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German insurance company Munich Re will now offer long-term insurance on battery performance in energy storage systems, a move that could reduce barriers to investment in energy technologies.

Why it matters: Large-scale renewable energy systems are expensive and complex, and in some cases their manufacturers have declared bankruptcy before the end of their systems' maintenance and warranty periods. Insuring against such risks — as well as those associated with relatively untested new battery chemistries — could spur adoption of innovative technologies by utilities and transportation providers and in off-grid applications.

How it works: For the purchaser, a 10-year warranty reduces the financial risk for both upfront and maintenance costs and increases confidence in the technology's performance. For the insurer and manufacturer, such programs could speed up development and installation, as the lack of insurance options for energy storage projects is holding back development.

Offering an insurance product allows the manufacturer to more easily obtain financing for specific projects because warranty costs would be capped by the insurance policy.

Where it stands: The initial insurance offering will be for large projects to stabilize electric grids and improve performance during periods of peak power demand. 

The first energy storage system provider to include Munich Re's coverage is U.S.–based manufacturer ESS, which has secured it for two flow battery systems (a competitor of lithium ion technology that offers more flexibility, a longer cycle life and faster recharging).

Additional warranty coverage can be obtained to protect from manufacturers who declare bankruptcy, a common concern in the industry.

What to watch: Battery life and replacement costs have been major concerns with electric vehicles, as have 10-year warranties that in some cases outlast their manufacturers. When Fisker, maker of the EV Vehicle Karma, entered bankruptcy in 2012, owners were left with coverage of only $2000 per vehicle.

Future policies may extend further into mobility markets, offering more robust consumer protections.

Maggie Teliska is a technical specialist at Caldwell Intellectual Property Law, an intellectual property law firm, and CTO of Regent Power. She is also a member of GLG, a platform connecting businesses with industry experts.

Insurers are easing adoption of large-scale energy storage

They're helping reduce the risks for buyers of expensive new technologies.

Parts of a flow battery at the Fraunhofer Institute in Pfinztal, Germany. Photo: Sebastian Gollnow/picture alliance via Getty Images

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German insurance company Munich Re will now offer long-term <a class="gtmContentClick" data-vars-link-text="insurance on battery performance in energy storage systems" data-vars-click-url="https://www.utilitydive.com/news/insurer-munich-re-offers-10-year-warranty-on-battery-storage-performance/550323/" data-vars-content-id="27692339-5c9f-43b4-b36f-034536b06add" data-vars-headline="Insurers are easing adoption of large-scale energy storage" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.utilitydive.com/news/insurer-munich-re-offers-10-year-warranty-on-battery-storage-performance/550323/" target="_blank">insurance on battery performance in energy storage systems</a>, a move that could reduce barriers to investment in energy technologies.Why it matters: Large-scale renewable energy systems are expensive and complex, and in some cases their manufacturers have declared bankruptcy before the end of their systems&#x27; maintenance and warranty periods. Insuring against such risks — as well as those associated with relatively untested new battery chemistries — could spur adoption of innovative technologies by utilities and transportation providers and in off-grid applications.

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

Disney Orlando flipped the switch on Feb. 27 on a brand new 50-megawatt solar farm, which produces enough electricity to power 10,000 homes.

Why it matters: Amusement parks and resorts consume a great amount of energy during the day during peak hours. Installing renewable energy systems using renewables in a visible way not only reduces carbon emissions, but also displays a commitment to sustainability to park-goers. 

The details: Built in collaboration with Reedy Creek Improvement District and Origis Energy USA, the farm comprises 518,000 solar panels and sits on a 270-acre plot adjacent to Disney’s Animal Kingdom. It will generate 50 megawatts of clean electricity to power two of the four Orlando resort properties annually, or 25% of the entire Disney property.

The project is expected to reduce greenhouse emissions by 57,000 tons, tantamount to removing 9,300 cars from the road. 

Background: Solar projects are not new to Disney. The park launched solar power projects as early as the 1980s.  In 2016, Disney installed a smaller 5-megawatt solar farm near the new installation in the shape of Mickey Mouse's head, which provides power for some of the attractions and features at Epcot Center.

What’s next: Disney has launched initiatives to reduce emissions in its organization to 50% of 2012 levels by 2020. Other environmental goals include diverting 60% of waste from landfills by 2020 and reducing water consumption.

