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Andrew Burger headshot

Demand for Grid-Scale Energy Storage Grows

By Andrew Burger
Greensmith_SJC_03.jpg

Southern California Edison (SCE) on Sept. 24 commissioned the nation's largest smart energy storage system at its Monolith substation near Tehachapi, California, a hub of the Golden State's wind energy generation capacity. Lithium-ion (Li ion) batteries manufactured by LG Chem provide SCE with 32 megawatt-hours of energy storage capacity.

The combination of falling costs, technological advances and supportive government policies are spurring interest -- and investments -- in grid-scale smart energy storage systems. Integrated with solar energy generation assets, electric vehicle charging stations and smart grid technology, smart energy storage is being viewed as a keystone element of distributed clean energy microgrids and distribution networks that could make for a low-carbon, sustainable energy infrastructure for the 21st century.

Emeryville, California-based Greensmith, a leading provider of intelligent energy storage management software and services, “is seeing dramatic growth in the grid-scale energy storage market,” the company announced in a Sept. 30 press release. So far this year, 23 megawatts worth of projects that make use of Greensmith's flagship GEMS intelligent energy storage software platform have been commissioned.

Energy storage growth factors


Growth in demand for grid-scale smart energy storage systems is being fueled by a growing variety of power and energy industry participants, Greensmith elaborates. These include utilities, renewable energy project developers and other types of end-users. Grid-scale smart energy storage applications span frequency regulation, capacity additions, ramp-rate control, transmission and distribution deferral, and smoothing of electricity production from renewable energy assets.

There are three facets to accelerating growth and development “of a real market” for grid-scale smart energy storage systems, Greensmith CEO John Jung told 3p in an interview. One is the need to enhance the reliability, stability and resiliency of the U.S. electricity grid. A second is the need to integrate the growing amount of electricity being produced by solar, wind and other renewable energy generation systems.

The third factor driving investor interest and customer demand is the enactment of legislation and programs that mandate or otherwise drive adoption. Energy storage legislation and programs in “a number of different states across the U.S. – not only California with AB 2514 – but across North America and, I would also say, in Europe and Asia” is catalyzing investor interest and customer demand, Jung said.

“We're seeing development of a very large, real market. I'm not sure you could say that was expected even two years ago.”

A real market


The confluence of these market drivers has put Greensmith ahead in terms of meeting its 2014 goals. Highlights, Greensmith elaborates, include:

  • Commissioning 23 megawatts worth of projects in 2014;

  • Delivering 35 systems to 19 customers since the company's inception;

  • Integration of 10 different batteries and 6 inverters/power control systems with Greensmith's GEMS software platform;

  • The use of Greensmith's GEMS software platform to support a diverse array of applications, including frequency regulation, grid stabilization and behind the meter storage; and

  • Developing a new software licensing program.

Illustrating the range of applications, and customers, making use of smart energy storage systems, Greensmith's GEMS energy storage and management platform is being used at:


  • A California utility which has deployed the platform at a 500 kilowatt/1.5 megawatt hour storage project used for scale capacity and solar firming;

  • A commercial scale solar developer which has deployed the platform at a 75kW/150 kilowatt hour storage project used for commercial and industrial energy management and solar firming;

  • A California utility which is deploying the platform for a 1.5MW/3.0MWh storage project used for transmission and distribution deferral;

  • A Virginia utility which is deploying the platform for a 50kW/120kWh storage project.

The market for advanced batteries used in utility-scale energy storage will grow from $164 million in 2014 to over $2.5 billion in 2023, Navigant Research forecasts. "While demand for grid-scale storage is growing, the challenges related to developing these highly specialized systems remains," Jung said.

"The GEMS software platform provides customers with the intelligence and flexibility they need to make energy storage systems a versatile part of their operations, and not just pilot projects or assets with functionality that is limited to a single application."

*All image credits: Greensmith

Andrew Burger headshot

An experienced, independent journalist, editor and researcher, Andrew has crisscrossed the globe while reporting on sustainability, corporate social responsibility, social and environmental entrepreneurship, renewable energy, energy efficiency and clean technology. He studied geology at CU, Boulder, has an MBA in finance from Pace University, and completed a certificate program in international governance for biodiversity at UN University in Japan.

Read more stories by Andrew Burger