By Drew O’Bryan
Image: Younicos
Back in April I traveled to Denver to see the latest advancements in energy storage technology, but I won’t need to go far to see that technology in use soon. Austin Energy has taken another step toward a 100% clean energy future after reaching an agreement with energy storage company Younicos on a battery system capable of powering more than 1,500 homes for two hours each day. The project is the next step in Austin Energy’s Sustainable and Holistic Integration of Energy Storage or “SHINES” project. The project is supported by U.S. Department of Energy funding and a grant through the Texas Emissions Reduction Plan (TERP), and seeks to make Austin a model for the energy system of the future.
The 1,750kW, 3,200kWh battery will be located in East Austin and will integrate commercial and residential solar PV from nearby areas like the Mueller neighborhood. The co-location of these two growing resources allows for unique benefits and ensure that solar power can be used by customers when it is needed most, as well as smooth out fluctuations in generation.
While most households in Austin pay the same price for a unit of electricity regardless of the time of day, it costs utilities much more to purchase or produce those kilowatt-hours (kWh) during “peak” times when people use the most energy. That energy peak usually happens on hot days (a common occurrence in Central Texas) when people get home from work and start turning on lights, A/C, and appliances. Utilities like Austin Energy can end up losing money at those times if they don’t set electricity rates high enough to account for the steepest prices a utility might need to pay.
While solar panels can produce ample electricity on sunny summer days, they generate the most power in the middle of the day before peak hours begin. This is where the largest benefits of energy storage come into play. The battery being used in Austin Energy’s new project will have the capability to store the electricity from a solar farm and hold onto much of it until that power is needed most. That means that when Austinites come home from work and turn up their A/C, they can use power that was produced earlier in the day at a cheaper cost. This benefit becomes especially valuable as the price of solar panels and batteries continues to drop, making that energy an even better deal. In coming years, this technology will be able to protect utilities against price spikes and lower energy bills for their customers.
The SHINES Project is just part of Austin’s efforts to become a greater leader in clean energy. By 2025, Austin plans to get 55% of its electricity from renewables and is currently planning to update to its Generation Plan to achieve 65% by 2027. The SHINES Project will include more examples of battery storage and renewable energy technology as it is deployed through 2018 and will serve as a blueprint for Austin and other cities moving beyond fossil fuels. For example, another part of the project will add battery storage to the community solar project being developed in East Austin by PowerFin Partners.
With each new innovative clean energy design, the future of renewable power becomes more attainable. As cities like Austin lead by example, others are able to see that fossil fuels and the harmful pollution they create are no longer a necessary evil.