Other theme parks are announcing plans to use renewables, including Six Flags Great Adventure in New Jersey, which is aiming to open the first solar-powered theme park in 2020.  

Disney World solar farm reflects theme parks' push for sustainability

The project is tantamount to removing 9,300 cars from the road.

Florida, Orlando, Epcot Center, View Including Sphere And Topiary. 

The Epcot Center at Disney World in Orlando, Florida. Photo: Education Images/UIG via Getty Images

Renewable energy

Disney Orlando flipped the switch on Feb. 27 on a brand new 50-megawatt solar farm, which produces enough electricity to power 10,000 homes.Why it matters: Amusement parks and resorts consume a great amount of energy during the day during peak hours. Installing renewable energy systems using renewables in a visible way not only reduces carbon emissions, but also displays a commitment to sustainability to park-goers.

China has steadily been forcing producers of graphite — a material commonly used in smartphone and laptop batteries — to close in response to rising pollution, as mining companies fail to improve the conditions of local land and water resources. 

Why it matters: Batteries account for roughly 30% of the global demand for graphite, and China produces 70% of the world's graphite supply. As demand for the material continues to grow, battery prices may rise, which would impede progress toward the $100 per kilowatt hour lithium-ion target that many companies, including Tesla and BMW, are looking to achieve.

Background: Lithium-ion batteries transport electrons through the use of cathode and anode materials, the latter of which is commonly constructed of graphite. The expanding electric vehicle market has been a major contributor to the global rise in graphite demand.

Graphite mining and production have created environmental concerns in China as pollution worsens.

Grinding graphite produces particulate air pollutants, which can cause respiratory issues.

Harsh chemicals used during processing are sometimes discharged from the plant into the surrounding land and water. In one instance, discharged pollutants from a graphite-producing plant prevented a local Chinese river from freezing in the winter, potentially disrupting the ecosystem.

In the past, inspections were done by local authorities. But since 2010 inspections have occurred under the central government, which has made pollution control a priority. 

What's next: Although graphite development is expanding to African countries — including Madagascar, Namibia and Tanzania — China will continue to dominate the market despite the shutdowns. It will take time to develop more capacity outside of Asia; in the meantime, battery prices, outside of long-term pricing agreements, may continue to rise with demand.

Lower graphite production in China could mean higher battery prices

Batteries account for roughly 30% of the global demand for graphite.

A graphite worker walks across the Jin Yang graphite factory in the town of Mashan, China on May 28, 2016.

A graphite worker walks across the Jin Yang graphite factory in the town of Mashan, China, on May 28, 2016. Photo: Michael Robinson Chavez/The Washington Post via Getty Images

Batteries

China has steadily been forcing <a class="gtmContentClick" data-vars-link-text="producers of graphite" data-vars-click-url="https://roskill.com/news/graphite-chinese-flake-closures-to-continue-through-2018/" data-vars-content-id="5aa5c9dd-1ca5-482f-bc08-51107da8cfe7" data-vars-headline="Lower graphite production in China could mean higher battery prices" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://roskill.com/news/graphite-chinese-flake-closures-to-continue-through-2018/" target="_blank">producers of graphite</a> — a material commonly used in smartphone and laptop batteries — to close in response to rising pollution, as mining companies fail to improve the conditions of local land and water resources. Why it matters: Batteries account for <a class="gtmContentClick" data-vars-link-text="roughly " data-vars-click-url="https://www.metalbulletin.com/Article/3802343/BATTERY-MATERIALS-CONF-Chinese-graphite-demand-set-to-rise-with-NEV-battery-development.html" data-vars-content-id="5aa5c9dd-1ca5-482f-bc08-51107da8cfe7" data-vars-headline="Lower graphite production in China could mean higher battery prices" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.metalbulletin.com/Article/3802343/BATTERY-MATERIALS-CONF-Chinese-graphite-demand-set-to-rise-with-NEV-battery-development.html" target="_blank">roughly </a><a class="gtmContentClick" data-vars-link-text="30%" data-vars-click-url="https://www.statista.com/statistics/452281/graphite-demand-worldwide-prediction-by-application/" data-vars-content-id="5aa5c9dd-1ca5-482f-bc08-51107da8cfe7" data-vars-headline="Lower graphite production in China could mean higher battery prices" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.statista.com/statistics/452281/graphite-demand-worldwide-prediction-by-application/" target="_blank">30%</a> of the global demand for graphite, and <a class="gtmContentClick" data-vars-link-text="China produces 70%" data-vars-click-url="https://leadingedgematerials.com/graphite/" data-vars-content-id="5aa5c9dd-1ca5-482f-bc08-51107da8cfe7" data-vars-headline="Lower graphite production in China could mean higher battery prices" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://leadingedgematerials.com/graphite/" target="_blank">China produces 70%</a> of the world&#x27;s graphite supply. As demand for the material continues to grow, battery prices may rise, which would impede progress toward the <a class="gtmContentClick" data-vars-link-text="$100 per kilowatt hour lithium-ion target" data-vars-click-url="https://cleantechnica.com/2018/06/09/100-kwh-tesla-battery-cells-this-year-100-kwh-tesla-battery-packs-in-2020/" data-vars-content-id="5aa5c9dd-1ca5-482f-bc08-51107da8cfe7" data-vars-headline="Lower graphite production in China could mean higher battery prices" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://cleantechnica.com/2018/06/09/100-kwh-tesla-battery-cells-this-year-100-kwh-tesla-battery-packs-in-2020/" target="_blank">$100 per kilowatt hour lithium-ion target</a> that many companies, including Tesla and BMW, are looking to achieve.

