The year started with a solar-plus-storage record: AES inked a contract for a Kauai project at 11 cents per kilowatt-hour. The facility will combine 28 megawatts of solar photovoltaic capacity with 20 megawatts of five-hour duration batteries, producing 11 percent of the island’s electricity.
That project managed to outsize an earlier Tesla/SolarCity deal on the island and shave a few cents off the unit price. In May, another project made this one look like an appetizer.
Tucson Electric Power contracted with NextEra Energy Resources to build out a major solar-plus storage project at a 20-year PPA rate below 4.5 cents per kilowatt-hour. The facility will pair 100 megawatts of solar generation with a 30 megawatt/ 120 megawatt-hour storage system. (That’s as big as the AES Escondido system, which was the largest of its kind until Tesla outdid it in Australia).
That announcement turned heads and set of a flurry of number crunching, as analysts and rivals tried to unpack how such a low price could be possible. The investment tax credit plays a role, as does NextEra’s ability to source equipment at aggressive price points.
Crucially, this is happening in sunny Arizona, where the abundance of solar generation is creating value for dispatchable power. Storage thrives when its flexibility is compensated, and Arizona’s regulated utilities can do just that.
Full Story at: top-10-energy-storage-stories-of-2017