Volume 35 PV POWER PLANT TECHNOLOGY AND BUSINESS May 2023 (Q2)

European Emerging
Markets The view from the up-and-coming
PV markets of mainland Europe,
p.14

Design & Build Plant Financial, Storage &

Building-integrated
Performance Legal, Smart Power
solar, p.66
AI for solar Canada and Italy
Professional In association with
performance market overviews,
Texas solar projects
evaluation, p.56 p.111, 114
financing, p.78
 TERAWATT ERA
ZERO CARBON FUTURE
-0/(J
MFBET
B
HSFFOFS
XPSME
XJUI
JOOPWBUJPO

)B MM
"


# P PU I 
  

 regulars

Published by
Solar Media Ltd.
123 Buckingham Palace Road
London, SW1W 9SH, UK
Introduction
Tel: +44 (0) 207 871 0122
www.pv-tech.org

Publisher
David Owen
Welcome to PV Tech Power 35, our second edition for 2023. We have dedicated this issue to the
Editorial
Editor in Chief: emerging solar power players of Europe to highlight that the steady march towards sustainable
Andre Lamberti
economies of the future is not just happening in the richer and more developed nations in
Senior news editor:
Mark Osborne the region. Established solar power markets such as UK, Germany, Spain or Italy may act as
Editorial manager (China):
Carrie Xiao
examples and sources of expertise and technical knowledge, but the political and business
Editors: leaders of the comparably new players in the renewable energy arena know that their success
Andy Colthorpe, John Lubbock, Simon Yuen
Reporters:
at home will rely on finding local solutions to local challenges.
Cameron Murray, Lena Dias Martins, In PV Tech Power’s main feature on the emerging European players (p.14) Jonathan Tourino
George Heynes, Jonathan Tourino Jacobo,
Will Norman, Tom Kenning Jacobo takes a closer look at Southern Europe, where more abundant sunshine creates a natural
Design & production advantage, but also at the East of the continent, whose countries are making increasingly use
Design and production manager: of the benefits that European Union membership offers them in terms of access to funds and
Sarah-Jane Lee
Production: attracting solar energy specialists.
Daniel Brown
In dedicated features, Tom Kenning covers Poland (p.33), which has seen a strong growth in
Advertising solar PV recently and may well become one of the strongest divers of the sector in the coming
Sales director:
David Evans years, and Greece (p.23), one of Southern Europe’s most promising solar PV markets. Finally a
Account managers:
Graham Davie, Lili Zhu, Adam Morrison
look at the renewables legislation in Bulgaria (p.28).
Marketing manager: In the Market Watch section of this issue, we look at the challenges ahead from solar panels
Carolline Marques
that will begin to reach the end of their 25-year life before the decade is out. What to do with
Printed by
technically obsolete and inefficient panels? Will Norman’s recycling feature can be found on
Buxton Press Ltd., Derbyshire
p.39.
PV Tech Power Volume 35, 2023
ISSN: 2057-438X In the Financial, Legal and Professional part of this issue, Lena Dias Martins dissects the
While every effort has been made to ensure UK government’s Contracts for Difference scheme, and how its roaring success so far may be
the accuracy of the contents of this supple- threatened by the rising cost of capital.
ment, the publisher will accept no respon-
sibility for any errors, or opinion expressed, Architect Dr. Silke Krawietz wrote for this issue on Building-integrated Photovoltaics and
or omissions, or for any loss or damage,
consequential or otherwise, suffered as a result how they can be used in existing and new buildings and urban structures to create built-up
of any material here published.
environments that harness the power of nature.
The entire contents of this publication are pro-
tected by copyright, full details of which are
In our Storage and Smart Power section, supplied by Solar Media’s Energy-Storage.news
available from the publisher. All rights reserved. team, you’ll find an article by Julia Souder, CEO of the Long Duration Energy Storage Council,
No part of this publication may be reproduced,
stored in a retrieval system or transmitted in detailing how energy storage can become the cornerstone of power grids of the future, plus
any form or by any means – electronic, me-
chanical, photocopying, recording or otherwise there’s a technical deep dive into the use of battery analytics for setting up and optimising
– without the prior permission of the copyright
owner. energy storage projects from experts at ACCURE Battery Intelligence and TWAICE.
On page 114, our reporter Cameron Murray looks at the Italian grid-scale energy storage
Brands of Solar Media: market which is set to become one of the most active in Europe in the next few years having
been close to non-existent until recently. For his feature he interviewed executives from three
developers looking to gain a foothold in the market: Aquila Capital, Field Energy and Innovo
Group.
Thanks for reading, and we hope you enjoy the journal.

Andre Lamberti
Editor In Chief
Solar Media

Cover illustration by Luca D’Urbino

www.pv-tech.org | May 2023 | 3

 regulars

Contents
28
56
64
08-13 News
Round-up of the biggest stories in PV from
around the world.

14-35 cover story

14-19 Europe’s emerging solar markets
Jonathan Tourino Jacobo explores how Eastern
and Southern European countries have emerged
in the solar deployment race as key players for the
European Union to reach 740GW of solar capacity
39
installed by 2030.
39-47 Market watch
23-26 Unlocking grid bottleneck key to Greece’s 39-42 Recycling and end-of-life in the PV industry
blossoming PV potential
Will Norman reports on what happens when solar
Tom Kenning on one of the most promising up-and- panels reach the end of their life.
coming solar power players of Southern Europe,
Greece. He asked experts about the challenges and
opportunities for PV in the country. 44-47 Dialogues with global PV buyers: On module
selection, pricing and traceability
Carrie Xiao on a recent workshop held by TÜV
28-29 Renewable energy legislation in Bulgaria
Rheinland where PV developers, buyers and
Jonathan Tourino Jacobo interviewed Vladimir investors exchanged views on module quality and
Tabutov, founder and CEO of Bulgarian solar power buying strategies.
project developer HEC Solar, about recent and
upcoming changes in the Bulgarian renewables
regulations regime.
51-54 system integration
33-35 Poland’s rise to European PV heavyweight 51-54 Advanced Grid Functionalities in State-of-the-Art
Inverters for Solar Photovoltaic Systems
Poland is a fast-rising star in the European
photovoltaic market, where recent growth has been An executive summary of Gamesa Electric’s
fuelled by the prosumer segment. Tom Kenning recent white paper on the topic and an interview
reports. by Andre Lamberti with the company’s CEO Juan
Barandiaran.

14 56-63 Plant performance

56-63 Managing Solar Portfolios by Performing Device-
Level Analytics: Using AI and Data Science
By Stuti Gupta and Abhishek Puttanna of Prescinto
Technologies.

4 | May 2023 | www.pv-tech.org

 regulars

74
66-71 Design & build
66-71 Transforming the Urban Landscape: BIPV and
Nature-Based Solutions for a Greener, New Era of
City Living
By Dr. Arch. Silke Krawietz, CEO of SETA Network. 66
74-89 Financial, legal, professional 91-117 storage & smart power
74-76 Nationally Significant Infrastructure Projects:
A key enabler of the UK’s energy transition 95-99 Net Zero’s Missing Link: Long Duration Energy
Storage
George Heynes explores how the UK’s NSIP
regulations support the transition to a green By Julia Souder, CEO of the Long Duration Energy
economy. Storage Council.

78-80 Texas PV market ripens as major global investors 100-104 How we delivered the 98MW/196MWh Pillswood
drive financing flurry BESS Project
Tom Kenning looks at the rise of solar power in By Alex Thornton, operations director at Harmony
Texas, where a beneficial tax regime and an Energy.
abundance of project land work in favour of building
out solar power generation 106-110 Cloud-based analytics for de-risking BESS
deployment and operation
82-85 From Niche to Necessity: Insuring Renewable By Kai-Philipp Kairies, CEO of ACCURE Battery
Energy Intelligence, and Dr Stephan Rohr, Sebastian
By Jason Kaminsky, CEO of kWh Analytics. Becker and Dr. Matthias Simolka of TWAICE.

87-89 How will the UK CfD scheme fare against the 111-113 Canada’s energy storage leaders have valuable
rising cost of capital? lessons to teach
Lena Dias Martins explores the UK government’s Ontario and Alberta account for the bulk of
Contracts for Difference scheme. Canada’s installed, planned and proposed large-
scale energy storage today. The rest of the country
can lean on the experiences and lessons learned.
Andy Colthorpe hears from developers and experts.

114-117 Italy’s grid-scale energy storage market: a

sleeping dragon
Cameron Murray writes about the nascent market
for large-scale battery storage in Italy, which could
see a massive expansion in the short term.

Regulars
03 Introduction

100 64
118
Products
Advertisers index

6 | May 2023 | www.pv-tech.org

 NEWS | from PV-Tech.org
between the turbines of CrossWind’s 759MW Hollandse Kust Noord
Europe wind park. CrossWind is a joint venture between oil major Shell and
Dutch energy provider Eneco. The wind project will be complete by
EU Policy the end of 2023, with the solar farm due to be in place in 2025.
European Commission rolls out Net Zero Industry Act
The European Commission (EC) has announced its proposed Net Zero Industry Act, Acquisition
addressing a number of technologies that can help achieve decarbonisation including First Solar acquires Swedish thin-film company Evolar
solar PV. The act aims to scale up manufacturing of clean energy technologies, increase Thin-film module manufacturer First Solar has acquired thin-film
the competitiveness of net zero technologies manufactured in the European Union, and company Evolar to grow its PV capabilities. The transaction costs
ensure that at least 40% of its demand for cleantech in the EU could be met by domestic about US$38 million and up to an additional US$42 million to be
production by 2030. Also, the act aims to reduce “the EU’s reliance on highly concen- paid subject to certain technical milestones being achieved in the
trated imports”. At the same time, the EC has announced the Critical Raw Materials Act future. According to First Solar, the acquisition aims to acceler-
to diversify its imports of critical raw materials. It admitted that Europe heavily relies on ate the development of PV technology, including high efficiency
imports, which are often from ‘quasi-monopolistic third country suppliers’, and will not be tandem devices, by integrating both companies’ capabilities, existing
self-sufficient in supplying such raw materials. research and development (R&D) streams, intellectual property
portfolio, and expertise in developing and commercially scaling
thin-film PV. Evolar’s laboratory in Sweden will continue to conduct
EU issues first cross-border tender for 400MW of PV research activity after the acquisition, marking the first time that First
projects in Finland Solar will have an R&D facility in Europe.
The EU has announced a request for proposals (RFP) for a 400MW
solar PV tender for projects in Finland, with financing for the tender Germany
voluntarily provided by Luxembourg. It is the first cross-border German rooftop solar and storage soared in 2022
renewable energy tender ever proposed in Europe. Issued under The number of residential solar and storage systems installed in
the Renewable Energy Financing Mechanism (RENEWFM), an EU Germany increased 52% in 2022 compared with the previous year,
financing vehicle that came into force in 2020, the RFP seeks solar PV whilst three quarters of Germans would consider installing rooftop
projects between 5MW and 100MW in size, up to a total capacity of solar. According to research and calculations from the German Solar
400MW. Finland will host the projects awarded in the tender, whilst Industry Association (BSW), as well as comments to PV Tech, the last
Luxembourg has committed €40 million (US$43.7 million) in financ- four years have seen a fivefold increase in residential solar battery
ing to support the process and ultimately have access to some of the systems and a quadrupling of standalone residential PV installations.
power produced by the projects. Just in 2022 there was a 52% uptick in domestic solar-and-storage
installations and an over 40% rise in domestic PV deployments. BSW
EU reaches provisional renewables deal with faster found that three quarters of all homeowners would consider install-
permitting ing solar PV, and that one in five of those are planning to do so in the
The European Council (EC) and Parliament have reached a provi- next 12 months.
sional political agreement to raise the European Union’s renewable
energy share target to 42.5% by 2030. Each EU member state will Germany adds 2.6GW of solar PV in Q1 2023
contribute to the common target which includes an additional Germany has added more than 2.6GW of solar capacity in the first
2.5% indicative top-up that would allow to reach 45% of energy three months of the year, according to The Federal Network Agency
consumption from renewables. The target increases upon the agree- (Bundesnetzagentur). With nearly 3GW of solar PV added in Q1
ment reached by the EC in June 2022, as part of its ‘Fit for 55’, when 2023, Germany has now passed 70GW of solar capacity installed as
it targeted for 40% of energy coming from renewable sources in the it aims to reach its target of 215GW installed by 2030. A target the
overall mix by 2030. current government increased by 15GW last year and which means
the country would require to install an average of 22GW per year,
Offshore solar which is still far away as last year it added 7.9GW of solar capacity,
Oceans of Energy to build first commercial offshore solar according to trade association SolarPower Europe. Bavaria was the
project in North Sea region which added the most solar capacity in Q1 2023 with almost
The contract for what is claimed to be the “world’s first grid-connect- 600MW.
ed offshore solar-wind hybrid project” has been awarded to offshore
specialist Oceans of Energy for a site in the North Sea situated off Finland
the coast of the Netherlands. Floating solar modules will be installed OX2 acquires 475MW Finland solar PV plant
Solar developer OX2 has acquired the project rights to a 475MW
solar PV project in Finland from Finnish PV developer SAJM Holding
Oy. The Huittinen solar farm is currently in development, and once
completed will be one of the largest solar PV projects in the country.
This will not be the first large-scale project from OX2 in Finland as the
Credit: Oceans of Energy

company has a 500MW solar plant under development in Kauhajoki

– also in the southwest of the country – expected to be operational
One of Oceans of
in 2028. Another solar farm with a capacity of 60MW is also under
Energy’s smaller
test projects in the development, in Loimaa in the southwest, and is expected to be
North Sea. operational in 2026.

8 | May 2023 | www.pv-tech.org

 NEWS
tives and tax credits for renewable energy investment, and the
americas Bipartisan Infrastructure Law (BIL) which focuses on jobs and
infrastructure investment. NREL said that the combined support
US for climate initiatives and tax incentives from the two acts could
US customs detained 2GW of PV modules in 2022 under UFLPA exceed US$430 billion through 2031, bringing deployments up
2GW worth of solar PV modules were detained at the US border throughout 2022 as a with it.
result of the Uyghur Forced Labor Prevention Act (UFLPA), representing 1,423 individual
shipments. The US Customs and Border Protection Agency (CBP) released its 2022 Solar industry reacts to Senate’s vote to remove
detainment statistics relating to the UFLPA, which were analysed by Bernreuter Research. Biden’s import tax waiver
US$709.9 million worth of shipments were detained last year, which Bernreuter said corre- The Senate has passed a vote to repeal Joe Biden’s two-year
sponds to 2.09GW of modules based on a price-per-watt calculation from NREL which saw waiver on solar import tariffs, a decision which the Solar Energy
imported modules fluctuate between US$0.3 and US$0.6 per watt through 2022. Beyond Industries Association (SEIA) has previously said could result
that, in the first two months of 2023 a further 204 shipments were detained, representing in US$1 billion in retroactive tariffs for the industry and 4GW
410MW and US$134 million. of project cancellations. Abigail Ross Hopper, CEO of SEIA
said: “Any legislation that threatens 30,000 American jobs and
weakens our nation’s energy security to this degree should be
Nearly 1TW of solar PV in US interconnection queues in dead on arrival. Unfortunately, politics won the day, and our
2022 legislators voted to pull the rug out from businesses that are
Nearly 1TW of solar PV capacity was in US interconnection investing billions of dollars and employing thousands of people
queues at the end of 2022, according to research from Lawrence in their states.”
Berkeley National Laboratory (LBNL). With 947GW of generat-
ing capacity awaiting connectivity, solar had the largest share Republican attempt to repeal US Inflation Reduction
of generation capacity in the queue. Combined with wind, both Act ‘threatens economy, jobs and investment’
technologies reached more than 1,250GW of capacity awaiting Clean energy trade bodies ACP, ACORE and SEIA have
transmission access, nearly the same amount as the entire US denounced an attempt by Republicans to roll back the Inflation
power fleet currently installed. Reduction Act, which has spurred unprecedented investment
in the US market. House Bill ‘H.R.2811 – Limit, Save, Grow Act
IRA will see solar and wind account for over 60% of US of 2023’, put forward by Republican Representatives passed in
generation by 2030 the House at the end of April. It would significantly scale back
Solar and wind installations in the US could account for between the federal support for renewable energy and energy storage
40% and 62% of total electricity generation by 2030, accord- enabled by the IRA, which came into law this year, as well as
ing to a report from the National Renewable Energy Laboratory other non-energy federal financial support schemes.
(NREL). The forecast growth is due to the stimulating effects of
the ‘game-changing’ Inflation Reduction Act (IRA), which came Canada
into force last summer and introduced US$369 billion in incen- Canada announces plans for IRA-style solar and
storage investment
Canada will introduce tax credit incentives and invest in
developing and manufacturing solar PV, energy storage and
other renewable energy technologies in an Inflation Reduction
Act-style scheme. The government of Canada has released its
2023 budget, which positions growing the clean economy as
one of its core priorities. Under the budget, the government
confirmed the 30% refundable tax credit on investments made
by taxable entities into clean energy technologies like solar,
battery storage and wind.

