business was cells. In in Taiwan; this is an opportunity for us.”
certain extent, especially in the utility-scale 2018, its cell capacity was 2GW. Apart from cell and module manufac-
end market, where the changes in installa- TSEC vice president Henry C.H. Chiang turing, TSEC’s management team is also
tion can be clearly seen. By May 2019, the tells PV Tech Power: “Due to the increased very interested in and has participated
total installed PV capacity in Taiwan reached competition in the mainland cell market, in the power plant business, with 300
around 3.3GW. we are shifting our focus to modules. projects under its belt as an EPC.
The new progress has prompted many Through transformation last year, we have In comparison to the independent
renewables enterprises and PV companies delivered 100MW modules in 2018 and stand of TSEC, the United Renewable
in Taiwan to initiate a strategic transforma- are expecting further module expansions Energy Cooperation (URE), jointly estab-
tion and shift in positioning. in 2019. To avoid homogeneity, we are lished by Solar Tech, Gintech and NEO,
producing differentiated modules.” showed the attitude of Taiwan PV players
Transformation in pain Most of TSEC’s customers in the past and regional governments towards the
Taiwan’s cell production ranks among the have been mainland Chinese companies. industry.
top in the world, but its module capacity After the strategic adjustment, TSEC is URE completed the merger nine

Market watch
months ago and its main business Power subsidies fallen by 60% in a voucher together. The earnings consist
segments are divided into three sections: decade, new trends in power market of the power part and the voucher part.
cell (2.47GW/year), module (850MW/ Over the past decade, the feed-in tariff (FiT) Voucher price is also determined by the
year, including 400MW in Vietnam) and in Taiwan has declined sharply, dropping by free market. The market is in short supply
PV power plant systems. In May this year, more than 60% (see chart below). The FiT for at present.
the company released the 144-cell 1,500V some PV systems is already lower than that KH Chen, managing director of Sinogre-
PEACH 400W high-efficiency solar module for utilities, which would be highly competi- energy, is keenly aware of the policy
series, setting up efficiency cell standards tive if traded on a free market. adjustments and changes in the market.
in Taiwan. The Renewable Energy Development As a team leader, he made a decision
The system section has also gradually Act will push Taiwan to phase out the FiT to add electricity sales business to his
established its core competitiveness. So subsidy and introduce liberalised power company’s activities.
far cumulative projects connected to the transactions in the renewable market. As a leader in Taiwan PV power industry,
grid have exceeded 569MW and its project According to this law, major users of Sinogreenergy is mainly engaged in power
pipeline has almost reached 1GW. more than 800kW must have 10% of their plant development, operation and EPC
President of URE’s module business, power supplies from renewable sources, service. At present, its power plants already
Andy Shen, says: “Compared to the goal which means the needs of intensive users connected to the grid have reached
of cumulative installed capacity of 20GW are expected to reach 16TWh, requiring 149.4MW with 40MW under construction
by 2025, Taiwan’s installed PV capacity about 12GW of PV power projects. and a further 109.8MW of projects in the
is still small at present. We expect many Nan Ya Photonics INC (NYPI) market- pipeline.
rooftop and ground-mount plants to enter ing director Esther M.S. Lin says: “The 10% Chen says: “The 2017 Electric Act
construction this year. The industry will requirement on big electricity users has proposes to allow private renewable
also speed up in the next few years.” created a rigid demand for renewable power suppliers and retailers to sell power
According to the financial data of URE, energy certification under the Taiwan and T-REC directly to consumers. Amend-
in May 2019 the company’s revenue Renewable Energy Certification scheme ments to the 2019 Renewable Energy
reached NT$2.29 billion (US$73.6 million), (T-REC).” Development Act have made it clear that
a 12.9% increase over previous months NYPI is mainly engaged in the solar EPC power suppliers can sell electricity back to
and a 136.6% year-on-year increase, business. It has already completed 3.74MW Taiwan Power Company at a fixed rate for
signifying a positive development trend. of PV EPC projects. Lin says that in future 20 years. A new electricity market business
The company also set up a new business the company will also take on more EPC model will be built, which is a new career
unit this year to develop energy storage projects. Lin considers that PV needs will be and business opportunity for us.”
solutions. driven up first in areas with higher industrial On the other hand, Power Master
When talking about future develop- power prices, such as Hsinchu, Taoyuan, Group, which is also deeply rooted in
ment, Shen says: “We are a company Taichung and Kaohsiung, among others. power plant and EPC service business, has
rooted in Taiwan but we are expanding T-RECs act as proof of the use of green made many attempts in exploring power
into the world market.” power. Upon certification of the Taiwan plant business models and application
Echoing his comments, Sascha regional inspection bureau, every thousand models. In the past two years, they have
Rossmann, vice president of WINAICO’s kWhs of green electricity used is exchanged been actively promoting the construction
solar division says: “If companies in Taiwan for one renewable energy voucher. of agrivoltaic plants.
are to have more room to survive and These vouchers can be used either by the Chairman of Power Master Group Tsai
thrive, they need to tap the local market holder itself or be traded with customers in Tsung-Jung says: “Over the past few years,
and open up international markets.” need. The price is to be determined by the we have completed more than 1,000
WINAICO’s PV business mainly includes free market. In addition to signing whole- plants on government buildings, factories,
module and system integration. In sale power contracts with Taiwan Power farms, ground-mount plants and agriv-
addition to seeking cooperation with local Company for sale to other green power oltaic rooftop plants. The total installed
players, the company is also striving to plants, all power plants holding renewable capacity reached 336.80MW, of which 140
develop European and Australian markets. energy certificates can sell power and the (51MW) are agrivoltaic projects and this
Rossmann expects strong growth in segment will continue to grow in future.”
its Australian EPC business this year. At In view of the positive attitude of
the same time, WINAICO has established government and enterprises in Taiwan, it
business ties with more than 20 countries can be expected that in the near future,
in Europe. Markets in countries such as the market for liberalised solar power
Italy and Poland are getting stronger and transactions in Taiwan will grow fast and
module shipments in future are bound to PV power generation will become a direct
increase. beneficiary of the rise of this market.
These moves show that Taiwan’s solar The increase in PV installations will also
Source: Sinogreenergy
manufacturing industry is migrating from help Taiwan’s cell and module manufac-
mid-stream to downstream businesses, turing industry to break through recent
with these players transforming from hard times. We are looking forward to
commercial cell manufacturers to module hearing more positive news from 2019
sellers and flexible integrated plant Energy Taiwan Expo to be held in Taipei
developers. Figure 1. The declining FiT curve over a decade in Taiwan. this October.

financial, legal, professional
Digitalisation and its impact

on the solar energy industry
Business processes | Digital technologies have the potential to transform the solar industry as it
continues to seek greater efficiencies and lower costs. But as Dana Olson writes, a lack of both
digital skills and mindset within organisations are key barriers to realising the full benefits of the
technologies now available
A suite of digital electronic hardware, and communications

technologies is technologies. Digitalisation allows one
now available to
to develop further, more sophisticated,
the solar industry
that could trans- technological tools to reduce the cost and
form the way the increase the efficiency of processes, while
industry operates making better, more consistent business
decisions.
The final phase lies with digital trans-
formation, which uses the many digital
Credit: skytron energy
technologies along this path to change a

business model and provide new revenue
and value-producing opportunities. Trans-
formation is enabled by digitisation and
digitalisation to extract further value from
the transition based on having the data and
T
he solar industry is constantly solar industry to date. As we look to the tools necessary to address new business
changing. Over the next 30 years, future, it is evident that digitalisation will opportunities. Digital transformation often
DNV GL forecasts that solar will play play a significant part in solving the indus- substantially reduces market barriers and
an integral role in the the electricity mix, try’s challenges. may increase efficiency beyond that previ-
with solar PV forecasted to make up 40% of ously possible.
electricity generation by 2050. Defining the phases of digital trans- DNV GL recently surveyed approxi-
Advances in technology and the formation mately 1,900 energy industry profes-
remarkable decrease in component cost Part of decoding the significance of digitali- sionals from start-ups to large corpo-
are accelerating the progress of the solar sation is to develop a well defined under- rations – to examine their current
industry. Over the past decade, we have standing of what this term means and progress in digitalisation, uncover
seen the cost of solar panels fall signifi- how it is currently used. Digitalisation has which digital technologies are making
cantly, making solar energy a competitive become a trendy buzzword, often overused an impact, establish what barriers the
solution for electricity generation in many and poorly understood. Therefore, we industry is facing and identify how
markets already. Solar is expected to be must go beyond the hype to understand organisations can take advantage of
the lowest cost option for electricity in digital transformation like any other vital the many opportunities that digitalisa-
many parts of the world over the next three business process. Once we establish a clear tion presents. This survey data has then
decades. But with this cost decrease comes understanding, it will be easier to create been used to evaluate the digitalisa-
mounting pressure for this industry to do future roadmaps to further advance the tion of the solar industry, especially
more with less and find new ways to remain solar industry. relative to the larger energy industry as
competitive. We define digitisation as the process a whole.
As we consider the distributed nature of of converting information into a digital
solar PV, the efficiency to scale from utility format, making it easier to preserve, access, Current progress toward digitalisa-
projects down to small residential systems share, and analyse data. Once we have tion of the solar industry
has required the development of digital information in digital form, we can then Our research reveals that 40% of respond-
tools and mechanisms. From software for handle and benefit from it in ways not ents in the solar industry have digitalisation
system design to the financial transactions previously accessible. as a core part of their publicly stated strat-
that enable them, solar has demonstrated The next phase in the process is digitali- egy. However, just 20% of the surveyed solar
many times over that efficiency and market sation itself, which is the use of digital organisations feel more advanced than the
scale come from the utilisation of digital technologies to change a business process industry in their application of digitalisation.
tools. Digital technologies have been and enhance efficiency and revenue. Digital Overall, large companies were more
responsible for much of the growth in the technologies include software, sensors, likely to have digitalisation as a core

Which technologies are having an impact? Drones

Compared to the energy industry as a
whole, drones, aerial imaging, and image
analysis are already having a greater
impact in the solar industry. There are
dozens of drone providers worldwide,
who can offer lower inspection costs with
higher resolution on finding panel and
system defects, and support O&M practic-
es, whilst further lowering associated
inspection costs. Additional services are
offered for pre-construction site surveys
and inspections as well as construction
monitoring. These are all supported by
remote drone imaging technologies,
but are further enabled by big data and
machine learning methods for image
analysis in the cloud.
Internet of Things
The energy industry considers IoT (Internet
part of their public strategy, with small Figure 1. Percent- Technology at a glance of Things) an important skillset to have
companies less publicly focused on age of respond- To address value in terms of what digital in the future. While we are flooded with
ents who said
digitalisation. This could indicate that tools or technologies are being assessed IoT innovations for our homes, significant
the following
large organisations are leading the way technologies were and implemented in the solar industry progress is already at play in well-
in digital maturity. However, when asked having an impact today, we reviewed the responses on the instrumented solar plants today; in such
whether digitalisation was included on their organisa- perceived value of these technologies. examples, sensors fitted to PV systems feed
tions
in their internal strategy, the findings information back to operators on the irradi-
were reversed with smaller companies Cloud computing ance, temperature and performance of
more focused on digitalisation internally Our research indicates that the solar systems, which is then coupled to detailed
than large organisations. This suggests industry is leading the way when performance data at the inverter level.
that larger companies might be more it comes to cloud computing with The resolution therein is increasing with
concerned with creating a public 35% of respondents saying their the use of string inverters to better gauge
digitalisation strategy than building organisations were advanced in this the performance of strings relative to one
digitalisation into their core business technology. Much of this is the result another. Extracting the relevant data and
processes. of system design and layout tools, utilising methods to inform plant and grid
In today’s security-conscious SCADA monitoring, and some financial operators alike will lead to continuous
world, it is not surprising that cyber asset management software offering improvements in the operation and further
security is the most established focus cloud-based tools. The opportunities for integration of solar assets.
of digitalisation. Overall, the survey moving more development, monitor-
found that 40% of respondents ing, O&M and finance tools to the Blockchain
consider their organisation to be cloud is very important to continuing The perceived value of blockchain technol-
advanced in cyber security. Automa- to improve efficiency, lower cost and ogy is higher in the solar industry at 12%
tion follows closely behind and is also enable big data methods. than the 8% across the whole energy
widely implemented, with only 10%
of respondents not taking advantage
Big data and machine learning technolo-
of its capabilities at all. The survey gies can be applied to data collected by
found the most common applications drones to monitor plant performance
of digital workflow and automation
are asset optimisation, product and
process improvement, planning and
strategy.
However, implementation is only one
part of the picture; the real value in any
technology deployment is being able to
prove the impact it has on an organisa-
tion. Positively, 67% of respondents
say automation and digital workflow is
Credit: Skycatch
already having a significant impact on

the energy industry, and this figure rises
to 93% for large organisations.

industry. Blockchain technologies envision

a future of decentralised energy transac-
tions, renewable energy provenance,
metering and billing. While there was
substantial interest over the last few years,
blockchain technologies are not yet having
significant effects on the solar industry.
Those that are making initial progress in
this space are working toward enabling
distributed, peer-to-peer marketplaces
in which energy transactions can occur
outside of more traditional consumer-utility
models.
Technology needs in the solar

industry
The solar industry is presently using a range
of technologies that include a significant In order to carry out data analytics,
amount of automation enabled by digital whom would you be willing to share your
organisation’s data with?
workflows. This includes the advanced
analytics, IoT and cloud computing
described above. However, other opportu- Figure 2. Organisations are more willing to share certain datasets than others, potentially missing out on
nities will require additional investment by opportunities to transform business processes
industry and researchers alike.
Machine learning and advanced data ing will be invaluable for the development enabled by machine learning will help
analytics are high-profile topics regarded as of new tools and for establishing connec- derive additional value from rich operational
offering substantial value today and in the tions between measured and simulated datasets and enable enhanced forecasting
future. Data cleaning and algorithm train- performance data. Advanced data analytics, models.
compartmentalised in a way that prevents

Enabling dynamic and responsive solar assets
one from identifying relationships and
As indicated in the DNV GL Energy Transition Outlook (ETO), we forecast that solar will account for 40% of all leveraging these toward continued
electricity generation by 2050. This will fundamentally require a digital transformation in and of itself, due
efficiency improvements in development,
to the massive change in grid dynamics that will accompany this change in generation mix from traditional
generation capacity to variable renewables of solar and wind, with hydro and more flexible thermal operation and financing. Data security must
generation. Energy storage and demand response will help to balance load with more variable generation be paramount. Data must be protected
profiles thereby enabling solar and wind to thrive. However, in this future scenario, coordination and through trusted methods to ensure cyber-
forecasting will be paramount. Two way, low latency communication will be required to enable a majority
security and secure communication proto-
of the electricity from solar and wind, which is addressed through generation forecasting, solar/wind plant
design, and responsive inverter capabilities. cols. This is an area that must be addressed
Energy storage is already taking hold as a low-cost alternative to deploying peaker plants in some parts of to ensure data stewards are enabled to
the world, with an increasing number of solar+storage plants making their way as well. Solar+storage assets share data efficiently.
help to mitigate short-term uncertainty in generation profiles, however they must have clear indications
A key challenge with digital transforma-
from the IoT on the system itself as well as grid and market indicators to make decisions on operation; when
to charge and discharge based on the forecasted energy and market conditions. tion is keeping pace with technological
The distributed nature of solar in particular, leads to systems ranging from hundreds of megawatts to change and user adoption rates. Technol-
just a few kilowatts in utility and residential systems, respectively. As such, digitalisation is paramount for ogy uncertainty was called out as a
coordination across systems and grids, toward enabling a dynamic, integrated system that will operate with
specific concern within the solar industry.
increased resilience as variable renewables continue to increase their presence on grids across the globe.
One of the single largest barriers facing the renewable ecosystem and addressing our climate crisis Standardisation across methodologies and
lies in accessing the substantial amount of capital required to deploy this much new renewable capacity. technologies is observed as a particular
Improving the transparency and integration of system design, construction and operation will lower the barrier given the rapid development of
financial risk to capital providers, lower the barrier to new providers, lower costs to all energy consumers,
products and technologies.
and allow solar assets to be built more rapidly to keep up with the energy transition and help meet our
building climate crisis.
People and digital skills
The overall industry responded that a lack
Furthermore, machine learning for digital transformation, but our research of digital skills and lack of digital mindset
algorithms will leverage these large suggests the energy industry is currently are the main barriers to digitalisation. Our
datasets in order to benchmark asset being held back by data security concerns research shows unanimous recognition
performance across large numbers of with data sharing considered as unappeal- that digital skills training is needed, with
diverse assets. Understanding perfor- ing for most respondents and just one in 10 91% of participants regarding it fundamen-
mance and reliability across the diverse saying they would be willing to share their tal for their organisation to invest in digital
landscape of PV system components organisation’s data in the public domain. skills training, and 71% considering this
and designs from hundreds of suppli- The exception to this is for ‘health, safety, important for immediate investment.
ers, installers and sponsors remains a environmental data’. While this is the case for some respond-
challenge that will offer myriad insights In preventing data sharing, the energy ents in solar, only 13% of those in the solar
and lower technology and system perfor- industry restricts access to new market industry ranked this as their number one
mance risks in the future. entrants who may bring transformative concern. Perhaps this could be attributed
Additional areas of opportunity for solutions to add value to the existing data. to the average age of the solar industry
digitalisation include: mobile connectiv- The barriers decrease when it comes to workforce. In contrast to the energy
ity for field workflows to automate data sharing data with approved third parties industry as a whole, the survey established
collection on mobile and table devices, and regulators, with around half of partici- that the group sampled had more people
integration and communication of digital pants saying that they would be willing to in the 19-37 age-group bracket than any
tools through APIs, the development of share aggregated operational data with other industry. It is possible that as solar is
digital twins for remaining-life calculations third parties and 37% with regulators. a relatively young industry, many in solar
and reliability forecasts, and platform If we want to enhance the speed of may have the required skillsets to better
businesses that enable data sharing digitalisation and encourage adoption of take advantage of digitalisation.
between asset owners, operators and new technologies, we need to cultivate When questioned about the skillsets
investors. honest conversation in the industry. As an that were required or lacking within their
industry, we need to be open to sharing organisations, 71% of respondents said that
Barriers to digital transformation – not only our data but also our experiences, they need more employees with combined
data and security successes and challenges for the common domain and digital expertise, with 18%
With vast amounts of data now widely benefit of the energy industry and the claiming to not have any employees with
available, new investment efforts to public, which relies on our services. this combined skillset currently. Creativ-
gather this data are no longer a priority. Data and analytics will be the foundation ity was also ranked highly, with 65% of
Our research indicates that the energy of solar integration and scale. Understand- respondents saying that they need employ-
industry believes it has the necessary ing how data interacts beyond our physical ees with creative problem-solving skills
data to enable digitalisation, with only models is paramount for leveraging among their workforce.
three in 10 respondents considering data massive operational and financial datasets We also explored the digital skillsets
gathering as a higher priority. However, in order to continue driving down the considered the most important for
two-thirds of the respondents cite extract- cost, increasing the value and increasing the energy industry to have among its
ing value from the data they hold as a the deployment of solar assets. However, workforce. Data science came out on top
high priority. we will not fully realise the benefits of followed by big data analytics, at 41% and
Collaboration is a key success factor the digital transformation if the data is 35% respectively. Even though data science

was cited as the most sought-after skill, indicates that certain technologies, which with the right attitude, skills and mindset to
currently only 23% of respondents stated for many years were considered emerging, embrace the opportunity that digitalisation
that the role of data scientist exists within are now seen as mainstream, for example affords the solar industry.
their organisation. cloud computing and machine learning
Uncertainty in new solar technologies that will help derive additional value from This report is based on a global survey
stood out as clear barriers compared to rich operational datasets. Drone and aerial of 1,919 energy industry profession-
the industry as a whole, with 35% of the imaging and analysis are already beginning als, conducted by Foresight Factory
respondents citing this as a barrier to digitali- to reduce the cost of siting, contraction in December 2018 and January 2019.
sation. This finding was unsurprising. In an and operation. Newer technologies such as The respondents represent a range of
industry moving as rapidly as solar, a range blockchain, augmented reality and virtual business sizes from start-ups to large
of new digital technologies is still unproven. reality are still in their infancy and are not corporates and a range of functions
The industry will need to continue to work currently having a significant impact within within the industry, from board-level
hard to create compelling use cases that the organisations of our respondents. executives to senior engineers, develop-
demonstrate the impact of implementing As the solar industry strives to reduce ers and financiers.
new technology and prove its viability. costs and do more with less, successful
Similarly, a lack of industry standards was digital transformation will be critical to Author
of higher concern than the energy industry offering innovation that improves efficien-
As global segment leader, solar energy at DNV GL,
average. Although the solar industry is cy and thereby maximising performance
Dana Olson is responsible for solar innovation and
making attempts at standardisation, it is and financial yield. Finally, the relationships technology development activities to address the
not as advanced as other industries. Defin- across datasets will inform bankability, evolving needs of the solar industry. Before joining
ing a framework based on digital tools will reduce performance risk and thereby DNV GL, he was a technology manager at the U.S.
ensure the industry can grow to the next increase revenue for solar assets. Department of Energy Solar Energy Technologies Office, where
he managed and led programmes and consortia focused on PV
level with the transparency needed to The transformative effects of digital
module technologies, testing and reliability. Prior to this he was
enable rapid growth. technology are clear. However, digital a senior scientist at the National Renewable Energy Laboratory,
transformation of the energy industry is not leading efforts on new materials and designs for PV technolo-
Looking to the future simply applying technology and leveraging gies. He served as an intelligence community fellow during his
A key challenge for digital transformation big data. To realise the true value of digital postdoctoral appointment at Sandia National Labs. He com-
pleted his Ph.D. at the Colorado School of Mines in materials
is keeping pace with technological change transformation, we need to recruit and
science.
and user adoption rates. Our research train employees so that they are prepared
Growth of US merchant solar

primed to accelerate in near term
Merchant solar | In the US and a number of other major solar markets, merchant solar projects are
emerging to fill the gap left by declining subsidies. Jay Bartlett of Resources for the Future looks at
the risks and opportunities for merchant PV as it finds its feet
Credit: First Solar

