The Federal Energy Regulatory Commission has approved a transaction through which bankrupt flywheel energy storage firm Beacon Power will transfer its assets to new owners.
Beacon Power subsidiary Stephentown Regulation Services LLC built an energy storage system in Stephentown, New York. The project bears a 20 MW nameplate capacity, and uses Beacon's patented flywheel technology to help the New York Independent System Operator balance the electric grid, providing regulation service under the grid operator's Limited Energy Storage Resource tariff. Beacon was able to develop the program using a $43 million loan guarantee from the U.S. Department of Energy's
loan program office in 2010, and benefits in theory from FERC Order No. 755, which required grid operators to pay more for fast-responding frequency regulation that Beacon Power's flywheels may be able to provide. Nevertheless, Beacon went bankrupt at the end of 2011.
Last month, private equity firm Rockland Power Partners proposed to buy the bankrupt company for $30.5 million: $5.5 million cash and a $25 million promissory note
to the DOE. Rockland says that it intends to continue operating the
Stephentown plant and developing a second facility in Hazle Township,
Pennsylvania.
As part of the deal, Stephentown Regulation Services LLC filed an application to FERC under section 203(a)(1) of the Federal Power Act requesting Commission authorization to transfer its flywheel facility and related interconnection facilities (the “Facility”) located in Stephentown, New York, together with Stephentown’s rights, title and interest in, to and under, various assets including its market-based rate authority, its books and records and other related jurisdictional agreements to Stephentown Spindle, LLC, a subsidiary of Rockland.
FERC granted Stephentown's request last week, authorizing the transfer of Beacon's jurisdictional assets. Although there are a few remaining steps for Beacon and Rockland to figure out, this regulatory approval largely paves the way forward for the New York flywheel energy storage project to change hands to its new owners.
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Showing posts with label Beacon Power. Show all posts
Showing posts with label Beacon Power. Show all posts
Flywheel co Beacon Power sold
Wednesday, February 8, 2012
Flywheel-based energy storage developer Beacon Power Corp. may have a new lease on life, as private equity firm Rockland Capital proposes to buy the bankrupt company for $30.5 million.
Beacon Power patented a composite flywheel technology for use in balancing supply and demand on the nation's electric grid, an application known as frequency regulation. Unless this balance is maintained in real-time, problems can arise ranging from poor power quality to blackouts and safety hazards. Historically, grid operators controlled the output of electric generators to maintain this balance, but flywheels and other energy storage technologies may be able to smooth out disturbances on the grid more , more cost-effectively, and with fewer environmental impacts.
Beacon Power's business model has involved building, owning, and operating flywheel-based frequency regulation plants on a merchant basis. Indeed, Beacon Power describes itself as "a global leader in the development and commercialization of flywheel-based energy storage solutions for grid-scale frequency regulation services and other utility-scale and unitary energy storage applications."
In August 2010, Beacon Power received a $43 million loan guarantee through the U.S. Department of Energy's loan program office. That financing helped Beacon Power develop its 20 MW flywheel project in Stephentown, NY. But in October 21, Beacon Power filed for Chapter 11 in federal bankruptcy court.
At about the same time, federal regulators changed the way grid operators pay for frequency regulation. FERC Order No. 755 required grid operators to pay more for fast-responding frequency regulation -- just the kind of service that flywheel operators like Beacon Power may be able to provide best.
Now, Rockland Power proposes to pick up where Beacon left off, buying Beacon's assets for $5.5 million cash and a $25 million promissory note to the DOE. Rockland says that it intends to continue operating the Stephentown plant and developing a second facility in Hazle Township, Pennsylvania. Order 755 has given the energy storage industry a needed boost, which may be enough to let Rockland succeed with flywheel energy storage.
Beacon Power patented a composite flywheel technology for use in balancing supply and demand on the nation's electric grid, an application known as frequency regulation. Unless this balance is maintained in real-time, problems can arise ranging from poor power quality to blackouts and safety hazards. Historically, grid operators controlled the output of electric generators to maintain this balance, but flywheels and other energy storage technologies may be able to smooth out disturbances on the grid more , more cost-effectively, and with fewer environmental impacts.
Beacon Power's business model has involved building, owning, and operating flywheel-based frequency regulation plants on a merchant basis. Indeed, Beacon Power describes itself as "a global leader in the development and commercialization of flywheel-based energy storage solutions for grid-scale frequency regulation services and other utility-scale and unitary energy storage applications."