Brazil
Brazil to unlock solar and wind with US$9.5 billion
transmission investment
Brazil will invest BRL50 billion (US$9.5 billion) in new transmis-
sion lines and infrastructure to boost solar and wind deploy-
ments. The government said that it will hold at least three major
transmission auctions this year, focusing on the northeast of
Credit: Brian Doll, SOLV Energy

the country and north of the state of Minas Gerais. The east
and northeast of Brazil are its most populous regions. The new
transmission investment will unlock new wind and solar capac-
ity and allow for greater renewables penetration across Brazil. In
its announcement, the ministry of mines and energy said that
it wants to focus on hybrid solar and wind projects, whose dual
US Solar A 250MW solar PV plant in California. generation can add greater stability to the country’s grid.

www.pv-tech.org | May 2023 | 9

NEWS | from PV-Tech.org
African independent power producer. The acquisition will be made
middle east & africa through CIP’s New Markets Fund I (CIP NMF I). CIP will assume
control of Mulilo and its assets, which constitutes a 25GW pipeline of
South Africa onshore wind, solar PV and storage as well as 440MW of operational
Cape Town invests in PV-plus-storage project PV and wind projects. The company said that Mulilo currently holds
A solar-plus-storage project is being planned for Cape Town as the city looks to move an 8% market share in the South African renewables sector. The
away from relying on troubled grid operator Eskom and towards a load-shedding-free company believes that the company represents an attractive oppor-
Cape Town. Cape Town Mayor Geordin Hill-Lewis says that the city would design, build tunity for CI NMF I to invest in a growing developer.
and operate a solar PV plant with battery storage to the tune of 1.2 billion Rand (US$65
million). The Paardevlei project near Somerset West will yield up to 60MW of renewable Niger
energy although the official size of either portion was not revealed. A media statement Savannah Energy inks 200MW solar PV agreement in
says that the project would protect the city against one full stage of load shedding from Niger
grid operator Eskom. British renewables company Savannah Energy signs a memorandum
of agreement (MoA) with the government of Niger to develop up
to 200MW of solar PV. The projects will consist of two solar plants
Morocco and will be located in Southern Niger, near the border with Nigeria
Morocco to develop 202MWp solar PV portfolio and within 20km of the cities of Maradi and Zinder. Each plant is
The International Finance Corporation (IFC) and phosphate-based expected to have an installed capacity between 50 and 100MW and
fertiliser producer OCP Group are co-developing 202MWp of solar once operational will increase the power generation in the country
PV projects in Morocco. Under the agreement, the IFC will provide by 20%. Additionally, the company plans to reach an installed renew-
the fertiliser producer with a green loan of €100 million (US$110 ables capacity of 1GW across solar, wind and hydropower by the end
million) for the construction of four solar plants located in the of the year, according to Andrew Knott, CEO of Savannah Energy.
towns of Benguerir and Khouribga, home of the country’s largest
phosphate reserves. Construction of the projects will be carried Jordan
out by the renewables arm OCP Green Energy, a wholly-owned Masdar’s subsidiary inaugurates 200MW Jordanian
subsidiary of OCP. The four solar plants will power OCP’s Morocco project
operations towards reducing its carbon footprint and producing The joint venture of United Arab Emirates-owned renewables
green fertilisers. company Masdar and Finnish investment and asset management
group Taaleri, the Baynouna Solar Energy Company, announces the
Iraq inauguration of a 200MW solar park in Jordan. Developed through
TotalEnergies reboots 1GW Iraqi PV deal a power purchase agreement (PPA) between Masdar and Jordan’s
French energy company TotalEnergies revives its deal with the state electricity provider, the National Electric Power Company, the
Iraqi government to develop a 1GW solar PV project in the Basra Baynouna Solar Park can produce over 560GWh of energy annually.
region, part of a larger US$10 billion accord to also establish new gas Claimed to be the largest clean energy project in Jordan, the Solar
generation and seawater treatment facilities. The deal was originally Park adds to the already-operational 117MW Tafila Wind Farm and
announced in September 2021 as TotalEnergies’ second PV contract means that Jordan now produces 29% of its electricity from renew-
in Iraq, but the subsequent years have seen negotiations held up able sources. The country aims to increase that to 50% by the end of
by political barriers and regime change. In this latest development, the decade.
QatarEnergy enters as a new third party with a 25% stake in the solar,
gas and seawater treatment deals. TotalEnergies and QatarEnergy
have a history together, having joint ownership of an 800MW solar
PV plant in Qatar through their respective subsidiaries.

United Arab Emirates

UAE needs to boost its solar PV capacity 600% by 2030
The United Arab Emirates should increase its solar PV generation
capacity sixfold by 2030, rising to 7.3GW, according to the latest
report from the Emirates Water and Electricity Company (EWEC). In
its Statement of Future Capacity Requirements 2023-2029: Summary
Report, EWEC recommends that the UAE should add up to 4.1GW
of solar PV capacity as of 2029, including the planned 1.5GW Al
Ajban project set to come online in 2026. It also recommends
adding 300MW of battery energy storage systems (BESS) to stabilise
distribution.
Credit: Masdar

South Africa
Copenhagen Infrastructure Partners buys South African
IPP Mulilo
Renewable energy investor Copenhagen Infrastructure Partners Baynouna Solar Energy is a joint venture of UAE-owned renewables company Masdar
(CIP) acquires the majority share in Mulilo Energy Holdings, a South and Finnish investment and asset management group Taaleri.

10 | May 2023 | www.pv-tech.org

 NEWS | from PV-Tech.org
India
asia-pacific Companies bid for India’s solar panel manufacturing
incentive
India capacity A number of solar module manufacturers are reportedly bidding
India’s solar manufacturing capacity to reach 110GW for financial incentives offered by the Indian government to
India’s domestic solar manufacturing capacity is set to reach 110GW of solar PV modules expand domestic manufacturing of solar panels. According to
per year by 2026. According to a joint report from the Institute for Energy Economics and multiple media outlets, including Bloomberg, several compa-
Financial Analysis (IEEFA) and JMK Research & Analytics, India would become the second- nies submitted bids, such as conglomerate Reliance Industries,
largest PV manufacturing country behind China and be self-sufficient in terms of domestic integrated power company Tata Power, US based solar panel
demand. Once India reaches a capacity sufficient for the domestic market in the coming manufacturer First Solar, Indian power company JSW Energy,
two to three years, the country will require to focus on expanding further its reach to other green energy developer Avaada Group, and renewable energy
markets as an alternative to the current dominant supply chain of China which exceeds company ReNew Energy Global, among others. The Production
80% of all stages of PV module manufacturing, from polysilicon to modules. Linked Incentive (PLI) scheme guidelines state that the success-
ful solar PV module manufacturer will be required to set up
manufacturing capacities on GW scale for high efficiency solar
Uzbekistan PV modules.
Masdar closes financing for 900MW PV portfolio in
Uzbekistan Australia
Masdar has reached financial close on three PV facilities in Australian Federal Budget commits new investment
Uzbekistan with a combined capacity of approximately 877MW. The into clean energy transition
projects are expected to begin operations in 2024. Australia’s Federal Budget 2023-2024 includes AU$4 billion
Financing was secured from the Asian Infrastructure Investment (US$2.71 billion) new investment in the energy transition, and
Bank (AIIB), Asian Development Bank, the European Investment Bank confirmation of tenders for renewables and energy storage.
and the European Bank for Reconstruction and Development. The The budget emphasises energy costs, supply reliability and
AIIB confirmed that it had signed three project finance loan agree- environmental impacts in both the budget itself and the govern-
ments with Masdar to the tune of US$83.6 million as part of a larger ment’s communications around it. The top headline figures are
US$396.4 million debt financing towards the projects. Uzbekistan the AU$4 billion commitment, which includes AU$1.3 billion
has a target of 7GW of deployed solar PV by 2030. Masdar already for household energy upgrades, of which AU$1 billion will help
operates in the country, with over 700MW of PV already operational. provide low cost loans for double glazing, solar modules and
other improvements to make homes easier and cheaper to keep
China cell plant cool in summer and warm in winter. This measure is expected
FuturaSun to build 10GW solar cell plant in China to benefit 110,000 households. Other than household energy
Italian solar manufacturer FuturaSun has signed a strategic agree- upgrades, a total of AU$2 billion will be assigned to grow a green
ment with the city of Huai’an in China to build a 10GW solar cell hydrogen economy.
manufacturing plant. The company will invest €150 million (US$163
million) in the new plant which will be carried out in two phases over Green bond
the course of three years. Once completed and operational, the plant ReNew Power raises US$400 million to spur growth
will produce n-type solar cells based on tunnel oxide passivated Indian renewable energy independent power producer (IPP)
contact (TOPCon) technology. Starting in spring 2024, the produc- ReNew Power is issuing green bonds to raise US$400 million for
tion process will be highly automated and will supply both the its subsidiary Diamond II. According to the company, proceeds
Italian – which was recently announced, with a 2GW annual capacity from the issue will be used to refinance existing dollar debt
– and Chinese module assembly plants. and fund various growth initiatives. The company adds that the
corporate notes have been certified by the NGO Climate Bond
Initiative, which mobilises global capital for climate action, and
are aligned with the International Capital Market Association’s
Green Bond Principles.

Solar/wind target
China to add 160GW of new solar and wind capacity
for 2023
The Chinese government announced a target of 160GW of new
solar and wind capacity to be added in 2023. On the National
Energy Administration’s (NEA) official website, the Guideline
On Energy Work In 2023 specifies that the target for 2023 is to
Credit: FuturaSun

increase the use of non-fossil energy to 18.3% of total energy

consumption and increase the proportion of non-fossil installed
power generation capacity to 51.9%. Wind power and PV power
generation will account for 15.3% of total power consumption.
The future solar cell plant in China will cater to the recently announced Italian This means that in 2023, non-fossil energy will account for more
module assembly plant along with the Chinese plants. than 50% of China’s power generation capacity for the first time.

12 | May 2023 | www.pv-tech.org

 NEWS
expand domestic manufacturing of solar panels. According
Manufacturing to multiple media outlets, several companies submitted the
bid, including conglomerate Reliance Industries, integrated
Ohio assembly plant power company Tata Power and US based solar panel manufac-
LONGi, Invenergy to build 5GW module assembly plant in Ohio turer First Solar, among others. However, it was reported that
US renewable developer Invenergy has partnered with solar module manufacturer conglomerate Adani Group did not join the bid. According to
LONGi to build a 5GW module assembly plant in Ohio. Through a newly formed company the PLI guidelines, the successful solar PV module manufacturer
called Illuminate USA, Invenergy will invest more than US$600 million in the plant, which will be required to set up manufacturing capacities on GW scale
includes a US$220 million commitment for the acquisition and construction of a 1.1 for high efficiency solar PV modules.
million-square-foot industrial building in Pataskala, Ohio. This marks the first US foray for
the Solar Module Super League (SMSL) member LONGi, which recently invested US$6.7 Texas TOPCon
billion in building a new production base in China capable of manufacturing 100GW of SEG Solar completes funding of 2GW Texas TOPCon
solar wafers and 50GW of solar cell capacity per year. module factory
US-based solar PV manufacturer SEG Solar has closed the acqui-
sition of a 2GW PV module plant in Houston, Texas. The facility
Romania module factory is set to produce in excess of 2GW of n-type Tunnel Oxide Passi-
AE Solar to build 10GW module manufacturing facility vated Contact (TOPCon) modules from 182mm or 210mm solar
in Romania cells, with the first products forecast to roll off the production
German manufacturer AE Solar plans to build a module line in Q1 2024. SEG said that its investment in the facility will
manufacturing plant with a 10GW annual capacity in Romania. exceed US$60 million once completed, including financing for
In the first phase, the company would set up a 2GW production equipment and facility improvements.
capacity, according to the Romanian government. The factory
will require an investment of €1 billion (US$ 1.06 billion), with France module factory
the government looking to unlock European funding or state PV startup Carbon selects location for planned
aid to support the construction of the project. Upon completion 5GW/3.5GW cell and module factory in France
of the project and full integration of the production flow, the French PV manufacturing startup Carbon has chosen a location
facility would reach an annual capacity of 10GW, representing for a proposed cell and module factory which it plans to bring
a third of the European Commission’s goal to reach 30GW of into operation in late 2025. The plant would be Carbon’s first
European manufacturing capacity by 2025 across the entire production facility. A 60 hectare area in Fos-sur-Mer, on the
value chain. perimeter of the Grand Port Maritime de Marseille (GPMM),
has been selected for the facility following meetings with the
PV module prices regional premier, president and chair of the GPMM, Carbon said.
US to see world’s highest PV module market prices The factory has a planned capacity of 5GW of cell and 3.5GW of
PV module prices are set to fall considerably in the next five module production which, if it comes to fruition, would make it
years, though US market prices will remain higher than the rest the biggest PV manufacturing facility in Europe, larger than Enel
of the world as its import policies and ongoing competition Green Power’s 3GW Italian plant.
with China add a market premium, according to the Q1 2022
‘PV Price Forecasting Report’ from Colorado-based Clean Energy
Associates. The report shows that falling polysilicon prices will
see a steep drop in module prices from China over 2023, with
Southeast Asian modules following suit in 2024.

US encapsulant plant
Hanwha, QCells to deepen manufacturing presence in
Georgia with solar encapsulant plant
Hanwha Advanced Materials Georgia (HAGA) – part of Hanwha
Solutions – will increase its investment in the US state of
Georgia to support the integrated supply chain plans of its PV
manufacturing subsidiary QCells. HAGA will construct a solar
encapsulant film factory in Bartow County, the same county as
QCells’ planned 8.4GW ingot, wafer, cell and module manufac-
turing facility expansion. The encapsulant – which is used to
seal solar cells and ensure their lifespans – will then be supplied
Credit: Enel Green Power

to Qcells for use in their module production.

India incentives
First Solar, Tata Power and Reliance Industries bid for
India’s PLI
A number of solar module manufacturers have reportedly bid Bifacial solar panel production in the 3Sun factory in Italy, currently the largest
for financial incentives offered by the Indian government to facility in Europe.

www.pv-tech.org | May 2023 | 13

 cover story

Europe’s emerging solar markets

Credit: BayWa r.e.

Emerging Europe | With the need to accelerate its decarbonisation and further secure its electricity
independence, Europe is at the crossroads to a faster growth in solar PV deployment. Jonathan
Touriño Jacobo explores how Eastern and Southern European countries have emerged in that race
as key players for the European Union to reach 740GW of solar capacity installed by 2030.

F
or a long time now the hottest for Greece – one of the hottest solar BayWa r.e.’s joined the likes of Spain, Germany, Poland,
markets to develop solar PV in Europe markets currently in Europe –, Bulgaria and Witnica 64.6MWp the Netherlands or France in the gigawatt-
solar park in
were Germany and Spain, followed Poland. Hungary, Romania – which had scale club last year, when it added 1.34GW
Poland, sold to
by the Netherlands, France and Italy. In its own feature in the previous issue –, the Irish Alternus of solar capacity in 2022 alone and
the East of the continent, Poland has seen Czech Republic and other Balkan countries Energy Group. has now a total capacity of 5.5GW. In a
a surge in solar PV in recent years and is will also be explored here. report published last year by trade body
expected to be one of the most important Regardless of the size for Southern SolarPower Europe that featured a market
European markets in the near future. European countries, the advantage they outlook for European countries, the Greek
If Poland might be the foremost emerg- have to other countries in Europe farther trade association Hellenic Association
ing country from Eastern Europe, it is not north is their location and the fact that of Photovoltaics Companies (HELAPCO)
the only one that is likely to be a driver they have very strong merchant econo- expected the country to reach a cumula-
for solar penetration across the European mies. “That’s because the [electricity] load tive solar capacity between 13.6GW and
Union, with Romania and Greece coming factors in these regions are really good, 16.3GW by 2030.
on strong and with a great potential to the further south you go, the better,” says Many of these countries share similar
drive Europe’s decarbonisation at a faster Panos Kefalas, senior associate for South challenges – from grid capacity bottle-
pace. Eastern European markets at consultancy necks to skilled workers shortages – but
In this 35th edition of PV Tech Power Aurora Energy Research. a major challenge Southern European
we will explore which are the emerging Obviously Greece and Romania are countries such as Romania, Bulgaria and
European markets, with a bigger focus in among the biggest markets both in terms Hungary are facing is an increased canni-
Southern Europe and dedicated features of capacity, but also maturity. Greece balisation.