I
n the United States, solar installations previously. The ITC had been anticipated First Solar’s the most common structure for large solar
are expected to surge over the next five to decrease after 2016 (although it was Barilla plant was projects. From Figure 2, utility contracts
one of the first
years, and particularly so for utility-scale extended), which caused a jump in 2016 accounted for 85% and 65% of utility-
large merchant
projects. The primary driver of this growth installations and a reduction in subsequent PV projects scale solar capacity added in 2016 and
is the stepwise decline of the investment years’ installations as solar projects were 2017, respectively. Not all of these utilities
tax credit (ITC) from the current level of 30% pulled forward to meet the scheduled have mandates for solar or renewable
to a permanent 10% subsidy. Although deadline. However, there is a signifi- power—they may be in states without an
the first reduction occurs at the end of this cant difference between solar projects RPS or may have already exceeded their
year (to 26%), ITC eligibility is based on the completed in 2016 and those expected RPS requirements. Utility contracts are
start of construction, so long as projects are over the next five years. Whereas 56% of all also known as physical power purchase
placed in service by the end of 2023. With 2016 solar installations (utility, commercial
the generous incentive available for this and residential projects combined) were
period, merchant solar projects—those that used to meet state Renewable Portfolio
are neither owned by a utility or customer Standards (RPS), the percentage fell to
nor with a long-term contract for their 38% in 2017 as solar and wind power
power—are an appealing option for new generation outpaced RPS requirements
solar capacity in the US. [1]. Although certain states have increased
their RPS commitments over the past year,
Tax credit deadline spurs rising a large majority of near-term solar capacity
installations will be likely built without RPS support.
Figure 1 shows the expected rise in US
utility-scale solar installations, from less than Utility contracts have been
Figure 1. Historical and projected US installations of utility-
5GW (AC) in 2018 to over 11GW (AC) in 2023, prevailing structure
scale solar. Data for 2015-2022 from [2] Feldman and Margolis
with a steep decline immediately thereafter. Despite the reduced demand to meet RPS 2019, derated by 25% to convert from DC to AC. Data for 2023
To some extent, this pattern has occurred mandates, contracts with utilities remain and 2024 from [3]

agreements (physical PPAs), so-named time for project planning. Additionally, However, the price risks of doing so are
because they involve a physical transfer of wind project developers, financiers, and substantial. First, regional wholesale power
electricity. Another option for utilities to hedging counterparties have completed prices fluctuate, and they may decline
procure solar power is to own the project merchant deals since the early 2000s. While significantly during the life of the project.
themselves, but ownership may or be less wind and solar have different operational Second, merchant projects receive the
advantageous than a physical PPA (due to and financial characteristics, the number wholesale power price at the project’s
treatment of the ITC for utilities) and may of successful merchant wind projects node rather than at the regional trading
not be permitted in deregulated markets. and years of experience have likely made hub. Depending on congestion in the
Among the other structural options for market participants more comfortable with transmission grid, nodal prices may be
megawatt-scale solar, customer ownership the prospect of merchant solar. considerably less than hub prices, causing
and virtual net metering account for Recent trends and developments also merchant plants to lose value on their
minimal capacity. Community solar is a favour merchant solar. Historically, wind generation. The earliest large merchant
small but growing segment, providing the had a cost advantage over solar, but with solar plant in the US presents a cautionary
benefits of rooftop solar for customers in the cost of solar power declining by nearly tale of price risks. First Solar installed the
multi-unit housing or without suitable roof 90% since 2009, average unsubsidised 18MW (AC) Barilla Solar Project in Texas in
space. The final two categories, merchant wind and solar costs are now equal [6]. 2014 on a merchant basis; it wrote down
and customer contracts, together Although recent tariffs on most imported the value of the project in 2017 due to
represent the merchant structures for solar. solar cells and modules have raised US lower wholesale electricity prices.
Merchant solar represented 7% and 16% module prices above global prices, current Experience outside the US also illustrates
of utility-scale solar installations in 2016 US module prices are still lower than ever the risks inherent in merchant solar. With
and 2017, predominantly consisting of before. Wind had also benefitted from an exceptional solar resource and robust
solar projects that have hedge contracts a more generous incentive than solar, power demand from mining operations,
with large corporations. While the rise in receiving a production tax credit (PTC) of northern Chile was the first market to
merchant capacity in 2017 is meaningful, US$23/MWh over 10 years. However, the host a sizable capacity of merchant solar
merchant solar trails merchant wind by a PTC began phasing out for wind projects plants. As of May 2018, Chile accounted
large margin; nearly half of wind capacity starting construction in 2017, and it will for 11 of the largest 15 merchant solar
installed in 2017 was on a merchant basis expire completely for projects that start plants worldwide [8]. However, the boom
[4]. Moreover, merchant solar in the US has construction next year. Similar to the ITC, of solar projects constructed between 2013
largely been limited to a single structure, wind developers have four years from and 2016, combined with constraints in
a synthetic PPA, whereas merchant wind commencing construction to placing the national transmission grid, depressed
projects have been completed using a projects in service for PTC eligibility, so midday electricity prices in northern Chile.
range of structures. financiers and hedge providers may turn As a result, development of merchant solar
their attention to merchant solar as the in Chile stalled in 2017. More recently,
Conditions supporting merchant current surge of wind projects subsides. Australia has rapidly emerged as a large
solar In considering merchant solar, it is market for merchant solar, with developers
Despite the comparative immaturity of useful first to review the characteristics seeking better returns than would be
merchant solar, there are several reasons of a physical PPA, which highlight the possible given the depressed PPA prices. As
to believe that the segment will grow contrasting elements of merchant projects. of mid-2019, there are an estimated 12 fully
substantially in the coming years. As Under a physical PPA, the project receives a merchant projects under development or
discussed earlier, solar projects will be fixed price from the utility off-taker for each construction in Australia [9], including such
able to claim the full 30% ITC as long as megawatt-hour of electricity it produces. large plants as the 132MW (DC) Merredin,
they start construction by the end of The utility offtaker typically purchases the 130MW (DC) Aramara, and the 128MW (DC)
this year and are placed in service before electricity at the project’s node (where it Cunderdin solar projects. The simultaneous
2024. The 30% ITC was extended in 2015, interconnects to the grid) and assumes development of numerous solar projects,
so developers have had a relatively long responsibility for transmission to where including merchant as well as contracted
the power is needed. Further minimising plants, will likely lead to price erosion and
risk to the project, physical PPAs have transmission bottlenecks. Due to grid
historically been of long duration (often 20 congestion, the Australian Energy Market
or more years), and utilities generally pose Operator has already cut the percentage of
a low risk of default on their contracts. solar output that may receive revenue.
For the project, the low risk comes at a
cost—the generation-weighted average Project finance compels hedging
levelized PPA price was just US$41/MWh A critical factor affecting the choice
for PV contracts signed in 2017, down from between a physical PPA and a merchant
approximately $130/MWh in 2010 [7]. structure is the financing of the project.
In the US, utility-scale solar projects are
Risks to merchant solar and typically financed with three forms of
international experience capital: sponsor equity, tax equity and
Figure 2. Annual US utility-scale solar installations by sales
The appeal of merchant solar is thus the debt. Sponsor equity is often contributed
structure [5]. Solar installations with customer contracts are
mostly projects with synthetic power purchase agreements. possibility of obtaining higher prices by by the project developer, and while it
Data include installations of 1MW (AC) or greater selling into a wholesale electricity market. carries the greatest tolerance for risk, it

also represents a small proportion of the

Quantity Risks Price Risks
total funding, around 25% [10]. Tax equity,
Contracted
providing roughly 35% of total capital, Contract or Hedging Operational & Electricity Hub Basis (Node vs.
Solar Irradiance Volume and
is designed to optimally utilise the tax Structure Curtailment Price Hub Price)
Shape
benefits of the project, including the ITC, Physical PPA (Node) Part Part None None None
accelerated depreciation and interest
Synthetic PPA (Hub) Part Part None None Full
deductions. Finally, debt supplies about
Bank Hedge (Hub) Full Full Full None Full
40% of the financing, and its low cost
requires very low risk to the interest and Proxy Revenue Swap (Hub) Full None None None Full
principal payments it receives. The cost Unhedged Merchant Part Part None Full Full
and availability of the project’s financing
is thus dependent on the structure the difference between the nodal price it Table 1: Project Thirdly, the proxy revenue swap is a
of its electricity sales. Given the price receives and the hub price it must pay. If risk exposures recently developed hedge, first used by a
under different
risks of wholesale power, it would be there is congestion in the grid, this price wind project in 2016. Rather than hedging
contract and
challenging for a merchant solar project difference may be significant. hedging only against price risk, the proxy revenue
to secure tax equity financing, and even The second structure is a bank hedge, structures swap also insures against weather risk. The
more challenging to attract a lender. which has been utilised by US wind project pays the counterparty a percentage
Consequently, to obtain both low-cost projects for over a decade. While there of “proxy revenue”, equal to the amount the
project financing and a greater expected had been interest in solar bank hedges project would earn based on actual solar
return than with a physical PPA, the for several years, only in the past year had irradiance levels and hub prices. In return,
project developer must hedge some of its solar projects been able to secure these the counterparty pays the project a fixed
merchant revenue risk. hedges. One challenge with a bank hedge annual sum. The project thus fully bears
is its transaction cost, which requires operational and curtailment risk, as well
Hedging options greater project size to be sensible. Two as basis risk, but the project is not liable
Figure 3 illustrates the three prevailing solar projects currently in development for lower-than-expected solar irradiance.
hedging structures for merchant wind with bank hedges, the Misae and Holstein Proxy revenue swaps require a sophisticat-
projects, all of which are now used by plants, are both 200MW (AC) or greater, ed weather risk investor, such as an insur-
merchant solar projects either in opera- which is common for wind projects but ance company, and are uncommon even
tion or under development. A synthetic particularly large for utility-scale solar for wind plants—only four projects have
PPA (also referred to as a virtual PPA or a (only three US solar projects over 100MW been completed to date. While no US solar
corporate PPA) is the only type of hedge were installed in 2017). A bank hedge project has yet to announce this structure,
already in use among operational US solar is also riskier for the project (compared two Australian projects with proxy revenue
projects, likely so because it approximates to a synthetic PPA) since it entails a swaps, the 95MW (DC) Susan River and
the features of a physical PPA. Similar to a fixed quantity of electricity rather than 75MW (DC) Childers solar farms, are sched-
physical PPA, the project receives a fixed the variable quantity that the project uled for completion this year.
price per MWh of energy it generates. generates. As listed in Table 1, the structure Besides these three hedges, another
However, the arrangement is solely a of a bank hedge exposes the project to strategy is to structure the project with
financial one—electricity produced by the quantity risks beyond those that exist partially contracted revenues and partially
project is sold into the wholesale market. in a physical PPA. Quantity risks include merchant revenues. The split between
The project receives the floating price the potential for underperformance and the physical PPA and merchant portions
from the wholesale market and pays the curtailment, lower-than-expected solar can be based on quantity, time, or both.
floating price to the hedging counterparty, irradiance, and a mismatch between the For instance, the 250MW (AC) Phoebe
a non-utility corporation. The primary timing of contracted volume and actual solar project in Texas has a 12-year PPA for
financial difference between a synthetic generation (though this is a lesser concern 89% of the power. Therefore, the project
and physical PPA is if the synthetic PPA for solar than for wind). Since all bank has 11% merchant exposure for the first
settles at a trading hub rather than at the hedges settle at trading hubs, basis risk 12 years and 100% merchant exposure
project’s node. A hub-settled synthetic PPA is also a concern for projects using this thereafter. With an approximately 30-year
leaves the project with so-called basis risk, structure. expected life for utility-scale solar, a
“merchant tail” after the physical PPA
ends has generally been a component of
solar projects. The recent change is that
potential PPA durations have shortened
dramatically (to as brief as seven years),
so the merchant tail now accounts for a
sizeable proportion of project value. In
choosing the split between physical PPA
and merchant revenues, project developers
may contract for sufficient revenue to
satisfy their risk-averse lenders and seek
merchant upside for the remainder.
Figure 3. Financial flows from the three hedge structures for merchant solar

Future developments for

merchant solar References Author
In the near term, the most significant [1] Barbose, Galen. 2018, “U.S. Renewable Portfolio Standards: 2018
Annual Status Report,” Lawrence Berkeley National Laboratory.
Jay Bartlett is a sen-
event for solar will be the reduction ior research associate
[2] Feldman, David, and Robert Margolis. 2019, “Q4 2018/Q1 2019
of the ITC to 10% for projects installed Solar Industry Update”, National Renewable Energy Laboratory/ at Resources for the
after 2023. Unless the ITC is extended PR-6A20-73992. Future, where he works
[3] Energy Information Administration. 2019, “Annual Energy Outlook on financial, economic
at a higher level, the percentage of 2019,” Reference Case Table 16: Renewable Energy Generating
and policy analysis for the Future of
project value coming from subsidies Capacity and Generation.
[4] Bartlett, John. 2019, “Reducing Risk in Merchant Wind and Solar Power Initiative. Previously, he worked
will decline, which will elevate the in renewable energy at the U.S.
Projects through Financial Hedges,” Resources for the Future
importance of electricity sales to project Working Paper. Department of Energy, alternative ener-
financing. This shift will likely lead to [5] Caplan, Elise. 2018, “Financial Arrangements Behind New gy equity research at UBS, mergers and
Generating Capacity and Implications for Wholesale Market
less risky revenue structures, either acquisitions at a boutique advisory firm
Reform,” American Public Power Association.
[6] Lazard. 2018, “Lazard’s Levelized Cost of Energy Analysis – Version in New York, and in biophysics research
a greater proportion of contracted
12.0.” at Princeton. Resources for the Future
revenue or the use of hedges, such [7] Bolinger, Mark, and Joachim Seel. 2018, “Utility-Scale Solar: (RFF) is an independent, nonprofit
as synthetic PPAs and proxy revenue Empirical Trends in Project Technology, Cost, Performance, research institution in Washington, DC.
and PPA Pricing in the United States – 2018 Edition,” Lawrence Its mission is to improve environmental,
swaps, that entail less risk.
Berkeley National Laboratory.
Beyond the reduction in subsidies, [8] Dorothal, Marco. 2018, “Top 15 Merchant Solar Plants,” Solarplaza, energy, and natural resource decisions
May 2. through impartial economic research
merchant solar will be challenged by
[9] Macdonald-Smith, Angela and Mark Ludlow. 2019, “Fresh threats and policy engagement. The views
the drop in midday wholesale power to solar plant construction boom,” Australian Financial Review, expressed here are those of the indi-
prices as the amount of solar genera- August 8. vidual author and may differ from those
[10] Feldman, David, and Paul Schwabe. 2018, “Terms, Trends, and
tion increases. In such leading markets Insights on PV Project Finance in the United States, 2018”,
of other RFF experts, its officers, or its
as California, the erosion in solar prices National Renewable Energy Laboratory/TP-6A20-72037. directors.
is already substantial. From 2012 to
2017, solar generation-weighted 10- to 12-year duration of many hedges and rising risk of midday power price
wholesale power prices fell by 34%, and 30-year duration of solar plants. erosion, future merchant solar projects
and prices declined further in the first Battery storage can mitigate this price may decide to do the same.
half of 2018 [7]. This price dynamic risk, and US solar PPAs have increas-
presents formidable downside and ingly included storage, with 16 signed Turn to p.70 for further insights
uncertainty to merchant solar projects contracts in 2018 versus just four in 2017. into the latest trends in corpo-
rate PPAs
and hedging counterparties, given the Considering the decline in battery prices
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Corporate PPAs as a solution

Business and finance | Complexity, pricing and regulatory hurdles remain key obstacles for the
corporate PPA market to overcome. But as Andrew Hedges, Caileen Kateri Gamache and Lee
Donovan of Norton Rose Fulbright write, ongoing procurement innovations and new players
entering the market suggest this will be a crucial route market for solar for some time to come
Tech companies PPA opportunities in the US decline as

such as Apple utilities focus more on asset ownership
have been
to increase internal capital costs and
early movers
on corporate associated rates of return.
PPA market, but The absence of long-term revenue
new players are certainty, coupled with increased power
entering the
market volatility (often caused by the
market
increase in intermittent renewable
technologies on grid systems), makes
project development more difficult.
This is particularly true for projects that
rely on non-recourse project financing.
Developers still require a route to market
for their projects in order to develop
Credit: Apple
and construct new renewable assets.

However, the rapidly growing corporate
focus on renewable energy procurement
along with the dramatic reductions
in renewable technology costs create
The issue? nies making environmental claims that favourable conditions for continued
At its launch at Climate Week NYC are unsubstantiated and/or misleading) build-out of projects.
2014 the RE100, a global corporate and calls for additionality (renewable Developers seeking to fill the gap left
leadership initiative that brings together energy generation that is truly new) have by government subsidies and dearth of
influential businesses committed to increased around the world. utility off-take opportunities are excited
100% renewable electricity, counted 13 about the relatively new corporate PPA
companies as members, alongside NGOs The solution? market. Developers in markets where
and clean energy experts. As of August Corporates have a variety of options government subsidies have been eroded
2019, RE100 boasts 191 companies that to meet their individual climate and or removed are looking to corporate
have made the commitment to go 100% sustainability policies, including PPAs to act as a route to market for
renewable. adopting efficiency measures, imposing projects that do not benefit from tax
Around the world, influential compa- sustainability measures on supply chains credits, green certificates or other price
nies are continuing to join RE100 and and service providers, utilising green stabilisation mechanisms that help
other initiatives with similar ambitious electricity supply tariffs and purchasing mitigate exposure to merchant risk.
goals. Although there are undoubtedly renewable energy certificate purchases.
laudable intentions backing this trend, Corporate power purchase agreements
the corporate bottom line increas- (PPAs), however, are emerging as one of
ingly demands it. As school children the most popular solutions.
worldwide take part in climate strikes, For developers of renewable projects,
climate change lawsuits wind through this is all well timed. For many, the
courts and activist shareholders score past five to 10 years have been bumpy
major climate and sustainability-related ones, particularly developers that base
victories, companies of all sizes are their projects on more established
finding that the sustainability sections technologies such as solar PV. In regions
of their websites and annual reports such as Europe, generous government
require renewed attention. Corporates subsidy schemes have been reduced
are realising the reputational benefits or removed, often at short notice and
of “going green”, stakeholders and the sometimes with retroactive effect. In
public have become more educated on the US, developers face the step-down
climate and sustainability issues and and eventual phase-out of valuable tax
accusations of greenwashing (compa- incentives. Moreover, traditional utility Figure 1. The structure of a typical synthetic PPA [1]

How?
The term “corporate PPAs” has become buyer enters into a PPA with the
an industry buzzword the past few years, generator. The corporate buyer
with varied use and understanding. The simultaneously enters into a PPA with
term has been used to describe a variety its incumbent energy supplier. This
of contracting structures, some of which second PPA requires the utility to act
are quite far removed from a direct as the buyer’s agent in managing the
power purchase agreement between off-take of power from the generation
a renewable project and a corporate facility. Generally the design of the
buyer. In general, corporate PPAs can be linked PPAs is intended to mitigate
broadly broken down into two types: risk for the corporate buyer by passing
synthetic/virtual PPAs and sleeved or Figure 2. The typically structure of a sleeved PPA [1] through obligations and liabilities to the
physical PPAs. extent possible. Usually the corporate
A “synthetic” or “virtual” corporate that track environmental attributes, is buyer will agree with the utility how
PPA is a financial derivative. In the most the primary means of demonstrating the intermittent electricity output of
common virtual PPA arrangement, a corporate obtained “green” energy in the generation facility will be credited
the parties agree to a strike price, with the US. If electricity is sold without all against the corporate’s electricity
payment flows being determined by associated environmental attributes, it is requirements. This will generally involve
comparing that strike price against a often described as “brown” energy and management fees associated with the
market reference price. This contractual is of little to no value to corporates. The intermittent nature of that generation
arrangement does not involve the renewable energy certificates are used output.
physical delivery of output to the buyer by the corporates to offset their overall In the US, there are various state
or an agent appointed by the buyer electricity usage. In this manner, a corpo- regulations that govern the structure of a
(for example a utility). These types of rate is able to offer tangible evidence physical PPA and, in some places, prohib-
corporate PPAs may be structured in of its performance against its corporate it them. A structure adopted by many
various ways. For example, they may be mandate or other commitments. Some US states that solar developers and large
two way or one way. In the former, where transactions take a different approach. commercial and industrial off-takers have
the market reference price is higher For example, in markets such as those embraced is “net metering.” Under this
than the strike price, the generator pays in the Nordics where there is already a arrangement, the developer will install
the difference to the buyer. Where the high deployment of low carbon genera- the generating system behind the meter
market reference price is lower, the buyer tion on the system and an established on the host customer’s facility (e.g., on
pays the difference to the generator. The secondary market for green certificates, parking garages, rooftops, adjacent
volume contracted under the agreement the corporate buyer may separately land). The PPA between the parties
can also be specified in a variety of ways purchase green certificates in the market requires the host customer to consume
and need not be tied completely to the and allow the project to sell the green all of the electricity it can from the
actual generation of the project. This project, and any excess energy flows to
type of virtual PPA is generally known the grid. State laws typically limit the size
as a “contract for difference”. As the “Data gathered by industry observ- of the generating unit to ensure the host
market becomes more comfortable with
contracts for difference, we are seeing
ers demonstrate a marked growth customer still consumes more electric-
ity from the grid than is sent onto the
unique additions and modifications, in the cumulative volume of corpo- grid from the on-site system. Corporates
including shared upsides or downsides with large warehouses and stores have
to split the risk of particularly high rate PPAs being signed at both spurred this trend and been influential
windfalls on either side, the introduction
of temporal risks by making settlements
a global and regional level, from in shaping local laws to accommodate
these physical PPA arrangements.
based on day-ahead pricing irrespective 2.3GW in 2014 to 13.5GW signed
of whether the project clears in A bright future…
day-ahead or in real-time markets, and contracts in 2018” As noted above, the growing focus of
other creative mechanisms to define and corporates of all sizes on sustainability
predict the value of the contract. presents a clear opportunity for large-
It is important to note there is typically certificates associated with its power scale deployment of corporate PPAs
one physical aspect in a synthetic PPA. output separately. globally. Data gathered by industry
For example, in the US and other parts A “sleeved” or “physical” PPA often observers such as Bloomberg New
of the world, the transaction typically (but not always) involves a direct PPA Energy Finance demonstrate a marked
involves green certificates (as in the between the corporate buyer and the growth in the cumulative volume of
diagram in Figure 1). The corporate generator. The corporate buyer usually corporate PPAs being signed at both a
buyer will usually require the green enters into associated arrangements global and regional level, from 2.3GW of
certificates associated with the energy (either managed by the corporate buyer signed contracts in 2014, the year of the
output of the project be delivered to itself or via a utility) to enable the output formation of RE100, to 13.5GW signed
the buyer or retired in the buyer’s name. purchased to be used for the benefit of contracts in 2018. Corporate PPAs are not
The transfer of certificates, evidenced the corporate’s wider facility load. new instruments and some of the early-
via attestations or formal clearinghouses Under this approach, the corporate mover corporates are now established

market players with portfolios of relatively new regulatory structure that the contract, it will need to evolve to
multi-technology corporate PPAs across many developers and corporates are still be more like the forms of construction
different jurisdictions. That experience learning, for example. These types of contract that renewable developers will
(both positive and negative) is leading to regulations are foreign to other jurisdic- be familiar with (FIDIC, JCT, NEC, etc.).
continued innovation in the market, with tions and the popularity of corporate The experience in the US to date has
a number of experienced buyers using PPAs may outpace the capacity of some demonstrated that it is very challeng-
competitive procurement processes to regimes to accommodate their use. Early ing to find parties willing to execute
push for more innovative contracting participants in these markets will have a “standard” contract without some
structures and risk mitigations. certain advantages in helping to shape degree of negotiation and legal review.
In addition to increased cumulative the regulatory regime and corporate PPA This, in turn, drives up costs and makes
volumes of signed corporate PPAs, we are structure. On the flip side, their experi- the economics of smaller corporate
seeing new corporate entities entering ence will also be the basis for the future PPAs difficult. It is an issue some in
the market. Given the complexities of a “lessons learned” in such markets. the US market are actively working to
corporate PPA, an “education” process is In addition, corporate PPAs require overcome.
often required. The extra time developers interaction with the operational and/or There are also a variety of competing
take to assist with this process often construction contracting framework and avenues to achieve corporate climate
pays off in repeat transactions once the while a corporate PPA that applies to an and sustainability goals. Many of the
corporate becomes comfortable. Once operational asset only is more straight- other products in the market, such as
a corporate has signed its first contract, forward, the signing of a corporate PPA green supply tariffs, purchase of green
efficiencies can be utilised going in the pre-construction phase may be certificates, etc. are often simpler and
forward in the same market and in other quicker to put in place. An energy
jurisdictions (subject to mandatory local procurement manager in a corporate
law requirements). It is not uncommon “Developing efficient contractual may not be willing or able to engage in
in the US to see developers repeatedly
working with the same corporates
and technical tools to allow a signif- the time and complexity of a corporate
PPA, particularly a smaller organisation
and lenders, which reduces costs and icantly greater number of smaller where energy procurement may be just
resources for all parties. There are also a small part of his or her role. In addition,
smaller corporates looking at corporate buyers to be involved in corporate the tenure of corporate PPAs that are
PPA solutions either individually
or as part of aggregated corporate
PPAs is one of the key near-term sought by developers (10-15 years)
are often much longer than the usual
PPA structures. Developing efficient challenges for the sector. As devel- mandate that a procurement manager
contractual and technical tools to allow may have for long-term contracts (for
a significantly greater number of smaller opers and off-takers become more example five to seven years).
buyers to be involved in corporate PPAs
is one of the key near-term challenges for
sophisticated, we will likely see There are numerous risks to consider
before entering into a corporate PPA.
the sector. As developers and off-takers corporate PPA structures evolve” These include factors such as: market
become more sophisticated, we will risk, price and project revenue risk, tenor
likely see corporate PPA structures risk, currency (or foreign exchange) risk,
evolve. The goal for the future will be a requirement for a corporate in order credit risk, scheduling risk, basis risk,
to continue to find ways to increase the to tick the “additionality” box of its own balancing risk, volume risk, shape or
value for all participants. internal sustainability policies. Although profile risk, construction risk, perfor-
a degree of standardisation has been mance or operational risk, change in
…albeit, with a few challenges achieved by market leaders in certain law risk and force majeure risk. These
One of the biggest challenges for regions, key differences in electric- risks require allocation between the
corporate PPA deployment to date has ity markets mean that a template for parties in the corporate PPA and, where
been regulatory hurdles. Although at example in the US looks very different to, appropriate the use of contractual or
a very basic level a corporate PPA is a say, a template form in Northern Europe. physical mitigation tools. As corporate
simple supply contract (and in the case In Europe, the European Federation of PPAs have evolved to offer innovative
of synthetic or virtual PPAs may not Energy Traders (EFET) has been working products such as baseload volumes,
even require delivery of any goods), the with developers, corporates, advisors so too have the mitigation tools such
regulated nature of the electricity indus- and financiers in order to produce an as hedging, proxy revenue swaps,
try adds great complexity. In the US, EFET standard corporate PPA. A review co-location of battery storage, etc. If
there is the potential for both federal and of the first draft shows that, in order to risk profiles cannot be allocated in the
state regulators with competing priori- cater for the various types of corporate corporate PPA, the introduction of third
ties to regulate physical energy sales. PPA that parties may consider using, parties into the contracting framework
A synthetic PPA is likely to be treated the document has a great degree of increases complexity.
as derivative product in many jurisdic- optionality and at first glance can look While the cumulative numbers
tions, requiring consideration of financial overbearing. It will be interesting to see of corporate PPAs signed each year
services regulations. The US Commodi- if the EFET form of corporate PPA can are increasing at a rapid rate, a more
ties Futures Exchange Commission operate like the other forms of EFET detailed look at the data shows that
regulates virtual PPAs in the US under a documents or if, given the nature of growth is focused. A small number of