In August 2010, Beacon Power received a $43 million loan guarantee through the U.S. Department of Energy's loan program office. That financing helped Beacon Power develop its 20 MW flywheel project in Stephentown, NY. But in October 21, Beacon Power filed for Chapter 11 in federal bankruptcy court.
At about the same time, federal regulators changed the way grid operators pay for frequency regulation. FERC Order No. 755 required grid operators to pay more for fast-responding frequency regulation -- just the kind of service that flywheel operators like Beacon Power may be able to provide best.
Now, Rockland Power proposes to pick up where Beacon left off, buying Beacon's assets for $5.5 million cash and a $25 million promissory note to the DOE. Rockland says that it intends to continue operating the Stephentown plant and developing a second facility in Hazle Township, Pennsylvania. Order 755 has given the energy storage industry a needed boost, which may be enough to let Rockland succeed with flywheel energy storage.
Ener1 bankruptcy and DOE grant
Friday, January 27, 2012
Battery maker Ener1 is in news for yesterday's Chapter 11 bankruptcy filing, two years after its subsidiary was awarded a $118.5 million grant from the U.S. Department of Energy.
Ener1 Inc. holds several operating companies. Its subsidiary EnerDel produces automotive-industry thin cell lithium-ion batteries in Indiana. Other subsidiaries focus on fuel cells and nanotechnology, as well as manufacturing automotive-grade lithium-ion batteries in South Korea.
Battery making unit EnerDel won the $118.5 federal grant in 2009 for its proposal to expand two battery factories in Indiana and add a third facility. Many of the details of the proposal are available in the final Environmental Assessment prepared by the Department of Energy in support of the incentive:
Yesterday's bankruptcy filing by Ener1 comes at a time when policymakers are scrutinizing the energy department's grant and loan programs. Following the recent failures of other DOE loan guarantee and grant recipients such as Solyndra LLC and flywheel energy storage developer Beacon Power, Ener1's bankruptcy will likely add to the debate over the proper model for federal investment in the private sector energy industry.
Ener1 Inc. holds several operating companies. Its subsidiary EnerDel produces automotive-industry thin cell lithium-ion batteries in Indiana. Other subsidiaries focus on fuel cells and nanotechnology, as well as manufacturing automotive-grade lithium-ion batteries in South Korea.
Battery making unit EnerDel won the $118.5 federal grant in 2009 for its proposal to expand two battery factories in Indiana and add a third facility. Many of the details of the proposal are available in the final Environmental Assessment prepared by the Department of Energy in support of the incentive:
EnerDel received a $118.5 grant pursuant to a cost-sharing arrangement. Ener1 has since said that electric vehicles haven't caught on with drivers as quickly as it expected. Key customer, Norwegian electric vehicle maker Think Global, went bankrupt in June 2011.
The proposed financial assistance would help EnerDel expand its manufacturing and testing capabilities at two existing facilities and start up a third facility for future development into a complete lithium-ion battery manufacturing plant. The existing EnerDel facilities consist of a 92,000-square-foot building in Indianapolis and a 32,000-square-foot building in Noblesville, just north of Indianapolis. The lithium-ion battery manufacturing capacity of the Indianapolis facility would increase through the addition of equipment, and the Noblesville location would transition into full use as a prototype development and battery testing facility through the addition and change-out of equipment. The exteriors of the Indianapolis and Noblesville facilities would be unchanged. The third facility is a newly acquired vacant warehouse near Greenfield, Indiana, just east of Indianapolis. This 423,000-square-foot building would require minor construction and equipment installation on the exterior of the building; however, essentially all of the work necessary to transform it into a manufacturing plant would consist of installation of equipment inside the building.
Yesterday's bankruptcy filing by Ener1 comes at a time when policymakers are scrutinizing the energy department's grant and loan programs. Following the recent failures of other DOE loan guarantee and grant recipients such as Solyndra LLC and flywheel energy storage developer Beacon Power, Ener1's bankruptcy will likely add to the debate over the proper model for federal investment in the private sector energy industry.
FERC Order 755 promotes energy storage
Wednesday, December 21, 2011
New technologies have the promise to help electric grid operators perform the challenging task of balancing supply and demand at all times. This means making sure there the exact amount of electricity is being generated across the region as is demanded by consumers at that very moment. Line losses and the constraints of each local transmission and distribution system add complication. If the grid gets out of balance, problems arise with the electricity's frequency and power quality. In the worst case, failure can lead to cascading blackout, and safety can be at issue.