14 | May 2023 | www.pv-tech.org

“I make sure that my customers have
power even on top of the highest
mountains, and TESVOLT empowers
me with the best service.”
No peak can be scaled without sufficient energy reserves, which is why Michael Anker
uses a TESVOLT energy storage system to ensure self-sufficient full-load operation in
remote alpine huts, even when there is a sudden influx of guests. We were there to
support him throughout the entire process – from planning to installation. Thanks to
the e-learning courses offered through the TESVOLT partner program, Michael has
gained the qualifications to become a specialist, so that he can always design and
implement the best solution for his customers.
So follow Michael’s example and join us, become a Greenergizer and help us ensure that
everyone can benefit from the Greenolution. You, your customers and the whole planet.
Find out more about our projects at: www.tesvolt.com

Become
a partner now
and enjoy all
the benefits!

Michael Anker
StromvomDach Erl GmbH
 cover story

The Greek government recently submit-

ted a PPA scheme to the EU that would
help further accelerate investors’ interest
in the country. “We are still waiting for the
approval of the European Union on the
proposal made by the Greek government
last year for the creation of the so-called
green pool, which is a scheme working
under the umbrella of the energy market
exchange,” adds Psomas.
This will facilitate PPAs and will bring
producers and offtakers together. And they
will also support it financially. The govern-
ment will cover most of the expenses of an
aggregator for balancing responsibilities,
etc,” says Psomas. This will also facilitate
smaller companies to sign PPAs, similar
to the European Commission electricity
market reform design that also aims to
give an easier access to small and medium
business to sign PPAs.
Most importantly, and what might make
signing a solar PPA more attractive now,
Commercial Rooftop solar project built by HEC Solar in Bulgaria. is the fact that the government has made
these one of the highest priorities for
“What that means is that if you fill up now in a more mature state, securing one getting a grid connection. In the current
Romania, Bulgaria or Hungary with solar has been more complex with increased scheme for connecting to the grid, long-
capacity, the capacity of one country will competitivity and lower prices, “which term solar or wind PPAs get higher priority
directly affect the prices in another one. is good for the consumer” says Kefalas. to secure a spot, says Kefalas.
Meaning that a massive capacity increase However, he added that the auction held in Nearly 4GW of projects with PPAs
in Bulgaria for example would not just September ended being undersubscribed have been given a priority from the
reduce only the price there, if you have a lot for the first time. “Now banks are finally Greek government, adds Psomas. “As
of solar, but also in Greece and Romania,” willing to consider merchant revenues far as I know, there are at least 5GW of
Kefalas says. for financing [a solar project], not just the projects that at least claim they have set
“This is because the correlation of government,” adds Kefalas. The maturity a pre-agreement with some potential
solar production, even between different of the market in terms of auctions and its customers/offtakers. It seems that this
countries, especially in the sunny South is consistency since 2018-19 opened oppor- market will thrive in the coming years.”
very strong. During the day you will feel tunities to secure financing by signing The possibilities in terms of power
the effects of extra solar generation from power purchase agreements (PPAs). purchase agreements do not end there, as
a neighbouring country, which will further And if less than two years ago financ- they could also open a window towards
collapse your prices and your revenues in a ing a project through a PPA was a rarity, virtual PPAs between countries in the
given hour,” explains Kefalas. now banks are more inclined to finance coming years, says Kunze. “There are
However, Kefalas added that the threat projects which have a PPA signed for a still some details missing. But you could
of a cannibalisation of solar capacity solar PV plant. And the number of these theoretically also have a virtual PPA with
between countries in the region would not will increase in the future. “Next year may a German offtaker, where we have a lot of
be a ‘deal breaker’ for investors to be inter- be a very interesting year for PPAs,” says clients, for example, that would be quite
ested in going there, as the levelised cost of Stelios Psomas, policy advisor at trade interested in buying electricity virtually.”
energy (LCOE) is still lower than the capture body HELAPCO. This is just one aspect on how the Greek
price. And even if at present the penetra- In that same sense, the government solar market is setting itself up as one of
tion of battery storage is still low and many has worked towards a more open market the key players in Europe for solar PV in
of the countries lack a regulation about it, for developers to secure other means of the coming years, with power purchase
the fact that countries such as Romania and funding their projects. Philipp Kunze, MD agreements set to increase in the near
Hungary are expected to hold auctions for renewable project development in Greece future and showing how much of a mature
the technology, will be a positive factor for at BayWa r.e., says: “The government has market Greece has become. Another
solar overall as it could kickstart co-located understood that auctions, public tariffs and feature focused on this country can also be
projects the be built and pushes up the CfDs are no longer necessary to fund these read in this edition of PV Tech Power.
capture price of solar, Kefalas says. projects. And it has worked on setting up
the right framework for these private PPAs PPAs are driving Romania’s solar
Greece’s PPA market set to boom to happen. The government just under- growth, waiting for CfDs
With the Contracts for Difference (CfD) stood that less government intervention is The solar market in Romania at the
having been in place for a few years and necessary.” moment is on two tracks. With the Contract

16 | May 2023 | www.pv-tech.org

 cover story

for Differences currently delayed, many Romania – along with Bulgaria – are the behind Germany and Spain in terms of
players have turned towards power least developed. In both instances this is added annual capacity. And it is expected
purchase agreements to finance solar due to both countries not providing any to continue to be at the forefront of the
projects. “You can’t just build a project and interesting subsidies for it. However, with EU countries in the years to come, staying
go to the spot market, because no bank the increased appetite in utility-scale, among the biggest five markets for several
will finance it,” says Kefalas. Thus there is residential solar could get a push too in the years.
a higher activity in terms of PPA at the coming months. Proof of that was shown Similar to what is happening in Greece,
moment, which will start to get quieter from the Romanian government at the the market in Poland has matured
due to developers awaiting to build their beginning of 2023 when it announced a enough for projects being able to secure
projects when the CfDs are released. reduction in the value-added tax (VAT) for funding outside of government subsidies
No matter what, Romania’s solar activity solar PV modules from 19% to 5% in order or without the need to go through an
is expected to accelerate in the coming to boost self-consumption uptake in the auction. “In recent years, it has become
years and it is unlikely to cease soon. “I country. common to build more and more solar
think Romania is really at the brink of a parks without subsidies. In 2020, we
second big wave of renewable penetra- Poland’s accelerated shift to solar were able to develop the country’s first
tion,” says Kefalas. Poland’s key policy driver for the growth of large-scale subsidy-free solar plant – a 64
The view is shared by Konstantinos solar PV and renewables altogether comes MWp-park in Witnica, close to the German
Zygouras, chairman of EPC contractor from ‘Energy Policy of Poland until 2040’ border between Poznań and Berlin. The
Sunel Group – which is headquartered in (PEP 2040) which is currently updated. “The commercial success of the project was
Greece – who expects Romania to follow new version of the document is supposed possible due to a VPPA with HeidelbergCe-
in the footsteps of Greece with project to accelerate the energy transition to ment, a vertically integrated building
developments starting to increase from construction materials company,” says
2024 onwards. Marchewka, adding: “PPAs are becoming
“The infrastructure needs to be Regardless of the size for Southern more and more popular recently.”
upgraded. But, in general, there is ability to
connect to the grid and the consumption
European countries, the advan- Czechia’s unique capex investment
is there. Also there is the interconnection tage they have to other countries The Czech Republic’s main driver currently
with the neighbouring countries. So in any for solar PV is its investment subsidies,
case, there’s not going to be any problem in Europe farther north is their and the country was the first one having
with connecting more and more projects the European modernisation fund active,
in the future,” says Zygouras.
location and the fact that they have which was launched by the EU to help 10
The company partnered in April with very strong merchant economies. member states meet their energy targets.
renewables developer Ameresco to bid Two rounds of subsidies for utility-scale
on 1.5GWp of solar PV and battery energy projects have so far been launched for
storage systems (BESS) across several renewables to ensure national energy almost 400 ground-mounted power plants
markets in Europe. Greece and Romania security. Looking ahead to 2040, the goal allocated. This approach is quite unique in
make up between 25% and 35% of the is that half of the electricity generation in comparison with other markets in Europe
total turnover, adds Zygouras. Poland comes from renewable sources. as in the end, the subsidy constitutes more
For an EPC contractor, the major In 2030, the share of renewable energy in a capital expenditure (capex) rather than
challenge at the moment is the lack of gross final energy consumption should an auction or a feed-in-premium.
skilled workers, a problem that was first be at least 23% and no less than 32% in “Investors come with projects and if the
amplified with COVID-19 and now the electricity – mainly wind and PV,” says Artur project fulfils certain criteria, the ministry
war in Ukraine, says Zygouras, adding: Marchewka, managing director at BayWa issues a preliminary agreement to pay
“One problem that remains in most of r.e. Polska. out if the project is then connected,” says
these countries, is the availability of skilled Moreover, of all the countries in the EU, Jan Krcmar, president of the Czech Solar
workers and also experienced engineers.” Poland is the most dependent on coal, Association.
Sunel’s solution to attenuate this which accounted for more than 70% of The inconvenience of not having any
challenge has been to use the same its energy mix in 2021, according to state solar tenders in the country is that it forces
subcontractors they have been working body Energy Market Agency (ARE). Poten- developers to seek investment through
with for many years, and then manag- tial for renewables – both solar and wind – power purchase agreements (PPAs) if they
ing everything locally in the company’s to cover for the closure of coal plants in the are not successful in securing the govern-
centralised headquarters in Athens. This years to come is important. ment’s capex investment.
helps in terms of managerial resources, With more than 11GW of solar PV capac- However a lot can still go wrong
and workers that are not yet experienced, ity installed, the technology accounts for adds Krcmar, as projects still need to go
they can be supported by staff in Athens. 10% of the energy mix, when only three through securing land, grid access and
The ease of free movement across the EU years earlier the share was at less than 1%, project development, and the size of the
also helps moving workers from country according to SolarPower Europe. Poland projects that applied for the government’s
to country and from project to project, if is expected to reach at least 25GW of subsidy scheme varies from a few hundred
necessary. installed solar capacity by 2030. kilowatts up to 50MW.
A segment that will need a bigger The pace at which the country has Ground-mounted is not the only
focus is the rooftop solar market, where added solar capacity has quickly put it only segment in the country that is trying

www.pv-tech.org | May 2023 | 17

 cover story

to accelerate the growth of solar PV in added in 2022, according to Krcmar, while It’s only a question of time before the
Czechia. Through the national recovery and the rest came from commercial rooftop. solar PV market blooms, as there are nearly
resilience plan launched last year, more The current year should see an increase in 20GW of capacity to be added in the next
than 6,000 applications were submitted terms of commercial rooftop with the first three years, according to Petrov. All this
for the commercial rooftop market. These ground-mounted solar projects achieving solar capacity is currently waiting to get its
subsidies were already implemented commercial operation. application approved in order to get grid
before Russia’s invasion of Ukraine, says “The big boom, hopefully, in terms of connection.
Krcmar. ground-mounted projects should come Due to the dynamic of the energy
So far the only implementation that next year and the year after that. Because market in Bulgaria, short term contracts
has been done is targeted towards the the projects are now being developed,” – of one year – are being favoured for the
residential rooftop market which raised says Krcmar. This is due to projects receiv- offtake of solar projects, says Petrov.
building permit limits for panels from ing the government’s subsidy have five Probably one of the major issues in
20kWp to 50kWp, while the requirement years to be built, and thus the first batch Bulgaria is unrelated to the solar industry
for an energy license has been raised from of utility-scale projects are set to be opera- in itself, as it is about the political instabil-
10kWp to 50kWp. tional in the coming years. ity the country has faced since 2021 with
It will cover about 1,000 projects, and five elections in over two years, and with
companies will not have to apply for a Political instability in Bulgaria is the latest one in early April 2023. This
building permit below these limits. But slowing solar’s growth instability has made more complicated
it’s nothing like Germany where you Of all the countries covered, Bulgaria is to pass new renewable legislations or
have go-to zones and a fixed compulsory probably the one with the most uncer- reforms of the Renewable Energy Act that
percentages of land allocated to wind and tainty at the moment in terms of potential could give a bigger push for solar PV to
solar,” adds Krcmar. for renewables, let alone solar PV. grow in the country. Currently passing of
The association has lobbied the Czech Most of the installed solar capacity that act is not expected to happen before
parliament to implement more policies in Bulgaria in the past years came from the autumn, according to Petrov. More on
aimed at accelerating the adoption of ground-mounted and commercial instal- the subject in this edition of PV Tech Power
renewables in the country, such as having lations, while residential rooftop is almost from Vladimir Tabutov, CEO of HEC Solar
renewables projects above 1MW to be non-existent. However, authorities in the and former deputy of the Energy Commis-
considered of public interest and imple- country are looking to introduce a support sion of Bulgaria.
menting quicker procedures when it comes scheme for 10,000 small residential instal- “However, it’s worth mentioning that
to changing the zoning plan of a project. lations of up to 10kW in a move that could what makes it attractive, is that it starts
Another regulation that is currently kickstart interest in residential solar. from zero. Practically. There’s a huge
being discussed is the implementation of a The country has yet to face a similar space, once you remove two or three
law regulating agrivoltaics (agriPV) which boom than its neighbouring countries coal plants, and there’s a need for the
could be a boost for the country. “We have Greece and Romania. But solar is slowly capacity, it opens up huge opportuni-
a lot of fruit growers who have problems taking off. In 2021 the country added ties for everyone,” says Kefalas of Aurora
now in this current climate, and agriPV 100MW of solar capacity, while last year Energy Research. And unlike neighbouring
could really help them. This could be a it increased by almost sixfold to 580MW, countries, the grid in Bulgaria has not yet
potential big driver,” says Krcmar. says Rumen Petrov, board member and faced the same levels of saturation.
Currently the main driver for solar PV secretary-general of trade body Bulgaria Another problem that is currently
growth in the country comes almost entire- Solar Association. “The very high price of slowing down the pace at which solar
ly from residential rooftop installations, the electricity last year pushed the market projects are completed comes down
which accounted for nearly 95% of capacity for solar plants.” to the slow process of which building
permits and grid connection permits
are handled in Bulgaria. “The application
for grid connection should be answered
from the distribution electricity company
within one month, but in practice, they’re
answering three to five months later. And
it’s almost the same with municipalities in
terms of building permits,” says Petrov.
However, a positive development that
is expected to accelerate the growth of
renewables in the country is the effect of
the Recovery and Resilience Plan (RRP),
says Kefalas. “There will be auctions to
support 1.4GW of renewables by 2026.
And this will be co-located with 350MW of
Credit Chint Solar

storage.” Kefalas adds that solar will most

likely be the dominant technology for the
auctions.
In Bulgaria’s plan submitted to the