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financial, legal, professional financial, legal, professional
market players in a handful of jurisdic- continue at the same pace it will not Authors
tions make up the bulk of the numbers. stop completely and there are other
Andrew Hedges is a climate change and clean ener-
While there is opportunity to study corporates, from a variety of industries,
gy lawyer based in London. His expertise spans the
“lessons learned” from transactions in who are stepping into the market. New development of renewable energy projects, energy
the US or Nordics, the nature of differ- and smaller corporates will require efficiency, sustainable energy procurement (includ-
ent electricity systems and regulatory education, given the complex nature ing long-term corporate PPAs) and carbon finance.
structures means that contracting of the documents but standardisation Andrew has experience advising both developers and corporates
on innovative off-take arrangements and has authored a num-
frameworks are not readily transferable exercises and aggregation transactions
ber of publications on corporate PPAs, including for the World
from one region to another. The growth provide opportunities to speed up this Business Council on Sustainable Development (WBCSD).
of the corporate market has introduced process in an efficient manner.
new players and while this presents As mentioned previously, for all the Caileen Kateri Gamache is based in Washington DC and works
opportunity there is a repeat “education” complexity that can be introduced in with project developers, investors, utilities and
financial marketers to find solutions to complex
exercise required. As established market a corporate PPA arrangement, at its
energy regulatory issues, develop ideas into
players fulfil their quotas the scope for core it is a supply contract for green operational projects, draft and negotiate material
smaller corporates to join aggregated electricity. Like any supply contract, contracts and close deals. She advises clients on
structures is reduced. pricing is key. It is pricing in each renewable off-take arrangements including physi-
region and jurisdiction which will cal and virtual PPAs, is a regular speaker at industry events and
often contributes to publications on energy matters including
The outlook ultimately drive, or hinder, the devel-
corporate PPAs.
The data suggest that the deployment opment of corporate PPAs as routes to
of corporate PPAs will continue to market for renewable projects. Lee Donovan is an energy lawyer in London. He advises develop-
rise. The questions that the industry ers, investors, corporates and utilities in the electric-
is concerned with are how fast and ity and renewables sectors on power and renewable
infrastructure projects, regulatory reform in the
where? Established players in estab-
energy sector and commercial arrangements. He
lished markets continue to provide References also advises clients on off-take arrangements and
innovative contracting frameworks [1] World Business Council for Sustainable project revenue streams, including subsidy mecha-
Development (WBCSD), in conjunction nisms and corporate PPAs. Mr Donovan has presented at industry
and the market is responding with
with Norton Rose Fulbright and EY,
the development of contractual and events on the development of the corporate PPA market and its
2016, “Corporate renewable power
purchase agreements: scaling up role in the energy transition.
physical risk mitigation tools. While
globally”.
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To get involved either as a speaker, partner or attendee please email:

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Technical Briefing Design and Build
Agrophotovoltaics: harvesting
the sun for power and potatoes
Applications | The question of whether to use valuable land for farming or solar power generation
has been a subject of fierce debate in the green energy transition. But, as Boris Farnung,
Maximilian Trommsdorff and Stephan Schindele of Fraunhofer ISE write, the two activities need
not be in conflict with each other and, with a new generation of solar technologies, can in fact be
mutually beneficial
ous large agrophotovoltaic (APV) systems

have been installed worldwide. Leading
countries in the field are France, Japan,
China, Korea and the United States, with
support schemes for agrophotovoltaics
established. The overall installed capacity
is estimated to be 2.1GW, with approxi-
mately 1.9GW in China alone. Neverthe-
less, only a few research plants exist, and
the full scope of applications is still to be
investigated.
Pilot project “Agrophotovoltaics–

Resource-Efficient Land Use”
In the project “Agrophotovoltaics:
Resource-Efficient Land Use” (March 2015
to June 2019), the technical, societal,
Credit: Fraunhofer ISE
ecological and economical aspects of

the technology were investigated in a
pilot demonstration project. The seven
partners of the model project, led by
Fraunhofer ISE and financed by the
German Federal Ministry of Education
Agrophotovoltaics: solving the a result, these countries grow crops for The pilot and Research and FONA (Research for
food versus fuel conflict export and less food is available for the agrophotovol- Sustainable Development), also wanted to
taic system uses
For farmers in Germany, energy harvest- indigenous population. But conflicts over clarify the political and energy economi-
bifacial glass-
ing is economically more beneficial than land use are also arising in emerging and glass modules cal boundary conditions that are required
food production. Thus, for example about developing countries, as growing popula- arranged in rows to help the new technology break into the
18% of arable land in Germany is used for tions and rising living standards require of two market.
growing energy crops. And it is true that more energy and food production. The pilot APV system was installed
Germany must allocate new land for the Instead of being competitors, photo- at the organic Demeter farm in Heggel-
production of solar electricity in order to voltaics and photosynthesis can actually bach, near Lake Constance. On a test
meet the urgent expansion of renewables complement each other. So-called field covering one third of a hectare,
needed for the energy transformation. agrophotovoltaic (APV) systems make 720 bifacial modules with a total power
Studies show that photovoltaic installa- the efficient dual land usage possible: the of 194.4 kWp were installed at a height
tions in the range of 200GWp are required farmer not only provides potatoes but of five meters above the ground. This
in order to meet the goal of reducing also electricity – from the same piece of clearance height makes sure that the use
carbon emissions by 85% until 2050. land – which dramatically increases the of versatile agricultural machinery is not
This leads to a significant increase in the land use efficiency. The concept is not restricted. The rows of semi-transparent
competition for land usage – “food versus novel, quite the contrary: it was conceived glass-glass modules are placed at a
fuel” – and at the same time presents an by the founder of the Fraunhofer Institute slightly larger distance so that the crops
ethical dilemma: valuable, arable land for Solar Energy Systems ISE in Freiburg, growing underneath receive at least 60%
is used to produce energy, while at the Prof. Dr. Adolf Goetzberger, and his of the total incoming irradiation. Modules
same time food is being imported from colleague Dr. Armin Zastrow in a paper are arranged in rows of two, with a gap
threshold and developing countries. As published in 1981 [1]. Since then, numer- between the rows to better distribute

Design and Build Technical Briefing
of the project, from the measurement of field could be harvested at the same time.
the climatic conditions under the plant, The results from the first year of practice
through the yield and quality of the showed that all four crops were qualita-
products to the effects on biodiversity. tively good and marketable. In compari-
From September 2016 to June 2019, the son to the crops from the reference plot,
solar power and the agricultural yield were a lower yield was observed, but it was
assessed, accompanied by social science still within the target horizon determined
studies on the acceptance by the local in advance by the farmers. It has to be
population. Two full harvest cycles were noticed that the harvest was a bit too
completed during the project period. early for some of the plants under the APV
array. Normally the potatoes and celery
Agricultural results: high yields in plants should have been given about two
hot and dry summer more weeks to ripen.
Credit: Spinnanker
Over the first 12 months (October 2016 to The second year, however, showed a
October 2017), four crops (winter wheat, different picture: In 2018, the yields from
potatoes, clover and celery) were grown three of the four crops grown under the
and harvested. APV system were larger than the reference
The foundations were fixed by spinning anchor rods
The University of Hohenheim inves- plot. The crop yields for celery profited the
tigated the response of the crops to the most by the system, with a gain of 12%
rainwater. The modules’ total surface local changes in environmental condi- compared to the reference. Winter wheat
measures 1206 square meters. The deviations. Data on the microclimatic param- and potatoes produced a gain of 3 and
tion from the south is 52 degrees, with an eters such as photosynthetic active radia- 11% respectively, and clover a minus of
angle of inclination of 20 degrees. tion (PAR), air and ground temperature as 8%. In addition, in the case of potatoes,
Within the project, Fraunhofer ISE has well as precipitation were collected. The the marketable share (35-50 millimeters in
developed accurate and validated calcula- analyses indicated that the PAR under size) was larger under the APV plant than
tion methods to design the system with the APV system is reduced by about 30%. under the reference area.
a balanced ratio of light and shade. In In the first evaluated year, the local air In spring and summer, the soil
addition, based on comprehensive light- temperatures under the APV system did temperature under the APV system was
management simulations, it is ensured not differ significantly to the reference less than on the reference field; while the
that the irradiation is homogeneous over plot. Washouts have been observed at air temperature was identical. In the hot,
the designated area. Thus, Fraunhofer ISE single locations in the field, depending dry summer of 2018, the soil moisture
is uniquely positioned to support project on the crop and its stage of development. in the wheat crop was higher than on
developers to define a system concept In particular, the scientists observed a the reference field, while in the winter
optimised for solar power and food slightly less homogeneous distribution of months, it was less, as for the other crops.
production in the same area. rain water below the PV panels compared The agricultural scientists of the University
An important technical aspect was the to the reference area. of Hohenheim assume that the shade
possibility of deconstructing the plant While the clover yield was reduced under the semi-transparent solar modules
without, for example, leaving founda- only slightly (-5.3%) due to shading from enabled the plants to better endure the
tions in the ground. The foundations were the APV, the yield decrease for potatoes hot and dry conditions of 2018. In their
therefore laid using a spinning anchor (-18.2%), wheat (-18.7%) and celery view, agrophotovoltaics could mitigate
system: up to eight-meter-long spinning (-18.9%) was higher. The winter wheat and climate change effects on agriculture in
anchor rods were turned down on a cast the potatoes growing under the PV array many regions.
plate, in the center of which an Alpine showed a slightly slower development For the research project, no particularly
anchor was drilled into the ground. In than the same crops on the reference plot. shadow-tolerant or even shade-loving
order to avoid damage to the facility by At harvest, no mentionable difference in plants were selected, but varieties normal-
agricultural machineries, the posts were development was observable, so that the ly marketed by the Demeter farm. It can
fitted with a ram protection, which was crops under the APV and on the reference be assumed that shade-loving plants
also fastened with anchor rods. In total, such as hops, leafy vegetables, legumes
about 50 tons of steel were used. or certain wine and fruit varieties would
One of the Demeter farmers’ demands have shown significantly better yields.
was that they could carry out their normal Further follow-up research projects are
crop rotation under the plant: winter needed to investigate this in more detail.
Credit: University of Hohenheim
wheat, clover grass, celery and potatoes.

The aim for the farmers was to achieve at Solar energy harvest: yields exceed
least 80% of the usual yield. In order to be expectations
able to prove this, the same crops were As for the solar yield, the project results of
cultivated on a reference area directly the first year already exceeded expecta-
next to the test field. Over a period of tions, at least with respect to the initial
three years, the experts for agricultural specifications. In the first 12 months
research of the University of Hohenheim The marketable share (35-50 mm) of the potato harvest was of operation, the PV plant produced
accompanied the agricultural aspects higher under the APV system. 245,666kWh of electricity, or 1,266kWh

system in the very hot and dry summer of

2018 greatly exceeded this value, as the
partial shading underneath the photovol-
taic modules improved the agricultural
yield, and the sun-rich summer increased
the solar electricity production. Based
on the 2018 potato yield, the land use
efficiency rose to 186% per hectare with
the APV system.
The APV-RESOLA project examined
not only technological and agricultural
aspects, but also the acceptance of this
new technology by the local popula-
Credit: BayWa r.e.
tion, as this could become an obstacle

to higher market penetration (“not in my
backyard”). In two citizen workshops,
social scientists from the Institute for
During summer, the APV system covers the electricity load at the farm almost
completely. The green area represents the feed-in of the solar power into the grid, Technology Assessment and System
the yellow area represents the own consumption, while the purchased power from Analysis (ITAS) of the Karlsruhe Institute
the grid is plotted in grey of Technology discussed which forms of
per kWp installed. The power output is While the expected capex costs of an
mainly influenced by the use of bifacial APV plant are about one-third higher “While the expected capex
module technology, but also by a larger than for a conventional open space plant,
distance from row to row which results mostly due to the higher racking system costs of an APV plant are about
one-third higher than for a
in lower shading and temperature losses and higher logistics costs, the OPEX
compared to conventional power plants. costs tend to be about a quarter lower.
A detrimental factor with regard to the This is due to synergy effects such as the conventional open space plant,
electrical yield is the orientation of the avoided costs for mowing, surveillance or
system, which is 52° off south. a fence. The electricity production costs mostly due to the higher racking
system and higher logistics
In the second year of operation, the of a typical APV system of 2MWp today
solar irradiation totalled 1,319.7kWh/ are competitive with a small PV rooftop
m², an increase of 8.4% compared to the system (<10kWp). Further cost reductions costs, the OPEX costs tend to be
previous year. The energy output of the due to economies of scale and learning
APV system amounted to 249,857kWh, effects are to be expected. about a quarter lower”
corresponding to an extraordinarily good
specific yield value of 1285.3kWh/kWp. Land use efficiency dramatically
BayWa r.e. renewable energy GmbH, increased energy production they would accept
responsible for the construction and the The results from 2017 already showed a in their immediate living environment.
load management of the APV system, also land use efficiency of 160% compared to One workshop was carried out before
evaluated the self-consumption at the a single use of the land (i.e., either agricul- the construction of the plant, the second
farm. Over the day, the power produced ture or PV). The performance of the APV one afterwards, and there was also a
by the APV system was well matched to survey. The results showed that the
the power consumption on the Demeter acceptance of APV systems increases if
farm. In the summer months, the load local citizens recognize clear advantages
demand was covered almost fully by the for themselves, for example if they are
APV system and in July close to 100%. involved financially within the framework
The electricity generated could supply of a citizens’ energy cooperative. The
the annual demand of 62 four-person aesthetics of the plant was a point of criti-
households. The Demeter farmers use it cism, especially with regard to the tourist
primarily for processing their products attractiveness of the region. Still, the
and charging their electrical vehicle. With citizens surveyed prefer the APV system
the subsequent installation of a 150kWh to a conventional PV plant. They also
battery in 2018, the farm community pointed out that uncontrolled growth and
Credit: Fraunhofer ISE
could increase the own consumption rate “pseudo-agriculture” must be avoided, i.e.
for the solar power to approximately 70%. clear standards must be established by
This shows that if the electricity is stored the legislator with regard to the definition
and used on site, for example for the use of an APV system. While in France, Japan,
of electric agricultural vehicles, additional Korea and the USA there are already finan-
sources of income arise due to synergy The land use efficiency was dramatically increased during the cial support schemes with corresponding
effects. hot and dry summer of 2018 definitions, this is lacking in Germany.

Design and Build Technical Briefing
Further research topics: horizontal with an energy consumption growing nation of aquaculture and photovoltaics
and vertical technology develop- 10% annually, there is an increasing is expected to significantly increase the
ment competition for land between aquacul- land use rate.
Now that evidence of increased land use ture and renewable energy. The study In order to exploit the technology on
efficiency and economic viability has been showed that solar-aquaculture habitats the vertical level, further development
provided, further horizontal and vertical work is required in the areas of organic PV
technology development is needed to
unlock the full potential of agrophotovol-
“Solar-aquaculture habitats film technologies, energy storage, water
treatment, irrigation systems, agricul-
taics. To provide the necessary proof- have the potential to promote tural robotics, electro-mobility, tracking
of-concept before market entry, other systems, materials research and structural
techno-economic APV applications must the deployment of renew- design. Another aspect to be considered
be compared and larger systems in the
MW range need to be realised. Different
able energy as well as enact is the rising use of electric vehicles in
agriculture, which could increase the own
possible applications shall be explored, measures to counteract climate consumption of solar power on farms.
such as the combination with fruits, Two years ago, the agricultural
berries, hops, wine crops and livestock change, expand shrimp produc- machinery manufacturers Fendt and John
farming. As far as vegetable cultivation
is concerned, there is currently a trend
tion yet protect water resources, Deere introduced the first fully electric
battery-operated tractors. A future vision
towards closed cultivation. This serves on decrease land use and reduce is “swarm farming”, with automated
the one hand to adapt to climate change solar-powered electric farm machines
(protection against extreme weather CO2 emissions at the same time” working under the APV array and receiv-
conditions, improvement of the water ing their power directly from the APV
balance) and to “green the deserts”, but system. Already today, machines exist that
also helps to reduce the use of pesticides, have the potential to promote the autonomously cut weeds or eliminate
as no pests can penetrate. To give an deployment of renewable energy as well pests such as the Colorado potato beetle
example, in France there are already large as enact measures to counteract climate without using chemicals, polluting the
greenhouses with APV. In the future, a change, expand shrimp production yet ground water or the soil. Thus, farming
combination with organic photovoltaic protect water resources, decrease land would become more sustainable not only
modules or flexible photovoltaic foils use and reduce CO2 emissions at the with environmentally friendly machines
would be conceivable: special absorber same time. Based on the first analyses, the but also through intelligent technology.
layers in the photovoltaic cells would pilot project in Bac Liêu can save about
allow certain parts of the sunlight, which 15,000 tons of carbon dioxide emissions High potential for arid regions
are particularly conducive to plant annually and reduce the water use by 75% Another current research focus addresses
growth, to pass through, while protecting compared to a conventional shrimp farm. the transfer of APV technology to other
the plants from excessive radiation. The aquafarm operators appreciate other climate zones. The technology of dual use
Aquafarming is another possible appli- advantages from this technology, such may prove to be especially advantageous
cation: in 2018, Fraunhofer ISE carried as protection of shrimps and fish against in semi-arid threshold and developing
out a proof-of-concept study analysing predatory animals, improved working countries. The results from the summer
the possibility of installing APV at shrimp conditions due to shading and a stable of 2018 demonstrate the enormous
farms located in the Vietnamese Mekong or lower water temperature that helps to potential of agrophotovoltaics for arid
Delta. In this densely populated region promote the shrimps’ growth. The combi- climate zones. Crops and livestock can
benefit from the shade given by the PV
modules, while the electricity can be used
for seawater desalination, water treat-
ment or irrigation pumps. Fraunhofer ISE
is already working on several projects to
transfer the technology to threshold and
developing countries as well as for new
applications. A pilot study that Fraunhofer
ISE carried out for the Indian state of
Maharashtra showed that shading effects
and less evaporation might result in up
Credit: Hofgemeinschaft Heggelbach
to 40% higher yields for tomatoes and

cotton crops. In certain cases, the experts
expect the land use efficiency to almost
double for the region. In another project,
carried out within the EU Horizon 2020
programme, the Fraunhofer ISE research-
ers are working together with partners
from Algeria to test the effects of APV
Using agricultural vehicles under an APV system is not a problem. In the future, these could be e-vehicles systems on the water balance. Besides

less evaporation and lower tempera- The three pilot plants will be monitored Authors
tures, harvesting the rain water with PV for three additional years, operating
modules also plays a role. them as on-field labs. A long-term plan Boris Farnung joined the Fraunhofer Institute for
Solar Energy Systems ISE in 2008. He is head of
Together with Fraunhofer Chile, Fraun- involving different type of crops has been
group PV Power Plants and over the years has
hofer ISE is currently testing three 13kWp coordinated with the farmers, so it will be
gained extensive experience in quality assurance,
APV systems in the Chilean communities possible to test the concept with a large
bankability support, testing and characterisa-
of El Monte, Curacavi and Lampa, which variety of products. tion on both the module and the system level from projects
are the first of their kind in Latin America. Apart from the higher land use worldwide. He is also operating agent of the IEA PVPS Task 13 -
Investigations involve adapting and efficiency, APV systems can help to Performance and Reliability of Photovoltaic Systems.
optimising the APV technology accord- improve the socio-economic situation
ing to the specific climatic and economic of rural areas in threshold or developing Stephan Schindele is working on his doctoral
conditions in Chile. The results of both countries. In those villages often situated degree about the innovation processes of agro-
the crop and solar power production are far from the grid, the quality of life is photovoltaics and their political support. He is pro-
very positive. In the arid and semi-arid increased immensely just with the electric ject manager of agrophotovoltaics at Fraunhofer
ISE.
regions in Northern and Central Chile, output of a few solar modules provid-
there is great potential for APV, since ing improved access to information,
Maximilian Trommsdorf is a project manager and
a large percentage of the people live education, clean water and also better
scientist specialised in agrophotovoltaic systems
from agriculture, which is impacted by medical care. For example, in sub-Saharan in the team Applied Storage Systems at Fraunhofer
the increasing amount of dry periods, Africa, about 92% of the rural popula- ISE. In 2015, he received his M.Sc. in economics and
desertification and water scarcity due tions have no access to electricity. APV politics at the University of Freiburg.
to climate change. The projects show offers new sources of income to the local
that the partial shading of crops planted population and at the same time reduces
underneath APV can reduce their need for the dependence on fossil fuels, needed
water and also offer livestock shelter from for diesel generators. Besides this, solar References
the sun. Also, it is expected that various power can be used for cooling, processing
[1] A. Goetzberer, A. Zastrow, 1981, “Kartoffeln unter dem
fruits which normally do not grow well and preserving agricultural crops, making Kollektor” http://agrophotovoltaik.de/documents/21/A._
in dry climates with high solar radiation them more profitable as they can also be Goetzberger_A._Zastrow_Kartoffeln_unter_dem_
Kollektor_1981_iUKIIWo.pdf
would grow underneath an APV system. marketed outside the harvest period.
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ADVERTORIAL
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Solar Expo & Forum to take centre stage at the World Future Energy
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The World Future Energy Summit will host an unrivalled gathering of

