Mastering Energy Storage

Business Opportunity, Competition & Risk in this Key Growth Sector

download as pdf
Do you understand the technology solutions, business considerations and competitive environments of the booming energy storage market?

Energy storage differs from other energy technologies in the breadth and complexity of its addressable market and revenue opportunities. This training course provides a comprehensive, business-focused analysis of these opportunities, allowing attendees to analyse, understand and segment them. We cover the variety of competing storage technologies and describe the wide variety of problems they are seeking to solve, at a wide range of deployment sizes and timescales.

Attendees will leave with a clear understanding of why and where storage markets are growing, what could limit this growth and what the future trends will be. So, if you are thinking of investing in or developing an energy storage business, this course provides your essential grounding in the core issues.

Summary & key features

The course is designed to provide a clear, independent, business-focused introduction to the subject in language suited to non-engineers; particularly senior, commercial executives and investors. No prior knowledge is assumed or required. Along with presented core information, you’ll examine examples from around the world, discuss market analysis variables and quantify key issues using simple numerical calculations and Excel-based tools.

Top Learning Outcomes:

  • Speak the language of energy storage: terminology and concepts explained
  • Understand the key variables determining the economics of energy storage projects
  • Review current and emerging market opportunities for energy storage
  • Learn and discuss how financial returns and risks will arise in the energy storage market
  • Be better able to converse with storage project partners, suppliers or investors
  • Know what to look for when evaluating energy storage market opportunities
  • Be better able to identify key investment and project performance risks
  • Learn how to analyse and critique energy storage business models

Who should attend?

This course is ideal for you if:

  1. You are working within the power sector in a commercial or business development role. You need a clearly-explained, multi-faceted understanding of how, where and why energy storage will disrupt existing markets, so that you can understand the new market opportunities and competitive risks facing your business.
  1. You are from the investment community. Energy storage presents a fast-growing market opportunity for you, but you want to gain an independent perspective on the economic environment in which storage projects operate, and the operational and revenue risks that are important to them.

Course Takeaways

  • Presentation slides (pdf provided – hard copy at cost, on request)
  • Certificate of attendance (pdf provided – hard copy at cost, on request)
  • Copies of all examples and numerical calculations used during the course
  • Reading list
Agenda details

The course begins by providing a solid grounding in the current drivers for energy storage growth, including the impact of renewable energy on electricity system flexibility, along with key terminology and concepts. The landscape of energy storage solutions is then examined, with a particular focus on their competitive pros and cons, commercial status and likely evolution.

Key segments of the energy storage market are examined, using regularly updated real market examples to illustrate each of them and to focus the discussion on economic drivers, trends, business cases, market sustainability and growth potential.

Finally we examine the key considerations and requirements in energy storage project development, including locations, planning, contracts and financing (from the investor’s perspective); plus an assessment of the evolving energy storage value chain and key players.

(A full 3-day agenda is outlined below; a condensed 2-day version is also available).

DAY ONE: Energy Storage Drivers & Technologies

The energy storage landscape and market drivers

  • Balancing supply and demand in the power system: the fundamental principles and issues of “flexibility”
  • Understanding timescales: from ancillary services to bulk energy applications
  • Demand patterns, and the quantification of key timeframes and scales of power and energy
  • Patterns and scales of supply variability: before and after renewable power integration
  • Centralised vs distributed generation
  • Why energy storage is different to other supply or demand components within the power system

Battery solutions explained

  • “Lithium-ion” batteries: why there are several variations, how they differ and where they are used
  • Flow batteries and various other, emerging batteries (e.g. solid state): their status and market positioning
  • Understanding the issue of battery degradation: what it is, its significance, why it varies and issues around “cycle life” as a metric
  • Reading and assessing battery cost figures: what’s included and the relationship between $/kWh and $/kW metrics
  • Trends in battery cost and performance (past, present… and future?), including key supply chain variables
  • Balance of system components, both hardware and value-added management and optimisation (software)

Non-battery solutions explained and assessed

  • A matrix of other energy storage technologies: their characteristics, applications, market positioning and development status
  • Reviewing global deployment statistics and trends
  • Challenges and innovations in deploying new pumped storage projects
  • Technology examples including other mechanical (gravimetric) solutions, thermal storage, compressed and liquid air, flywheels, supercapacitors, fuel cells and more
  • Hybridisation of generation with storage (both renewable and fossil/thermal examples)