18 | May 2023 | www.pv-tech.org

 cover story

European Union, the country aims to

The pace at which Poland has expect them to reach a similar potential
invest €1.7 billion (US$1.87 billion) towards as Greece, Romania or Poland. Currently
accelerating the deployment of renewa- added solar capacity has quickly both Croatia and Serbia are more
bles, electricity storage and interconnec- focused on wind power.
tion capacities. The European Bank for put it only behind Germany and Serbia is about to launch its first
Reconstruction and Development (EBRD)
Spain in terms of added annual renewable auction seeking 400MW of
is working with the Bulgarian govern- capacity, however, solar technology has
ment to support the implementation of capacity. And it is expected to not been included. It is only seeking
the reforms needed to boost renewables wind power, despite solar having good
deployment. continue to be at the forefront of potential in the country, according to
Due to the nature of the projects being
the EU countries in the years to Kefalas.
funded through the RRP, the projects will In the case of Croatia, Hungary’s situa-
need to be delivered in strict time scales. come tion of being a major net importer of
“For the first time after nearly seven years electricity could be beneficial to attract
or so, we will see some more potential developers and investors in Croatia to
for renewable capacity in Bulgaria to be that. Now, if you want to sign up a PPA, you build solar plants in the country and later
installed,” adds Kefalas. have to include a 31% extra cost in your export the capacity to the neighbouring
These fundings will be necessary to calculation,” adds Kefalas. For that same country, due to load factors being better
kickstart interest in renewables in Bulgaria reason, so far not many PPAs have been in Croatia than in Hungary.
as merchant projects still have difficulty in signed as it makes it more complicated to “In terms of fundamental economics,
securing funding from banks as they do secure an offtaker. it would make more sense to overbuild
not trust the current environment, accord- Hungary’s power system, meanwhile, in Croatia and export to Hungary,” adds
ing to Kefalas. could be a major obstacle for faster Kefalas. However, this would need to
Given its vicinity with Greece, the adoption of renewable energy genera- take into consideration the threat of
country could clearly learn from what the tion. Hungary is a massive net importer of price cannibalisation which would
government in Greece has done in terms electricity, which makes them depend- be one of the major challenges in the
of auctions for renewables and stating ent of neighbouring countries and can region once more solar projects become
a clear target to decarbonise its electric- trigger high costs if these countries have operational.
ity, especially given how unambitious its a low renewable penetration. Currently Zygouras adds that even though at
national energy and climate plan (NECP) is Hungary has 8GW of interconnectors the moment Sunel is not looking to
in terms of solar PV capacity, with a target with surrounding countries and does not expand but rather solidify its position
of a mere 3.2GW by 2030. The cumulative require much balancing capacity or energy in the markets it is present, moving to
installed capacity at the end of 2022 was storage, as opposed to other countries in Bulgaria, Croatia or Serbia would not
of 1.5GW. A recent report from trade body the region, according to Kefalas. be an issue, but would depend on the
SolarPower Europe expects Bulgaria to This could open the door for cross- needs of the customer. “We’re more
reach the target by 2025. border PPAs between Hungary and other customer orientated, if a good customer
European countries that might have better has a project in Bulgaria, we’ll go there
Hungary’s double-hedged inter- economics, lower financing costs and and construct for him. If they have a
connection capacity better load factors among others to rather project in Serbia, we’d do the same. But
The activity in Hungary in the past two develop a solar plant there and then sell going directly to a certain market and
years has been quite low, says Kefalas, the power produced in Hungary, a country start building projects is not part of our
however the possibility that the govern- with an important industrial activity. strategy.”
ment might reintroduce development of Kefalas warns that some constraints might Overall most of the countries in
wind technology could help bolster the apply in terms of how much cross-border Southern Europe still have a lot of
appetite in renewables, which was primar- capacity can be exported through PPAs. progress to make in terms of accelerat-
ily driven by solar PV. At the end of 2022 Within its own borders, Hungary still ing the deployment of solar PV across
Hungary had 3.9GW of total solar capacity faces a major challenge with its grid capac- the region. Greece, Romania and Poland
installed. ity, which was in such a bad state that it farther north have managed to get to
Traction for solar PV is still lagging stopped accepting any grid connection a more mature stage in terms of solar
compared to other countries, despite last year, according to Kefalas. “The grid deployment and in the coming years are
launching the Metár auction a year and a connection in Hungary is extremely impor- expected to enter the top ten in terms of
half ago that attracted significant interest tant for the development of solar.” capacity deployed in Europe.
at the beginning, however, the latest In order to improve the grid strength, While all the countries covered here
auction ended up undersubscribed. new projects submitted in the Metár differ significantly in the degree that
The current issue with projects not auction would need to have 10% of the renewables have penetrated the respec-
being funded through government capacity co-located with storage. tive overall power generation mix, all
subsidies is that Hungary set in place a will require a much bigger effort in order
31% supplier income tax that affects any Other countries in the Balkans to meet decarbonisation targets and
project that is not subsidised. “This means Irrespective of the size capacity of any of contribute towards the European Union’s
that if you secure a tariff for €50/MWh in the other countries in the Balkans (such stated target of 740GW of installed solar
the Metár auction, you’re exempt from as Croatia or Serbia), Kefalas does not PV capacity by the end of this decade. „

www.pv-tech.org | May 2023 | 19

ADVERTORIAL

JinkoSolar - AAA ranking, development

plans and challenges
Following JinkoSolar’s recent AAA ranking in the Q1 release of PV-Tech’s ing for about 60% of total shipments. We expect
ModuleTech bankability report and the release of its first-quarter results, module shipments to be in the range of 16.0GW to
PV-Tech’s Simon Yuen caught up with Roberto Murgioni, the company’s 18.0GW for the second quarter of 2023.
Roberto Murgioni
head of Technical Service and Product Management in the EU. With regard to the AAA Bankability rating in the
PV ModuleTech report, this simply highlights our
PV Tech Power: Could you give us an update on JinkoSolar’s current position as a leader in N-type TOPCon (tunnel oxide passivated contact)
status, shipment records and trends, particularly regarding N-type technology, which has been the catalyst for innovation and upgrade
products, and also tell us what the AAA ranking in the PV ModuleTech throughout the whole supply chain, from equipment to materials. This
bankability report means to the company? has resulted in fundamental changes to the technological advancement
Roberto Murgioni: Jinko has recently reported shipments in Q1 2023 of the PV industry as a whole, with JinkoSolar’s leadership, manufactur-
of 14,490MW, including 13,038MW of solar modules. N-type module ing excellence and open eco-system platform enabling the world’s most
shipments were approximately 6GW and the company expects its annual advanced, cutting-edge technology to become commercially available for
production capacity for mono wafers, solar cells and solar modules to the first time.
reach 75GW, 75GW and 90GW, respectively, by the end of 2023. We
are confident in our ability to further increase our competitiveness and Can you provide more details on the development of the new business
profitability in the global market, especially in the EU, with our continu- unit with a focus on residential and utility scale ESS?
ously improved industrial chain and cutting-edge N-type technology and The new business unit is aimed at providing customers with efficient
products. and reliable energy storage solutions. Our residential storage products
By the end of 2023, we expect N-type to account for over 70% of our are designed to provide users with more efficient and long-term
total cell capacity and we are confident of achieving our module shipment product life, while also offering high performance, flexibility, safety and
target set at the beginning of the year, with N-type modules account- user-friendliness.

20 | May 2023 | www.pv-tech.org

ADVERTORIAL

On the other hand, our utility scale ESS products are designed to
provide grid stability and cost-effective energy management solutions for
utilities and independent power producers. We are committed to innova-
tion and sustainability, and we believe that our new business unit will help
us expand our reach and deliver more value to our customers.

What’s the outlook for Jinko’s storage and PV strategy in the EU?
Our strategy in the EU is focused on delivering high-quality and reliable
products that meet the specific needs of customers in the region. We are
committed to expanding our market presence by leveraging our strong
brand reputation, product innovation and customer-centric approach.
The strategy is centred around offering a comprehensive range of
storage and PV solutions that help customers achieve their sustainability Are there any major plans the company is working on over the coming
and energy management goals. We are also focused on building strong months?
partnerships with key players in the industry, including utilities, installers JinkoSolar is always working on developing new products and technolo-
and distributors, to enhance our market position and grow our business. gies to meet the evolving needs of our customers and the market. In the
upcoming months, we are focused on expanding our market presence in
What are the features of the new RESS product? What sets it apart key regions, including Europe, and on enhancing our product portfolio by
from products from other companies? developing new and innovative storage and PV solutions that meet the
The RESS product, the JKR-B1250~2750-A (high voltage G2 battery), is specific needs of different sectors, including residential, commercial and
a high-performance energy storage system designed for residential and utility scale.
small commercial applications. It features a self-developed Jinko high- We are also committed to sustainability and are constantly looking for
voltage battery with a single pack capacity of 3.84kWh, which uses a long ways to reduce our environmental impact and enhance our contribution to
cycle high-quality cell that can reach 6000 cycles at room temperature the global energy transition.
(25o).
The product supports a maximum of 5 racks in parallel, offering an What are the main challenges for the company and for the industry at
11.52–134.4 kWh capacity range to meet different clients’ needs. It offers present? How will JinkoSolar overcome these?
high performance, including up to 100% usable energy, 45A charging and The renewable energy industry is facing various challenges at the moment,
discharging current, support for 3-7 packs per rack and no cables between including the need for continuous innovation and development of new
packs. The product also has a high protection rating of IP65 to enlarge technologies, reducing production and installation costs, adapting to
application scenarios and features a cell-level anti-fire design to ensure changing regulations and policies and the increasing competition in the
total safety. market. For JinkoSolar specifically, one of our main challenges will be to
What sets our product apart from others in the market is its unique maintain our position as a leading player in the industry by continually
heating system, which gives it a wider operating temperature range, two enhancing our products and services, investing in research and develop-
levels of isolation between cells and BMS protection logic to enhance ment and expanding our market reach. The company will also need to
safety. address the growing demand for sustainable energy storage solutions,
We also pay a great deal of attention to the sustainability of the entire particularly in the residential sector, and remain competitive in terms of
production process. It is completed via a fully automated production pricing and performance.
line, effectively reducing energy consumption, achieving a high degree Given the combination of our long-term excellence in R&D and
of quality control, and improving efficiency. Aluminium, copper and even manufacturing and our global presence, we are confident that we are well
lithium materials can be recycled, with the industry having a mature positioned to meet and overcome any challenges presented to us going
recycling mechanism in place. forward.

22 | May 2023 | www.pv-tech.org

 cover story

Unlocking grid bottleneck key to

Greece’s blossoming PV potential
Emerging Europe | Tom Kenning on one of the most promising up-and-coming solar power players of
Southern Europe, Greece. He asked experts about the challenges and opportunities for PV in the
country.

Credit: HELAPCO
W
ith an energy history dominated very contested market”, adds Kunze. Due Solar power plant In 2022, the Greek market grew by 62%
by lignite power plants, driven to the country’s relatively limited load, the at Athen-Elefthe- from the previous year to 1.4 GW, driven
rios Venizelos
by its plentiful lignite reserves, grid has a limited capacity, which has led mostly by small ground-mounted PV
airport.
Greece has started to make strong state- to PV grid connections being executed projects up to 500kW, according to Solar-
ments regarding the energy transition and very slowly by the grid operator. Nonethe- Power Europe (SPE) in its ‘EU Market Outlook
it has already started to shut down some of less, the operator has “ambitious plans” for Solar Power 2022-2026’ report. Positive
the old power plants. Industry commen- to expand the grid, while the potential growth trends were seen in both utility-scale
tators see Greece as one of the most to have additional connectors to various and residential segments and PV was expect-
promising of Southern European countries directly neighbouring countries is being ed to win most of the renewables auctions
for solar PV at present with a foundation explored, including a much-debated plan between 2022 and 2025. SPE also expects
of clean energy auctions that have been for an interconnection with Germany. Greece to add 10.4GW of PV between 2023
taking place since 2018/19. “The government has also taken a very and 2026.
It now also shows potential for a promis- specific stance on providing priorities
ing PPA market that is discussed in our for grid access,” Kunze says. “And that has ‘Unambitious’ to ‘extremely
cover feature about European markets. also made some international companies ambitious’
Greece is a small market with roughly 10.5 more concerned about the longer-term For SPE, the progress has come about due
million inhabitants and with tourism as its viability or the attractiveness of a market the simplification of authorisation proce-
economic mainstay. It doesn’t have much like Greece for big companies.” dures in the summer of 2022 and supportive
heavy industry meaning there is compara- Zooming out from the fundamental messaging from politicians, but again the
bly low electricity demand. Nonetheless, grid issue, most signs are highly positive major bottleneck lies in grid connections.
there are huge numbers of PV project for the Greek solar market going forward. Looking forward, though only in draft
applications in progress and Greece has Stelios Psomas, policy advisor at HELAPCO, versions to date, Greece is also set to
the highest standalone energy storage an association for PV companies in Greece, propose “extremely ambitious” new targets
target in Europe. says that all indicators, whether installed in its National Energy and Climate Plan
“I see Greece both as an opportunity capacity, pending applications, money (NECP) with a shift of PV target from 7.7GW
as well as a challenge,” says Philipp Kunze, invested or jobs, are pointing towards a in 2030 to 14.1GW.
MD BayWa r.e. Projects Greece at Munich- peak period. Despite many complaints “This a huge change and I think everyone
headquartered clean energy company by developers disappointed by waiting actually believes that the previous [target]
BayWa r.e., which has a pipeline of 1.3GW months for grid connections, for Psomas, was rather unambitious,” says Panos Kefalas,
of solar projects in Greece. “The interest- right now is the “best time” for the PV senior associate at Aurora Energy Research
ing aspect of the market is Greece really industry in Greece to date and “the for South Eastern Europe. “Now this is
has understood the energy transition, prospects are even better.” pushing a lot more for things to happen
especially on the electrical side, because Although statistics are not published when it comes to grid connection and
Greece does have a lot of solar and wind yet, HELAPCO believes grid connections investments.”
resources.” may reach 2GW this year, which Psomas The target sends a message that now is
There are multi-gigawatts of applica- says is “huge, huge number” for a relatively the right time to invest in PV in Greece with a
tions pending for PV making Greece “a small country like Greece. clear direction to decarbonise.

www.pv-tech.org | May 2023 | 23

 cover story

Industry commentators see Greece as one of

the most promising of Southern European
countries for solar PV at present.

Credit: HELAPCO
“It’s doable from our part… we can even to happen with the high and ultra-high adds, also noting that he believes the
achieve more than that,” adds Psomas. “But voltage grids for the largest scale solar issues will be sorted out over the next few
obviously, it’s a huge increase compared to projects. months.
the old target.” New applications are no longer being “There seems to be the case that this
Kunze agrees that the key policy driver is received for small systems, says Psomas, grid connection priority list might need
the NECP, which also sets targets for wind and while there are still some large capaci- to be prioritised again to allow also for
and energy storage. ties available, there are a lot of mature these project to come alive,” adds Kefalas –
“In the past, the Greek solar market has projects that already have grid connection adding that there is some positivity in that
been predominantly driven by auctions offered and are being constructed. the DSO and TSOs in the country have said
and by fixed tariffs for 20 years – that For high voltage projects there are so they believe the highly ambitious NECP
has changed significantly,” he says. “The many applications pending that a priority targets could be reached.
government has recently announced that list for grid connection was released for
there will be more rounds of auctions, such projects in August 2022, which led Extending the grid
which will, however, by far not cover to numerous complaints from interested To address the priority list complaints, the
the large capacities particularly of solar parties, especially international investors. Greek government has created a roadmap
projects expected to be built.” “In these grid permit [approvals], a lot for future grid enforcement and develop-
This may not necessarily spell trouble for of the grants were given to local Greek ment.
solar since the government has under- companies with a good bunch of the “Of course, this is not a static situation,
stood that solar power plants can run international investors having been left it’s dynamic, and measures are [being]
subsidy free just with PPAs, a market for with few grants or no grid access,” says taken to increase the capacity of the grid,”
which it has started to set a framework, Kunze. “That is one of the other concerns adds Psomas. “So, this is not the end, but
and which is discussed in PV Tech Power’s that international players do have a little obviously, the grid connection is nowadays
cover feature. bit about the current Greek market; to the most important issue for an invest-
With an election looming, one industry which extent is foreign investment really ment.”
commentator claims there is “a lot of welcome in the market?” Both the grid operator ADMIE and
uncertainty in the market” because a new Rome-headquartered renewable system operators DEDDIE are obliged to
energy minister coming in could change energy heavyweight Enel Green Power, present their rolling 10-year plans annually,
the trajectory. However, Psomas says the for example, is in the final stages of selling taking into account the situation and
May 2023 elections are unlikely to affect all its operating plants in Greece and for revising their plans, which now includes
the prospects for PV in Greece. projects in development, it has decided to strategies to extend the grid.
adopt a stewardship model, where it keeps “I believe that they should be more
Grid congestion and priority list just 50% of the ownership. So, compa- aggressive on that,” says Psomas, “The
drama nies are pondering how to approach this investor appetite is much, much higher
Most medium-voltage grids for small market environment. than the grid operator’s business as usual.
and medium-scale PV plants (8MW or “It’s just a bit of a sign how international Grids will continue to be a major problem
less) are already congested, according to players position themselves a little bit for the next three or four years before we
SPE’s report, and the same is soon likely more carefully vis-a-vis the market,” Kunze really find the balance.”