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Design and Build
Project construction safety

in utility-scale solar
Safety | Construction trades are among the most dangerous, and solar is no exception. Matthew
Skidmore of CS Energy explains why safety is paramount for solar project developers, project
owners, financiers and EPCs
C
onstruction trades rank in the top
20 most dangerous jobs in the
United States [1]. Construction
safety on solar project sites is an important
underpinning of the project’s success for all
stakeholders, from solar project developers,
project owners, financiers and engineering,
procurement and construction firms (EPCs),
to the subcontractors and labour force that
Credit for images: CS Energy

execute field work. As the solar industry
grows and advances, so does attention to
the safety of the workers building these
immense power generation giants.
A solar EPC company’s safety record
plays an undeniable role in the success
of the company. The gravitas of a strong
safety record builds reputations that enable 1. Make training a top priority Safety is as much educational sessions and regular online
companies to grow and prosper. Having Safety training is our number one priority. A of a concern on trainings. Additionally, the team is able to
solar project
a positive safety record is a qualification robust training programme with a dedicat- leverage the experience and resources of
sites as any other
factor in many project bidding processes ed budget is worth the investment. That construction site the safety team, who spend 75% of their
and can open the doors to opportunities investment is directly related to the success time in the field executing trainings and
not available to lesser ranked competi- of a company. Ensuring safety means that managing safety-related activities.
tors. A strong safety record impacts a solar staff understand and follow company CS Energy continuously improves its train-
project’s bottom line by reducing liabilities protocols. They have the knowledge to use ing programme through the regular reports
and insurance claims which ultimately company resources properly and to execute that the Safety Department receives. After
increases profitability for all stakeholders. It job directives and activities effectively. analysing the data, the Safety Department
also means a lower experience modification Training is also a factor in employee reten- identifies training gaps and is able to close
rate (EMR) that translates to a discounted tion. In a recent survey of 10,000 workers those gaps by further utilising the various
insurance premium. A safety record is an conducted by Price Waterhouse Cooper, educational channels already in place.
important factor in solar project financing 35% of those surveyed believe in the value CS Energy also integrates seasoned
as stakeholders seek to reduce construc- of training and development programmes senior-level managers into every team. As
tion risks. A culture of safety enhances the and consider them an important factor in a valuable resource and training asset for
welfare of employees, supports recruit- employment [2]. team members, the team leaders provide
ment and contributes to the growth of the The first day that employees and subcon- beneficial coaching to all employees. Their
organisation. tractors join CS Energy, they attend a train- knowledge and experience keep projects
Accidents and injuries can weigh on ing programme, which includes a site safety on track and provide safeguards for lesser
companies’ track records in addition to orientation and is followed with monthly experienced staff.
workers’ compensation claims and lawsuits
that can linger long term. Benefits of a strong safety record 2. Actively support a company culture of
1. Ensures that everyone goes home to their families at the safety
Top five best practices end of the day To effectively maintain a culture of safety,
As safety standards for solar construc- 2. Supports the growth of the company through employee safety needs to be a top priority of the
tion evolve to meet industry demands, welfare and enhanced recruitment executive leadership team driven by
it is crucial that we establish consistent, 3. Opens the door to project bidding opportunities supportive actions. The Safety Department
sustainable, long-term safety programmes. 4. Reduces liabilities and insurance premiums should report to top level management and
Here, we share our top five best practices 5. Is a factor in solar project financing safety policies should flow back through the
for safety: entire organisation. Our executive manage-

Design and Build
ment team supports the Safety Depart- from these reports can result in new or staff can easily complete and submit with
ment by participating in activities centered updated hazard reports, alerts to the field, the touch of a button. It is electronically sent
around the programme. We regularly visit new procedures and/or other activities and compiled with daily data and posted
active sites, participate in safety meetings designed to improve the safety of staff. to a dashboard report available for the
and site audits, and quickly respond to all Standardising the practices of the safety safety manager’s review. This now simpli-
reported safety issues. programme across your organisation and fied process more readily delivers timely
CS Energy’s Safety Department is staffed your projects ensures that employees information that is utilised to drive future
by experienced and credentialed profession- have the same experience – no matter improvements that safeguard our staff.
als in the safety field who report directly to which project they are working on or what
the CEO. The Safety Department manages locations they are working in. 5. Engage subcontractors and drive
a full programme with regular meetings Regular reviews drive a safer environment safety through their organisations
across the organisation to ensure consist- in the field. For example, after analysing While CS Energy itself performs a portion
ency. The safety team also leads a monthly reports over several years, our safety team of our work, we rely on subcontractors to
cross-departmental committee to discuss the identified a larger percentage of slips and provide regional expertise and deliver a
programme and evaluate its effectiveness. falls happening in the early morning after level of work that meets our quality and
A culture of safety is driven by a winter storms when temperatures were safety requirements. This begins with select-
programme of proactive and well-planned lower because of the presence of ice on sites. ing the right subcontractors who have prior-
and executed activities, which focuses on We provided cleats for our teams working itised safety in their businesses. As a part of
leading indicators to consistently keep in those areas during those timeframes and the diligence process, we review their safety
safety in the foreground and a priority for all significantly reduced slips, trips and falls. records and their safety personnel. Active
employees. participation in our safety programme is
Active support of a culture of safety 4. Incorporate safety awareness with required of them under our contract. From
means the status quo is never enough; technology day one, we immerse subcontractors in our
we must always be looking for improve- With today’s technology, it is easier than safety programme through orientation,
ments. We consistently evaluate and adapt ever to quickly distribute critical informa- continuing education and site-specific
our programme to keep it fresh and fight tion across organisations. It is monumental safety plans that meet CS Energy standards
complacency. Improvements and updates that we can reach in-the-field personnel for every project. We work for buy-in and
continuously engage and challenge the staff. instantly with sophisticated reports and then audit for enforcement and compliance.
As an example of a direct result from images that better enable clear communica- This process further enables the standardi-
the review and improvement our safety tion. sation of our safety programme and drives
programme, CS Energy has implemented Thanks to devices such as tablets and our safety-consciousness into the subcon-
an above industry standard with regard to smartphones, we can now accomplish tractors’ organisation.
pre-commissioning procedures for solar portions of our work faster and ensure
systems. Prior to electrical commissioning that employees have the right informa- Final thoughts
of a project, we require live testing using tion available to them when they need it. Site safety is not a reactive thing; it is a
the best and latest technology to ensure Technology enables project managers and proactive thing – you want to manage the
polarity as well as the integrity of connec- field staff to receive regular email safety risk out of activities before they occur.
tions, terminations, wiring and the system. reports, review and post information to their One of CS Energy’s differentiators is that
This process remedies issues ahead of time, own team web pages, and access libraries it has a larger on-site field presence than
minimising the risk of failure in combiner of information online. Through techno- its competitors. This is an added expense;
boxes, inverters and medium voltage logical advances, employees can see issues however, safety issues don’t happen behind
equipment. Wiring issues can cause fires, other teams have experienced and use a computer screen. They happen in the field.
arc-flashing or other extensive damage. By lessons learned in real-time. They can post This is how we proactively manage risk and,
implementing this additional safety proce- happenings on site and keep their team ultimately, that reduces cost.
dure, we’ve created a safer environment members looped in. They can more rapidly
that can literally save lives. gain information on changing conditions References
that may affect their daily activities and act [1] https://www.usatoday.com/story/money/2019/01/08/most-
dangerous-jobs-us-where -fatal-injuries-happen-most-
3. Develop a consistent, standardised accordingly. often/38832907/
safety programme with regular reviews For example, our safety manager used [2] https://www.pwc.com/gx/en/services/people-organisation/
publications/workforce-of-the-future.html
Having a safety programme is number one, technology to convert a tedious compliance
but the best practice piece is to regularly process into a fast and easy activity. Field
review, assess and update the programme. staff are required to complete a report at Author
This is how companies identify new risks and the beginning of any new onsite activity. Matthew Skidmore, CEO of CS Energy, has led the
deviations of previously documented risks. There is a significant amount of paperwork company’s solar efforts since 2010. He spearheads
Our safety programme promotes daily and time needed to meet this requirement, operational improvements to drive productivity
while reducing costs. With a track record of recruit-
communication with field teams by sharing not to mention the lag in getting this info
ing and retaining top talent, and the ability to
information, circulating daily reporting back to our offices to ensure compliance. discern and nurture strategic relationships into a reliable, repeat
and capturing those findings in dashboard Now, employees scan a bar code that customer base, Mr. Skidmore has advanced the organisation into
reports. Regular feedback is shared with instantly provides them with the neces- a reputable, nationally recognised solar development and EPC
a cross-departmental committee and the sary document. The form has now been firm. He has a BS in Civil Engineering from Bucknell University in
Pennsylvania.
executive management team. Action items streamlined with a simple set of questions

ADVERTORIAL
2019 Energy Taiwan
Combines four major

renewable energy
business opportunities
Energy Taiwan is jointly organised by the Taiwan External Trade Develop-
ment Council (TAITRA) and SEMI. The event will take place from 16-18
October 2019 at the Nangang Exhibition Center Hall 1. The exhibition will
feature four major energy themes: PV Taiwan, Wind Energy Taiwan, HFC
Taiwan and Smart Storage Taiwan. It is expected to attract more than
10,000 domestic and foreign buyers from related industries.
Green energy development has become a global trend. The Taiwanese
government is also actively investing in the development of renewable
energy. This is evidenced by the launch of its solar PV two-year promotion
project, which has already surpassed its goal, generating over 1.52GW
of energy. A new policy on the energy transition was launched in Taiwan
to phase out nuclear power and introduce substantial power generation
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Visitor pre-registration

system integration Technical Briefing
Critical requirements for PV cabling

in the emerging global market
Cabling | Cable manufacturers are well placed to capitalise on solar’s rapid global growth.
However, to successfully exploit this continuing development, it is important to understand where
growth is focused, why it is focused in these areas and the environmental and legislative challenges
that it creates, writes Mark Froggatt
only from shareholders, employees and

trading partners, but also from govern-
ment and related bodies in the form of
mandatory legislation.
Accordingly, the major energy market
players are leading the way with large-
scale renewable energy projects; house-
hold names including Amazon, Apple, BBC,
Ikea and Unilever have all invested in major
schemes.
However, governments and individual
consumers, as well as many other interna-
tional businesses, have also contributed to
driving the demand for solar energy. This
need for solar energy output has been met
by a reported steady growth of installed
solar energy systems.
Solar’s global growth Schemes based on renewable energy
offers opportunities to sources, including solar power, are also
cable suppliers providing valuable solutions for remote
and developing locations. Providing
T
he global market for solar PV energy and the range of cable products they test self-sufficient, renewable energy to rural
systems is growing rapidly and, as for, which means that cable manufactur- communities in the developing world
all solar projects require extensive ers should develop their product ranges helps populations to work their way out
levels of cabling, represents a considerable accordingly. of poverty with an ability to power their
opportunity for cable manufacturers. In This paper will discuss the critical homes, schools, hospitals, stores and
order to gain a competitive advantage in requirements of PV cable products, provide industries.
this market, cable manufacturers must guidance on the applicable standards Overall, the latest figures indicate that
understand which parts of the world for testing PV cables and examine the global installed capacity for solar
are generating the highest demand and how manufacturers can produce cable photovoltaic (PV) systems exceeded 400
develop cable products that meet all products suitable for this demand, against GW in 2017 (as shown in Figure 1).
the relevant regulations within these a backdrop of the emerging global solar These factors are contributing to plenty
locations. Understanding how PV cables market. Figure 1. Cumula- of business growth opportunities globally.
perform in comparison to Low Voltage tive global In January 2018, GTM Research reported
(LV) cables is essential for those seeking to Why the solar energy industry is growth of solar that 53 countries had set up tendering and
PV installations.
develop products for the PV market, as the growing? Source: Solar- auction programmes allowing the supply
applications and conditions these products The solar industry today owes the rapidity Power Europe chain to bid for opportunities to support
are specified for will create different of its growth to multiple factors, rather upcoming solar projects. The research also
requirements. In addition, developing an than to one single reason. Fossil fuel
understanding of the standards to which pricing is expected to continue to rise over
PV cable products must be approved is time, so future-proofing – by reducing
of vital importance for manufacturers as dependence on such fuels – makes sound
the requirements of each standard may economic sense. Of equal importance is
render them unsuitable for projects or the pressure that commercial organisations
applications within a specific region. In the come under to meet their environmental
case of IEC 62930 and BS EN 50618, these obligations and build a sustainable, green
standards vary in their approach to testing energy policy. This pressure comes not

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found that an additional 29 countries were

planning to set up these programmes
to recruit the best suppliers to fulfil their
project specifications and requirements.
This statement is also reflected in figures
released by the International Renewable
Energy Agency (IRENA) relating to employ-
ment in the renewable energy sector. In
2017, this reached 10.3 million worldwide.
The solar PV industry accounted for
close to 3.4 million of those jobs and was
highlighted as the largest employer of all
renewable energy technologies.
What role do cables play, and what

are their critical requirements?
Cables are essential to the transmission of
the power generated by the solar panels.
Whether they are installed indoors or
PV cabling must be able to withstand harsh
outdoors, each application will call for
conditions, for example found in the desert
greater emphasis on different character-
istics for performance, which impacts on
material requirements. specified. As these cables are designed Which regulations apply to PV
Figure 2 shows a simple domestic for different applications, the perfor- cables?
PV system, but the same principles mance characteristics may also differ. PV cable technology is still relatively new,
equally apply to larger installations. Note For example, while LV cables are suitable which means that most applications will
in particular the use of DC cabling to for indoor use and in conditions where follow established international standards
interconnect the modules to one another, they are protected from the elements, to ensure cable products meet high levels
and to the inverter that converts their DC they are typically unsuitable for outdoor of quality and safety.
output to a usable AC supply. While the applications. An exception to the rule The industry standard warranty period
AC cables downstream of the inverter would be when a cable is buried, as PV provided by solar panel manufacturers
are usually within a building’s indoor, cables are not designed for applications is 25 years. As a result, this is sometimes
protected environment, the DC cables are where this is a requirement. PV cables, also recommended as the lifecycle for
typically outside, where they are exposed however, are suitable for installation in solar cables. However, a set time indicative
to environmental stresses and, potentially, trays, in applications where the cable used of how long a cable will last cannot be
human interference. does not touch the ground. This can be accurately given without understanding
particularly useful if rodents are a problem the operating temperatures and condi-
in the environments in which the cable is tions. The results from a thermal endurance
being used. test, as specified in PV standards, can be
LV and PV cable products also differ in used to predict life expectancy of cable
the maximum temperatures in which they products.
should be operating. This aspect should The location of solar projects neces-
be considered at specification stage when sitates longevity and low maintenance,
determining if the product selected will particularly in the remote applications
be suitable for the specific application. in which they are used. As such, the
Under the IEC 62930 and BS EN 50618 solar industry is heavily regulated to
standards, LV cable products only need ensure products will be reliable and fit
to operate continuously at temperatures for purpose. As a minimum requirement,
Figure 2. Simple PV system block of up to 90 degrees, whereas PV cable products must meet building regulations
diagram
products need to be able to operate at for the region in which they are being
While the technical and legislative a temperature of up to 120 degrees to installed.
challenges associated with overcoming ensure continued functionality if, in opera- Simply performing a thermal endur-
these issues are significant, the oppor- tion during their lifecycle, they were to ance test on a PV cable product does not
tunities they represent to those cable reach this temperature. Ozone resistance guarantee it will meet the required levels
manufacturers that can overcome them is also mandatory for PV cables, although of quality and safety. However, independ-
are correspondingly impressive. it is not usually required for LV cables. ent testing and approval of products
While LV and PV cables may perform the provides specifiers and end users with
How are PV cables different to LV same essential functions of power trans- confidence through evidenced compliance
cables? mission, the response to environmental to the applicable standards.
When a PV system is installed, both conditions will be different based upon Following discussions with a number
low voltage (LV) and PV cables may be how the cable has been designed. of firms involved in solar technology,

Abrasion resistance Ozone resistance to which standard cable products should

be tested to, therefore, should not only be
Flame retardance Proofed against chemical stresses – acids and alkalis based on conductor size alone.
Halogen-free (where appropriate) UV resistance The main difference between the
standards is the materials permitted for
Humidity and water resistance Withstanding large temperature ranges (-40°C to 90°C)
testing, as BS EN 50618 only permits
Low smoke emission Withstanding mechanical stress: compression, tension, bending and shear testing of cable products manufactured
load
with LSHF materials. These types of
cable products are designed to give off
standards have been developed which meet the solar industry’s unique specifica- Table 1. Attrib- low emissions of smoke and corrosive
recommend the list of features shown in tions. Many cable manufacturers are utes for which DC gas when they come into contact with
cabling should be
Table 1 that DC cables should be tested for, working closely with project specifiers to fire. They are often specified for public
tested, accord-
to maximise the potential opportunity. manufacture cables that meet the design ing to industry buildings as they reduce the risk posed
A declaration from cable manufacturers and local manufacturing standards’ standards to public safety, in the event of an
that their cabling has undergone their own requirements. emergency. By comparison, IEC 62930
in-house testing is not enough – they must In order to produce cable products that permits materials with or without LSHF
be able to prove to the industry that their will meet solar PV system requirements, materials to be tested, including PVC
solar products have met the pass require- cable products should be designed to cable products. While this material gives
ments related to each of the specific tests meet the requirements of IEC 62930: off thick smoke and toxic fumes when
involved in verifying the above product ed 1.0:2017 and BS EN 50618:2014. burned, PVC, or a modified form of PVC,
features. Using a testing and certification These specific requirements will now may be more appropriate for customer
partner provides reassurance that opera- be explored in more detail, where each requirements. For example, PVC cable
tors and stakeholders require. standard’s emphasis on the use of some products may be better suited to carry
Using inappropriate cable shortens a materials over others differs. power from solar panels to a water treat-
project’s lifespan and many solar projects The first requirement is for cable ment facility, as they provide greater
are being supported by local governments products that are used with Class II equip- chemical resistance than their LSHF
and, as such, can be accountable to public ment. Defined in IEC 61140 as equipment counterparts to the chemicals used in the
stakeholders for the return on financial with double insulation that does not water treatment.
investment. require a safety connection to the electri- Thermal endurance testing is manda-
While some certification bodies have cal earth, Class II equipment typically tory as part of IEC 62930 and BS EN 50618.
developed their own standards for testing applies to appliances including televi- This test is designed to determine a
PV cable products, the main standards sions, DVD players and power tools. BS EN cable’s lifetime and involves testing any
recognised internationally and specifically 50618 is suitable for testing these types of PV cable product up to 120°C for 20,000
relevant to solar cable products used in DC cable products; however, IEC 62930 does hours, to simulate how the product
apparatus are IEC 62930: ed 1.0:2017 and not make provision for this. Any appli- will perform in operation. When these
BS EN 50618:2014. ances using PV cable products with Class standards were initially being developed,
EN 50618 only applies to cable products II equipment should therefore be tested the thermal endurance test generated
that use flexible tin-coated copper conduc- to BS EN 50618. some controversy as its main measure is
tors with a single core and cross-linked A further consideration when seeking to demonstrate how long the cable will
insulation and sheath produced with low to understand specific characteristics and operate for before it reaches the defined
smoke, halogen free (LSHF) materials, while the different emphasis each standard threshold; all within controlled conditions.
IEC 62930 has extended this scope to cover places on them is the size of the cable As many PV cable products are usually
single-core cross-linked insulated power conductor. Where BS EN 50618 only speci- installed in extreme conditions, the
cable products manufactured with or fies a conductor size range of between 1.5 results of this test may be less conclusive
without LSHF materials. Both standards set and 240m2, IEC 62930 allows for a wider than more established tests such as the
out exacting requirements for testing PV range of 1.5 and 400m2. It is worth noting hot pressure test, which is used to check
cable products in reflection of the challeng- that even if a cable product has a large that sheathing and insulation materials
ing conditions the cable products will be diameter, the conductor size may be small are resistant to indentation at elevated
specified for. due to being surrounded by insulation, Solar cable temperatures. Nevertheless, submitting
While these standards have similar bedding and wire armour. The decision as installation cable products for a thermal endurance
critical requirements, there are significant test can further aid in evidencing cable
differences in the materials permitted and quality.
the range of the conductor size that can While cable products may be success-
be tested, which we will discuss in the next ful in passing a thermal endurance test,
section. consideration should also be given to how
other characteristics will be impacted by
How can I produce cables that meet the conditions they are operating in. For
solar PV system requirements? example, solar panels are often installed
At a technical level, innovations in in coastal or desert locations where the
compounds and extrusion technology are temperature may rapidly drop, which
now available to help cable manufacturers could cause cables to crack or bend as

Technical Briefing system integration
material to use as it demonstrates greater

Electrical engineer inspecting
photovoltaic cables connected abrasion resistance and durability than its
to solar panels LSHF counterpart.
Conclusion
This article has shown how multiple factors
are contributing to the solar PV market’s
rapid growth. Over time, and as knowl-
edge is rapidly developing, we are seeing
a vast improvement in the quality and
performance of the cables used in the solar
industry. In years gone by these aspects
have not fared as well as anticipated,
therefore as the industry continually grows,
we can also expect to see the technologies
used to manufacture cables advance, to
ensure reliable product enters the market.
This growth is creating a healthy demand
for external DC cabling, and a great oppor-
tunity for cable manufacturers that can
overcome the challenges associated with
meeting the market’s requirements. These
manufacturers can obtain a competitive
temperatures drop below those in which into the solar market should carefully edge in this process by working with
the cable products have been designed consider the end-user requirements when BASEC to gain independent product
to operate. If cable products have been designing their cables, as the standards certification and approvals to demonstrate
produced using poor-quality materials, used to verify cable quality are specific to that the products supplied into the market
they may absorb significant amounts different types of materials. As mentioned are compliant with all of the necessary
of moisture, dulling the performance above, BS EN 50618 is only applicable regulations.
of the cable products by reducing the to LSHF cable products, while IEC 62930 The potential rewards for cable
current they can carry. These examples permits materials that are not produced manufacturers who make this investment
demonstrate the need for PV cables to using these materials, which could provide are considerable; as Walid Halty (Dvinci
be suitably tested for performance across a manufacturer with an indication of which Energy, Forbes, May 2018) comments:
a wide range of characteristics to verify of their existing product variants may be “Today, Solar is the #1 most bankable
quality and suitability for installation in best suited to specific markets. Depending sustainable technology, which has turned
the specified conditions. on the specification that cable products the industry into a gold rush.”
need to meet and which of the standards
How is demand distributed are favoured in the market, this should
globally? inform design and production decisions. Author
As early adopters of solar PV systems, For example, if buildings in the selected
Mark Froggatt is techni-
Germany was recognised as a leader in market have a high fire risk or cable
cal director of BASEC, the
solar installations for a decade up until products will be installed in enclosed British Approvals Service for
2015, after which it was overtaken by spaces, LSHF cable products should be Cables. He joined BASEC’s
China (see Figure 3). China’s solar instal- used to minimise the risk of building management team in June
lation started to take off sharply in 2012, inhabitants being exposed to toxic fumes 2019, having previously held the posi-
tion of non-executive director of BASEC.
and in 2017 their newly installed base and gases during a fire. However, if cable
Figure 3. Cumula- He previously held positions of techni-
totalled significantly more solar capacity tive installed products are designed to be used on the cal sales manager at Draka, market
than the past top nine leading countries solar PV, top exterior of a building, as many PV cable development manager at Nexans, and
combined. Relative newcomers Japan and 10 countries, products are, this would create different most recently as technical manager
the USA have also overtaken Germany 2000-2017. requirements for the cable product. In this at British Cables Company (previously
Source: Solar- BT Cables). He has a BSc in chemistry
and have been tracking at a higher rate of Power Europe case, PVC may be deemed a more suitable
& management studies. In his role at
installation. The data demonstrates that BASEC, Mark is focused on the overall
the race to produce renewable energy- technical policy, application and opera-
driven initiatives, is truly a global one. It is tion of BASEC’s testing, certification and
therefore essential that specifiers, buyers, related services, whilst growing techni-
cal capability and opportunities for the
cable distributors and manufacturers take
business. BASEC is a leading provider
note to use product that is compliant with of cable product certification, including
the international and local standards, comprehensive testing for electrical,
to ensure that the product supplied is mechanical, material, chemical, fire and
commercially fit for purpose. smoke performance characteristics.
www.basec.org.uk
Cable manufacturers looking to break

