Tesla Signs A Bunch Of Battery Energy Storage Deals

MAY 13 2015 BY MARK KANE 27

Tesla Energy Utility Design

Tesla Energy Utility Design

An endless queue of partners joins Tesla Motors in its the new energy storage business.

EnerNOC, for example, as provider of energy intelligence software (EIS), announced that it will collaborate with Tesla on the deployment and management of energy storage systems in commercial and industrial buildings.

The first project already are underway.

“EnerNOC and Tesla will enable enterprises to monetize the batteries through demand charge management and demand response using EnerNOC’s EIS. Initial collaboration will include select EnerNOC customers in California.”

Tim Healy, Chairman and CEO of EnerNOC said:

“By working together, EnerNOC and Tesla can help enterprises find new, innovative ways to save money and get paid for their operational flexibility. Energy storage has great potential and is a natural fit with energy intelligence software. We are excited to explore the possibilities with Tesla.”

Scott Limbacher, Vice President of Construction and Maintenance at Stater Bros. Markets, a Southern California supermarket chain said:

“Energy management today is more complicated than simply buying power from the utility. Innovative companies like Tesla give us new options that enable us to reduce our reliance on the grid when prices are high, and EnerNOC’s software gives us the visibility we need to make informed decisions about when to use these technologies and how to measure the impact they’re having on our business.”

Tesla Energy "Power Packs" Using Solar PV Power Accumulated Earlier Powered The Presentation

Tesla Energy “Power Packs”

Cargill, together with and Tesla and Pacific Gas & Electric (PG&E), will be one of the very first customers, installing 1 MWh energy storage at the company’s Fresno, California beef processing facility.

The goal is to avoid peak demand from the grid and lower bills by more than $100,000 annually. If we assume $350/kWh, simple math would give us a 3-4 year payback period, but we are not sure what the costs are per kWh for such systems.

“The Tesla batteries will be charged daily from the existing PG&E electricity grid system during off-peak hours, when electricity rates are lowest. The electricity stored in the batteries will then be used when rates are the highest each day during peak use times (peak trimming). By doing so, Cargill is reducing its contribution to the daily state power peak, when less environmentally friendly electricity generation might otherwise be required to meet demand.

Electric utility cost savings are estimated to be more than $100,000 annually. As the first large-scale battery installation at a Cargill meat processing facility, the company hopes to learn from this project for future potential use of this technology at its plants around the world.”

Tesla Energy Powerwall Multiple-Packs

Tesla Energy Powerwall Multiple-Packs

LichtBlick, an energy and IT company, on the other hand will integrate Tesla’s Powerwall home energy storage systems (7 or 10 kWh modules)  into the energy market and offer them in Europe, USA, Australia and New Zealand.

“LichtBlick believes that the number of households and companies which generate and store electricity is set to increase sharply over the coming years.”

“Using its unique SchwarmDirigent IT platform, the company links decentralized producers and storage systems and connects them to the energy markets. LichtBlick already operates a digital power plant in Germany with over a thousand decentralized units. Once linked to the cluster, Tesla Powerwall will be able to draw excess wind and solar power from the electricity network and then, during calm or cloudy periods, use this electricity in buildings or feed it back into the network. Consumers who integrate their batteries into the cluster will benefit from energy market revenues through LichtBlick.”

LichtBlick founder and CEO Heiko von Tschischwitz said:

“The new Tesla Powerwall represents a milestone, since powerful, affordable batteries are a key technology in the distributed energy revolution. LichtBlick connects decentralized batteries to a powerful storage system. The optimized use of millions of installed batteries, outside of buildings as well, plays a key part in ensuring that decentralized energy shapes our energy supply system.”

At the unveiling Tesla announced a few energy utility projects with Advanced Microgrid Solutions, OnCor, Southern California Edison and AES.

SolarCity Introduces Affordable New Energy Storage Services Across the U.S.

SolarCity Introduces Affordable New Energy Storage Services Across the U.S.

And it would be no surprise if we added SolarCity to the list, right?

Costs of Tesla ESS will be lower than we’ve seen offered by other companies in this sector, which might mean a lot of bankruptcies for those other companies in the biz that are stuck with old, costly technology.

“SolarCity incorporates new Tesla battery to create turnkey residential solar battery backup system – system cost reductions are over 60% lower than previous product; cost breakthrough also results in greater savings for business and government customers”

“SolarCity will begin taking orders for the new energy storage systems on May 1st and expects to begin installing customers in October. SolarCity will initially make its battery backup options available only to new solar customers in the company’s current service area, and will accommodate customers on a first-come, first-served basis. The company plans to make the battery backup system available to its existing solar customers later this year. Off-grid solutions offered in Hawaii are expected to become available in the first half of 2016.”

We believe that this is just the peak of iceberg and there will be a lot of partners & suppliers that will try to join the Tesla ESS train.

Source: Green Car Congress

Categories: Tesla

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27 Comments on "Tesla Signs A Bunch Of Battery Energy Storage Deals"

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Alaa

Apart from SolarCity I hope that the others use solar to charge these battereies. It will be a step in getting rid of fossil fuel.