24 | May 2023 | www.pv-tech.org

 cover story

Psomas also asks for TSOs to be more that remains in most of these [Southern storage capacity, with the first one
transparent with publishing on activity European] countries is the availability taking place in June (400MW), followed
at each substation and transmission line, of skilled workers and also experienced by September (300MW) and the last
which in theory they should release every engineers. A lot of projects have been for 300MW by year-end. According to
couple of months. constructed in these markets and this the scheme approved by the European
“They’re not doing that and this is really creates this lack of people related to Commission, there will be a double
ugly,” he says. “There is a lack of trans- the industry for the installation and the support scheme with those winning in the
parency, so mostly developers are just supervision.” auction receiving a capex support equal to
waiting without even knowing when their €200,000 per megawatt installed. They will
application will be examined.” Auctions also receive operation support for 10 years.
Psomas says the current plan of the Current plans involve almost 4GW of The systems are to be installed by the end
DSO is that the Greek system could renewable energy auctions, two thirds of of 2025.
accommodate up to 28GW of renewables which will be for PV. The first is expected “This would be a very serious beginning
by 2030, which seems very ambitious around the end of the year, suggests of the storage market in Greece,” adds
considering that at present there are Psomas. However, there is a greater focus Psomas – noting that there is no installed
11GW of installed renewable energy at present on auctions for standalone capacity in the country yet.
capacity. There are also more than 11GW energy storage systems because deadlines Standalone battery projects outside of
of projects that have already got connec- are looming for “some easy money” the the auction will have to survive in the free
tion terms and there are pending applica- EU is offering to support such auctions. market, which Psomas believes will only
tions for connection of 25GW, along Psomas believes the renewables auctions be possible if a capacity remuneration
with an even higher number of extra will come soon after and with a timeframe mechanism, which does not yet exist, is
applications for newcomers that have not up to 2025 there is still plenty of time to put in place. Discussions on this mecha-
yet reached enough maturity to apply for hit the 4GW milestone. nism are taking place as part of discussions
grid connection. An auction in September 2022 was between the Greek energy ministry and
“We have almost 100GW of renewable undersubscribed for the first time, as the European Commission.
energy projects [of which two thirds are developers saw the prospects of large Separately, Greece’s Ministry of Environ-
PV] that have acquired the first license, revenues but low prices, with some focus ment and Energy has introduced a new
the so-called product producers certifi- straying towards merchant opportunities, €200 million subsidy programme for
cate,” says Psomas. “Half of them – almost says Kefalas. residential solar-plus-battery systems – the
50GW – have applied for grid connection, first such programme to support self-
so there is a lot of people queuing there.” Energy storage charging ahead consumption for PV systems up to 10.8kW
A ‘European Battery Market Attractiveness coupled with batteries. HELAPCO expects
Curtailment prospects and other Report’ from Aurora Energy Research in around 30,000 residential systems to be
challenges April this year stated: “The five most attrac- installed from now up to 2024.
Kunze expects the market to become tive markets for battery storage in Europe
more complex over time and start to are (in alphabetical order) Germany, Terrain and equipment
require energy storage and new future Great Britain, Greece, Ireland and Italy, Terrain in Greece is typically hilly and
market designs. Also if more downregula- Aurora assesses, considering factors mountainous, with the larger plains
tion of renewables because of overpro- such as policy support, revenue stacking dedicated to agriculture, says Kunze. Due
duction occurs, this could lead to innova- opportunities and demand for low-carbon to the shortage of flat land, most PV plants
tions using storage for saving energy flexible energy. Ambitious deployment use fixed-tilt systems. Much solar develop-
during peak periods. targets have boosted Greece and Italy’s ment has taken place in an area called
Having come from an off grid / island attractiveness – Greece aims to install 6GW Kozani in the North where many lignite
grid background, Kunze says more of battery storage by 2030, the highest power plants had been located previ-
downregulation of renewables because target in Europe.” ously, so this area offers grid connection
of overproduction is something that the Psomas says energy storage is “going opportunities to PV newcomers joining the
whole industry has to eventually come amazingly well” in Greece. In 2022, the network that traditionally feeds the high
to grips with and he hopes that because Greek parliament introduced a regula- loads in Southern Greece. However, solar
Greece is committed to the energy transi- tory framework for storage involving an will still be scattered around the country.
tion, it will adopt new developments auction process. Projects are growing in size with juwi
faster than other markets. “We have a lot of applications for developing a 200MW plant and Baywa
Konstantinos Zygouras, CEO of Sunel standalone storage,” adds Psomas. “We r.e. working on a system of up to 433MW.
Group, an EPC company based in Greece, have over 23GW of projects that have Some of the big Greek utilities and inter-
also notes that Greece is suffering from already gotten the first production license national utilities also have 100-200MW
many of the same constraints as other and some seven more gigawatts pending. projects in the country. Zygouras also
markets at present, from COVID-19 and That is a total of 30GW of standalone notes that there are plans for 500-600MW
the war in Ukraine. battery storage.” projects too.
“We have problems with supply chain, Following the European coalition Overall, it is clear that most prospects for
transportation and we see prices fluctua- acceptance of Greece’s storage auction Greek PV are positive, but the really large
tion,” he says. “Now things have become plans, the aim is to have three auctions capacity additions in the pipeline remain
a little bit better. Of course, one problem this year for a total of 1GW of battery reliant on solving the grid bottleneck. „

26 | May 2023 | www.pv-tech.org

SPN1
Sunshine Pyranometer

ŶŝŶŶŽǀĂƟǀĞĂŶĚĐŽƐƚͲ
ĞīĞĐƟǀĞǀĂůŝĚĂƟŽŶƚŽŽůĨŽƌ
ƉŚŽƚŽǀŽůƚĂŝĐĚĞǀĞůŽƉĞƌƐ

• 'LUHFWDQGGLႇXVH
H
solar radiation
• No moving parts
or adjustments
• DNI calculations
• Sunshine status

dŚĞ^WEϭĐĂŶƋƵĂŶƟĨLJƚŚĞĂǀĂŝůĂďůĞ
ďůĞ
ŐůŽďĂůĂŶĚĚŝīƵƐĞƌĂĚŝĂƟŽŶĂƚƉŽƚĞŶƟĂů
ƚĞŶƟĂů
WsƐŝƚĞƐ͘ŌĞƌWsŝŶƐƚĂůůĂƟŽŶŝƐ
ĐŽŵƉůĞƚĞ͕ƚŚĞ^WEϭĐĂŶŵŽŶŝƚŽƌƚŚĞ
ƚŚĞ
ĞĸĐŝĞŶĐLJŽĨƚŚĞƉĂŶĞůƐ͘

dŚĞ^WEϭŝƐĂƌĞƐĞĂƌĐŚͲŐƌĂĚĞ
ŝŶƐƚƌƵŵĞŶƚĚĞƐŝŐŶĞĚĨŽƌůŽŶŐͲƚĞƌŵ
ŽƵƚĚŽŽƌĞdžƉŽƐƵƌĞ͘/ƚƉƌŽǀŝĚĞƐĂŶ
ĂīŽƌĚĂďůĞĂŶĚĞīĞĐƟǀĞĂůƚĞƌŶĂƟǀĞƚŽ
ƚƌĂĚŝƟŽŶĂůƐŚĂĚĞͲƌŝŶŐƉLJƌĂŶŽŵĞƚĞƌƐ͘

www.delta-t.co.uk/solar Delta-T Devices

 cover story

Renewable energy
legislation in Bulgaria

Credit: HEC

Regulation | Jonathan Tourino Jacobo caught up with Rooftop solar PV Tech Power: How will the new legis-
installation
Vladimir Tabutov, founder and CEO of Bulgarian solar by Vladimir
lation help accelerate the growth of
solar PV in the country?
power project developer HEC Solar, following Solar Tabutov’s HEC
Vladimir Tabutov: During the last two
Solar
Media’s Large Scale Solar Europe event in Lisbon, Parliaments, Bulgarian legislation in

Portugal. They spoke about recent and upcoming renewable energy and solar in particular
has made it much easier for different
changes in the Bulgarian regulations regime for set of developers to realise their solar
adopting renewable energy technology. projects. Both the Renewable Energy Act

28 | May 2023 | www.pv-tech.org

 cover story

secondary reserve transformer of the average of around 2,000MW/h) or store

Bulgaria’s renewables legislation
same size which could not be used for it. So, building new grids, substations,
During the last two parliaments, Bulgarian legislation in grid-connection purposes for new solar lines, and storage facilities constitutes the
the field of renewable energy and solar energy in particular projects so far. We changed the legislation hardware that we need. In order to do it
has made it much easier for various groups of developers
in such a way that this capacity could be at a comparatively fast paste, we need the
to realise their solar projects. Both the Renewable Energy
Law and the Energy Law have been amended in a way temporary used by the project developer proper legislation.
which significantly reduced the time and complexity until the newly prescribed substation has
of the development process. Both in the systems for been erected. This releases capacities in Are there any challenges related to
own consumption of households and industrial users is more than 300 of the existing substations the growth of solar PV and/or the grid
drastically reduced.
in Bulgaria. capacity in Bulgaria that the legislation
Through the changes in the law, a new section, “Electricity
storage”, was created, which regulates this activity as an Another amendment that was circulat- might still not be able to fix or improve
operator, a storage facility, equal access to the transmission ed was to introduce a new reserve fee and and that might require further work
and distribution electricity networks and equal access to all an online public register of the applicants, - either through newer regulations or
electricity markets and possible balancing mechanisms the which could have removed any financially work done by the TSO?
capacity.
unsecured developer interest. This change Building international grid-connection
The proposed amendments to the Energy Law provide
an opportunity for the operator of the transmission network did however not pass due to the short life capacities is crucial to the balance of the
to propose a temporary connection scheme for all or part of the 48th Parliament. already integrated day-ahead market
of the requested power in cases where the purpose of of Bulgaria, Greece and Romania. TSOs
connection is to carry out reconstruction and development During the panel discussion you from the countries are working closely
of the network.
participated in during Large Scale to improve inter connectivity but actual
Thus, generators and customers will have the opportunity
to choose whether to join after the relevant network Solar in Lisbon you stated that the key realisations of such projects will take at
changes have been made or to take advantage of the aspects to look at for developing the least a couple of years. So ultimately, if
proposed temporary connection scheme by agreeing to Bulgarian grid were the existing capac- inter-connectivity is not improved, there
join part of the requested capacity and/or reduce their ity and regulation and legislation. What might be price differences in each of
production and/or consumption in system overload
is being done to help improve the grid? those countries depending on demand
situations.
The total capacity of Bulgaria’s network is designed It is a kind of a paradox that simplifying and supply within each country.
and developed for about 12GW. But whether the current the project development procedure and
government will be able to push through the necessary bringing projects to a ready-to-build Are there any innovative aspects of
legislative changes remains to be seen. stage much quicker on paper would this new legislation that neighbouring
further slow down the realisation of the countries such as Romania and Greece
and the Energy Act were amended in such actual solar power plants unless both the or other European nations have not
a way that the period and complexities of grid physical and legal infrastructures are implemented in their own legislations
the development process were signifi- improved in parallel. and that might be beneficial for the
cantly reduced. For example, the develop- Bulgaria’s total grid capacity was growth of solar PV?
ment process for self-consumption of designed and developed for around One good example is that during the 48th
households and industrial users was Parliament, we amended the Energy Act
cut from 6-8 months to 4 weeks legally by introducing definitions and procedures
limited duration. “Building international grid- for energy storage, for example that build-
Also, the process for small households
up to 20KW was relieved by remov-
connection capacities is crucial to ing battery storage at an existing solar
facility does not require a new construc-
ing several of the development steps. the balance of the already integrat- tion permit. This would allow utilising
Regarding the upcoming changes, there funds and quickly develop the storage
are several improvements planned in the ed day-ahead market of Bulgaria, capabilities of the grid. „
procedure when it comes to the zoning
of the capacities, removing certain steps
Greece and Romania.”
Author
from the development process and
ultimately achieving a more transparent 12GW. Bringing all new renewable energy Vladimir Tabutov is the
founder and CEO of
and much quicker development process. projects in the grid poses risks when it
Bulgarian solar power pro-
comes to the ‘hardware’ of the grid, or ject developer HEC Solar. He
Are legislators looking at an accelerat- the substation and transmission line is member of the manage-
ed approval of the nearly 30GW of solar infrastructure. Very careful and techni- ment board of APSTE - the Bulgarian
projects awaiting grid access? cally savvy planning should be executed Association for Production, Storage
and Trading of Electricity. He also
In the 48th Parliament we accepted a in order to make sure that the produced
co-founded and managed the hydro-
temporary measure to allow all reserve energy from all those plants is directed in energy and financial management
capacities at the existing substations to be an efficient way. For example, peak power company Slice Crowd. Vladimir received
utilised for the projects that were already consumption this winter was around a bachelor’s in business administration
in the application process which releases 6,500 MW/h. The development speed of from the Bruchsal international univer-
sity in Germany. He served as an MP in
huge potential of imminent grid-capacity, peak capacities outstrips the consump-
Bulgaria’s National Assembly in 2022
nearly doubling it. tion tendencies and hence requires and was deputy of the country’s Energy
For example, an existing substa- technical solutions to either direct the Commission during that time.
tion with 50kVA capacity would have a extra electricity for export (currently at an

www.pv-tech.org | May 2023 | 29

ADVERTORIAL

Aiko Solar launches All Back

Contact module in Europe
Aiko Solar, one of the world’s leading solar cell manufacturers, has Heterojunction (HJT) offers a high efficiency
announced the launch of its new ‘All Back Contact’ (ABC) module in potential and very low temperature coefficient
Europe. Based on cells with entirely back-contact technology and no thanks to the outstanding surface passivation
Christian Peter
silver in the cell construction, Aiko claims it to be the most efficient enabled by its amorphous silicon passivating
option for the future of residential and commercial and industrial (C&I) PV contact layers. The main issue is that I’m not sure
markets. if one can significantly reduce the usage of scarce materials like indium
Since 2015 the company has been mass-producing cells from its and silver. Additionally, the CAPEX is more than twice that of PERC or
bases in China, developing both its PERC and back contact technolo- TOPCon.
gies to record efficiency levels at scale. In 2020, it established a Europe- TOPCon is more or less a ‘PERC-plus-plus’ cell, so you could in
an presence by opening SolarLab Aiko Europe, with a view to combining principle use your PERC production lines and retrofit them to TOPCon.
the mass-production knowledge of its Chinese operation with European TOPCon has a similar efficiency potential to HJT, but today has lower
research and development (R&D) expertise. production costs.
Christian Peter, Managing Director of SolarLab, sat down with PV Tech You then have the back contact option. We ultimately opted to
Power to discuss the rollout of the ABC module in Europe, the specifics develop TOPCon and back contact in parallel, in collaboration with our
of the technology and the history and future of solar R&D in Europe. Chinese colleagues. Following a technical assessment in 2021, there
were some issues to overcome but, once I’d seen the ABC pilot line
PV Tech Power: Tell us about the background of Aiko Solar’s cell R&D in Foshan, it was really amazing. We now have a module efficiency of
in both Europe and China that has led to this new back contact tech. 23.6% and, having analysed all the various technologies, we believe that
I’ve known Aiko since 2015, when the company was one of my clients. back contact offers the highest potential.
At that time, it was a pure PERC manufacturer, with one base in Foshan,
where the company originated. Chairman Gang Chen had a really There’s been a big industry shift towards TOPCon as PERC begins
ambitious programme to further develop PERC and the company’s to fade. Will you follow this trend, or will back contact continue to
success story has been tremendous. If you look at the current turnover, play a major role in Aiko’s R&D?
it shows an average CAGR of 77% over the last few years, and the You always have to balance the R&D and business views. I don’t yet
National Renewable Energy Laboratory (NREL) chart from 2021 showed have yield data for the production or balance of system costs – these
Aiko as the world’s number one cell manufacturer. are areas which are well covered by China – but in the end they have
In 2020 Mr Chen asked me if I would like to join Aiko to be a bridge to calculate themselves which business model makes more sense. If
between China and one of the most important markets, Europe. The you’re looking at utility scale, particularly in terms of LCOE, a PERC
general idea was to support Aiko in terms of R&D, customer relations module might still fit best. It’s quite difficult, even for the more advanced
and local production, so we opened SolarLab Aiko Europe in Freiburg, TOPCon, to defeat PERC in terms of utility-scale costs. For a private
Germany. rooftop I’d always recommend the best available module, as you have
Moving on to the subject of current technology, if you’re not going high installation costs and a variation in module related costs isn’t so
in the direction of tandem cells, there are only three other options - important.
TOPCon, heterojunction and back contact.
Turning back to the ABC module: it’s removed the need for silver
from the cell construction. How and why was that change made?
The reason is very easy - because silver is expensive. There’s a paper
by Brett Hallam from the University of New South Wales which I like a
lot. He calculated the gross rate of PV growth and then the amount of
silver on Earth and he found that, if we increase PV at the rate currently
planned, we will completely exhaust the world’s supply. So silver was
always a problem for us and it’s a good step to remove it. This has been
a well-known issue for at least 10 years, with many ideas as to how to
eliminate silver being discussed at industry conferences.