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A pioneering project: PV in
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plant performance Technical Briefing
Benchmarking inverter
performance and reliability
with a new PVEL Scorecard
Inverters performance | Inverters are the leading source of corrective maintenance activity in PV
power plants, yet independent testing to inform procurement decisions remains the exception rather
than the norm. Michael Mills-Price and Jenya Meydbray of PVEL describe how a new inverter testing
regime is seeking to set quality benchmarks for this increasingly critical part of the PV system
Credit: PVEL
I
nverters are the number one driver electronics, these components degrade PVEL’s inverter the industry is beginning to recognise
of PV project profitability. Every time over time. But what is a reasonable testing aims to the importance of inverter selection
provide investors
a solar inverter underperforms or lifetime expectation – and how do PV to a project’s long-term economic
with better intelli-
shuts down unexpectedly, the entire PV inverter buyers generate reliable predic- gence on inverter performance. Low-performing invert-
system produces less energy – or none tions? Only about 25% of the world’s performance and ers that generate unexpected, ongoing
at all. Maintenance costs are compound- total installed PV capacity has operated reliability maintenance expenses can ultimately
ed by the financial consequences of for more than five years, so the industry become costly for asset owners. Due to
energy shortfall. lacks long-term real-world data. While the underlying complexity of inverter
Modern inverters contain hundreds most inverters today are warranted for design and construction as well as their
of complex, software-driven compo- 10 years, results from the field show that broad functionality, inverters are also
nents that monitor and control the most many products do not last that long. more vulnerable to reliability issues than
vital operations of a PV system. Like all As systems age and inverters degrade, any other PV system component. Devel-

Technical Briefing plant performance
oping accurate inverter lifetime and cost

of ownership predictions should not be
an afterthought.
PV Evolution Labs (PVEL) is one of
very few independent labs that performs
extended reliability and performance
testing on PV inverters. We found that
one-third of the products we tested
through our PV Inverter Product Quali-
fication Program (PQP) failed key safety
and performance tests – even though
all of the tested products were certified
by IEC and/or UL. In response to these
Figure 1. The figure shows an inverter that failed to operate after only 30% of the powered thermal cycling
findings and to growing demand for test sequence was complete. It was unable to return to operation
inverter data, PVEL published its first PV
Inverter Scorecard in May 2019.
This first Scorecard was developed
with two main goals: first, to educate
PV asset owners, project developers
and investors about the complexity and
inherent risks associated with invert-
ers and, second, to introduce the PV
buyer and asset owner community to
inverter reliability and performance
testing that provides critical insights
for inverter diligence. It is also the first
inverter benchmarking report based on
independent test data that is available
to the public. This article highlights key
insights from PVEL’s Scorecard to explain
why and how PV equipment buyers can
use objective reliability and performance
data to mitigate the financial conse-
quences of technology risks inherent to Figure 2. The figure shows an inverter that de-rated to avoid significant temperature increases of internal
inverters. components during the high temperature test – even though the ambient temperatures sustained were
within its operational window
Inverter procurement today
Although inverters are the leading source weather the financial impact of higher materials packages through every step
of corrective maintenance tickets in PV than expected operations and mainte- of the process, including final packaging
power plants and the top cause of energy nance expenses. with tamper-proof tape. This ensures
outages [1], very few PV project develop- that hand-picked samples are not sent
ers, financial institutions and asset owners About the PV Inverter Scorecard for testing. The inverters that ranked as
to date require independent testing The 2019 Scorecard is based on Top Performers for each test are listed
that assesses inverter reliability and independent testing of 35 inverter by name and model in the Scorecard,
performance. Historically, due diligence models produced by 12 different which is available as a free download at
expectations and testing requirements for manufacturers. Tested products include www.pvel.com/inverter-scorecard, and
inverters have been much less rigorous string inverters (both three-phase and summarised in the box towards the end
than those for PV modules. single-phase), microinverters and power of this article.
The challenge is that many project optimisers. Each inverter evaluated
stakeholders lack the institutional for the Scorecard underwent testing Test results: thermal performance
knowledge and data required for through PVEL’s Product Qualification Temperature directly impacts an invert-
in-depth technical due diligence of Program (PQP) for inverters. Results from er’s electrical performance and long-
inverters. Instead, buyers and inves- 14 tests are presented in the Scorecard. term reliability; therefore, all inverter
tors rely on certifications, brand names, Highlighted results from seven of these manufacturers provide product-specific
datasheets and warranties to evaluate tests are discussed below. maximum and minimum ambient
inverter bankability. PVEL’s PV Inverter All inverters were tested in the same temperatures for operation. The individu-
Scorecard proves that these data sources way, leveraging consistently calibrated al electrical components within inverters
are not sufficient for strategic inverter equipment and in consistent laboratory also have maximum and minimum
procurement where long-term financial environments. Inverters submitted for temperatures at which they operate.
returns are at stake. This is especially true testing through PVEL’s PQP are witnessed Temperature conditions can vary widely
for cost-sensitive projects that cannot in production – from the opening of raw in the field and inverter components

couple sensors. These temperatures

are then compared to the component
datasheets to verify design parameters
and determine whether the inverters
de-rated while operating within their
specified temperature windows. Not all
inverters tested were able to operate
without de-rating – and some were not
Figure 3. The share of inverters that failed to operate following each passive chamber test. Many of the
able to continue operating during the
inverters that were still operational following testing operated in a reduced capacity
tests (See Figures 1 and 2).
As pricing pressure on inverter
manufacturers intensifies, some
producers may utilise smaller, less
expensive and less robust components.
For example, using a silicon chip with
narrower temperature or voltage limits
may reduce costs in the short term, but
could ultimately cause problems for
system owners as the cheaper compo-
nents prove less reliable when exposed
to various thermal conditions.
Test results: passive chamber

testing
Inverters contain circuit boards, silicon
chips and integrated products that can
age and fail when exposed to sunlight,
rain, temperature swings, humidity,
snow and other common environmental
Figure 4. Delamination and internal corrosion in an inverter following passive chamber testing conditions. Unpowered environmental
chamber testing evaluates the impact of
may be susceptible to thermal drift, a Thermal performance tests are used these environmental stresses on invert-
phenomenon which results in individual to measure and document the thermal ers and their components. PVEL’s goal
components performing differently de-rating of inverters. The tests are with these tests is to assess the product
than expected. Inverters are designed among the best methods of determin- construction, Bill of Materials and
with built-in safety mechanisms that ing whether an inverter’s performance product design of an inverter.
prevent these internal components accurately reflects the temperature Passive chamber tests include thermal
from reaching their maximum allowable specifications on its datasheet. To cycling, humidity freeze and damp heat.
temperatures – but these safety mecha- perform these tests, the inverter is The test procedures align with and
nisms should only be triggered when placed in an environmental chamber expand upon the IEC 61215 test stand-
absolutely necessary because of their and connected to a solar array simula- ard, one of the most common certifica-
impact on energy yield. tor. Next, the following conditions are tion requirements for determining the
Manufacturers design inverters with applied: safe operation of PV modules. Important-
these safety mechanisms because degra- • Powered thermal cycling. Thermal ly, PVEL’s chamber tests reproduce failure
dation rates accelerate when components cycling is performed across the full modes and reliability issues commonly
exceed their temperature limits during operational temperature range while observed in the field, including coating
operation. Operating beyond allow- the inverter is powered from minimum delamination, corrosion, water conden-
able limits reduces the lifetime of the ambient temperature to maximum sation in wiring compartments, discol-
component and ultimately the inverter ambient temperature. oration and melting of external displays
itself. To avoid this, inverters de-rate, or • High temperature operation. The and controls, and electro-mechanical
reduce power output, when the tempera- maximum operational temperature fatigue of solder joints and electrical
ture limits of an internal component is sustained while the inverter is connections.
or subsystem are exceeded. While this powered. Passive chamber testing results
de-rating process is important for inverter • Low temperature operation. The (Figures 3 and 4) indicate:
reliability, it should only occur when the minimum operational temperature • 25% of inverters failed to operate after
inverter is exposed to conditions outside is sustained while the inverter is damp heat;
of its operational window. When inverters powered. • 21% of inverters failed to operate after
de-rate, they convert less energy than humidity freeze;
expected from the PV array. This results in As these tests are conducted, PVEL • A significant population of inverters
reduced energy yield and financial losses measures the temperatures of multiple that operated following these tests
for the asset owner. individual components using thermo- were only able to operate in degraded,

shut the system down. In extreme cases

such as with fires, electrical arcs pose
considerable safety risks. They can also
result in significant, irreversible damage
to the entire PV system. Inverters detect
arcs by sensing their characteristic
signature, or fingerprint, in the frequency
domain. However, this fingerprint may be
masked because it is dependent on the
location of the arc in the PV array. PVEL’s
ground and arc fault testing exposes the
inverters to arcs at several locations within
the array and documents the response of
the inverter.
PVEL’s fault tests are conducted at
our outdoor test site. The inverters are
Figure 5. The figure shows a properly detected and interrupted arc fault. It highlights the ability of some subjected to multiple ground and arc
inverters to effectively identify and respond to arc faults within the required time range, before the device fault conditions on a grid-connected PV
or the array incurs any damage system. The inverter is monitored to track
proper system shutdown. One third of the
less efficient states; Test results: ground and arc fault inverters evaluated for PVEL’s Scorecard
• The most common failure modes Safe operation is fundamental to the failed to detect at least one fault during
were faulty moisture protection of a economic success of a PV system, but testing – even though they passed
component, delamination and internal electrical arcs can occur if electrical certification testing (see Figure 5). This
corrosion. conductors are exposed to the environ- finding is alarming given the importance
ment. Exposure can occur as systems of fault detection to the safe operation of
Successful performance in passive age; for example, when insulation around PV systems.
chamber tests indicates that products system wiring degrades, connectors age
have robust construction and design or come loose on module backsheets fail Independent test results in context
that can withstand common field and start to crack. Properly detecting arcs Every solar project’s financial model
conditions. While all inverters that are is part of an inverter’s core operation. depends on energy yield forecasts that
deployed to PV sites should pass these In PV systems, electrical arcs can predict safe, reliable power generation for
tests, PVEL’s data shows that this is not manifest as fires– but only when the decades. They also depend on reason-
always the case. inverter fails to detect them and rapidly ably accurate estimates of operations and
maintenance costs. PVEL’s testing shows
that inverters are not always equipped to
meet these expectations. Some do not
even meet the minimum requirements
specified by datasheets and certifications.
Many buyers and investors rely on
warranties to protect them financially
when inverters fail. This strategy can
quickly backfire when an inverter
manufacturer exits the market. Addition-
ally, replacing inverter products may be
nontrivial. Imagine searching for a new
600V central inverter today. If a suitable
replacement is not available, the entire PV
system may require rewiring to prevent
electrical mismatch.
A 2017 study assessed the true cost of
inverter ownership using data from 400
failure reports (see Figure 6) and found
that two of the four inverter manufac-
turers assessed generated far higher
operations and maintenance costs than
predicted [2]. In some cases, annual
maintenance expenses were underesti-
mated by more than 500%.
Figure 6. Comparison of the cumulative cost of inverter ownership to cost estimates provided by manufac- The study goes on to note: “In view of
turers. Actual costs are only provided for years where data is available [2] the high costs associated with inverter

PVEL’s Top Performer inverters

The scorecard’s 14 tests are broken down into five categories: passive Top Performers in the conversion efficiency tests were Huawei’s SUN2000-
chamber testing; thermal performance characterisation; performance 30KTL-US and SUN2000-375W-USP0, and Schneider’s Context CL-60A.
testing – efficiency; performance testing – operational window; and field In the energy harvest tests, Top Performers were Huawei’s SUN2000-
testing. Where appropriate, ‘Top Performers’ are identified for each test 28KTL and SUN2000-30KTL-US, also accompanied by Schneider’s Context
– specific inverter makes and models that have performed particularly CL-60A.
well. The makers and inverter models awarded Top Performer status in the
inaugural scorecard are detailed below: Performance testing: operational
In the performance operational tests, which include operational envelope
Passive chamber and transient response, PVEL noted that “inverters that have wide DC input
In the Passive Chamber tests, only two companies were awarded Top ranges can support a more diverse set of possible stringing configurations,
Performer status: Delta’s single phase string inverter M8-TL-US and SMA allowing flexibility for the designer or installer of the system”.
Solar’s SB7.7-ISP-US-40, another single phase string inverter. PVEL only scored Delta’s M80U inverter in the AC operational envelope
test and the same inverter in the DC operational envelope category with
Thermal performance characterisation Schneider’s Conext CL 25000NA inverter.
Three different companies’ products were Top Performers in the powered In the transient response test, Top Performer status was given to Delta’s
thermal cycling category – Delta’s single-phase string inverter M8-TL-US, M8-TL-US, Fronius’ Symo 24.0-3 and Huawei’s SUN2000-11.4KTL-US inverter.
Schneider’s Conext CL-60A string inverter and SMA Solar’s SB7.7-ISP-US-40.
PVEL highlighted an example of an inverter that failed 30% through the test Field testing
sequence with an inability to return to operation. In the field testing category, PVEL said that the PQP determined whether an
In the high temperature operation category, three different companies’ inverter would operate safely and continuously in real-world conditions. The
products were Top Performers: Delta M8-TL-US, Fronius’ Symo 24.0-3, a tests include a ground and arc fault tests and a 30-day runtime in operation.
transformerless three-phase string inverter, and Huawei’s SUN2000-11.4KTL- The three Top Performers in the ground and arc fault tests were Delta’s M8
US string inverter. TL-US and Solivia 3.8 TL inverters, as well as Fronius’ Symo 24.0-3 inverter.
There were two Top Performers in the low temperature operation test: the In the 30-day runtime tests, only two companies’ products were given
Delta Solivia 3.8 TL and the Huawei SUN2000-11.4KTL-US. Top Performer accreditation: Huawei’s Sun2000-11.4KTL-US and SMA Solar’s
SB7.7-1SP-US-40.
Performance testing: efficiency
In the performance efficiency test category, which analyses MPPT efficiency, Summary
conversion efficiency and energy harvest, PVEL noted the tests set out to In summary, the three most-cited Top Performer companies were Delta with
demonstrate whether or not an inverter can actually perform as expected 10, Huawei with nine and Schneider with five.
based on product datasheets when deployed in the field. On a product basis, the three most cited Top Performers were Delta’s M8
Three different companies’ products were Top Performers in the TL-US inverter with four accreditations, Huawei’s Sun2000-11.4KTL-US also
MPPT efficiency test: Delta’s M8-TL-US, Huawei’s SUN2000-30KTL-US and with four and Fronius’ Symo 24.0-3 with thre accreditations.
Schneider’s Conext CL-60A string inverter. PVEL noted that Top Performers
in this test sequence had a 98-99% response rate for all three test By Mark Osborne
conditions.
failures, understanding the root cause of gies have not evolved significantly References
component failures, methods to access over the past decade. This is a risky [1] Hacke, P. Lokanath, S. Williams, P., Vasan, A., Sochor, P., TamizhMani,
or ensure reliability and forecast lifetime approach for PV asset owners and G., Shinohara, H., Kurtz, S. 2017 “A status review of photovoltaic
power conversion equipment reliability, safety, and quality
of the power conversion electronics and investors because independent testing
assurance protocols”, Renewable and Sustainable Energy
their components through testing and proves that not all inverters live up to Reviews, Vol. 82, No. 1, pp. 1098
quality standards becomes vital.” [2] The expectations. Instead there is a range [2] Hacke, P. Lokanath, S. Williams, P., Vasan, A., Sochor, P., TamizhMani,
G., Shinohara, H., Kurtz, S. 2017 “A status review of photovoltaic
testing conducted through PVEL’s PQP of performance, functionality, efficien- power conversion equipment reliability, safety, and quality
and the results presented in the Scorecard cy and reliability across commercially assurance protocols”, Renewable and Sustainable Energy
Reviews, Vol. 82, No. 1, pp. 1098
provide the data developers, banks and available products.
asset owners need to better predict the When PVEL began testing PV modules
long-term reliability of inverters. in 2010, we observed tremendous Authors
variability in performance and reliability
Jenya Meydbray is CEO of PV Evolution Labs (PVEL),
Next steps across manufacturers and tests. The
which he cofounded in 2010 as the first independ-
As the solar industry matures and asset product landscape was very similar to ent lab dedicated to supporting solar project devel-
owners focus more on total system the market for inverters today. As the opers, financial institutions and asset owners. Jenya
lifetime performance – and not just initial buyer community began to recognise developed among the first extended reliability and
costs – inverter reliability is becoming the variability of PV modules and the performance test protocols for the downstream PV industry
as well as innovative methods of evaluating PV performance
increasingly vital. PV inverter service life advantages of independent testing in
for power plant-level risk assessment and mitigation. He has
expectations began at less than five years identifying the best products to buy – nearly 15 years of experience in the solar PV industry.
in the 1990s. Today the market expects as opposed to brand, warranty terms
a central inverter to last at least 20 years. and datasheets alone – module quality Michael Mills-Price is head of PVEL’s inverter and
Inverters were once expected to convert has improved. We hope to see inverter energy storage business. He has nearly 20 years
of renewable energy industry experience and has
DC electricity to AC electricity – and not quality similarly improve over time.
authored over 30 technical innovations, patents and
much else. Today they communicate whitepapers to advance the state of the industry.
with complex monitoring systems and To learn more about PVEL’s inverter testing He specialises in power electronic devices and the
diagnose system performance problems services or to access the full test reports interface of renewable technologies to the broader electrical
in real-time. behind PVEL’s PV Inverter Scorecard, contact power grids. Michael joined PVEL team in 2014 to create a suite
of performance and resiliency inverter testing strategies to
Despite this dramatic technical Michael Mills-Price at michael.millsprice@
benchmark commercially available products.
evolution, inverter procurement strate- pvel.com

plant performance
Installing solar on water opens up

huge new possibilities for the technol-
ogy
Unlocking solar’s new

terawatt opportunity
Credit: Seaflex
Floating PV | Floating solar has caught the industry’s imagination in recent years, opening up
potentially limitless new opportunities for PV installations in land-constrained parts of the world. Ben
Willis reports on the work underway to address questions about the performance and reliability of
water-based solar installations
F
rom ground zero in 2007, the total projects are no longer focused on Asia, good news is that none of these should be
capacity of floating solar installations but projects are being considered and seen as insurmountable. This article explores
worldwide had grown to around constructed in Europe, America and to a some of the efforts underway to help float-
1.3GW by the end of 2018, according to lesser extent in Africa. The Middle East has ing solar live up to its considerable potential.
recent analysis by the Solar Energy Institute also shown a recent interest in the technol-
of Singapore (SERIS) for the World Bank. ogy, where water evaporation losses are Hardware
That’s a solid start for an emerging market significant. Another recent development is Modules
segment that many hope will become the the announcement from various consortia According to SERIS’ report for the World
‘third pillar’ of the PV industry, alongside or governments to start research and pilot- Bank, there are no particular standards for
ground-mount and rooftop solar. Around ing projects in seawater,” Reindl says. modules deployed in floating solar projects,
the world, there are some 400,000 square “Many actors across the public and and the most commonly used are framed
kilometres of manmade reservoirs alone; private sector, however, agree that there is glass-glass modules, which withstand
if just a fraction of these bodies of water a lack of data about the existing projects moisture ingress comparatively well. Frame-
were to become home to floating PV (confidentiality is often an issue). If solved, less modules have also been used in some
arrays, all of a sudden a key constraint that data could help to understand better the projects to date, as these offer the best
has prevented many regions of the world cooling effect in various climates, leading resistance to potential-induced degradation
from embracing solar – namely, land, or to improved modelling of the energy yield (PID) in high humidity situations.
lack of it – would become irrelevant, crack- and thus cash flows.” PID, a problem that has afflicted ground-
ing the technology and its many benefits Better data on the performance benefits mount solar installations in particular, is
wide open to a host of new users. of floating solar is certainly one key factor something of an unknown where floating
Unsurprisingly, interest in floating PV that would help it live up to its promise. solar is concerned. Humidity is one factor
is strong and growing, observes SERIS Yet, as a still-nascent market segment, the that increases the likelihood of PID in land-
director, Dr Thomas Reindl, but plenty of reality is that floating PV faces numerous based installs; the probability of humidity
obstacles still stand in the way of its full other challenges – technical, opera- being higher around water implies it may be
potential being realised. tional, financial – that it must overcome problematic for floating arrays. But the jury
“What we have witnessed recently, is on the road to mass deployment. With the is out on this, says Reindl.
a strong interest from governments and extensive experience and knowledge the “PID is a known issue for several large
private actors to develop floating solar solar industry has collectively amassed in PV farms, and could cause severe setback
projects across multiple regions. Such becoming a plus-500GW global market, the in terms of project profitability. Given the

plant performance
higher humidity on water, it could be a

Mounting type Advantages Disadvantages
pitfall, but there are no reports on that
Pure-float configurations -Easy to assemble and install -Modules mounted very close to
happening yet. FPV systems in Singapore’s These use specially designed -Can be scaled without major water, reducing air circulation and
Tengeh test-bed [operated by SERIS] are buoyant bodies to support PV changes in design cooling effect from evaporation.
being closely monitored for PID issues. panels directly (Figure 1). -Few metal parts required, minimis- It also generates a high-humidity
Theoretical calculations suggest that the ing corrosion environment for PV modules and
-Adapts to wave motion and cables
PID stress is not much more severe than relieves stress -Not cost-effective to transport
those specified in standards IEC 62804-1, pure floats over long distances,
so modules are expected to perform well if so they may need to be made in
they are properly certified as PID-free,” he nearby facilities
-Constant movement may cause
explains. stress and fatigue to joints and
connectors
Floats Pontoons + metal frames -Simple concept -With more rigid structures, waves
Another critical area where more work These use metal structures -Floats are easy to make and can be cause stress to concentrate at
is required concerns arguably the key (frames or trusses) to support easily sourced locally certain points
components in a floating PV installation – PV panels as with land-based -Wave movement between PV -Structures are more difficult to
systems. The structures are attahed modules is less variable, thus assemble
the floating structures themselves. Current- to pontoons, which provide reducing wear and tear on module -Access for maintenance can be
ly, a number of companies are producing buoyancy; special floats are not connection components and wires. difficult in certain designs
floats for solar arrays, following two main required (Figure 2).
generic design types (see Table 1 and
Figures 1&2) but as a comparatively new Table 1. The pros and cons of the two most common flotation designs used in FPV installations. Source:
technology, without a long track record World Bank/SERIS
in the field, the SERIS report lists floats as
a possible technology risk that must be has on the expected yield and levelised
addressed through more rigorous testing cost of energy.”
and certification to prove their durability.
“Standards create methods to measure Performance and operation
a specific property that can be related to According to the SERIS/World Bank study,
another difficult-to-measure property that operation and maintenance (O&M) costs
is a quality or performance indicator,” says for floating PV arrays should not be
Reindl. “For example, the thermal cycling inherently higher than for their ground-
stress test for modules will indicate that mounted counterparts. Nevertheless,
limited degradation of the performance certain factors particular to floating arrays
Credit: SERIS
of a module after a specific number of are likely to come into play where O&M is
thermal cycles will probably indicate this concerned, necessitating some new skill-
module can last longer than 20 years under Figure 1. Ciel et Terre’s floating solar mount is an example of sets, techniques and procedures, according
normal circumstances. Whoever does this the pure-float design to REC’s Sridhara.
test, the chances are high they get compa- “O&M is certainly an important factor
rable results. also when it comes to corrosion, especially
“This we also need for floats: standard in more aggressive coastal environments,”
reproducible measurements that can he says. “Corrosion can affect combiner
be related to a quality or performance boxes, inverters, cables and any other
parameter, so I can measure and say objec- metallic supporting structures. Bird
tively float A is better for this measure- droppings can additionally corrode the
ment than float B. If these parameters are glass and frames of the panel, ultimately
well selected it will create a trend in the affecting the performance of the installa-
industry to focus on these parameters and tion – and hence must be cleaned. Aquatic
Credit: SERIS
create better and better floats.” life, such as plants or barnacles, need to
be removed from the floating understruc-
Mounting ture so that they do not weigh down the
A further consideration in the design of Figure 2. Takiron which has been an early pioneer in devel- system.”
floating solar arrays concerns the tilt angle Engineering is oping floating solar technologies, explains: Michalis Papageorgiou, senior solar
one company
of modules. Typically, modules in a float- “The angle of module installation on the engineer at international technical consul-
producing the
ing array are set at a limited tilt to reduce pontoon + metal floating system is often predetermined tancy, DNV GL, takes up the theme on
problems associated with wind loading. frame variant in its design and may leave little room for the potential problems caused by aquatic
This can have implications for achieving of the floating adapting to the best angle for local condi- animal and plant life.
solar mounting
the best energy yields from floating instal- tions. Other systems may allow a degree “Especially in water bodies with live
structure
lations, particularly in high-latitude regions of flexibility. This means that the complete ecosystems and biodiversity you can’t
where a generally steeper tilt angle is project, including installation time, needs prevent animals from considering the
optimal to maximise exposure to the sun. to be weighed up against the angle of floating solar PV system as part of their
Shankar G. Sridhara, CTO at REC Group, installation and any associated impact this aquatic environment, therefore creating