Acevolt

I would not want to use my home solar system to charge the Powerwall because solar generates during peak periods. Charge Powerwall during super off peak and use the power during peak periods. Southern California Edison just changed peak rates to 2pm-8pm from 10am-6pm because they were not making enough money off of time of use customers with EV’s and solar. This will help offset that change.

Alaa

Double your panels.

Speculawyer

“Southern California Edison just changed peak rates to 2pm-8pm from 10am-6pm because they were not making enough money off of time of use customers with EV’s and solar.”

Well, they changed the peak hours because the hours of peak demand changed. Solar PV is now pumping lots of electricity onto the grid at 10am to 2pm. And the big peak now is that time when people are still awake and using lots of power but the sun is setting . . . the 5pm to 8pm time.

And that is why we are going to start needing batteries (or other storage). This discussion is generally discussed with reference to the ‘duck curve’ which you can search.

See Through

Once these batteries become more common and more EVs charge at night, the off-peak nightly rates are bound to increase. That will destroy any savings these batteries promise by daily cycling.

Lensman

No, they won’t. Industrial daytime power demands will always greatly exceed nightly demands, because so many factories run only one or two shifts, which means daytime and evening demand, but much less late nite/early morning demand. Industrial power demands far exceed residential power demands, and of course commercial power will always have relatively low nighttime demand. So there will never be parity between daytime and nighttime power demands, even if every single car, truck, train, and boat is a plug-in EV.

See Through

Lots of vapor claims, not a shred of evidence. Take a look at the daily caiso chart for California (link below).
Assume steady state power output of 26 GW. Then, add up the area of the curve below 26 GW for the off-peak period from 10 p.m. to 8 a.m. It is close to 33 GWH.
Now, if just 10 million EV passenger cars charge at night, then each car only needs to charge for 3.3 KWH to absorb the excess during this period. And then, there won’t be any off-peak anymore.

http://www.caiso.com/outlook/outlook.html

This is optimistic. With more solar, the steady state could be lower , at 24 GW. Then, this surplus production at off-peak hours is even less.

So, no. Your claims don’t hold any water. Try again next time.

Lensman
Wow. A troll regularly posting anti-EV FUD on multiple websites accuses someone else of posting things which are not based on fact. Almost like irony… 😉 FUDsters are good at finding obscure, cherry-picked or outlier figures to support their false arguments. I presume the chart you pointed at was one of those. So, looking away from FUD to what the electric utility industry actually says: “Research by the Electric Power Research Institute (EPRI) and Natural Resources Defence Council (NRDC) back in 2007 reckoned that if even a third of all miles in the U.S. were powered by the grid, electricity demand would increase by less than 10 percent.” source: http://www.greencarreports.com/news/1048961_can-ev-charging-crash-the-grid-toronto-hydro-chief-says-yes Now, what is the percentage difference between peak power demand and demand in off-peak hours? Of course, it depends on the region and the time of year, but according to the graph linked below, peak California summer demand is about 71-72 GWh, and minimum demand is about 40 GWh. That’s a difference of 44%… more than four times that 10% extra needed for one third of all miles being electric power. And of course, simple math tells us that if all miles were electric miles, it would still leave comfortably… Read more »
sven

Peak rates hours from 2pm to 8pm aren’t that bad compared to the 8am to 12 midnight peak rates hours that I’m subject to.

Speculawyer

Man, Tesla has really perfected the art of using their hype to do business. They put on a show. Get a zillion web clicks. Claim they have a zillion dollars in ‘orders’ (which were just web clicks expressing interest . . . I was one of them.) thus raising perceived value of your product.

And then cherry-pick among the potential customers for the best ones. They don’t have the capacity to serve everyone right now anyway.

Well done, Tesla, well done.

vdiv

So you’re saying that other auto or battery makers not only are bad at making cars/batteries, but they also are terrible at selling them.

Well, yeah! 🙂

Josh Bryant

The startup hustlers are now powerful enough to upset both the utility and automotive apple carts.

Anon

I thought at first, Tesla Energy was a quick and easy way to get the Japanese Battery Folks to go all-in with the GiFa(s). But now, I worry that TE might become too big and distracting enough, to eventually be spun off as a separate company…

Irregardless, I’m glad Elon is using his entrepreneurial powers for good; leveraging massive economies of scale to promote BEVs, and empowering people to become part of grid generation using solar power.

Wonder what the first Mars Tesla Rover will look like. 😉

Lensman

“Cargill, together with and Tesla and Pacific Gas & Electric (PG&E), will be one of the very first customers, installing 1 MWh energy storage at the company’s Fresno, California beef processing facility.

“The goal is to avoid peak demand from the grid and lower bills by more than $100,000 annually.”

As I commented on an earlier article on Tesla’s Powerwall, the economic case for industrial power users investing in storage batteries for “peak shaving” is actually a lot more attractive than the economic case for residential users. I’m not at all surprised to see several industrial customers signing up immediately.

See Through

Installing solar panels for the same money is a lot more lucrative. For the same $400K they spent for 1MWH batteries, Cargill could install 120 kw of solar panels, and could generate free electricity for 20 years during the peak periods, when they need it most.
So, the case for these lossy battery packs is very weak. I suspect, Tesla gave the batteries for free, so it could publicize its success story to create more hyoe.

