Greensmith claims 130-MWs of energy storage installed in 2016, makes predictions for 2017 market

Written By: Stratton Report
December 20, 2016

Greensmith

On December 20, Greensmith Energy, an energy storage software and integration provider announced it had installed 130-MWs of new energy storage systems in 2016.

The firm emphasized that all of the energy storage was controlled by the company’s platform, GEMS5, and included the design and delivery of the what the firm described as the largest energy storage system in the world deployed in Pomona, California providing 20MW/80MWh capacity.

John Jung, President & CEO of Greensmith Energy observed:

“There’s no question 2016 was another record-setting year for Greensmith and the energy storage industry as a whole, particularly from a grid-scale perspective. As the industry begins to grow and expand, Greensmith has seen rapid transition from test systems and pilots to bankability and ROI over the past eight years. As perhaps the largest provider of energy storage software and turn-key systems to some of the largest power companies in the world, coupled with tier one battery and PCS vendor relationships globally – Greensmith enjoys a holistic view of the entire market.”

Greensmith also announced seven predictions for 2017:

The first was that the energy storage market will continue to see strong growth, with conservative numbers suggesting year-over-year growth of more than 200 percent compared to the energy storage market size this year.

The second was that 2017 will see prices for grid-scale batteries of under $300 per kWh, dropping some 30 percent from 2016 levels. Greensmith emphasized that in order to retain market share, lithium-ion vendors will have to continue driving down prices, because other technologies well suited for grid-scale storage will remain strong challengers in the coming year. The firm also predicts that lower prices will open up additional grid-scale ROI-positive markets.

The third prediction is that there will be more Federal tax credits for storage systems, in part because Greensmith stressed that its GEMS5 software includes a module specifically designed to ensure ITC compliance during storage sizing and operation. The firm also expects the US Congress to turn its attention to legislation, such as the bipartisan Energy Storage Tax Incentive and Deployment Act, which would simplify storage ITC eligibility and boost storage deployment.

The fourth prediction is that control software will take center stage as smart software controls will be essential for asset monetization in applications such as ancillary services, solar firming and stacked use cases.

The fifth predictions is that storage providers face continued pressure from industry consolidation as market participants are increasingly forced to focus on executing growth strategies and scaling up. The firm noted that 2016 saw multiple large corporate deals in the energy storage sector and it expected the trend to continue.

The sixth prediction is that developers will ask for fewer pilot projects as the results are available from almost 700 electro-chemical systems that are currently operational, mostly in the US, Western Europe and Asia Pacific and another 193 operating thermal storage systems and 50 operating electro-mechanical systems.

The final prediction is that cybersecurity will become a pressing concern for the grid and the storage industry. Quoting a cybersecurity analyst, Greensmith noted that there have been 1,552 industrial control system vulnerability disclosures since 2000, with the vast majority of them occurring in the last six years. The firm believes that energy storage industry, as a provider of grid stability and safety, must play a growing role in protecting the grid from intentional disruption.