Providing professionally engineered mooring
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plant performance
shelters or just finding it interesting to walk the required driver that helps projects to potential and promise of this segment.
on, causing minor to major issues,” he says. evolve. And project financing from private Solar panel producers must additionally
“Tropical reservoirs and dams may investors or international financial institu- focus on developing seawater-compliant
have water weeds growing out and also tions (IFIs) to owners means that there is modules. At the same time, we need
cause shading to the modules. Further to a demand from all sides to understand reliable and improved understructures to
the shading issues, these can also cause what is the unpredictable in terms of key support the installation. In addition, official
mechanical stress on the floating solar technical risks. third-party approval is vital to ensure
PV structure and mooring systems due to “In practice we know of course that quality and sustainability: certification
increased weight.” risks are identified, assessed and managed protocols and tests should be developed,
Another potential issue highlighted through key legal, financial and technical which address the combination of water
by Papageorgiou concerns the constant review points. Nonetheless, when assess- quality, module product and floatation
moving of the floating PV structure. This ing the investment-worthiness of a floating understructure.”
causes problems such as mechanical stress PV photovoltaic project, different PV stake-
at the joints of the rigid structures, on holders such as investors, IFIs, insurers and The outlook for floating PV
equipotential bonding tapes and DC/AC regulatory bodies will evaluate differently The market potential for floating solar is
wires, and at the earthing tape connection the impact and probability of investment vast. According to the SERIS/World Bank
for grounding, as well causing stretching or risks, depending on their investment goals. study, if just 1% of the world’s man-made
bending of cables, leading to accelerated Therefore, it is of utmost importance to reservoir surfaces were used, global float-
degradation and cracking and increasing reduce the risks associated with investing solar installations could rapidly reach
the risk of fire. ments in PV projects. Why? To improve 400GW – equalling the total installed solar
But Papageorgiou adds: “Like all PV the financeability and attractiveness of PV capacity worldwide at the end of 2017.
projects installed in any surface, issues are these sustainable energy investments. Even covering just 10% of every third
not inevitable. [It] is well understood that How do we do this? By increasing the trust man-made reservoir in the world would
with appropriate PV component specifica- between the solar industry and investors, represent potentially a terawatt-scale
tions from the very beginning, proper IFIs, insurance companies and regulatory market opportunity, the report estimates.
system design, standard operation proce- bodies. The future of floating PV is still The latest indicators certainly point
dures in place and good O&M practices fragile if risks are not predicted and if there towards rapid growth in the floating solar
you minimise at least predicted issues for is no proven reliability and quality in place.” segment over the coming years, with
each floating solar PV component and for As with the example of floats explored analysts IHS Markit recently predicting that
the floating solar PV system as a whole.” earlier in this article, the key focus for the up to 13GW of new floating capacity will be
industry will be in developing the neces- built by 2023. Whether some of the grander
Finance and bankability sary testing to prove floating solar systems long-term ambitions for floating solar come
Another of the risk categories for floating are able to withstand the most likely widely to fruition remains to be seen.
solar concerns its bankability and attrac- varying environmental conditions they will What is clear, though, is that the underly-
tiveness to financiers. In simple terms, as encounter. ing drivers for this nascent market segment
alluded to by Reindl at the start of this “A site in the tropics may have high – rising demand for clean energy, pressures
article, a lack of long-term operational humidity and moderately high tempera- on land – are only going to get stronger as
data on the performance of floating solar ture conditions throughout the year as time passes. Floating solar is very much a
projects means accessing suitable finance opposed to another site in Asia where work in progress, a relatively immature set
is still far from straightforward for the there are sub-zero temperatures where the of technologies that still has much to prove
sector, with the consequence that most lake freezes over to minus 20 degrees C,” on cost, performance and reliability. But as
floating projects are still being financed says Papageorgiou. “I believe the floating the growth curve of solar generally over
“on balance sheets”. Some exceptions systems undergoing these stresses will the past decade has demonstrated, this is
to this appear to exist; for example, the have to evolve to better handle these an industry with an enormous capacity for
report cites claims from the Chinese conditions on water. So there should be The testbed on innovation. Only a fool would bet against
the Tengeh reser-
inverter manufacturer, Sungrow, which has clear understanding and tests done to help voir in Singapore floating solar following a similarly rapid
also become active in floating solar, that address this if there is a growing market in is helping prove upward trajectory, driven by the same spirit
despite the slightly lower return on invest- these areas.” the case for new of invention that helped propel total solar
ment from floating projects, banks are REC’s Sridhara agrees: “I believe the floating solar capacity beyond 500GW last year.
technologies
willing to support them because they don’t industry plays a crucial role in fulfilling the “The solar industry or FPV market does
“have a real-estate problem” as ground- not need any specific help in growing as
mount projects do in some regions. we have seen the rapid rise in the industry
Nevertheless, finance and bankability over the last 10 years,” says Papageourgiou.
are still considerable challenges for this “What will continue to drive growth is the
nascent segment, and will require a collec- competitive cost of solar, ease and simplici-
tive effort across the industry to address, ty to install generally and the growing need
starting with ensuring the reliability and for clean accessible energy. Also where the
durability of the technologies being usual spaces for traditional ground and roof
Credit: SERIS
deployed. areas become limited then there can be a

“Reliability equals bankability,” says DNV focus and switch to looking at water bodies
GL’s Papageorgiou. “Project financing is to install solar.”

Bifacial heterojunction PV modules:

Highest energy yield available…
and how to measure that
Module performance | Recent technology advances and improved industrial processes have made
silicon heterojunction one of the most attractive PV technologies, helped by its inherent bifaciality,
which offers among the highest levels of bifacial gain available. Researchers from CEA-INES and
Eternalsun Spire explore the performance stability and measurement of bifacial heterojunction
modules under real life conditions, benchmarking them against PERC modules as the industry
workhorse
S
ilicon heterojunction (SHJ) solar cells
have fewer manufacturing steps (five
to seven) that are simple to control
(regarding homogeneity and defectivity)
compared to standard passivated emitter
and rear cell (PERC) cells. During recent
years, SHJ technology has been rapidly
improving on manufacturing readiness
with module efficiencies beyond 24%, the
availability of high-quality, low-cost thin
n-type c-Si wafers, new metallisation and
interconnect solutions as well as that of
cost-effective mass-production tools for
PECVD deposition of amorphous silicon and
PVD deposition of transparent conductive
oxide (TCO) layers [1]. There are now at
least 20 research institutes and pilot or
production lines demonstrating efficiencies
above 23% as baseline for cells on 6”
wafers (see Figure 1). Last but not least, SHJ
technology offers cells that are inherently
bifacial, with a bifaciality of around 90-95%, Figure 1. The future of SHJ manufacturing is ecosystem driven
whereas PERC cells are limited to 70-80%
bifaciality [2].
How to accurately measure

heterojuncion efficiency
New technologies and efficiencies may
require new tools ready to measure
them. Traditional short pulse tunnel flash
simulators bring a huge offset to SHJ
IV-measurements. This is illustrated in
Figure 2 and it is due to the capacitive
effect inherent in high-efficiency, high Voc Figure 2. Left: IV curves for forward (blue) and reverse (red) short pulse sweeps compared to a steady-state
IV measurement. Right: Pmax performance measurement for PERC and SHJ modules as a function of pulse
PV modules. The outcome of measuring
length on an Eternalsun Spire long-pulse solar simulator. Measurements converge at pulse lengths above
with short pulse tunnel light is that the 200ms, not attainable for conventional flash solar simulators
real power might be overestimated
or underestimated, depending on the However, the measurement can be obtained with a tabletop solar
direction of the IV sweep [3]. Even correction challenges for high-performance (and simulator such as the SPI-SUN 5600 SLP
methods such as dynamic IV add an high-capacitance) SHJ modules can be from Eternalsun Spire, shown in Figure
uncertainty of ±0.6 % to the measurement resolved through the use of long pulse 3 and suitable for R&D, certification and
[4], equivalent to ±2.4W in a 400W module. flashes (over 200ms). These long pulses manufacturing.

efficiencies than PERC over the whole

range of irradiance.
The outdoor efficiencies in Figure 4 are
normalised to the efficiency measured
indoors under STC conditions. This
STC efficiency drives the module cost
invested in a PV project. So with modules
above the red ‘break-even’ line the
project performs financially better than
estimated, below this line it performs
worse.
Figure 3. Left: SPI-SUN 5600 SLP table top simulator from Eternalsun Spire. Right: the same setup with an The values in Figure 4 have been
added temperature control box on top, ready for single-sided bifacial measurements
corrected towards a 25°C operating
Figure 4. Temperature-corrected temperature using the temperature
module efficiency versus irradiance coefficients of the modules. This
(in W/m2) obtained outdoor, with one
temperature coefficient is technology
data point per minute taken during
one month (April 2018) at the site of dependent and forms a determining
CEA-INES in Bourget-du-Lac (France). factor on the outdoor yield performance.
Two commercial monofacial PERC Correct determination of this temperature
modules (in blue) are compared to two
coefficient is tedious and needs careful
heterojunction modules (in green) that
had been manufactured at the CEA-INES procedures and equipment to reduce
pilot line. The efficiency is normalised measurement errors and uncertainties
relative to the indoor STC efficiency. The to a minimum. An example of such a
financial break-even line is indicated in
temperature coefficient for SHJ, Al-BSF
red, showing SHJ modules to outper-
form PERC and PERC modules is shown in Figure 5.
Figure 5 shows the performance of
SHJ, PERC and Al-BSF modules, measured
Superior performance for SHJ with the setup shown in Fig. 3 (right). It
at low irradiance and high can be seen that although both PERC and
temperatures SHJ modules are purchased with a power
It is important to know how PV modules rating of 295W, SHJ actually delivers 5%
perform under lower than the standard more power under realistic temperature
STC irradiance of 1,000W/m2. Figure operating conditions (>40°C).
4 shows the results of the outdoor Finally, Figure 6 shows the test
monitoring of PERC modules and SHJ procedure needed to accurately
modules over the period of a month at the characterise the power performance
test site of CEA-INES in Bourget-du-Lac under one sun at different temperatures
(France). The PERC modules were from a of a PV module of any technology. This
Tier-1 supplier and the SHJ modules were procedure can be performed in a setup
manufactured at the pilot line of CEA-INES such as the one in Figure 3 and deliver the
in collaboration with Meyer Burger and results shown in Figure 5.
Figure 5. PMAX under one sun versus temperature for SHJ, PERC
and Al-BSF modules measured on Eternalsun Spire labflasher 3SUN/ENEL. In these outdoor conditions, This SPI-SUN 5600 SLP table top
with temperature box. The black circle points to the perfor- SHJ technology is seen to give higher simulator with temperature control box
mance of SHJ and PERC at STC conditions (25°C)
Figure 6. Temperature of the PV module on nine points across the module versus time during the PMAX versus temperature test shown in Figure 5. Note
that the temperature is stabilised for accurate PMAX measurements. Test performed on the Eternalsun Spire setup shown in Figure 3

Figure 7. Layout of monofacial PERC (left) and bifacial PERC+ cell (middle) and heterojunction cell (right)
To accentuate this energy yield gain, the

International Electrotechnical Commission
(IEC), in charge of the standards for testing
PV modules, has decided to label the
performance of bifacial PV modules under
three situations. First, under 1,000W/m2
on the front side and 0 W/m2 irradiating
the rear side, secondly, with 1,000W/m2
front and 100 W/m2 rear simultaneously,
and finally, 1,000W/m2 and 200 W/m2. This
standard is labelled IEC 60904-1-2.
Additionally, the standard also
describes two indoor experimental
manners of testing the performance of the
three situations described above. These
two test methods are the double-side
method and the single-side method.
The double-side method uses two light
sources, which are set at the irradiance
levels described in the three situations.
On the other hand, the single-side
Figure 8. Two bifacial characterisation methods of bifacial with reduced footprint, tested by Eternalsun method irradiates both front and rear side
Spire. The single-side setup is commercially available and already installed around the world separately and afterwards the front side at
a higher irradiance, thus compensating for
is seen to offer a very good uniformity of minimise soiling losses and maximise the missing rear irradiance. Note that both
the temperature across the module. The complementary (agricultural) land usage. methods are approved by IEC for R&D
IEC standard recommends this spatial A study by Fraunhofer ISE [6] on such a test and certification purposes of bifacial
uniformity across the module to be below vertical installation has shown that the PV modules since they yield the same
2°C. The tool exceeds this requirement as it 20% higher bifaciality of heterojunction performance results.
offers temperature uniformity below 1°C, modules, compared to PERC, gives them a Although it might appear that the
for all temperatures from 10°C to 85°C. price margin of 20 or 30% (for a levelised double-side method is more realistic, it
cost of electricity (LCOE) of €0.04 and actually adds complexity to the measure-
Bifacial benefits and guidelines €0.06/kWh respectively). ment compared to the single-side
for low-risk (high-accuracy)
predictions
Bifaciality is described as the ratio
between power generation of the rear side
over the front side when both are under
one sun illumination. Whereas bifacial
PERC+ cells, as introduced by ISFH [5] hold
a 80% bifaciality limit, the heterojunction
(SHJ) cell concept has inherent bifaciality
(about 95%) thanks to its symmetrical
structure, as shown in Figure 7.
Bifaciality of cells and modules may be
seen as a straightforward gain offering
up to 30% higher energy output due to
rear-side albedo and due to opportunities
of exploiting new system configurations.
An example of the latter is vertical Figure 9. Mother-PV method: measurement and modelling of the ratio of PMAX/Isc versus Isc (at 25°C). Plotted
east-west-oriented installations that against the short circuit current Isc that serves as a self-reference for irradiance

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method. This is because there are uneven frontside. Whereas the PERC frontside
reflections between both light sources, suffers from PID of the shunt type, the
illustrated by green arrows in Figure 8 backside is degraded by PID of the
(top). Note that one of the requests of the polarisation type: positive charges are
IEC 60904-1-2 norm is that there is less attracted to the AlOX/SiNX stack and
than <3W/m2 of reflection, which means eliminate the field effect passivation of
0.3% of 1 sun irradiance. This can be the layer stack.
achieved in the single-side method using As opposed to the PERC cell structure,
a hollow chamber with an anti-reflective the SHJ structure is perfectly symmetrical
coating, which reduces reflections to <3 and instead of dielectric passivation and
W/m2, as proven and tested by Eternalsun anti-reflection layers (Al2O3 and SiN) ultra-
Spire on its Temperature Controlled thin layers of a-Si and ITO are applied. This
Laboratory Flasher (TCLF) on the nine Figure 10. Climate Chamber Solar Simulator (CCSS), capable of pays out in a perfect immunity against
locations described by IEC 60904-1-2 and performing accelerated temperature, irradiance and humidity potential-induced degradation as also
indicated in Figure 6. test on modules of different PV technologies reported on commercial HIT modules by
To add proof to the single-side bifacial Panasonic [13].
PV testing method, CEA-INES has applied from the voltage differential between
an in-house developed methodology, the grounded module frame and the Resilience to light- and
labelled ‘Mother-PV’ (Meteorogical, Optical photovoltaic cells near the negative pole temperature-induced module
and Thermal History for the Energy Rating of the system using such a transformerless degradation
of PhotoVoltaics) [7,8]. inverter that does not allow grounding. Light- and elevated temperature-induced
This method measures module This voltage difference drives mobile degradation (LeTID) is a long-term degra-
performance at different levels of total sodium ions from the glass to the cells that dation and regeneration phenomenon
irradiance around 1,000 W/m2, in this case are accumulated at either the cell junction, that can take years to appear in the field.
applied on both sides of a bifacial module, causing PID of the shunting type (PID-s), We have evaluated the LeTID mechanism
to model the performance at any total degrading FF and Rsh. When these sodium on commercial PERC modules from a Tier
(front+back) irradiance level. ions accumulate in the anti-reflection / 1 supplier and benchmarked them against
The main equation of the methodology passivation layer they cause PID of the the SHJ modules developed at CEA-INES
is: polarisation type (PID-p), degrading Isc in collaboration with Meyer Burger and
and Voc. 3SUN/ENEL.
PMAX = ISC. ( A + B.ISC + C.ISC² + D.ln(ISC) + For bifacial modules with glass on the We have performed studies on the
E.ln²(ISC) ) front and rear side the PID problem may dynamics of LeTID degradation and
concern both the front and backside of regeneration using a dedicated climate
where A, B, C, D and E are the fit the cells. For monofacial PERC cells the chamber with integrated AAA sun
parameters of the model. PID problem may have been solved for simulator as commercially available
In conclusion, after applying the the frontside but once the PERC cells from Eternalsun Spire, shown in Figure
method to four different bifacial module become bifacial their backside, notably 10. This setup can be used to test the
types, we found that for a fixed value of the AlOx/SiNx dieletric passivation layer, reliability, degradation, regeneration
the total Isc , bifacial modules behave may become the weak spot as has been and metastability of cells and modules
similar if current is generated on the front- recently demonstrated by CSP Halle [11] of any PV technology (such as silicon,
or backside, so without any parasitic or or SERIS Singapore [12], both showing thin film or perovskite), controlling
synergetic effects [9]. PID degradation rate from the backside irradiance, temperature and humidity
This conclusion justifies single-sided being four times as fast as from the while doing in-situ IV measurements.
characterisation of bifacial modules as
also proposed in the IEC TS 60904-1-2 test
standard, published in March 2019.
Resilience to potential-induced
module degradation
Potential-induced degradation is one
of the show-stoppers that has been
encountered over the last decade of PV
plant operation. The problem, basically
already reported back in 1978 by JPL
[10], emerged in around 2010 due to the
increasingly high operating voltage of the
modules far above initial values of 600V.
It was also aggravated by the increasing
popularity, notably in Europe, of more
Figure 11. In-situ LETID testing on PERC modules from different manufacturers, showing up to 5% degrada-
cost-effective transformerless inverters. tion and subsequent regeneration to different extents; and on a heterojunction PV module from CEA-INES,
From a physics perspective, PID stems which does not show any degradation but a regeneration of about 1%

process temperature that is consider-

ably lower (<200°C) compared to PERC
(around 800°C) as well as to a-Si:H passiva-
tion layers that are much thinner (< 10
nm) compared to the passivation layers of
PERC technology. Moreover, the absence
of boron in n‐type wafer‐based SHJ cells
helps to eliminate the Voc degradation
upon light exposure.
How this all effects the yield in

outdoor operation
Figure 12 shows the results of outdoor
performance monitoring over a period
of two years at the site of CEA-INES in
Bourget-du-Lac (see Figure 14) for a
system of 10 commercial PERC modules
and another system of 10 SHJ modules
manufactured on the cell and module
pilot lines at CEA-INES.
Figure 12. Outdoor monitoring of the average daily system performance ratio over the years 2016-2018 at
the site of CEA-INES in Bourget-du-Lac (France). Monofacial PERC modules in red, monofacial SHJ modules The graph shows the usual seasonal
in blue effect, with a higher performance ratio in
winter due to lower than STC tempera-
tures. As the temperature coefficient of
SHJ modules is lower than that of PERC
modules, the seasonal temperature
cannot explain the larger performance
offset between SHJ and PERC during
winter. To better compare these monitor-
ing data with the outdoor data in Figure 4
we have replotted the results as function
of the daily irradiance (in kWh/day). Also
we have added a bifacial SHJ module (in
green) to the graph.
The results in Figure 13 show that the
monofacial SHJ module has on average
an 8% higher Performance Ratio than
its monofacial PERC counterpart. For
the bifacial SHJ module this difference
goes up to 14%. Figure 13 also shows the
better performance of SHJ modules at
low irradiance levels. This then explains
the higher offset, observed in figure 12,
Figure 13. Outdoor monitoring over 2016-2018 of the average daily performance ratio as a function of daily
irradiance. Bifacial SHJ system in green between PERC and SHJ modules during
winter, with more frequent occurrence of
The interest of running such in-situ observed that the LeTID test conditions low irradiance.
testing in this dedicated climate chamber do not provoke a degradation on the SHJ These favourable results for SHJ
is clearly motivated by the dynamic modules but in fact an effective increase modules should also be set in the
character of the LETID mechanism. If of a few percent in module power. The perspective of the annual module
the sun simulator is not integrated, then improvement appears strictly related to degradation rates that have been
occasional ex-situ IV measurements an increase in Voc, which resembles the reported by NREL [16] for heterojunc-
are needed, and the major phases of reported increase of Voc by light soaking tion modules that had been fielded for
the mechanism, such as the maximum at moderate temperature (32°C) of SHJ over 10 years. They reported an annual
degradation and the onset of regenera- modules [14, 15]. This in contrast to the (linearised) decline of 0.67 ± 0.18%
tion, may easily be missed. The results LeTID degradation of PERC modules, per year, which is statistically similar
of testing five different commercially which appears as a combined effect of to an average c-Si based system. They
available PERC modules are shown in degradation in Voc, Isc and FF. concluded that the degradation was
Figure 11. The inherent resilience of the SHJ dominated by a decrease in VOC due to
In a similar way these LeTID dynam- technology against LeTID is attributed an increase of recombination in the
ics have been tested on SHJ modules, to favourable hydrogen kinetics (lower cells along with a decrease by a factor
as also presented in Figure 11. It can be saturation and effusion) due to a cell of two in minority carrier lifetime.