A new $3.5 million energy storage system went online last month in Ashburnham, Mass., continuing a statewide expansion of systems designed to ease pressure on the electric grid at times of peak demand.

Why it matters: In January, Massachusetts became the first state to offer incentives for battery systems, with the approval of a $2 billion state energy efficiency plan. The program is expected to support the installation of 30–34 MW of storage capacity during its 3-year term, on top of 190 MW from other operating and planned projects.

How it works: Behind-the-meter energy storage is typically paired with renewables, allowing for the capture of excess wind or solar energy. The stored energy can be used during periods of peak demand — to alleviate strain on the electric grid — or when the wind is not blowing or the sun is not shining.

Details: The plan draws on recommendations from an economic study performed by the Applied Economics Clinic. Its reports, presented to the state's Department of Energy Resources and Energy Efficiency Advisory Council, concluded that the cost benefits of battery storage should qualify it for efficient energy incentives.

Both commercial and residential customers will be able to sign up for 5-year contracts with their utility provider for new battery storage installations.

At the end of each year, incentives will be paid out based on how much the storage system was able to offset use of the grid.

What to watch: Massachusetts has one of the country's largest energy efficient budgets, at $620 million a year — alongside California ($1.4 billion) and New York ($450 million).

The state is making good progress toward its energy storage goals: 200 MW by 2020 and 1000MW by 2025.

As of April, New York has offered $280 million in incentives to energy storage companies.

As these states continue to realize the benefits of behind-the-meter storage, others may begin to include batteries in their own incentive policies.

Maggie Teliska is a technical specialist at Caldwell Intellectual Property Law and CTO of Regent Power. She is also a member of GLG, a platform connecting businesses with industry experts.

Massachusetts sweetening the deal for energy storage systems

It's the first state to include battery incentives in its energy efficiency plan.

Battery units in Longmont, Colo. Photo: Aaron Ontiveroz/The Denver Post via Getty Images