30 | May 2023 | www.pv-tech.org

ADVERTORIAL

You always try to introduce copper because it is the ‘standard’ conduc- are more price sensitive and will calculate the cost themselves. Right now
tor, but then you have to check the solderability and the diffusion of feed-in-tariffs are quite low, so it’s not really about the sale of electricity to
copper into the bulk material. That’s the path that Aiko followed and we the grid, more about self-consumption. There are many different types of
found a good solution. I’m not able to give full details but, basically, we customer, but if they are totally price sensitive I don’t think they will use
replaced the silver with copper. our system.
They’re looking for payback times. The capex is higher, but the
The ABC module also does away with the front-face grid that we payback time is still quite good. From analysis we have carried out, our
see on most PV units and has been dubbed the ‘black hole’ module. expectation is that the energy generated with these modules can be 15%
How much of a difference do these changes really make, and are we higher, based on the area, compared with other ‘second best’ modules.
going to see gridless, silver free modules become more widespread? Not only do you have better efficiency, but also a better temperature
The modern PERC cells currently have maybe a 5% coverage with the coefficient and, if you take all that into account, it adds up to around 15%.
front grid, so there’s 5% you can add to your efficiency. Also, every grid In terms of markets, we believe that Italy may be significant in the
line is a potential recombination area, so you have to open your passiva- future. I think that France may also increase in potential, Portugal is devel-
tion area if you want to have the grids. Grid lines are not only an optical oping quite well and, for sure, there’s still a lot of potential in Germany. We
loss, you also always have an electrical loss with grids - that 5% of have divided Europe into six regions and we will have dedicated offices to
‘shading’ can be added on and, additionally, better passivation of the check out each market in detail, as subsidy schemes are often a deciding
emitter can be achieved with back contact technology. factor in take up.
Our ultimate aim is to see the product used everywhere, but this
requires interim development steps, of course. The first step was to Can we expect to see more Aiko R&D and products entering Europe
provide high class modules for the residential and C&I markets. I’m not in the coming years?
an expert on C&I, but I think you have high installation costs there and We have established Aiko Energy Germany in Düsseldorf and this will
weight is an issue, so Aiko is developing lightweight modules to overcome be the headquarters for the European operation. Aiko Energy is focus-
this problem. We believe we have a great opportunity in this area and the ing exclusively on ABC modules and fully integrated systems (inverters,
markets for both are huge. batteries, mounting material, EV chargers, etc.), with a strict separation
Utility-scale, as we discussed before, is totally price-driven. This means policy in place so as not to compete with our existing cell customers. This
you’re not selling watt peak but LCOE, and for a good LCOE you need a will result in the company not manufacturing any PERC modules, because
degree of bifaciality. If you have all the contacts on the back side then the it’s already delivering a lot of PERC cells to Europe, and not supplying
bifaciality is lower and, while there are some ways to mitigate this, they ABC cells to any other module manufacturer.
simply haven’t been optimised yet. This is something that Aiko is working TOPCon is something we already have in our portfolio, so it’s a
on at the moment - improving bifaciality as much as possible and then question of how much we will invest and whether we will have full mass
checking the LCOE for utility-scale. production lines. If you look three to five years into the future, I think the
next big development will be tandem cells and modules. There are always
What is Aiko’s strategy for entering the European market with this obstacles to overcome, but at the moment we are reaching the efficiency
product? limit for silicon cells. With the all back contact cells, there may be a record
We are focusing on the high-end, quality market. On the customer side, efficiency around the end of this year of around 27% - and that’s close to
there are those who don’t care about price, since they are mainly interest- the limit of where you can go. If you want to go above this, you really have
ed in offsetting the effects of climate change. Then there are others who to adopt tandem technology.

32 | May 2023 | www.pv-tech.org

 cover story

Poland’s rise to European

PV heavyweight
Emerging Europe | Tom Kenning reports on Poland, a fast-rising star in the European photovoltaic
market, where recent growth has been fuelled by the prosumer segment.

P
oland is still the largest hard coal
producer in Europe so its attempts
to decarbonise through renewables
are critical for the climate mitigation
agenda. With just 2GW of solar installed
at the end of 2019, the country has seen
a meteoric rise towards becoming the
third largest solar PV market in Europe in
terms of installations in 2022 with 4.9GW
deployed during the year, according to
SolarPower Europe (SPE).
Much of the rise has been driven
by a thriving rooftop market in home
prosumer installations supported by a

Credit: Green Genius

net-metering scheme and government
programmes giving financial assistance
to households, but a change in law is
hampering the segment. Meanwhile,
large-scale PV is rising at a pace to spear-
head a second strong rise in Polish solar the Eastern European country is not seen Aerial view of However, availability of the grid in the
deployment. as a top tier location for PV given its more a Green Genius south is more suited to small and medium
solar project in
Around 8GW of the 12GW of cumula- northern location with less favourable size (<100MW) power plants. Most devel-
Naklo, south
tive installs by 2022 year-end was made irradiation conditions. But since the Poland opers are just aiming for projects wherever
up of prosumers, householders and government curtailed the entry of new capacity is available across the country’s
small businesses driven by government wind projects two years ago, investors five distribution grids.
support. The most recent boom in large- have shifted their development efforts Capacity should be available in the
scale PV, however, was initially driven by into PV. This has been supported by a north, but this has been blocked for
the auction system under contracts for reduction in capex in equipment prices impending offshore wind installations,
difference (CfDs), but the main push now that enabled projects to reach grid parity leaving PV projects stuck at the future
comes from increased public support and become sustainable investments. development phase. Šileikis says that as
for PV, high energy prices and Polish a result Green Genius is looking for more
industry’s interest in securing solar-based Terrain southern locations.
corporate power purchase agreements There is no standout region for solar
(PPAs). development in Poland according to the Grid trouble
“Poland is a market that needs developers that PV Tech Power spoke to. Interconnection issues are the only impedi-
renewables,” says Eyal Podhorzer, CEO Econergy for example has PV plants all ment to the continued substantial expan-
of Econergy, an international developer over the country. sion of Polish solar PV with grid operators
with headquarters in Israel and a pipeline It’s a similar story for Green Genius, unsure of when new capacity will open
of more than 1.5GW of large-scale PV a renewable energy arm of Lithuanian up. Likewise, an SPE report noted that the
projects in Poland: “70% of Poland’s company Modus Group, which has imple- old grid requires modernisation for the
electricity is based on coal. Obviously, it is mented 129 solar projects in Poland and energy transformation since “most of its
looking to decarbonise as fast as possible.” has nearly 700 in development. Simonas components are over 25-years old, and a
More than 4GW of large-scale PV Šileikis, the company’s head of solar significant part is over 40-years old”.
projects were installed in Poland in 2022 business, says there are few regional Juxtaposing these reports, Econergy
alone. specifics other than the obvious benefit says it has not faced any connection issues
“It’s quite a large number for a country of higher efficiency in the south due to in Poland and it continues to build substa-
like Poland,” says Podhorzer, adding that moderately better irradiation. tions and heavily invest in ancillary services

www.pv-tech.org | May 2023 | 33

 cover story

Only grid connec- large-scale infrastructure, because the

tion is seen as a main obstacle for large-scale PV is the
barrier to contin-
lack of infrastructure, lack of grid,” adds
ued rapid growth.
Mańka.
The government was under pressure
from EU renewable energy goals, and the
prosumer market was seen as the easiest
way to achieve those targets as opposed
to large-scale PV. However, rooftop solar’s
rapid rise has been checked by recent
changes in law.

Rooftop progress hampered

In April last year, the net-metering system
was replaced by a net-billing system. In
Credit: SPE

this case, prosumers are compensated

for energy fed back into the grid but still
pay for consuming electricity like normal
and infrastructure for projects in order to Fotowaltaiki. The first and fastest is to customers, which has led to a drop in
connect to the grid. make an acquisition of one of the many rooftop PV popularity.
“We priced it in our business model, projects on the market already. Distribution system operators (DSOs)
but I don’t see an issue on a national However, Mańka warns that after which are 90% state-owned, had seen
level,” says Podhorzer. a few years of the market booming, huge numbers of rooftop solar additions
Šileikis, on the other hand, says that the projects that have not yet been and started to question whether this
although larger projects have started to purchased tend to have “more or less was destabilising the grid, says Mańka.
become successful, with Poland’s market serious” problems relating to grid So, they pushed the government to
seen as “stable, secure and predictable” connection and construction permits, introduce a new system that would force
and closing in on 12.5GW capacity, it so it’s quite difficult to get high quality the prosumers to contribute to the cost of
suddenly became almost impossible to projects to build and to operate. maintaining the grid.
get grid connection confirmation for new The second way is to develop green- On the other hand, there has been a
projects since September last year. field projects. This appears to be more change to the Mój Prąd (My Electricity)
The grid axis as a resource became difficult, but there is growing industry scheme which is favourable to prosum-
very limited leaving Poland with a huge demand for solar, so developers can ers. From mid-December last year to the
number of projects under development work in tandem with industry partners end of March this year, residential solar
that have secured land but are struggling to develop projects with a direct line to
to get the connection confirmation from the off-taker using the corporate PPA
the grid. Green Genius, which is develop- model.
It was easier to give money to
ing projects of around 5-50MW in size, Meanwhile, local governments will
people that install small PV than to
has itself faced this grid issue. also be looking for cleaner and cheaper
Green Genius is confident the right energy this year, offering another option invest in the large-scale infrastruc-
conversations for these issues will be had for partnership.
in the near future so it will continue to “There’s going to be a mandate from ture, because the main obstacle
develop projects knowing that Poland provinces in Poland to get renewable
for large-scale PV is the lack of
will sooner or later have to face up to capacity and those provinces will have
the reality that new generation capacity to take it upon themselves,” says Mańka. infrastructure, lack of grid
is necessary to phase out the heavy “So, it will be a decentralised push.”
dependence on fossil fuels.
“I’m quite optimistic towards Poland,” Rooftop driven by EU goals subsidies have been increased by 50%
Šileikis adds. “It’s a question of when Poland had 1.13 million PV micro- from 4,000 PLN (~US$900) to 6,000 PLN
people will be ready to change. That’s installations of under 50kW capacity (~US$1,350) per system, while the rebates
very much the political question as installed by the end of summer 2022, on battery installations were more than
well as for the overall environment and driven by the original support systems doubled to 16,000 PLN (~$3,590).
European Union. Poland is a very impor- for prosumers, according to SPE. Along
tant market.” with no distribution fees for using the ‘Constant growing need for large-
grid, prosumers had benefitted from scale PV’
Entering the market a net-metering scheme. Poland’s solar While the government is supporting
There are two general ways to growth started in this rooftop segment rooftop PV with new regulations on
enter Poland’s PV market says as a government strategy to avoid inter- housing in cities, Mańka does not forecast
Dr Dariusz Mańka, director of legal nal issues with the grid. a major change in the development of
and regulatory affairs at Poland’s solar “It was easier to give money to people rooftop growth. On the other hand, there
association Polskie Stowarzyszenie that install small PV than to invest in the is a “constant growing need for large scale

34 | May 2023 | www.pv-tech.org

 cover story

installations” both for industry and state- separates projects into two categories unsustainable current market prices and
owned industry. It was unfortunate from above and below 1MW in size, with those they should be at least in a level that
the large-scale PV industry’s perspective above 1MW also competing with wind. developers and investors feel comfort-
that rooftop deployment had created an However, with growing energy prices, able to commit to for the next 15 years.
image that there are large capacities of PV more and more companies decided to sell Offering a less flattering view, Šileikis
in the grid already and the country does energy on the market rather than go into of Green Genius says that combining
not need anymore. the auction system, says Mańka. Though a large projects of wind and solar in the
Nonetheless, power purchase agree- change on price cap regulations did allow same auction “was not a good idea”,
ments (PPAs) are a promising route the auction system to make a comeback, because the pricing of wind and solar
for large-scale projects and both the this year’s auction was a disappointment have different models.
potential and demand is growing for the “Due to the war in Ukraine, the
sector, although there is also a growing demand for the electricity prices has
list of obstacles. Despite the auction hiccups and rocketed in Europe, including Poland,” he
Šileikis says that Poland’s early auctions
were an attractive and successful support
the changes in rooftop subsidy, adds. “Then the auctions have become
absolutely unnecessary. They just don’t
scheme for several years that brought Poland is seen as a stable PV work because they were far below the
competition and a wave of developers to market level of the prices. So, the partici-
the country. market going forward, though for pation was rather very low in the last
“This looked like a really stable invest-
ment, which was easy to finance, easy to
large-scale solar to grow, signifi- auction. We have not been even looking
into this.”
attract the final investment or long-term cant investment in the various He also does not expect the regulator
investors,” says Šileikis – adding that to adjust the ceiling price for the next
unfortunately, there were problems with power grids will be necessary auction and believes that investors will
the pricing in the latest auctions in 2020 be looking at the longer term – adding:
and 2021 which combined wind energy “It’s not worth going into the auction
with solar projects of above 1MW in size. because the reference price was too low with the low price because definitely
Nonetheless, Šileikis believes utility- compared to the market price even after after the [energy] crisis, the market will
scale projects will keep catching up as the price cap was brought in. regulate itself.”
there are a number of huge projects Mańka is not expecting the price to Anywhere in Europe where govern-
already being constructed in Poland change for the next auction, but nor does ment bodies try to regulate the market,
including a 200MW hybrid wind and solar he believe that this necessarily spells the they end up with investors looking
project. end of auctions, because from a bank elsewhere to those markets which are
“There are similar projects under and financing perspective, large-scale PV not regulated, says Šileikis, noting an
construction, which definitely will change projects won through these auctions are outflow of interest from Europe towards
the shapes of growth of those two seen as a stable source of revenue. the US at present.
sectors – prosumers and the utility-scale. Podhorzer, for example, praises the CfD “This auction system played its role
However, for the new developments, new for the flexibility it offers over other kinds very well. It absolutely launched the fast
installations, it’s a little bit of a challeng- of subsidy and the PPA schemes, which development of solar and it helped a lot,
ing time right now, just because of the involve commitment to rigid agreements but right now, it becomes less and less
grid connection.” for 10 years or more. relevant.”
Econergy has now started work on its “On the CfD side, you can decide how
first Polish project, the 52MW Resco plant. much you commit. If you’re not happy Future
Podhorzer, says: “In the last 12 months, after three years or two years with the The Polish market looks set to add
I would argue that most of the growth agreement, you can stop it, you can 21.8GW of solar over the next four years
actually came from large-scale PV. We see renew it later. You have 42 months from under the medium scenario, and up to
the level of interest of new international the moment you’re granted with a CfD 29.8GW under the high scenario, accord-
investors coming in and entering the until you can start producing and selling ing to SolarPower Europe’s report ‘EU
market and obviously, none of them is to the grid.” Market Outlook For Solar Power 2022
looking for small rooftops. CfD projects can also be combined – 2026’.
“In Poland, we have the CfD, which is with PPA or merchant solar arrangements, Despite the auction hiccups and the
very active. We have a good mature PPA for example giving 30% of your capacity changes in rooftop subsidy, Poland
market. So, it is possible to close good to the CfD scheme but going merchant is seen as a stable PV market going
long-term PPA agreements and all these for the remaining capacity or combining forward, though for large-scale solar
obviously contribute to a faster develop- with a PPA. Econergy is currently looking to grow, significant investment in the
ment process and growth of the large- at options for a combination of CfD, PPA various power grids will be necessary.
scale PV projects.” and merchant for its 52MW Resco project The country is said to be already facing a
ahead of its completion in June. shortage in energy production capacity
Auctions stutter Podhorzer does expect the govern- giving solar PV an excellent chance to
Originally, the main incentive for large- ment to make changes for the next grow with its unique ability for projects
scale solar in Poland was the auction auction. Ideally, the minimum reference to be commissioned in very short
system under the CfD scheme, which now price would not be in the range of the timeframes. „

www.pv-tech.org | May 2023 | 35

ADVERTORIAL

TW Solar aims to provide a more

sustainable, reliable module
with its Terra range
TW Solar’s Terra range of shingled PV modules aims to provide end users with
a sustainable solution that combines reduced risk of micro-cracks with excel-
lent performance in harsh conditions.
A globally recognised integrated company in the PV industry chain, TW
Solar’s silicon and cell shipments have ranked first in the world over several
consecutive years, its annual production capacity for high-purity crystalline
silicon in 2022 reaching 230,000 tonnes, with capacity for solar cells standing
at 70GW, a figure the company plans to increase to 80GW in 2023.
In terms of TW Solar modules, analysts have indicated that one in seven
European households installing residential PV panels are now choosing its
Terra products.
Comprising Terra-5K, Terra-5E, Terra-5C and Terra - S6 options, the module
line has been deployed at rooftop, commercial and utility-scale sites across
Europe and Asia, as the company continues to ramp up production to meet High latitude suitability
demand. Thanks to the complete parallel circuit design, module power loss is reduced
The Terra modules are manufactured by connecting cells with adhesives, when shading occurs, meaning the product is particularly suitable for high-
forming a power generation array through multiple series and parallel connec- latitude and land-intensive areas that tend to have more shade.
tions that result in a high-density layout to ensure optimal performance in “The modules have higher resilience with a better shadow management
power and efficiency. system and they have a more advanced appearance,” commented Chen Xun,
The conductive adhesive interconnection method adopted by the shingled CEO of Austria-based international supply chain management firm Minlea,
technology gives the modules ultra-high flexibility, reducing the risk of micro- which has deployed the Terra-5K product. “They are ideal for private roof
cracks, the conductive gel absorbing the stress generated during the modules’ installations in central and western Europe. People here care more about the
compression process, leading to fewer hidden cell cracks occurring during quality and appearance of the product and are not so concerned about the
transportation or installation. price/performance ratio.”
Lijuan Huang, sales director for western and northern Europe for C&D Clean
Energy, added that her clients have chosen 166 x 60 full black, 5C monofacial
and bifacial shingled modules.
“They are attractive for small sized modules, more aesthetically pleasing
than regular PERC modules. They perform well and deliver the desired power
for a large 550W module. Smaller modules are more practical for households
in Europe. For larger modules, my clients mainly use roofing and floor installa-
tions for industrial and commercial roofs. The Terra modules have lived up to
expectations and clients are very satisfied with their quality.”