A similar conclusion was drawn by a

two-year outdoor evaluation by TUV
Rheinland of SHJ modules in four differ-
ent climates [17].
Conclusions/outlook
Accelerated indoor tests using in-situ
IV characterisation of silicon hetero-
junction modules showed them to
be insensitive to LeTID degrada- Figure 14. A partial
view of the CEA-INES
tion, as opposed to the commercial
testsite in Bourget-du-Lac
PERC modules tested under similar
conditions. Similarly no signs of PID
Acknowledgements
degradation were detected for the SHJ
Meyer Burger and 3SUN/ENEL are gratefully acknowledged for joint development efforts,
modules. The use of a single long-
technical discussions and support. The results reported here have been obtained through the
pulse flash is critical for the accurate collaborative effort of all members of the heterojunction pilot line and PV module platform at
IV measurement of heterojunction CEA-INES. Special thanks to Hervé Colin for managing the outdoor monitoring site at CEA-INES.
modules. With respect to low-light

performance and temperature stability, Authors
SHJ modules were found to outperform
Eric Gerritsen studied engineering physics at Twente University
PERC modules. Finally, a comparison (Netherlands) before joining Philips Research Labs (Eindhoven, NL) in
of monofacial SHJ and PERC modules 1985 to work on ion implantation, for which he received his Ph.D. from
during extended outdoor monitoring Groningen University in 1990. He then held various positions within Philips
showed the SHJ modules to have a (Lighting, Semiconductors) in Germany, Netherlands and France before
joining CEA-INES in 2008, to work on PV module technology and applications.
superior performance ratio.
Elias Garcia Goma holds an M.Sc in Solar Energy from the PVMD group at TU
Delft (The Netherlands). Since 2016, he focuses on innovative PV module
characterisation methods at Eternalsun Spire, and is an active member of
References the IEC TC82 WG2. His latest research topics include: SHJ modules, bifacial
[1] C.Ballif et al, Solving all bottlenecks for silicon heterojunction PV, LeTID and perovskite, among others.
technology, PV International, Vol.42, 85-97, March 2019
[2] T.S. Liang et al., A review of crystalline silicon bifacial photovoltaic Guillaume Razongles graduated in 2007 from the engineering school
performance characterisation and simulation, Energy Environ. ‘Telecom Physics’ in Strasbourg, France and joined CEA-INES in 2009. There
Sci. 12, 116 – 148, 2019.
[3] R.A. Sinton et al, Assessing transient measurement errors for high-
he has been studying the performance of PV modules in outdoor conditions,
efficiency silicon solar cells and modules, IEEE J. of Photovoltaics overviewing the PV market and analysing the LCOE and lifecycle assessment
7(6), 1591-1595, 2017 of photovoltaics.
[4] C.Monokroussos et al., Accurate power measurements of high
capacitance PV Modules with short pulse simulators in a single Stefan Roest is co-founder and CTO of Eternalsun Spire, which contributes to
flash, proc.EUPVSEC conf., 2012.
the development and growth of the solar industry by enabling the highest
[5] T. Dullweber et al., PERC+: industrial PERC solar cells with rear
Al grid enabling bifaciality and reduced Al paste consumption, accuracy measurements of the efficiency and reliability of PV modules. Stefan
Progress in Photovoltaics 24 (12), 1487-1498, 2016 Roest is an active member within the IEC TC82 WG2 and is involved in several
[6] L. Bodlak et al., Price-bifacilaity relationship of bifacial modules in testing related project teams of PV modules of different technologies.
vertical east-west oriented PV systems, proc. EUPVSEC conf.,
Amsterdam, 2018
Lionel Sicot received his Ph.D. in 1999 in physics of materials from Orsay
[7] A. Guérin de Montgareuil et al., A new tool for the MotherPV
method: modeling of the irradiance coefficient of photovoltaic University (France) for a thesis on organic solar cells. From 2000 to 2007, he
modules, proc. EUPVSEC conf., 2009 worked in this field in the Organic Components Lab at CEA. In 2007, he joined
[8] A. Guerin de Montgareuil et al. , From Watt-peak to Watt-hours : the the PV systems lab at CEA-INES and since 2017 has been working on the
MOTHER-PV method and IEC61853 standard, proc.EUPVSEC conf., 2013 industrialisation of bifacial heterojunction technology.
[9] G.Razongles et al., Bifacial photovoltaic modules: measurement
challenges, Energy Procedia 92, 188-198, 2016
[10] A Hoffman et al., Environmental qualification testing of terrestrial
Benjamin Commault graduated as a materials engineer from Polytech
solar cell modules, NASA proceedings PVSC conf. 1978. Nantes in 2011, and since then has been working as a research engineer in
[11] K.Sporleder et al. , Local corrosion of silicon as root cause for PV at the French Institute for Solar Energy (INES). At CEA-INES he has gained
Potential‐Induced Degradation at the rear Side of bifacial PERC more than two years’ experience in the development and production of
solar cells, Physica Status Solidi Rapid Research Letters, 2019 heterojunction solar cells, and since 2014 he has been working on the R&D
[12] W. Luo et al, Elucidating potential‐induced degradation in
bifacial PERC silicon photovoltaic modules, Prog Photovolt Res
of c-Si PV modules.
Appl. 26 (10), 859 – 867, 2018.
[13] T.Ishiguro et al, Study on PID resistance of HIT® PV modules, PV Aude Derrier received her Advanced Master degree in 2000 in Materials,
module reliability workshop, Golden (USA), 2013 Processing and Modelling at the CEMEF lab of Mines Paris Tech. She worked
[14] E. Kobayashi et al, Light-induced performance increase of silicon for 15 years at Salomon and Amer Sports Footwear as an R&D project man-
heterojunction solar cells, Applied Physics Letters 109, 153503,
ager and expert on functional polymers and composites. In 2017 she joined
2016.
[15] J.Veirman et al., Positive aging of heterojunction solar cells CEA-INES where she is now heading the PV module laboratory.
under illumination: kinetics, amplitude and stability, Silicon-PV
workshop, Leuven (B), 2019 Yannick Veschetti obtained his Ph.D in physics at Strasburg University, in the
[16] D.C. Jordan et al., Silicon heterojunction system field performance, field of crystalline silicon PV. He joined CEA-INES in 2005 to work on high-
IEEE J. Photovolt. , Vol.8 (1), 177-182, 2018
efficiency silicon crystalline solar cells. From 2013 to 2015, he was responsi-
[16] M.Schweiger et al., Performance stability of photovoltaic
modules in different climates, Prog. Photovolt: Res. Appl. 25 (12), ble for the homojunction silicon solar cell laboratory on n-type silicon. He is
968-981, 2017 currently in charge of the PV module division at CEA-INES.

Presented to you by:
storage & smart power

114
113 News
The biggest stories from the world of energy storage
114-116 Blackouts and batteries: How storage saved the UK grid

How batteries came to the rescue in UK power outage
118-120 Flex and flexibility

On the path to a more flexible power grid
122-123 Technical Briefing Using batteries to reduce the impact of grid maintenance
By Dieter Castelein, Greener
Storage & smart power
Introduction
It’s funny how contrasting our industry news can be from purpose in the UK. Many of those lessons will hold true in
the mainstream picture sometimes. In the past three markets across the world.
months since the last edition of ‘Storage & Smart Power’ Talking of flexibility, it’s the key feature of what energy
appeared, in PV Tech Power Vol.19, our site Energy-Storage. storage can bring to the energy system that is most often
news has reported on significant moves across the US, often missed when we talk about the grid. UK editor Liam Stoker
motivated by utility economics, to deploy or otherwise strikes back again (p.118) with some revelations from a
accommodate energy storage on its networks. recent round table he hosted with some of the country’s
Oklahoma is going to get a giant hybrid wind-solar- leading flexibility providers. A clear and present, if not
storage plant from NextEra Energy Resources, New England’s outright urgent need exists for distribution and transmission
ISO and individual state authorities have opened up providers to access the capabilities of battery storage and
opportunities to providers including residential behind-the- other flexibility assets and Liam heard from the likes of asset
meter storage and grid-scale storage for municipal utilities developer AMP, storage developer Zenobe Energy and other
and Utah is about to get a 12.6MWh residential virtual power stakeholders on the path forwards.
plant (VPP). You can read about some of the impetus behind Finally, a fascinating technical case study from Greener
the US’ drive in my feature article for the main magazine (see Engineering to round off ‘Storage & Smart Power’ this
p.20). quarter. Tasked with ‘islanding’ a section of the Dutch
Ultimately, renewable energy is getting cheaper and grid, the company used batteries to stand in for the
cheaper and is making better business sense to utilities than grid in what was dubbed a synchronous grid takeover.
fossil fuels in many cases. Yet if we looked only at headlines Letting households and businesses get on with their day
in the – I dread to use the expression again but ‘mainstream’ uninterrupted was made possible with a hybrid combination
media – we might only hear about fear of climate change of batteries and a generator. Thanks to Dieter Castelein of
and denial of climate change, rather than ongoing efforts to Greener Engineering for contributing that one (p.122).
defeat climate change. Perhaps we’ll see you at Solar & Storage Live in England,
Similarly, don’t be fooled if you see headlines blaming or Solar Power International / ESI in the US over the next
renewable energy for a recent, massive blackout in the UK few weeks and in the meantime, do subscribe to the twice-
which led to 1 million customers losing power one Friday weekly E-S.n newsletter. Don’t forget also that we have a
evening this August. As you’ll see from Solar Media’s UK YouTube channel and now a Solar Media podcast while you
editor Liam Stoker’s feature article on that blackout (p.114), can also follow E-S.n on twitter: @energystoragenw
renewable energy and flexible energy resources including
energy storage and demand side response hold many of the Andy Colthorpe
answers to the problems of making electricity access fit for Solar Media
www.energy-storage.news
Visit the site and subscribe free to the Energy-Storage.News
newsletter today. Technology with the capacity to change the world.

NEWS
Vanadium redox flow system joins UK’s frequency the emerging circular economy of lithium, a report commissioned
response market by the Swedish Energy Agency has found.
‘Flow batteries’ could provide frequency response in the UK for the The report’s author, consultant Hans Eric Melin, told Energy-
first time ever, as a modestly sized solar-plus-storage system has Storage.news that many misconceptions and poor observations
been pre-qualified into National Grid’s dynamic firm frequency are made and repeated around lithium recycling. Melin said
response (dFFR) market since late July. that more than 70% of lithium-ion batteries recycled today are
Energy storage technology provider and system integrator RedT processed in China and South Korea, with “high” recovery rates of
- which prefers the description ‘flow machines’ for its vanadium materials.
redox flow, long duration devices - and aggregator / energy data More than 300 studies of primary research have been
and technology specialist Open Energi achieved pre-qualification conducted worldwide in separating materials in used batteries
status for a 300kWh flow machine installed at an industrial site in and re-producing cathode materials or their precursors, 70% of
Dorset, southern England. The device is coupled with a solar instal- those studies in the two aforementioned Asian battery power-
lation with a peak generation capacity of 250kW. houses, and finding that “all active materials including lithium can
In related news, redT has proposed a ‘reverse takeover’ with be recycled with high efficiency”.
Avalon Battery, in effect a merger, to create a scaled-up global flow
energy storage player. You can read in-depth interviews with both SoftBank puts US$110m bet on Energy Vault
parties at Energy-Storage.news. SoftBank’s Vision Fund has made its first investment in an energy
storage company, betting US$110 million on Swiss start-up Energy
Vault.
Energy Vault has developed a form of energy storage inspired
by pumped hydropower stations, which rely on the movement of
water to store and discharge electricity. In its solution, concrete
blocks weighing 35 metric tons are lowered up and down an
energy storage tower, storing and releasing energy.
Energy Vault’s proprietary cloud-based software autonomously
controls the cranes lowering and lifting the blocks. The software
relies on a combination of predictive intelligence and algorithms
that account for a variety of factors, including supply and demand,
grid stability, and weather.
The company was started at California’s technology incubator
and accelerator program Idealab Studio and launched officially in
2018.
India’s 1.2GW tender for dispatchable renewables

Credit: redT.
The state enterprise Solar Energy Corporation of India (SECI)

issued at the beginning of August a tender for 1,200MW of renew-
able power that can be used to alleviate peak demand issued on
redT’s vanadium redox flow in action at a recent project in Australia.
the grid, in effect mandating the use of energy storage systems
(ESS).
Huge battery system to export cheap solar from An invitation has been issued for bids to build, own and operate
South Australia renewable generating facilities and enter into 25-year power
South Australia’s Planning Council has approved a 500MW (AC) purchase agreements (PPAs).
solar farm project, co-located with 250MW / 1,000MWh of battery Solar and wind (or combined or hybrid systems) must be
energy storage from renewables developer EPS Energy. capable of dispatching power to the grid for at least six hours each
The proposed large utility-scale solar PV plant, Robertstown day. Off-peak energy will be provided a flat tariff payment of Rs.
Solar, will use the batteries to participate in the National Electricity 2.70/kWh (US$0.038), while a separate peak tariff will be deter-
Market, which despite the name spans most, not all, of Australia’s mined through ‘e-Reverse Auction’, the SECI invitation document
national network of grids. said.
Robertstown Solar alone will constitute 1% of the Federal
Government of Australia’s target to add 33GW of renewable energy Korea’s ESS fires: Batteries not to blame
to its networks by next year under its own Renewable Energy After fires were started at a reported 23 battery energy storage
Target. It is also expected to create 275 jobs during construction installations in South Korea during 2018, the country’s Ministry of
and 15 full-time roles over the operational lifetime of the project. Trade, Industry and Energy, and the national Standards Committee
EPS Energy, acting as development manager, said it expects the held a press briefing in June, revealing that in nearly every case
plant to be operational for 30 years. the issue appears to have been poor management of batteries,
rather than anything inherently unsafe in the batteries themselves.
Lithium batteries ‘more widely recycled’ than According to local press, defective battery cells were not
people think found to be the cause but instead electric shocks caused by
Lithium-ion batteries are far more widely recycled than many faulty battery management, system control or battery protection
people think, while China and South Korea are already leaders of systems and faulty installation practises.

Blackouts and batteries: how

storage saved the UK grid
Grid | At 4:52pm on Friday 9 August 2019, the UK suffered its first wide-scale blackout in over a
decade. More than 1.1 million consumers were plunged into the dark as rail lines screeched to a
halt, traffic lights failed and even airports reported problems. Liam Stoker looks at the root causes,
and how battery storage came to the rescue
Credit: National Grid
1
6:52:33.490. Those nine consecu- quickly dismissed. Were renewables to The UK’s power Thunderbolts and lightning
tive digits won’t mean much blame? Earlier that day wind had provided blackout on 9 National Grid’s timeline puts together a
August highlight-
outside of the UK’s energy sector, more than half of the country’s power, sequence of events that while individu-
ed the impor-
but they’re likely to be etched into a feat which had the renewables lobby tance of batteries ally manageable, together caused a drop
folklore. It’s the precise timestamp for celebrating. That just hours later the lights to the grid’s in frequency sizeable enough to cause
when, on 9 August 2019, a single light- had gone out was a fact not lost on a stability the blackout. Lightning struck a transmis-
ning strike sparked a cascade of events number of climate change sceptics. sion circuit near Eaton Socon, a town in
that caused the UK’s first major blackout But those theories were also dismissed Cambridgeshire.
in over a decade. by National Grid in the days after the That lightning strike, as tens of others
More than one million people experi- event. While there was indeed marginally that hit grid infrastructure that day, was
enced power outages and widespread less inertia on the grid that day, courtesy said by National Grid to have been dealt
disruption, with not insignificant swathes of less synchronous generation, this was with by its protections systems normally.
of the country’s rail network taken out of not something that ultimately contrib- It did, however, trigger a Loss of Mains
action, albeit temporarily. The incident uted to the blackout. protocol that took around 500MW of
made national headlines for days after, as The true cause, according to National embedded generation – domestic solar
theory and rumour abounded. Grid’s preliminary investigation, released panels, batteries and the like – off the
A cyber attack? No, the UK’s trans- on 19 August, was perhaps both simpler system. That loss of generation would
mission system operator National Grid and more complicated at the same time. prove pivotal.

said it wanted to collaborate with both quantities of non-synchronous, renew-

The blackout timeline
RWE and Orsted to better understand able power comes onto the system, is
16:52:33.490 National Grid Electricity Transmission the respective power stations’ failure something which is likely to end up a
(NGET) reports a phase to earth fault at the Eaton Socon -
mechanisms, and both operators have central element of forthcoming debates.
Wymondley circuit, caused by a lightning strike.
remained fairly tight-lipped to date. What Nevertheless, battery storage operators
16:52:33.728 Orsted’s Hornsea offshore wind farm starts to the system operator was almost immedi- discharged and other generators contin-
deload its generating capacity, having generated 799MW ately prepared to dismiss however was a ued to chip away at the grid’s shortfall.
milliseconds before.
previously held theory As DNOs began to take up to 1GW of
16:52:34 A steam turbine trips at Little Barford, taking that the incidents demand off the system – the actual,
244MW off the system. were somehow technical cause of customers experi-
connected to encing blackouts – grid frequency
16:52:34 National Grid Electricity System Operator (ESO) 49.5 - 50.5Hz
each other, or The safe operating began to return to normal.
initiates its frequency response in a bid to stabilise the grid
frequency having seen it drop to 49.1Hz. that a failure transmission system It took just two minutes and
at one plant frequency National Grid is 22 seconds for that combination
16:53:18 The ESO reports that frequency response recovers obliged to maintain.
triggered a of load shedding and frequency
to 49.2Hz, stemming the downward curve.
failure at the response – a not inconsiderable
16:53:31 Further units at Little Barford trip, meanwhile all of other. amount provided by batteries – to
National Grid’s frequency response units are being delivered Altogether, around restore the frequency to safe levels, four-
in an attempt to restore the frequency. 1,378MW of generation came off the UK’s time faster than the last time such an
transmission system within mere seconds, incident occurred in 2008. Within four
16:53:49.398 Grid frequency dips again, breaching the
operationally safe 48.8Hz limit. Distribution network plunging grid frequency to an initial minutes – 3:47 to be precise – grid
operators trigger LFDD protocols and disconnect 931MW of low of 49.1Hz, followed by a secondary frequency had been restored to its usual
demand from the system. dip which took frequency to 48.8Hz, far operating limits, significantly quicker than
outside the safe operating limit. Attempts the 11 minutes it took a decade ago.
16:53:58 A further unit at Little Barford trips, complicating
matters further. At this point, the cumulative infeed loss to use reserve capacity to restore the The incident was made all the more
caps out at 1,878MW, totalling 1,378MW of transmission frequency failed, meaning that National interesting from an operational perspec-
system-connected generation and ~500MW of embedded Grid was forced to call on the UK’s region- tive when LFDD protocols kicked in.
generation.
alised distribution network operators to National Grid had already instructed flexi-
16:57:15 Frequency returns to 50Hz after 1GW of DNO begin Low Frequency Demand Disconnec- ble assets to discharge in a bid to make
response and 1,240MW of control room actions taken by the tion (LFDD); essentially switching custom- up for the lost capacity, but the moment
ESO. ers’ power supply off. DNOs started shedding load, National Grid
Customers were left in the dark, but quickly felt a bounce in the frequency and
17:06 DNOs are told they can begin to restore demand to
consumers. battery storage operators – 475MW worth, batteries were just as quickly instructed to
according to National Grid – stormed into respond. “When National Grid cut off the
17:37 All DNOs confirm that demand restoration is complete. action. power, the frequency bounced back very
quickly, sending the system the other way
Batteries and bounces and meaning our battery sites were then
Milliseconds after Little Barford came called on to balance the grid by taking
offline, National Grid signalled its reserve power out,” Anesco asset management
capacity to help offset the collapse. Batter- director Mike Ryan said.
ies began to discharge and other genera- Within four minutes, the UK’s electric-
tors sparked into life and, for a fleeting ity system – widely regarded as one of
moment, it looked as if the worst had the most secure in the world – tripped,
been averted. Hornsea’s fault, however, recovered and was restored to within
sent frequency falling again and National safe operational limits. Batteries played
How the grid’s frequency dropped and was restored on
9 August Grid’s reserve was insufficient. a pivotal role, but the fact the system
National Grid has since clarified that tripped altogether has been an event
its capacity reserves stand at around contentious enough to trigger two
Seconds later, within a few miles of the 1GW – the minimum amount approved separate official investigations.
lightning strike, a CCGT power station, under its Security and Quality of Supply Could more batteries have been used to
named Little Barford and owned by Standards. This figure is designed to offset greater effect?
European power giant RWE, came offline, the collapse of its single largest generator
taking around 700MW of generation of power, currently the 1.2GW Sizewell B What the future holds
with it. Within seconds of that occurring, nuclear reactor. Limejump chief executive Erik Nygard
Orsted’s Hornsea offshore wind farm also Losing closer to 1.4GW in seconds is an has called for a significant increase in firm
came offline, contributing to an event event, or rather a collection of separate, frequency response (FFR) styled products
National Grid described as “rare and individual events, that was evidently which can procure the kind of fast-acting
unusual”. something for which National Grid was response necessary to offset such sharp
The reasons for two sizeable generators not prepared. Whether or not the system drops in grid frequency.
coming offline at once are the subject of operator should have a more significant National Grid’s 200MW-strong portfolio
continuing investigations. National Grid reserve to dip into, especially as greater of enhanced frequency response (EFR)

grows, either by adding more batteries

Grid-scale battery storage is and DSR or synthetically by forcing such
experiencing a boom in the UK
generators to do so via their inverters.
Tinkering with the energy market
itself may also elicit a response. Given
the entire incident took just under four
minutes from trip to recovery, energy
markets – which trade in 30-minute settle-
ment periods – were all but unaware of
what was happening and unless they
were actively looking, traders would
have been none the wiser. Bringing those
markets to settle more frequently – a
technical challenge, but not an impos-
sibility – may have allowed price signals
to act as the first canary down the mine
Credit: Vattenfall
so to speak, and the market could have

responded in kind.
The incident itself, while perhaps alarm-
ing at the time, has arguably demonstrat-
ed the efficacy of National Grid’s systems
batteries, which respond to frequency nascent C&I and residential markets. and protocols. If it weren’t for the “rare
events in 0.5 seconds, did indeed help the The areas impacting battery storage and unusual” event of ~1.4GW of capacity
system operator’s response, but a drop off and its ability to help the UK’s grid security collapsing in seconds, consumers would
in the rate of FFR procurement in 2017 has lie elsewhere. While it’s true that National have been none the wiser. What is evident
meant that fewer batteries and less DSR – Grid’s distributed energy resource (DER) is that grid security is fragile and the
the kind of non-synchronous generation desk – set up by the energy system opera- margin at which National Grid operates is
that’s vital during periods of low inertia – tor last year to help operators of smaller, perhaps no longer fit for a system chang-
are being supported. more flexible assets gain access to new ing at rapid pace.
Nygard says that National Grid could markets – has led to a boon in the DER National Grid’s interim report has
effectively double its FFR-ready fleet, capacity bidding into such markets, some provided a skeleton that will inevitably
possibly mitigating for circumstances like rather sizeable barriers to entry remain, be fleshed out when the final report is
Friday 9 August, at a cost of around £100 chiefly the need for an energy supply published in mid-September. Alternative
million per year. Given that cost would licence, which is a particularly prohibitive investigations, led by both Ofgem and the
effectively be passed onto consumers via obstacle for smaller companies. government’s official Energy Emergencies
levies, and how sensitive a subject energy “With the right markets, flexibility Executive Committee (E3C), will establish
bills have become in the UK, what equates providers can rapidly bring forward fast- if any of the parties involved were at fault
to roughly a few pounds extra per year acting, flexible capacity to help National and, if they were, fines are likely to be
could be a small price to pay for energy Grid avoid a repeat of [August’s blackout] issued. National Grid itself could be fined
security. and create a smarter, cleaner, more resil- as much as 10% of its annual turnover if
Jonathan Ainley, head of public affairs ient energy system for everyone,” Ainley it is found to have breached its licence
and UK programme manager at KiWi said. conditions.
Power, meanwhile, has said that National Meanwhile, there’s also the not-insig- The chapters in the final report
Grid must do more to open up the Balanc- nificant problem created by inertia, or crucial to the sector will lie somewhere
ing Mechanism (BM) to more significant indeed the lack of it. Friday 9 August towards the back. Those will establish
quantities of distributed generation, witnessed considerable wind generation not just recommendations to prevent
arguing that it is currently “dominated” and, having produced as much as 50% similar events from happening in the
by large-scale, centralised generators of a earlier in the day, the UK’s wind fleet was future, but a timeline for those to be
dirtier heritage. providing around 33% at the time of the enacted. Flexibility providers consider it
Indeed, the UK is experiencing a frequency event. As a result, the amount highly likely that National Grid’s reserve
grid-scale battery boom at present. The of inertia on the system is expected to capacity will simply have to increase in
aforementioned 200MW of EFR-backed have been low. the wake of 9 August 2019, something
batteries provided the industry a stable Inertia’s role on the system and whether which could see more batteries land
base to build upon, and developers and or not it had much of an impact on the reserve contracts and, thus, become
financiers alike are now driving a not insig- events of that day have appeared to bankable.
nificant amount of activity. PV Tech Power divide opinion in the energy sector so Battery storage came to the UK’s rescue
publisher Solar Media’s in-house market far, and will inevitably be a line of inquiry on 9 August 2019, demonstrating – as if it
research team has previously guided that in both Ofgem and the BEIS’ investiga- was needed – the role the asset class has
as much as 500MW of utility-scale battery tions. Nygard says the UK would do well to play in grid stability. In the aftermath
storage could be built this year alone, to create a system which produced more of that event, that role only looks like
and that’s without even considering the inertia as non-synchronous generation increasing.