Historically, the balancing act has involved sending coordinated dispatch instructions to generators and demand response resources. Rules typically guide the grid operator in telling individual generating units to operate at specific levels. For example, flows through hydroelectric turbines can be varied, or fuel can be added to boilers or combustion turbines at a faster or slower rate. Through careful management, these conventional generation resources have been used to balance supply and demand, providing services known as frequency response and frequency regulation.
Though it is partly automated and well-practiced, this conventional resource dispatch process does take some time to take effect. Energy storage technologies such as flywheels, and batteries can not only provide frequency regulation, but can engage and ramp up much faster than conventional resources can. These faster-ramping resources could provide the grid relief in real time, as opposed to ramping up more slowly like conventional generation.
In most US markets, providers of efficient fast-ramping frequency regulation have been compensated the same as when conventional units provide regulation service, even when using fast-ramping resources is more efficient. At times this has meant that conventional resources have been dispatched when fast-ramping ones would have been lower-cost (and less polluting). For these reasons, this October the Federal Energy Regulatory Commission found that the current frequency regulation compensation practices "result in rates that are unjust, unreasonable, and unduly discriminatory or preferential."
In Order No. 755, FERC issued a final rule requiring the grid operators in organized markets to compensate frequency regulation resources based on the actual service they provide. Under Order 755 (123 page PDF), this must include separate payments for capacity (the marginal unit’s opportunity costs of being available) and for your actual performance.
Winners under Order 755 include providers of fast-ramping frequency response. These could include developers and operators of flywheel energy storage companies like Beacon Power, battery storage facilities, and compressed air energy storage, and other resources still in the conceptual phase. Winners also include energy consumers in the markets affected by Order 755, who should benefit from lower costs through improved operational and economic efficiency.
Historically, the balancing act has involved sending coordinated dispatch instructions to generators and demand response resources. Rules typically guide the grid operator in telling individual generating units to operate at specific levels. For example, flows through hydroelectric turbines can be varied, or fuel can be added to boilers or combustion turbines at a faster or slower rate. Through careful management, these conventional generation resources have been used to balance supply and demand, providing services known as frequency response and frequency regulation.
Though it is partly automated and well-practiced, this conventional resource dispatch process does take some time to take effect. Energy storage technologies such as flywheels, and batteries can not only provide frequency regulation, but can engage and ramp up much faster than conventional resources can. These faster-ramping resources could provide the grid relief in real time, as opposed to ramping up more slowly like conventional generation.
In most US markets, providers of efficient fast-ramping frequency regulation have been compensated the same as when conventional units provide regulation service, even when using fast-ramping resources is more efficient. At times this has meant that conventional resources have been dispatched when fast-ramping ones would have been lower-cost (and less polluting). For these reasons, this October the Federal Energy Regulatory Commission found that the current frequency regulation compensation practices "result in rates that are unjust, unreasonable, and unduly discriminatory or preferential."
In Order No. 755, FERC issued a final rule requiring the grid operators in organized markets to compensate frequency regulation resources based on the actual service they provide. Under Order 755 (123 page PDF), this must include separate payments for capacity (the marginal unit’s opportunity costs of being available) and for your actual performance.
Winners under Order 755 include providers of fast-ramping frequency response. These could include developers and operators of flywheel energy storage companies like Beacon Power, battery storage facilities, and compressed air energy storage, and other resources still in the conceptual phase. Winners also include energy consumers in the markets affected by Order 755, who should benefit from lower costs through improved operational and economic efficiency.
August 9, 2010 - new nuclear, flywheel storage, China energy efficiency crackdown
Monday, August 9, 2010
Nuclear power is a hot topic -- specifically the construction of new nuclear plants, something that most countries in the world have been slow to do in recent years. Now the United Kingdom says it anticipates building its first new nuclear plant in 2018, most likely on-site at existing nuclear facilities.
Meanwhile, in midcoast Maine, where the spent fuel from the decommissioned Maine Yankee nuclear plant has been stored on-site in Wiscasset, an editorial in the Brunswick Times Record calls for the nuclear waste to be shipped away. The editorial notes that citizens were told that waste would be removed by 2010 -- and with Yucca Mountain no longer viable as a storage site, area residents see no prospect of the waste being taken away as promised.