Sustainability benefits
In order to reduce the carbon footprint during manufacturing, TW Solar uses
flexible adhesive technology that allows modules to incorporate thinner cells
and be compatible with wafers as thin as 90μm, resulting in a 40% reduction in
silicon use compared with other products on the market.

36 | May 2023 | www.pv-tech.org

 SOLAR

ŒŅş滸ēĵŅòÖĵŦěğĽēĵýùĻŅùųĵýĻÖĽųĒÖóŮųŢýŢ
òƒşŢŅùųóŮğŅĽóÖşÖóğŮƒ

DĽ)ųŢŅşý澴滶ŅųŮŅĒýƋýLj滼~©ěŅųŦýěŅĵùŦ濋\ųŦŮýŒ)
ADVERTORIAL

The electrically conductive

uctive adhesive used to connect cells replaces solder spots. TW Solar’s shingled modules have exceeded expectations in real world
ribbons, which are made
de with heavy metals such as tin and lead that can have conditions and we have seen better results than with any previous panels. Our
a negative impact on the
he environment. The main film and layer of the Terra clients are all delighted with their investment, even if we factor in the slightly
panel’s backsheet are made of fluorine-free materials to reduce pollution. higher price of the Terra range.”
The Terra modules have been awarded carbon footprint certification (ECS) With a power output of up to 415W and an efficiency of 22.4%, the
by French testing body Certisolis, required by the French authorities for all Terra modules have a 25- or 30-year warranty for linear power
products entering the country for use in projects of over 100kW. output and a first-year degradation of less than 2%.
TW Solar recently secured a new 100MW supply deal
Sleek design with Minlea, representing a significant milestone
Thanks to thermal laserr separation technology, the structure of the Terra panel in the ongoing success of its products in the
is optimised, reducing cell spacing to increase the light-receiving area. European market. The company is also
The attractive appearance
rance of the modules has also proven popular with poised to launch the Terra-N, the
customers. With no solder
der ribbon, all Terra 5K and 5E panels feature dark first n-type product in the Terra
glass and black frames,, backsheets and busbars to enhance their integration portfolio.
with roofs.
“The Terra full-black shingled module can be viewed as both a power gener-
ating and aesthetically pleasing product,” commented Yecheng Guo, general
manager at Oss Energie.
e. “It not only has a practical value, but also enhances
rance, making it an important part of the overall
the architectural appearance,
aesthetics of a building..
The shingled modulee is an ideal choice if you have large roofs or flat areas.
ts a black reflection effect, improving the appearance of
Like a mirror, it presents
the whole wall or roof.”

‘Better results than with

th any other panel’
Martin Zhelev, COO at Zhelev Commerce, a company which
acial module for roof installa-
has used the 5E monofacial
tions and the S6 bifaciall module for ground-mount
PV systems, added: “The
he shingled technology
provides great benefits in partially shaded
areas, low point resistance
nce and hot

38 | May 2023 | www.pv-tech.org

w.pv-tech.org
 Market watch

Recycling and end-of-life

in the PV industry
Solar Panel Recycling | As solar power projects mature, panels increasingly lose efficiency. What
do operators do with solar panels once they have reached the end of their lifespan? Will Norman
finds out.

Credit: Solarcycle

I
n 2022, recyclable materials from that were installed in the 2000s are close Decommissioned on the ground by 2025, with the third
end-of-life (EOL) solar panels were to reaching the end of their lives, and solar panels possibly following more quickly still. That
at Solarcycle’s
worth around US$170 million globally; whether through repowering, decom- 1TW will need to expand between 15 and
recycling plant
by 2030, according to research from missioning or manufacturing loss, each in Odessa, 60 times over to meet 2050’s net zero
Rystad Energy, global recyclable PV year will bring a more-or-less exponential Texas, ready for targets.
materials will be worth in excess of US$2.7 increase in retiring panels. recycling and With the huge – and important –
reuse.
billion, a fifteenfold increase. By the time Long-term thinking is embedded in the growth that solar is seeing, and recent
the global net zero alarm clock goes off PR of PV companies, working as they are policies like the Inflation Reduction Act
in 2050, the value of these materials is to ensure a more sustainable future for (IRA) and Green Deal Industrial Plan
forecast to be over US$80 billion. a habitable Earth based on clean energy which have pushed hard on solar deploy-
As the PV industry reckons with its from the planet’s life-giving star. To be ments, what is going to become of the
social and environmental impact and the genuinely sustainable, the industry needs sheer volume of stuff going out there?
byproducts of its processes, beyond the to make sure that it doesn’t create a new
near-term questions over provenance, problems in solving an existing one. What’s lacking?
manufacturing ethics and the supply As of last year, the world has over 1TW Government PV EOL and recycling
chain, concerns about modules’ end-of- of PV capacity installed via billions of programmes around the world are
life are coming more and more into focus. panels. This threshold took decades to dragging their feet.
The average lifespan of a solar panel reach, and SolarPower Europe predicts In Australia, the Queensland state
is around 25 years; the fleets of modules that the second TW of PV energy will be government has announced plans

www.pv-tech.org | May 2023 | 39

 Market watch

further US$1.5 million of R&D money in

the DOE’s recent end-of-life investments.
“It’s forecast that by the end of the
decade there’ll be over 10 billion panels,”
Sharma said to PV Tech Power. “Even 1%
of that coming offline in a given year,
that’s 100 million panels.” Scaling opera-
tions will be key to dealing with that
volume, and the emergence of a circular
solar economy, but in the face of an arid
legislative landscape the only incentives
are coming from the industry itself.
Sharma said that Solarcycle’s strategy
is to work with leading US asset owners
Credit: Solarcycle

– SunRun, Silicon Ranch for example – to

commit them to their long-term recycling
programme through strategic partner-
ships.
Laminate pulled from a solar panel before recycling.
In comments to PV Tech Power, chief
product officer at US PV manufacturer
to ban the disposal of PV modules in Europe also has its own fledgling Solar First Solar, Pat Buehler, said that their
landfill within the next decade, pending Stewardship Initiative, a member-based in-house thin film recycling programme
sufficient public and industry proposals. It collective of companies designed to runs on a similar premise.
also committed AU$250,000 (US$168,000) focus on the responsibility that the PV “We are fortunate to work with
to a pilot Solar Stewardship Scheme industry holds for the entirety of their customers that share our values and
which will identify locations and partici- operations. principles, and that includes understand-
pants to recover materials from decom- And whilst WEEE may be a good ing that recycling is the right thing to do,”
missioned modules and then establish baseline, the CEO and founder of Buehler said. “We offer Recycling Service
collection, recovery and recycling US-based solar recycling company Agreements to all our customers, and we
processes. This is, however, all a decade Solarcycle, Suvi Sharma, told PV Tech consistently see demand for our recycling
away and still at the public RFP stage. A Power that the process in Europe calls services continuing to grow.”
lot of modules can go out of commission, only for recycling by 85% weight: “If you First Solar was one of the first manufac-
break or be repowered by then. take the aluminium frame off and some turers to factor recycling into its opera-
At the time of writing, the US has no of the cables off and get the copper out tions as far back as 2005, and it has since
concrete EOL legislation in place and the of there, and you just grind and crush the shipped over 50GW worth of modules,
National Renewable Energy Laboratory rest into some kind of asphalt mixture, Buehler said. These partnerships and
(NREL) has said that current recycling you have complied with EU regulation.” established trends are important for
rates are around only 10%. Impetus isn’t The value of a solar panel isn’t neces- fostering a recycling ‘culture’ and norm
present to make recycling a financially sarily tied to where the bulk of the in the industry, particularly regarding
viable process, as landfill proposes a weight comes from. pipeline or future projects which can
cheaper and simpler option. The true bulk of recyclable PV material have recycling plans and agreements
The US Department of Energy released hasn’t yet crested the horizon, and most baked into them from conception.
over US$8 million in investments for likely won’t for a few years, but the Fundamentally, manufacturing compa-
research and development (R&D) projects backlog is racking up at every new solar nies that are willing to spend more to
into recycling and EOL in April 2023, the farm that breaks ground. For government back up their ESG credentials are really
first meaningful (if only just) investment policy, looking at the manufacturing, important, but the issues of scale and
into EOL that the US has made. The deployment and investment expansions incentive still stands to be reckoned with.
projects that received funding covered that the US has seen following the IRA In terms of major manufacturers, both
both material recovery and manufactur- might provide an early-stage example of Qcells and JinkoSolar stake claims to
ing research designed to make panels the fact that legislation can be effective recycling their own modules. Neither
– and their recycling processes – cheaper. in pushing industry forward. responded to inquiries to elaborate on
Scaling those processes is still yet to be how they do it or plans for the future,
acted on. Working from within – a recycling but have publicly announced recycling
Europe is the only place where solar ecosystem? processes that focus on recovering bulk
EOL policies really exist, included in the Solarcycle, Sharma’s company, specialises material from their panels. Jinko claims
Waste Electrical and Electronic Equipment in PV recycling with a view to establish- that 92% of the materials in their panels
(WEEE) programme which came into law ing a circular solar economy in the US can now be recycled via thermal and
in 2003 and includes solar materials in its and, ultimately, worldwide. The company mechanical separation processes to
remit. It’s enacted by PV Cycle, a member- recently received US$30 million in Series access the different layers of module and
based recycling organisation accredited A funding to expand its capacity and cell and extract the different components.
to comply with the scheme. capabilities at its Texas facility, and a Qcells said that they comply with

40 | May 2023 | www.pv-tech.org

 OFFICIAL PARTNER

TITLE SPONSOR

THE UK'S LARGEST

RENEWABLE ENERGY EXHIBITION
17-19 OCTOBER 2023 | NEC BIRMINGHAM

15,000+ 250+ 300+

ATTENDEES EXHIBITORS SPEAKERS

Solar & Storage Live is the UK’s most forward-thinking, challenging and exciting
renewable energy exhibition, celebrating the technologies at the forefront of the
transition to a greener, smarter, more decentralised energy system.

7H,B fZ ,B HaHV #HV #Vƥ

õõõƣä™Ùق֬ÅÅƣËÄư™ú©¬Ž¬ä¬ËÅưÝ˾‚ÙƴÝäËق¤™ƴ¾¬ô™ Ý˾‚ÙƴÝäËق¤™ƴ¾¬ô™ Z˾‚ÙZäËق¤™f9

 Market watch

regulations in every region where they “The competition is always landfill.

The near-term
operate and deploy modules, though as What we’re trying to do in terms of our
we’ve seen that can be a low bar in some technology and equipment is to make Not all recycling and EOL is a decade down the line. Suvi
Sharma spoke about repowering – the practice of replacing
cases; NREL’s study says that around 90% it so that the cost to recycle with us is old, out of date or broken modules with new ones:
of US modules aren’t recycled. a minimal difference [compared with “For example, [an asset owner] could run their plant for
As the US’ primary module producer, landfill],” he said. “It’s not there today, another 10 years, but they’d be better off repowering with
First Solar is a somewhat different story. In today there’s a premium to recycle with newer panels that are much more efficient. We’re already
seeing that on the residential/commercial [markets] in a
comments to PV Tech Power, Buehler said us, but we’re working to drive down the pretty meaningful way, and we’re going to start seeing it on
that “While most PV recycling processes cost curve and drive up the value curve utility-scale next year and in a few years it’s really going to
today focus only on bulk recycling or on the materials we’re getting.” accelerate.”
recovering high-mass fraction materials He continued: “We decided at Solarcy- Module tech and cell efficiencies are constantly improving
and the accelerating shift towards n-type and TOPCon/
such as the glass and frames, our high- cle to focus on very advanced recycling. HJT modules is only going to make high efficiencies more
value recycling process goes further by It’s not really ‘go for the gold’, it’s ‘go for available to asset owners with older, less efficient systems.
providing closed-loop semiconductor the silver’ because that’s what’s [valuable] Those old panels have to go somewhere.
recovery for use in new modules.” in the panels.” “It’s actually happening in Europe quite a bit,” Sharma
continued, “in Italy, Germany and some of the early markets
First Solar is a significant US manufac- Mining the silver from the panels, that developed in Europe there’s going to be gigawatts
turer with well-established roots and along with the polysilicon, glass, metal being repowered in the next few years. And that’s simply
a host of long-term supply deals, but framing, creates a genuinely high value for better land use, bringing the power plant up to a higher
its in-house recycling processes only process that can save customers money nameplate capacity on a given piece of land to maximise the
kilowatt hours per hectare.”
deal with its own modules and its own in the long-term, as the company has Asset owners and manufactures aren’t going to refuse the
segment of the PV market. The majority of goals of feeding recovered materials back energy production and sales boosts that repowering can
US modules come from other producers into the solar supply chain. bring because they’re waiting for a responsible place to put
who – significantly – use other technol- Not only does this allow companies the old panels, and extreme weather damage, age and the
increasing production of high-efficiency modules is going to
ogy: First Solar’s Cadmium Telluride cells to ensure the traceability and ethical make repowering an attractive prospect very soon.
and modules use different processes and sourcing of their raw materials, it can also
materials that will need to be recovered reduce the cost of having to buy or mine
and recycled separately. new resources at a premium and increase but in the meantime the usage is going
Suvi Sharma said that manufacturers the return on every recycled module. to continue growing at ever-increasing
who recycle their own panels are “focus- Silver itself is going to become another rates. The parallel with PV recycling is
ing mainly on their own manufacturing long-term concern for the industry. clear enough: the work that companies
yield loss. It’s not this broad recycling A well-known December 2022 paper are doing will take hold, but until that
infrastructure that has been set up.” from the University of New South Wales point the size of the problem only gets
These manufacturers are doing a good forecast that, if PV deployment rates stay bigger.
thing, of course, but Sharma said that the on track until 2050, between 85-98% of The logic runs: if you achieve enough
difference between them and a dedicated the world’s silver reserves will be used financial or industry incentive for compa-
recycling company is “Focus, and core up by the PV industry. Even by 2027 we nies to recycle – either by high-value
competency. The reason I formed Solar- will see PV manufacturing use up 20% of material recovery or the example set by
cycle was I believed that the industry the currently available silver above and significant players in an ecosystem – you
needed a dedicated, specialised, compre- below the ground. don’t need to rely on government legisla-
hensive recycling company to take all of The Georgia Institute of Technology tion. But the challenge will be reaching
these volumes, develop the technology, received funding in the DOE’s recent that point without some impetus from
the equipment, the processes and raise round of investment to look into replac- outside the industry.
capital to do it.” ing the silver contacts in solar cells with Pat Buehler of First Solar said that they
He likened the situation to mobile copper- and aluminium-based pastes expect landfill costs to increase in the
phones: “You don’t have Apple recycling that can be applied more cheaply and coming years, which will in turn make
their own cell phones, you have compa- to most silicon-based technologies. recycling more affordable and attractive
nies that really specialise in that. I see Reduced costs could incentivise recycling alongside advances in the process to
the same thing happening in the solar by bringing the premium down for the drive its cost down.
industry.” process. Sharma summed up the state of the
Other silver-replacement research issue: “The waste problem is just starting.
Following the money is ongoing at various institutions, and If you look at the grand scheme of things
As mentioned above, the key to being some modules that don’t use silver are from an E-waste standpoint, solar panels
able to responsibly deal with the deluge already on the market for rooftop and are a very small percentage of that, but
of modules coming down the pipe is C&I markets, but the overwhelming it’s going to see exponential growth.”
scale. Legislation and incentives are one majority of projects that are deployed, “That’s what we’re working to address,
solution to force, or coax, scale, but it’s in construction, in pipelines or awaiting to get out in front of and set up the
almost always slow. Sharma said that he approval are going to be silver-based technology and infrastructure. We have
believes that recycling will be able to PERC for the coming years. to get more solar on the ground. For
scale alongside deployments, partly by The research to replace silver with us, recycling technology is really a way
becoming cost-effective to developers other, more abundant and cheaper to make solar more sustainable and
and manufacturers. materials will surely take hold eventually, scalable.” „

42 | May 2023 | www.pv-tech.org

 Market watch

Dialogues with global PV buyers:

On module selection, pricing and
traceability
Supply Chain | Carrie Xiao on a recent workshop held by TÜV Rheinland where PV developers,
buyers and investors exchanged views on module quality and buying strategies.