Anon

Yes. Clearly not enough companies making their own “Hyoe”! 😉

ModernMarvelFan

AES (advanced energy storage) currently get some subsidies at industrial/commerical level close to $1.62/W of capacity… Far higher than solar.

ModernMarvelFan
See Through

I think you are referring to the SGIP rebates. The SGIP funds are finished; no more money left for these rebates.

ModernMarvelFan

Thanks for the information.

Is this confirmed? It is still listed as 2015 program with $33.4 million per year in available incentives on the website. Is there a seperate account page to show funding?

See Through
At least for Southern California Edison, it is exhausted. There is a long waiting list now. Can’t imagine why PG&E will have plenty of funds left. But I can’t confirm the PG&E part; need to call them I guess. https://www.sce.com/wps/portal/home/business/generating-your-own-power/incentive-program/!ut/p/b1/hc9NboMwEAXgq3CB4gEiQpYmIo6pVZrSNMSbylAHLIEdGRp6_DpSNq3683ZP-kaahziqENfioloxKaNFf-08fg0Sgre0BFqkNAaarvG6KHKABThwdAB-CYb_7g-IfyVJukocuWdZwEJCCHwH5GkZAs1fMlakQQiL8AZWBLJtXjjwvIuARjt4KDGOAOIb-OPJHPG2N7UbfEgRX9L9B8PXaVjXUdIibuVJWmn9zowTquZ59mulW78xw09qlMI23VlYMYyoKgl99EbzPnXSaq8RvToZq5Xw5JsajUbnoQJF7_jmwvAnIYyyWw!!/dl4/d5/L2dBISEvZ0FBIS9nQSEh/?from=sgip “Program Update: Due to an increase in application submittals for the Self-Generation Incentive Program (SGIP), funds for Renewable and Emerging Technologies have been fully allocated and a waitlist has been established in Southern California Edison (SCE) service territory. The SGIP technologies on waitlist status are: wind turbine, fuel cell, waste heat to power, pressure reduction turbines, and advanced energy storage. All new applications will be placed on the waitlist, which was established on April 7, 2015. If funds become available, waitlist applications will be reviewed in the order in which they were received until available funding is again exhausted. If a waitlist exists at the end of this Program Year, the waitlisted applications will become the first projects for the following Program Year (see SGIP 2015 Handbook, section 2.3.5). The waitlist is limited to 50 projects, or up to 50% of the next Program Year’s annual incentive budget and will close once it reaches this limit (see SGIP 2015 Handbook,… Read more »
Nick

Remember, peak shaving only really works if it’s 100% reliable.

Hit a peak due to clouds? Demand charges for the whole month.

Lensman

See Through said:

“For the same $400K they spent for 1MWH batteries, Cargill could install 120 kw of solar panels, and could generate free electricity for 20 years during the peak periods, when they need it most.”

It depends on what Cargill’s goal is for the installation. If the goal is peak shaving, which is where both power-hungry industries and electric utilities can save a lot of money with a relatively modest installation, then a battery pack of modest industrial size would be a lot more useful and a lot more reliable than acres of solar panels.

Solar panels are great for delivering hours of cheap energy on many or most days, but not so great on high power; not for delivering a lot of electricity quickly. Contrariwise, batteries can provide a lot of power. Peak shaving typically requires supplying a surge of power for a few minutes, or perhaps just a few seconds. And a battery pack can supply that power surge on demand, just as well on an overcast day as on a sunny one, or at dawn/dusk, or even at night. A solar panel isn’t much use for those situations.

Get Real

This is what the little anti-Tesla troll See Through does to promote his FUD, pull his ridiculous assumptions out of his posterior such as Tesla gave Cargill batteries for “free”.

And then he erroneously states that their are no rebates for commercial energy storage which is likewise proven wrong!

Got news for you troll, with California’s (and the rest of the US/World) move towards rapidly increasing renewable energy their is going to be a HUGE market for electricity storage and Tesla will profit handsomely from their energy division.

ModernMarvelFan

I am NOT surprised with commerical applications especially with all the incentives out there right now. But it doesn’t make financial sense with residential customers yet.

For business, CA is offering $1.46/W incentives for AES (Advanced Energy Storage) system.

http://www.pge.com/en/mybusiness/save/solar/sgip.page

PVH

Having not done the math it is hard for me to say whether those energy storage products make sense or not but one positive aspect I foresee is those being an “insurance” against utilities increasing their electricity retail price. For example in Europe, in some countries electricity is sold $0.4/kwh (Denmark, $0.3/Kwh in Germany). Considering the price of those energy storage systems will diminish as time passes (together with PV systems), people will have an option they did not have before (PV system + powerwall) with grid only acting as a back up. Moreover electricity consumption by European families being in average much lower than US families, a couple of 7kwh powerwall (14 kwh in total) can go a long way as long as another energy (natural gaz for ex.) is used for heating purposes (no need of AC in nothern Europe).

Christophe

The price per kWh do the PowerPack is 250 USD, not 350