Just as oil and natural gas tank storage capacity can be used to smooth out swings in the availability and market price of fuel, energy storage can play a major role in ensuring power service while dampening price swings. Frequency regulation -- keeping the alternating current at 60 Hz, which essentially requires smoothing out the gap between supply and demand on an instantaneous basis -- is an important service that all electric grids need. As more and more intermittent generation resources come online, like wind, grids need more and more frequency regulation. Massive mechanical flywheels can provide this service. In today's news, Beacon Power Corporation has closed on a $43 million DOE-backstopped loan, completing the financing for the 20 MW flywheel energy storage plant Beacon is building in Stephentown, New York. The plant, which is under construction and on budget, is projected to cost $69 million, about 80% of which represents direct facility costs. The Federal Financing Bank, part of the U.S. Treasury, provided the $43 million loan. NYSERDA provided a $2 million grant, with Beacon putting up the remaining $26 million in cash, in-kind assets, and project costs. Beacon is also planning two more 20 MW flywheel projects: one in Glenville, NY, and one in the PJM Interconnection.
Supporting renewable and energy efficiency projects through grant funding programs is one way to improve a state's energy efficiency and emissions. In China, the world's largest energy consumer, the government is taking a different approach: ordering 2,087 industrial manufacturers rated as having low energy efficiency to close. Affected facilities, which produce steel, concrete, paper, coke, and forest products, will lose their emissions licenses next month. Just to be sure, the government will order utilities and banks to cease dealings with the sanctioned businesses. The government's stated motivations include slippage on its five-year plan energy efficiency plan, as China's economic recovery and booming construction industry drive energy consumption up.
Maine is moving forward with PACE financing -- but municipalities need to take a bit of action to open the door to residential energy efficiency in their communities.
Two quick links to Lewiston Sun Journal pieces about wind. First, a story by Naomi Schalit critical of the results of Governor Baldacci's pro-wind efforts. Second, a letter from my friend and Leadership Maine classmate Paul Williamson providing a counterpoint to last month's Jonathan Carter column critical of Maine mountaintop wind. More to follow on these stories soon.
Meanwhile, in midcoast Maine, where the spent fuel from the decommissioned Maine Yankee nuclear plant has been stored on-site in Wiscasset, an editorial in the Brunswick Times Record calls for the nuclear waste to be shipped away. The editorial notes that citizens were told that waste would be removed by 2010 -- and with Yucca Mountain no longer viable as a storage site, area residents see no prospect of the waste being taken away as promised.
Just as oil and natural gas tank storage capacity can be used to smooth out swings in the availability and market price of fuel, energy storage can play a major role in ensuring power service while dampening price swings. Frequency regulation -- keeping the alternating current at 60 Hz, which essentially requires smoothing out the gap between supply and demand on an instantaneous basis -- is an important service that all electric grids need. As more and more intermittent generation resources come online, like wind, grids need more and more frequency regulation. Massive mechanical flywheels can provide this service. In today's news, Beacon Power Corporation has closed on a $43 million DOE-backstopped loan, completing the financing for the 20 MW flywheel energy storage plant Beacon is building in Stephentown, New York. The plant, which is under construction and on budget, is projected to cost $69 million, about 80% of which represents direct facility costs. The Federal Financing Bank, part of the U.S. Treasury, provided the $43 million loan. NYSERDA provided a $2 million grant, with Beacon putting up the remaining $26 million in cash, in-kind assets, and project costs. Beacon is also planning two more 20 MW flywheel projects: one in Glenville, NY, and one in the PJM Interconnection.
Supporting renewable and energy efficiency projects through grant funding programs is one way to improve a state's energy efficiency and emissions. In China, the world's largest energy consumer, the government is taking a different approach: ordering 2,087 industrial manufacturers rated as having low energy efficiency to close. Affected facilities, which produce steel, concrete, paper, coke, and forest products, will lose their emissions licenses next month. Just to be sure, the government will order utilities and banks to cease dealings with the sanctioned businesses. The government's stated motivations include slippage on its five-year plan energy efficiency plan, as China's economic recovery and booming construction industry drive energy consumption up.
Maine is moving forward with PACE financing -- but municipalities need to take a bit of action to open the door to residential energy efficiency in their communities.
Two quick links to Lewiston Sun Journal pieces about wind. First, a story by Naomi Schalit critical of the results of Governor Baldacci's pro-wind efforts. Second, a letter from my friend and Leadership Maine classmate Paul Williamson providing a counterpoint to last month's Jonathan Carter column critical of Maine mountaintop wind. More to follow on these stories soon.
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