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Flex and flexibility

Grids | Power markets are evolving and beginning to value flexibility ahead of generation. As the
UK’s networks companies move to embrace flexible generation assets, Liam Stoker spoke to some
of the country’s leading providers to identify the hurdles and solutions to a more flexible power grid
collaborated with the UK’s Energy Networks particularly if there is any involvement from
Association and assembled 16 of the UK’s a community energy group or other party
leading flexibility providers, aggregators, such as a landowner, as is frequently the
asset optimisers and energy technology case in the UK power sector. Identifying an
firms to determine precisely what hurdles appropriate site, conducting due diligence,
the flexibility market still faced and, crucial- negotiating lease fees, agreeing contract
ly, how the sector could overcome them. terms, building a bankable business case,
Credit: Getty Images
pursuing and sealing planning permis-

A transparent need sion, gaining a grid connection agree-
One of the significant hurdles raised by ment, and all the associated procurement,
market operators spoken to was a distinct engineering and construction works mean
lack of necessary data and transparency it can be years before a project can get
T
he UK’s power sector is evolving The UK’s power on the part of the DNOs. At present, data off the ground. Jo-Jo Hubbard, founder at
at such a rate that generators, grid network is begin- that is shared with the market pertaining to blockchain specialist Electron, concluded
ning to value
operators and utilities alike can possible areas of curtailment is limited to that time remained amongst the biggest
flexibility over
scarcely believe the pace of change. It generation where the congested areas are today, and is challenges across the board for small-scale
seems a new renewable energy record given in broader times. flexibility assets. It’s evident that even the
tumbles each week, with coal falling off the That, a number of companies said, most nimble and expedient of project
grid for large parts of the year already. simply wasn’t good enough for them to developers cannot move fast enough for
While this is unquestionably good news, be able to build a business case robust the status quo.
it’s left the country’s transmission and enough to stand up a new battery storage James Basden, founder and director
distribution network operators (DNOs) in project or other generating assets. “Data at battery storage developer Zenobe,
something of a quandary. There is now a is absolutely key,” said Mark Tarry, chief echoed Tarry’s sentiments, comment-
clear and present – and some might add financial officer at asset developer AMP, ing that transparency surrounding data,
urgent – need for far greater quantities of adding that network operator’s Long Term particularly those relating to networks and
flexible generation to both balance the Development Statements – which formally areas of constraint, needed to be drastically
grid and offset the need for more costly document areas of works – are limited in improved.
Better data
reinforcement works. A power market that is needed to their scope to areas of constraint today. “If we can see what the potential is to
once valued generation above everything identify network “What you can’t do is try and estimate get in and put new flexibility assets on [to
now considers flexibility worth its weight in constraints where, where the areas of constraint will be in two, the grid], whether there is a rate of return
for example,
gold or, indeed, lithium-ion. three or five years’ time, and that is what is that’s acceptable… looking at how differ-
battery projects
The networks have been proactive in this would help ease important,” Tarry said. ent technologies could be a better solution
regard, and have taken to sourcing their congestion This is significant for project lead times, than conventional grid reinforcement, it’s
own flexibility. Localised tenders have been something that could be really very inter-
introduced, helping connect with owners esting… but it’s almost impossible get hold
and operators of flexible assets to ease of that data,” Basden said.
distribution-level grid constraints. Having And when that data is forthcoming,
tentatively explored the market for such it might not even be particularly useful.
auctions in 2018, DNOs are now transfer- Tarry spoke of a time when he was shown
ring flexibility markets into business-as- constraint information – essentially the
usual activities, and using them to future- projected load versus the capacity – of a
proof large sections of the grid. particular substation in the UK. In order to
But in some locations, the market forecast how that load may develop over
appears at an impasse. Flexibility is a time, the DNO in question had applied a
resource in demand, but providers are generic growth rate of 1%, something it
Credit: Zenobe Energy
either shying away from tenders or simply had applied universally across its licensed
do not have the projects required, nor the network.
economic business case to build. That substation was already at 80% of
In order to address this shortfall, PV its capacity, but what the DNO had failed
Tech Power sister publication Current± to factor into its forecasting was that, next

door, a new business park was to be built when network charges are taken into bled was unequivocal that uncertainty
under the premise of creating 15,000 jobs. account, and how this level of granularity stemming from Ofgem’s charging reviews
Not only that, but a considerable factor of could be adopted into the densely compli- had hindered flexibility projects coming
that development’s sustainability creden- cated area which is network charging, and forward, but were equally certain that, with
tials was the addition of electric vehicle used to great effect. a few minor tweaks, they could be used
chargers, contributing to what would have as a signal within areas of constraint that
been a sizeable addition to the load on that Charging forward flexibility projects, and services, are needed.
substation. That information had been in The UK’s network infrastructure is essen- These tweaks divided the room, repre-
the public domain, and could have been tially owned by monopolies regulated by senting the difficult nature of Ofgem’s job.
used intelligently by the DNO to create a the country’s regulator Ofgem, meaning Conor Maher-McWilliams, head of flexibility
more accurate, forward-looking picture of that their respective revenues are tightly at Kaluza, which is part of the OVO Group,
future constraint. controlled. This is achieved through said that price signals could be broadcast
The solution, according to our panel, is network charging, which is essentially a through network charging opportunities
for the DNOs to ramp up their efforts when cost levied against generators and suppli- – essentially making it cheaper to operate
it comes to data and transparency. If the ers in order to transmit and distribute a flexible generation asset than it might
network operator can forecast constraint power via the country’s cables and lines. otherwise have been – pre-empting an
zones two to five years in the future, then These charges are many and complex, and overloaded substation and direct procure-
these forecasts should be forthcoming subject to a significant ongoing review. ment.
to take into account the inevitable lag in The aforementioned Ofgem is facing a Network charges could stand to be an
project lead times. quandary; how to evolve those charges ideal way of incentivising flexibility asset
Furthermore, the data provided needs alongside a changing energy system, while development and indeed targeting it, but
to be far more granular than is currently on maintaining their impartiality and equality. nothing does the trick quite like a market
the table. If such constraint data was to be It’s something the energy sector remains auction, as the network operators have
made available on a substation-by-substa- split on, and Ofgem has been on the end already established.
tion basis, then project developers would of some stern criticism surrounding recent
be able to pinpoint precisely the areas proposals that the flexibility industry has Markets and contracts
of need, and target their services more warned could render large numbers of When it comes to how best to procure
accurately than is currently the case. projects uneconomical. flexibility, timing once again rears its head.
This point becomes all the more salient The panel of flexibility providers assem- Melanie Ellis, head of regulatory affairs
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at aggregator Limejump, said that it was Prior engagements framework is correct, enabling their partici-
critical that project lead times are taken into There is a stated desire for community pation in the first place.
account when tendering for services. There’s energy groups to be brought into the “We as aggregators need to work out
no point tendering for flexibility for six fold when flexibility is procured, given ways of sharing the benefits with domestic
months’ time in an area where there’s little their inherent engagement with the very consumers by letting them know up front
existing flexible generation, for example. communities the DNOs serve. These are what those benefits might be,” Addison
It’s also critical that the contract lengths often made up of likeminded individuals said, adding that it’s not just those that are
on offer remain diverse. Long-term who have a passion for renewable electric- presently engaged that need convincing.
contracts are perfect if projects need financ- ity, but not necessarily the expertise to see “Early adopters aren’t going to tip the dial
ing – nothing quite sates a financier like a project through. As a result, these groups and you need engagement with a broader
multiple years of predictable revenues – but are likely to need a broader spectrum of spectrum of customers, and much more
locking a sizeable battery, for example, into support, be it financial, legal or technical, concrete ways of sharing the financial
four years of having to be available during when it comes to bidding into flexibility benefit.”
peak times, when revenues and values may markets. Flexibility is a nascent market for the UK
well shift elsewhere, could dissuade opera- There needs to be a greater degree of power sector, so enamoured as it has been
tors from taking the plunge. Claire Addison, “hand holding” in the early stages of project with generation, to consider. But it is never-
head of regulation at Flexitricity, said there development, Flexitricity’s Claire Addison theless coming to terms with the new energy
was a “spectrum of views” when it came to said, which could take the form of a series of paradigm and flexibility markets are opening
contract lengths. case studies or successful project examples. up across the country, from the Shetland Isles
Handing out lengthy contracts can also That way, rather than having to navigate in the north to Cornwall’s south coast.
negatively impact market liquidity. Locking the complicated UK energy market on There are undoubtedly lessons to learn
in sizeable contracts for years at a time their own, community groups could assess and regulations to be tweaked, but this is
could limit availability in future years and, as which project or case study more closely a sector that’s as much as a learning curve
a result, prevent new projects from coming resembles their own and simply follow a for network operators and regulators alike.
forward. (hopefully) well-trodden path. If these adjustments can be made, flexibil-
There is also something of a split Then it becomes a case of engaging with ity could be on the cusp of a transforma-
between what asset owners want and perhaps the least engaged party of all: the tive boom.
what DNOs need. Owners, as Hubbard says, consumer.
need to be able to have explicit, concrete The UK power market isn’t exactly famed
The GenGame example
guarantees that they can provide flexibil- for its consumer-centric approach. Since
ity in return for revenues and if there are it was privatised in the 1990s, the energy Over the course of two years, more than 2,000 of Northern
Powergrid’s customers in the north east of the country
non-delivery penalties, then a clear idea of retail space in the UK has treated consum-
shaved an average of 11% off their electricity consumption
what those are precisely. Network operators ers more like assets than valued customers, simply, principally by playing a game developed by
on the other hand simply need to know that much to the chagrin of consumer groups gamification firm GenGame.
there’s enough flexibility on the network in and politicians alike. A cap on what energy Downloaded to mobile devices via Facebook, the game
communicated with devices installed in homes which
the near future to balance should the need companies could charge customers on
monitored consumption. During periods of high demand
arise. standard tariffs, enacted at the start of 2019, on the grid, GenGame prompted players to reduce their
Given the considerations at hand, the has only served to complicate relations consumption in return for points, which were used each
network operators face a Goldilocks-esque further. month in order to increase their chances of winning portions
of a £350 cash prize.
dilemma when it comes to procuring But there are signs of hope on the
Northern Powergrid assessed the responses, and found
flexibility. One such possibility mooted by horizon. A number of trials which involve that while the average customer turned down to the effect
the panel would require more of the previ- bringing consumers into demand-side of 305W, some consumers managed to switch off as much as
ously highlighted transparency, but would response markets have been successful, 4.9kW by switching off their EV chargers, for example.
The premise behind the game is simple, according to
exhibit the direct value flexible generators and energy companies are now waking up
GenGame chief executive Stephane Lee-Favier. A consumer
can provide. If, for instance, a network was to the inherent value of having hundreds might only save 10p by turning their washing machine on at
considering traditional reinforcement works, of thousands of informed and engaged a less convenient time, but if doing so could help them win
said network could publish its cost expecta- customers. as much as £100, then that stands to be far more successful
at incentivising behavioural change.
tions and the additional capacity to be Maher-McWilliams, whose parent
delivered, and invite flexibility providers to company could be about to become the
compete against those parameters. Basden UK’s second-largest energy supplier, is vocal
was convinced that in doing so, it would be in his support of equipping consumers with
“fairly rare to find a case where the battery all they need to enter such markets – both
doesn’t outperform the reinforcement”. hardware and otherwise – and then ensur-
If the data were more granular, network ing that the benefits are shared with them.
Credit: Northern Power Grid
charging reformed to send the initial signal It would appear that while it’s the DNOs
and the products designed in the correct that ultimately need the flexibility, and
way, then all that’s left is to properly engage, indeed should bear some responsibility in
both with flexibility providers, communities consumer engagement and education, the
and consumers. relationship ultimately lies with the provider
But even that isn’t as straight forward as it of energy. The DNOs should therefore be
GenGame is helping customers save money on power bills
may first appear. more concerned with ensuring the market

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Storage & smart power Technical Briefing
Using batteries to reduce the

impact of grid maintenance
Storage applications | Batteries are increasingly widely used in grid balancing, but there are many
more applications where a battery can play an important role. With electric grids requiring periodic
maintenance, batteries can stand in for the grid during downtime in order to reduce the impact on
industry and households, writes Dieter Castelein
W
e consume more and more Battery systems
electricity every day. The utilities can play an
important role
and grid distribution operators
in providing grid
must ensure industry and households continuity during
are provided with the necessary connec- maintenance
tions. In order to do that, the grid must periods
be expanded, and must be maintained
periodically. This means that more often
the power on the grid will be cut off while
Credit: Greener power solutions

the necessary works are undertaken.
How is this currently done?

Today, when the grid is being maintained,
the power is cut off at the transformer
where the maintenance is done.
Nowadays, it is not possible to do any
business or run a household without side. This means that when the load on the couple of the challenges that are faced
having power available; that is why during grid is smaller than what the solar panels during these grid take-overs, but also
this time of maintainance, a solution has to in this area are producing, this energy has have a challenge of their own. When
be found to keeping the lights on. to be (quite literally) burnt away in big applying a battery in this situation,
heaters. Which naturally is, again, a waste you can only use as many kWhs as the
It’s all about efficiency of energy and is not helping in our efforts batteries you bring to the site. When the
Traditionally, the energy demand for to tackle climate change. battery has 0% charge left, it cannot fill
these periods has been met by diesel- Also, these diesel generators produce itself anymore. With a generator on the
fuelled generators. To absorb the peak quite some noise. This can be irritating to other hand, you could just fill up the
demands of the grid and to prevent inhabitants when this solution is applied diesel again and start it back up.
power loss, an oversized setup of genera- next to their bedroom. That is why the best possible combina-
tors is used to guarantee a consistent tion is a hybrid system. The benefits of the
flow of energy. Can batteries be a solutions during hybrid system are:
Research from multiple festivals, where these grid take-overs? 1. A significant saving in fuel consumption;
a lot of diesel generators are used, show Batteries can provide a solution to a 2. Reduction in CO2 emissions by using
that the average load was 12%, while the
generators are the most efficient between
60% and 80% of their maximum engine
power output. See Figure 1 for the energy
data of a four-day festival and the average
power output of the diesel generator.
The inefficient use of generators
means that a great deal of diesel is being
burned unnecessarily. These emissions
contribute to climate change and poor
air quality in cities.
Moreover, we see that more and more
Figure 1. Energy
buildings have solar panels on their
data of a four-day
rooftops. A diesel generator cannot cope event with a
with current coming back on its output 200kva generator

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Storage & smart power Technical Briefing
Figure 2. Energy 1. Before grid overtake

data of a four-day 2. During grid overtake
event with a
3. After grid overtake
battery and a 63
amp grid connec-
tion Before grid overtake
Prior to maintenance, the grid requiring
maintenance supplies power to the off-taker
via a transformer, as shown in Figure 3.
During grid over-take

When the battery is in place, and the
maintenance can start, the battery will
synchronise to the grid and start deliver-
ing power to the off-takers, alongside the
power that is delivered by the transformer.
See Figure 4.
The battery can now even take over all
the power consumption that is happening
on the off-taker’s side, so the electricians
can safely disconnect the grid at the
transformer side.
After grid over-take

When the power is disconnected at the
transformer side, the battery is solely
providing all the power that is needed on
the off-taker side.
Whenever there is an overproduction
S Figure 4. During grid overtake of solar energy from rooftops, the battery
will start charging, or when there is an
underproduction, the battery will deliver the
power that is required.
In order to guarantee that the power is
W Figure 3. Grid before maintenance
always there, a diesel generator is attached
Figure 5. After grid-
to the input of the battery, so that it can
overtake
charge back up on 70% of the diesel
generator capacity in the shortest amount
of time. The new situation looks as Figure 5.
What is the upside?

Batteries provide the event with energy,
and when the state of charge of the
battery reaches a certain threshold, the
generator will charge the battery at its
most efficient load of 70%. This method
can reduce emissions by up to 62% and
reduce operating hours of generators
up to 85%. Next, to the reduction of
emissions, this method also reduces the
running time significantly, so there is less
the battery as a “peak shaver” (see Figure in urban areas; noise from the generators.
2); 6. Reliable and clean power;
3. Low noise: during the night hours 7. The grid can be taken-over without the Author
the battery can provide the complete power going out.
Dieter is a wind energy
supply of power;
engineer who specialised
4. Energy reduction: energy generated How would this new situation in sustainability and green
by renewable sources delivered back work? energy during his studies.
to the grid during the day is stored in Let us first define three situations when His ideal of a world running
the battery and can power the grid at a grid take-over happens. These three solely on renewable energy is realised
and spread through Greener power
nighttime; scenario(s) will be explained in more detail
solutions, https://greener.nu
5. Compact arrangement makes ideal use after:

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JA Solar www.jasolar.com IBC
LONGi Solar en.longi-solar.com IFC
meteocontrol www.vcom.cloud 63
PV CellTech celltech.solarenergyevents.com 69
PV ModuleTech moduletech.solarenergyevents.com/ 74
PV Taiwan www.energytaiwan.com.tw 84-85
PV Tech www.pv-tech.org 79
PV Tech Power www.pv-tech.org/pv-tech-power 79
Q Cells www.q-cells.com 11
Risen Energy risenenergy.com 47
Seaflex www.seaflex.net 101
Seraphim www.seraphim-energy.com 49
SNEC www.snec.org.cn 105
SolarGIS solargis.com/prospect 65
Solar & Storage Finance Events finance.solarenergyevents.com 28
Solar & Storage Live www.terrapinn.com/exhibition/solar-storage-live/ 117
Solar Power International www.smartenergyweek.com 36-37
Staubli www.staubli-alternative-energies.com 73, 92-93
Trina Solar www.trinasolar.com 7
World Future Energy Summit www.worldfutureenergysummit.com 80-81
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Detecting potential-induced degradation
Bifacial system integration
Microgrids
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PV-Tech.

Volume 20 PV POWER PLANT TECHNOLOGY AND BUSINESS August 2019

Backing up the hype

Market Watch Plant Design and Build Storage &

About LONGi Solar

www.pv-tech.org | August 2019 | 3

20-46 cover story Storage special rePORt

48-60 Market watch

4 | August 2019 | www.pv-tech.org

FusionSolar Residential & Commercial

Digital PV Solution for Ultimate Safety & Better Experience

86-91 system integration

6 | August 2019 | www.pv-tech.org

Portugal Solar touted as 185,000-job lifeline for Europe’s coal

failure so far to update renewable legislation.

8 | August 2019 | www.pv-tech.org

0,1 N7/; 0$; .7/ /909

storage products to meet EV Model 3 demand.

10 | August 2019 | www.pv-tech.org

Credit: Jinko Solar

12 | August 2019 | www.pv-tech.org

Engie’s 60MW Scaling Solar duo hits financial close in

Gulf Oman launches tender for 1.1GW

www.pv-tech.org | August 2019 | 13

Credit: GCL System Integration

14 | August 2019 | www.pv-tech.org

SEPTEMBER 3–5, 2019, MEXICO CITY, MEXICO

NOVEMBER 27–29, 2019, BANGALORE, INDIA

FEBRUARY 4–6, 2020, SAN DIEGO, USA

MARCH 3–5, 2020, DUBAI, UAE

JUNE 17–19, 2020, MUNICH, GERMANY

INTERSOLAR SUMMITS WORLDWIDE

Modules Trina Solar launches 425Wp bifacial TOPCon panel

16 | August 2019 | www.pv-tech.org

Modules Jinergy launches 72-cell 450Wp heterojunction bifacial panel

www.pv-tech.org | August 2019 | 17

Product Outline: Raycatch has introduced Applications: PV power plant O&M.

18 | August 2019 | www.pv-tech.org

Modules Risen Energy’s JÄGER series panels hit 340Wp

www.pv-tech.org | August 2019 | 19

Open season: the next

20 | August 2019 | www.pv-tech.org

Credit: Andy Colthorpe

www.pv-tech.org | August 2019 | 21

or the state should have control over all

Credit: Wasatch Group/ Sonnen/Rocky Mountain Power

22 | August 2019 | www.pv-tech.org

territories, feed-in tariffs still reward

www.pv-tech.org | August 2019 | 23

Market and technology development

24 | August 2019 | www.pv-tech.org

www.pv-tech.org | August 2019 | 25

revenue streams and further reduce their

Battery storage for balancing

26 | August 2019 | www.pv-tech.org

system stability can already become an operations must be coordinated in the

www.pv-tech.org | August 2019 | 27

DESIGNED TO RAISE CAPITAL FOR SOLAR &

5-6 February 2020 7-8 July 2020

Large Scale Solar Europe is the largest

0,1 N7/; 0$; .7/ /909