Alternative energy

A new $3.5 million <a class="gtmContentClick" data-vars-link-text="energy storage system" data-vars-click-url="https://www.energy-storage.news/news/east-coast-ess-projects-switched-on-by-nec-aggreko" data-vars-content-id="942a775a-d382-4206-b4f9-8eb1b5b030bb" data-vars-headline="Massachusetts sweetening the deal for energy storage systems" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.energy-storage.news/news/east-coast-ess-projects-switched-on-by-nec-aggreko" target="_blank">energy storage system</a> went online last month in Ashburnham, Mass., continuing a statewide expansion of systems designed to ease pressure on the electric grid at times of peak demand.Why it matters: In January, Massachusetts became the first state to offer incentives for battery systems, with the approval of a $2 billion state <a class="gtmContentClick" data-vars-link-text="energy efficiency plan" data-vars-click-url="https://www.mass.gov/news/massachusetts-nation-leading-three-year-energy-efficiency-plan-approved-0" data-vars-content-id="942a775a-d382-4206-b4f9-8eb1b5b030bb" data-vars-headline="Massachusetts sweetening the deal for energy storage systems" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.mass.gov/news/massachusetts-nation-leading-three-year-energy-efficiency-plan-approved-0" target="_blank">energy efficiency plan</a>. The program is expected to support the installation of <a class="gtmContentClick" data-vars-link-text="30–34 MW" data-vars-click-url="https://www.renewableenergyworld.com/ugc/articles/2019/02/01/massachusetts-becomes-first-in-the-nation-to-make-battery-storage-eligible-for-energy-efficiency-inc.html" data-vars-content-id="942a775a-d382-4206-b4f9-8eb1b5b030bb" data-vars-headline="Massachusetts sweetening the deal for energy storage systems" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.renewableenergyworld.com/ugc/articles/2019/02/01/massachusetts-becomes-first-in-the-nation-to-make-battery-storage-eligible-for-energy-efficiency-inc.html" target="_blank">30–34 MW</a> of storage capacity during its 3-year term, on top of <a class="gtmContentClick" data-vars-link-text="190 MW" data-vars-click-url="https://www.utilitydive.com/news/massachusetts-opens-revenue-stream-to-advance-solar-plus-storage/547659/" data-vars-content-id="942a775a-d382-4206-b4f9-8eb1b5b030bb" data-vars-headline="Massachusetts sweetening the deal for energy storage systems" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.utilitydive.com/news/massachusetts-opens-revenue-stream-to-advance-solar-plus-storage/547659/" target="_blank">190 MW</a> from other operating and planned projects.

Ships are the latest mode of transportation to see electric upgrades as the maritime industry faces increased pressure to reduce the greenhouse gas emissions associated with fossil-fuel propulsion.

The big picture: Passenger ferries are ideal for electric propulsion using current battery technology, which can reduce water and air pollution while providing a quiet, vibration-free trip. Short routes with frequent stops along populated shorelines offer ample opportunities to charge the battery packs.

Where it stands: Globally, there were 185 battery-powered vessels operating or scheduled for delivery in 2018, 58 of which were passenger ferries.

Background: Norway introduced the first all-electric ferry, named the MF Ampere, in 2015, to shuttle passengers between villages in the fjords.

Since then, the MF Ampere has cut emissions by 95% and operational costs by 80% compared with fuel driven ferries. Norway continues to lead in this area and expects to have 60 hybrid and all-electric ferries operational by 2023 — part of the country's plans to be carbon-neutral by 2030.

To transport 7 million passengers and 2 million cars annually, Sweden introduced 2 electric ferries that are said to have reduced CO2 emissions by over 28,000 tons per year. 

What's new: The Maid of the Mist Corporation has announced that it will launch 2 all-electric, zero-emission boats in September on the U.S. side of Niagara Falls — the first domestically built all-electric boats used for tourists in the U.S.

The catamaran-type boats, which will replace diesel-engine models, complement the Niagara region's $70 million revitalization efforts to enhance popular tourist areas and align with the goal of New York's clean energy plan to be carbon-free by 2040.

The new vessels will carry up to 520 passengers each, powered by lithium-ion battery packs under their hulls that will recharge to 80% of capacity during the 7 minutes they spend at the port.

What to watch: With battery costs declining, expect more new and converted all-electric passenger ferries to operate across the U.S.

Washington State Ferries will introduce a 150-passenger hybrid ferry in Puget Sound later this year that runs on both diesel and battery power, using up to 60% less fuel than diesel counterparts. 

Also this year, New York City plans to introduce a 150-person ferry to shuttle commuters across the East River, from Brooklyn to Manhattan.

Passenger ferries are going electric

Expect the trend to continue as battery costs fall.

passangers boarding an electric ferry on a river in France

An all-electric, zero-emission ferry in Lorient, France. Photo: Jean-Sebastien Evrard/AFP/Getty Images

Transportation

Ships are the latest mode of transportation to see electric upgrades as the maritime industry faces increased pressure to reduce the greenhouse gas emissions associated with fossil-fuel propulsion.The big picture: Passenger ferries are ideal for electric propulsion using current battery technology, which can reduce water and air pollution while providing a quiet, vibration-free trip. Short routes with frequent stops along populated shorelines offer ample opportunities to charge the battery packs.

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

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Maggie Teliska

Stories

Massachusetts sweetening the deal for energy storage systems

Passenger ferries are going electric

Insurers are easing adoption of large-scale energy storage

Disney World solar farm reflects theme parks' push for sustainability

Lower graphite production in China could mean higher battery prices