Grid-Scale Energy Storage Is Key

Copyright © 2022 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.

The belief that batteries are a core enabler of a cleaner and more energy-efficient future seems almost ubiquitous. But the reality is somewhat more complicated. Lithium-ion batteries and other battery technologies will undoubtedly play a role, but we cannot ignore their limitations if we’re serious about decarbonization, sustainability and meeting ambitious environmental targets. We’ll need more efficient, scalable ways to store power, especially as more renewables are added to the grid, so that batteries can be reserved for where they are most effective, like mobility or residential-level storage. Thermo-fluid-based solutions may just hold the key to grid-scale storage.

Today, electric grids everywhere, and all power generation, including grid-scale renewables like wind, hydro, biomass/biogas, tidal and low-carbon (nuclear), run on alternating current (AC) except for solar photovoltaic. With the exception of interconnectors and few other limited applications, high and low voltage grids around the world are built on the basis of AC transmission, and hence there is a 5%-20% loss in “round-trip” efficiency from using direct current batteries for storage.

Beyond the wastage caused by this conversion process, batteries lack the longevity of other storage technologies. As more renewable-power capacity is added to the grid in the coming years, this will become a more significant issue and a major inhibitor of our ability to transition to a clean energy economy.

The problem is that grid-scale renewables like wind turbines and solar are intermittent as sometimes there’s more wind or sun than expected. During times of lower demand, excess energy that is currently wasted (e.g. wind curtailment, which regularly occurs in the UK) could instead be stored until it’s needed, e.g. during peak demand in the evening rather than using traditional gas-fired peaking power plants.

In addition to the limitations of batteries in terms of storage longevity, grid-scale batteries are still incredibly costly to build. Battery materials are expensive and subject to fluctuations in commodities prices — and the supply chains are complex and often unethical.

A Storage Revolution

According to a report by KPMG, enough electricity to supply more than 1 million UK homes was wasted due to a lack of storage in 2020. Multiply that out across the globe, and you can start to see the size of the issue at hand. And this energy wastage problem is set to intensify in the coming years as more renewables are added to the grid and the need to store those renewables for more extended periods increases.

Given these realities, developing and deploying alternative grid-scale energy storage solutions capable of handling increased usage and the addition of renewable energy sources to the grid is more critical than ever.

Thermo-Fluid-Based Solutions

Thermo-fluid-based grid-scale storage systems use heat transfer, thermodynamics, fluid mechanics and combustion through various processes for more efficient and cleaner energy storage. They can be built with conventional materials like steel alloys and integrate with almost all energy generation applications. They can store energy more sustainably, including from renewable sources, and meet growing energy usage demands which are expected to increase by 50% by 2050. Numerous projects are currently in various stages of implementation and planning, with many beginning to show much promise.

Innovating Companies

With the help of a £10 million ($11 million) grant from the UK government, Highview and several other firms recently began working on a system to store energy in the form of liquid air at a UK plant. The system uses surplus electricity from wind farms at night to compress air and transform it into liquid form by cooling it down and storing it in insulated containers. At times of peak energy demand, the liquid air is rewarmed to expand. The subsequent rush of air drives a turbine to make electricity, which can be sold back to the grid. The main advantage in utilizing liquid air is the low cost of storage tanks and the ease of scaling up. Furthermore, unlike batteries, liquid air storage does not require minerals that are dirty to extract and will likely become increasingly scarce.

Also, in the UK, a team of engineers from RheEnergise recently developed an innovative system called High-Density Hydro that adapts hydropower to store and release electricity from small hills rather than mountains or dam walls. Instead of using water, the company developed a high-density, nontoxic additive that can be used in closed-loop pumped storage systems.

Hence its RheEnergise system can generate 2.5 times the power (and 2.5 times the energy) of traditional pumped storage systems. With superior energy efficiency, reduced environmental impacts, and lower costs, the High-Density Hydro system paves the way for thousands of hillsides across the UK to potentially store and provide energy to the UK’s energy system, vastly expanding the footprint of pumped storage. The company is currently on track to operate its first commercial system by 2024.

There are plenty of other innovative companies using similar techniques to revolutionize energy storage. For example, Dutch start-up Ocean Grazer has developed the Ocean Battery, which stores energy below offshore wind farms. When there is excess electricity, the system pumps water from an underground reservoir into flexible tubes on the seabed. When released, the pressurized water in those tubes flows rapidly through turbines to generate electricity as required. It is significantly more cost-effective to build than traditional large-scale offshore lithium-ion battery systems, and can also last for up to 1 million charging cycles compared with 5,000 to 10,000 for lithium-ion batteries.

The Race Is On

Batteries are an exciting and impactful technology that undoubtedly have a significant role to play as we transition to a cleaner economy. But they have limitations, especially regarding energy storage, which means these technologies can only take us so far. There is also a global rush for them, so they should be conserved for applications like mobility, where they can have the most significant impact.

Ultimately, transitioning toward a cheaper, cleaner and more secure renewable energy future requires renewable sources of energy and efficient ways to store that energy. It’s therefore imperative that we now drive forward grid-scale energy storage technologies that enable us to drive down costs and gain the full benefit of our renewable energy sources.

Shiv Sama is a principal at DAI Magister, a “boutique” investment bank in the technology and climate sectors. The views expressed in this article are those of the author.

Energy Storage, Low-Carbon Policy
Wanda Ad #2 (article footer)
Coal and gas may last longer in the energy system than oil, which faces multiple, growing threats to its dominance of transport.
Thu, Nov 24, 2022
Move by European Parliament to leave industry-friendly treaty reflects continued push away from oil and gas despite the energy crisis.
Fri, Nov 25, 2022
Calls are growing for more transparency and accountability around energy transition raw materials.
Wed, Nov 16, 2022