Segmenting and assessing the market(s) for competing energy storage technologies

  • Why technologies succeed and why they fail: applying the key lessons from other markets
  • Aligning technology capabilities and their prospects with the fundamentals of future market need
  • Can other solutions compete against the dominance of Lithium-ion?
  • Key takeaways of this analysis for project developers, business developers and investors

DAY TWO: Energy Storage in Practice

Energy storage for grid services including frequency response

  • Understanding how power systems handle, value and monetize ancillary services
  • Inertia, frequency control, frequency response, reserves and other key market opportunities for energy storage
  • Lessons from storage in example frequency response markets, including risks around market saturation and revenue stacking
  • Other and emerging grid service opportunities for storage, including voltage control, black start and more.
  • Evolving power systems and the outlook for grid service revenue opportunities
  • Competitive and/or regulatory risks to future grid service revenue opportunities

Energy storage for time-shifting, including peak power and capacity

  • Imbalance issues in the evolving power supply mix, including capacity margins, price volatility and curtailment
  • Peak power and its impact on market prices, energy costs and infrastructure costs (including T&D)
  • Storage as a replacement for traditional “peaker” plants (examples)
  • Market requirements to make the business case for energy arbitrage (examples)
  • Storage and capacity guarantees, including the vital question of duration: how long is long enough?
  • Other solutions to the problem of peak power (and their competitive positioning relative to energy storage)

Energy storage behind-the-meter with C&I customers

  • Examining the factors which are driving the uptake of energy storage at C&I (commercial and industrial) sites: how storage can cut energy costs
  • Energy storage for demand charge reduction
  • Optimising onsite generation with energy storage
  • Packaging energy storage as an energy efficiency service for corporate customers
  • Energy storage and demand-response programmes
  • Behind-the-meter storage and grid services revenues
  • The role of aggregators in energy storage markets: who are they and how do they fit into the value chain?

Consumer, community and off-grid energy storage

  • Examples of business approaches to domestic-scale storage deployment (including market attributes)
  • Integrating storage with rooftop PV
  • Integrating energy storage with EV charging
  • Bridging the wholesale and retail electricity markets
  • Energy storage in microgrids: examples covering a variety of opportunities from islands to urban sub-grids

DAY THREE: Projects, Money & the Value Chain

Energy storage project development

  • Policy challenges to deploying storage (and mechanisms to encourage it)
  • What do recent examples indicate about the key requirements for economic storage projects?
  • The main project planning considerations, including land, grid connectivity, key contracts, permits and more
  • Issues around energy storage/renewable power co-location
  • Planning project development with a view to both current and potential future revenue streams
  • Checklist of the variables crucial to making any storage business case and deliverable project

Energy storage economics and financing

  • The essentials of storage business cases, including key challenges for investors
  • The perspective of those providing finance: strategies for equity, challenges for debt
  • Key timescales, including PPAs, warranties and co-located infrastructure
  • Understanding the principles and challenges of revenue stacking
  • Challenges to revenue stacking in practice: taking care with contracts and operations
  • Can storage projects without revenue stacking still make sense?
  • Combining the current business environment with future projections and strategic goals

Assessing the energy storage value chain

  • Existing and new players in the energy storage landscape
  • Winners and losers as energy storage markets grow
  • Where will energy storage be located, who will drive it and who will control it?
  • Current opportunities, future risks and sustainable opportunities: a market segment review and summary
  • A framework for assessing energy storage business proposals
Screenshot examples

Availability & inquiries

Training for your company:

  • The course can be delivered at your company premises or preferred venue, for small groups
  • Pricing is on a transparent day-rate basis, according to location (inquire below)
  • The agenda above is the recommended “off-the-shelf” agenda, but limited customisation is possible (inquire below)

Training for individuals:

  • Grey Cells Energy does not currently organise open/public courses, but does work as an “associate trainer”, via larger 3rd-party event organisers. Contact or inquire below for the latest calendar dates.
  • If you are interested in remote learning – covering some or all of the topics on a one-to-one basis via the Internet – inquire below.

For agenda and other updates, join the mailing list:

Like this? Then Share it!