Source: TÜV Rheinland

T
ÜV Rheinland has held a ‘Global modules last year, and have recently PV buyers at BP currently deploys TOPCon modules for
PV Buyers’ Workshop’, inviting purchased more,” Yanyee Chen, Technical TÜV Rheinland’s some of its projects and this is not the first
recent workshop.
some 20 representatives from the Representative at Atlas told PV-Tech. time that the company has been among
industry’s downstream players to take Chen Liang, Project Procurement the earliest to choose cutting-edge
part. These included investors such as Manager for APAC at Lightsource BP technology, already reaping the benefits
Brookfield Renewable, BayWa, Engie, agreed with this strategy, adding: “One of of its purchase of bifacial modules.
TotalEnergies and Lightsource BP, and the major considerations for developers Compared with Atlas and Lightsource
companies mainly engaged in develop- is ROI. A quick way to increase ROI and BP, Engie and TotalEnergies have taken
ment and operations such as ACWA reduce levelised cost of energy (LCOE) a more cautious and conservative
Power, Bouygues and ECADI, the idea is to adopt new technologies and make approach, but they too have started
being to share their thinking from differ- innovations. To maximise the technologi- purchasing n-type modules.
ent perspectives on module quality and cal payback it is better to adopt earlier The trend of switching from p-type
procurement strategies. than other developers.” to n-type modules is not only gathering
“Our company purchased TOPCon It has been reported that Lightsource momentum on the PV manufacturing

44 | May 2023 | www.pv-tech.org

 Market watch

Source: TÜV Rheinland

side, but also gradually being followed Analytic report of added that, while it is necessary to show technologies and new suppliers.”
by end users. Facing the conversion in Global PV Buyers’ initiative, it is also important to find the In this regard, Ju Shangshang, Depart-
Workshop.
technology and capacity, as well as the balance of not being the ‘guinea pig’ or ment Manager of Solar PV Systems at
emergence of new products and players, the very last one to move. TÜV Rheinland Greater China, Solar
major developers, buyers and EPCs each He went on: “In addition, we need the & Commercial Products, explained:
have different considerations, which assistance of our dealers and partners. In “Technologies are upgraded at a very
provides module suppliers at different this way, we can learn more about new fast pace. When serving purchasers, we
levels with opportunities to sell and grow. production lines at different module will consider more targeted verifica-
Whether for TOPCon, HJT or IBC, new factories and bases, their management, tion methods with faster feedback. We
technologies often require new produc- production teams, or even operators, test new products within the shortest
tion lines. Power plant developers and because even if from the same brand time possible, so as to integrate into the
investors don’t have other choices, and and factory, the product quality can be market faster.”
they also have to take risks. different. With all the information to hand, TÜV Rheinland provides customised
Ling Jin from TotalEnergies comment- we will then select suitable products to solutions based on each company’s
ed: “Some of the suppliers we work with reduce our risk.” requirements. While providing testing and
have shifted a large portion of their certification services, it delivers feedback
production capacity quota to TOPCon, Pain point for module buyers at different levels and adds extra value for
so we are also switching from p-type to Of course, there is another pain point customers. For example, new problems
n-type for the capacity we have contract- for some module buyers. If they do not often emerge when testing new technolo-
ed. In fact, n-type modules first appeared have enough knowledge about the new gies and products, thus additional verifi-
a couple of years ago and we knew then products at the outset, or do not purchase cation methods and communications are
that the manufacturers would move enough products to carry out meaning- required to provide customised solutions,
in this direction. However, considering ful testing, they are sometimes unable strengthen the quality control of suppliers
corporate culture, financing needs and to get the answers they need to solve during manufacturing, identify problems
risk assessment, we have been relatively their problems. Therefore more effective in supervision and inspection procedures
cautious. Of course, we remain open to verification methods are needed. and solve these in timely fashion, so as to
new technologies and fully welcome Zhang Yonggang from Engie China ensure the integrity of the modules when
innovation so, with the right level of said: “For us, one of the effective ways to delivered to the end user.
quality control, we have already planned avoid risk is to seek professional support PV-Tech noted that among all the
for some projects to use TOPCon.” from a third party such as TÜV Rheinland. evaluations of current n-type products,
“New technologies will inevitably bring Whether it is production line evaluation or TOPCon products are given priority by
new products and new risks. Since we testing and verification of product quality, all types of buyer, conservative or not.
can’t avoid this, we will evaluate each reliability and stability, TÜV Rheinland One of the main reasons is that TOPCon is
new product and test it in small quanti- always has proven methods. We pay not so revolutionary compared to PERC,
ties first. As for how fast to adopt a new special attention to technical contracts enabling many manufacturers to adopt it.
product, I think every buyer has its own and quality control. It is a method we This also means that its risk level on the
timetable in mind.” Atlas’ Yanyee Chen frequently use when introducing new buyer’s side is not that high.

www.pv-tech.org | May 2023 | 45

 Market watch

In view of the previously mentioned

sharp fluctuations and uncertainties in
pricing within the industry chain, many
buyers have adjusted their procurement
strategies and supplier screening stand-
ards. Relatively speaking, international
buyers have a higher tolerance for price
than their Chinese counterparts, and tend
to put more emphasis on delivery ability
and certainty.
Chen Yan: “Since the fourth quarter of
last year, we have adjusted our module
procurement strategy. For example, we
Source: TÜV Rheinland

have adopted different procurement

mechanisms during periods of price
volatility. Our revised strategy ensures
that when prices are rising, the ROI will
not fluctuate too much. In a period where
prices are moving downwards, we make
Yanyee Chen: “There are now multiple to the rate of return and many inter- Analytic report of effective adjustments through a floating
module manufacturers producing national buyers sign module purchase Global PV Buyers’ price mechanism and link to key materials
Workshop.
TOPCon, which means we have alterna- contracts or framework agreements 1 year to avoid problems in case of early order-
tives. Choosing new technology based or even 1.5 years in advance. sealing. We may not be able to get the
products involves considering the supply Ysabel Hao, Procurement Director best price, but at least we can ensure that
capability of the manufacturer and the at Brookfield Renewable: “We need to the supply price and cost are relatively
maturity of the industrial chain. We predict what will happen next in the PV certain, so there will be less risk attached
cannot run the risk of delayed delivery market and what the module prices may to a project. If a project does suffer from
because of failure in the supporting links.” be. This requires us to drill down more temporary losses, we will be forced into a
Chen’s point resonated with all buyers with our suppliers on the products to be passive situation.”
present at the workshop. In the past three purchased and their whole supply chain,
years, prices within the PV supply chain even up to the supply of silicon materi- Supply chain fluctuations
have fluctuated frequently, coupled with als. We must collect enough information According to PV-Tech’s understanding,
the impact of Covid-19 and unfavourable to have a deeper understanding of the almost all those buyers present had
shipping conditions. Many module suppli- industry, supply chain and market.” experienced module price adjustments
ers have encountered delivery challenges, In this context, buyers are paying close and contract changes, with some even
resulting in the delay of a significant attention to the overall development of considering litigation. In their view, in
number of projects. the industry chain, the progress of new addition to constantly updating industry
Chen Liang: “PV projects are very technologies and product ‘substitut- chain information and adjusting procure-
time-sensitive and are often subject ability’. ment strategies, re-screening of suppliers
to policies, such as China’s 630 or 1230 Chen Yan, Global Category Manager is also part of the process.
policy. In fact, there are similar policies in for modules at Lightsource BP: “For risk Ysabel Hao: “In the past two years, the
many other countries and regions. Once control during procurement, we would supply chain has seen significant fluctua-
a corresponding time or related subsidy not choose some relatively unpopular tions, from key raw materials to shipping
is missed, or when potential fines are product, because once it’s out of supply, costs. We value those suppliers who take a
introduced, the entire project may fail. So you will have to overturn the design of long-term approach to solving problems
delivery capability is very important. For the entire project, which time doesn’t and continue to look for strategic partners
us, the loss caused by delivery problems allow, especially for a large project. Many that are in line with Brookfield’s long-term
far exceeds the cost.” of our ground projects are scaled from strategy.”
Ling Jin: “In order to have delivery a single-unit station of 50, 80 or even In addition to new technologies and
guarantees, we have now adjusted our hundreds of megawatts, and are unlikely products, the advent of new players and
strategy. When negotiating framework to switch suppliers once the design has cross-over companies has also been a
agreements with leading companies, we been finalised.” prominent feature of the PV industry in
now require the supplier to have delivery Yanyee Chen: “Last year, there was a recent years.
capabilities in different regions of the significant difference between TOPCon When an industry is on the cusp of a
world, such as the United States and and PERC module pricing, but this year it technological upgrade and many new
Europe.” has obviously changed. The gap narrowed companies pour in, it is likely to result in a
from 2 cents to 1 cent, and now the differ- challenging period of instability and risk
Price Sensitivity and Purchasing ence is 0.4 cents or even the same. Behind for module buyers, power station devel-
Strategy this phenomenon is an improvement opers, EPCs and end users.
Another key topic being discussed by all across the entire supply chain, providing Chen Liang: “We value a company’s
buyers is pricing. Pricing is directly linked more alternatives.” technical strength and sustainability. As

46 | May 2023 | www.pv-tech.org

 Technical Briefing Market watch

minimum pressure, we will not choose

new products unless there is a relatively
significant positive impact on the ROI.”
Big brand manufacturers are also in a
favourable position in terms of overseas
distribution and commercial and indus-
trial markets, which are not so sensitive
to pricing as ground mounted power
stations.
That said, buyers say they do not
necessarily resist new players, but are
aware they have a choice carrying both
risks and opportunities.
“We can’t just be tied to a few leading
Source: TÜV Rheinland

companies forever, so need to keep an

eye out for the next dark horse,” said
Yanyee Zeng. “Some new companies have
professional teams that we have previ-
ously contacted and recognised, which is
a power station operates continuously for Analytic report of ration’s International Company Supply acceptable to us.”
more than 20 years, both the manufac- Global PV Buyers’ Chain Department, commented: “If we Ling Jin also pointed out that some
Workshop.
turer and the product need to exist for a choose an inappropriate new product and products from smaller manufacturers
long time, otherwise it will be very risky for its power generation cannot reach the have unique advantages in specific
the developer.” ROI set in the original input model for the market segments. “We will also consider
Buyers have doubts about the ability of owner once the EPC finishes construction them under the premise that they have
new players to deliver, and EPCs are even of the project, this gap will have to be received good reviews and feedback in
more cautious. filled and the risk is on us. Therefore, we previous cooperation. As orders increase,
Yu Jianping, Deputy General Manager of are quite conservative about new technol- we will be able to gradually establish a
PowerChina Huadong Engineering Corpo- ogy and products. Under the premise of long-term stable relationship.” „

Q Get connected in the

epicenter of innovations
and groundbreaking energy
policy – Mexico City

Q Renewables joining forces!

Meet up with 11,000 experts
at four co-located cleantech
events

Q Turn Mexico’s untapped

solar potential into successful
projects

CENTRO CITIBANAMEX, MEXICO CITY

—
International Exhibition and Co-located Events
Conference for the Solar Industry

www.intersolar.mx

www.pv-tech.org | May 2023 | 47

ADVERTORIAL

The first PV connectors for harsh

environmental conditions
he requirements for operating electrical installations in ambient altitudes and the air pressures, observed at
T temperatures over 70°C or at altitudes higher than 2,000m above up to a maximum of 2,000m asl. As the air
sea level (asl) differ from the requirements for standard installations. pressure decreases in higher altitudes, the
However, it is precisely areas with such harsh conditions, like deserts risk of air ionization, and therefore of voltage
Guido Volberg, Senior
and high mountain ranges, that offer large unused spaces and optimal flashover, increases. Consultant for Product
Regulatory Affairs at
solar radiation for efficient photovoltaic systems. The original Stäubli Therefore, the clearances through the
Stäubli Renewable
MC4 connector portfolio has a proven track record for such applica- air in an electrotechnical product for use at Energy
tions and is the first in the industry to be certified by TÜV Rheinland. altitudes higher than 2,000m must be dimen-
We had the opportunity to talk to Guido Volberg, Senior Consultant for sioned for these low air pressures. This also concerns all the components of
Product Regulatory Affairs at Stäubli Renewable Energy, who explains more a PV system.
on that topic and reveals some technical details.
Following this, it would mean that not only the PV modules have to
Guido, we can see more and more PV installations in our alpine meet more critical requirements, but also the components?
regions, some of them mounted on altitudes higher than 2,000m asl. Yes, that’s right. The whole system with all components: PV modules,
Why are these installations considered as systems in harsh environ- inverters, junction boxes, combiner boxes and of course the PV connectors.
ment? Is it because of the low temperatures?
No, it’s not because of the low temperatures. On the contrary, low tempera- And the Stäubli connectors meet these requirements?
tures make the use-case interesting as the efficiency of solar modules Indeed, most of our components can be used at altitudes of up to 4,000m
increases because the energy yield improves in the cold. The harsh asl. In fact, the MC4 and MC4-Evo 2 cable-connected connectors can
environment is created by the altitude. Not only in the Alps, but especially even be used at altitudes of up to 5,000m asl. We have had this tested and
high altitudes in South America, e.g., in the high plateaus of the Andes, are verified by TÜV Rheinland.
increasingly used for the installation of PV systems due to the ideal condi-
tions such as low temperatures and high solar radiation. But the decreasing Let’s move from the cold heights to the warm, or rather hot areas.
air pressure with increasing altitude can be a challenge. Here, too, Stäubli’s PV connectors have been tested and verified
by TÜV Rheinland for use in areas with high ambient temperatures.
So, what exactly is critical about low air pressure? What is the background here?
In addition to the materials used for insulation, the most important factors Our connectors have always been designed for use in areas with high
concern sufficient dimensioning for the safe insulation of an electrotechnical ambient temperatures. However, it’s only due to a change in the PV module
product. This includes the distance or the shortest air path between two standard and the subsequently drafted IEC TS 63126 that this can now be
conductors, the so-called clearances. The dimensions for the clearances categorized. This means that the PV modules and their components must
are described in the product standards, but are historically designed for meet the additional requirements of IEC TS 63126 when used in tempera-
tures higher than 70°C. Here, two different levels are used. At an upper limit
temperature of 95°C the PV connectors can be mounted to level 1 modules
(operating temperature of up to 80°C). At an upper limit temperature of
105°C, they can even be connected to level 2 PV modules (operating
temperature of up to 90°C). Again, TÜV Rheinland has verified that Stäubli
connectors are suitable for use on Level 2 PV modules.

This means that the same Stäubli connectors can be used both at
high altitudes, such as the Alps or the Andes, but also in hot areas
like deserts?
Absolutely. But our connectors can be used not only in these extremes, but
Floating PV plant in the Swiss Alps operated by also in other environments that are becoming more and more interesting for
local energy service Romande Energy
the PV industry but are not yet covered by existing standards.

48 | May 2023 | www.pv-tech.org

 up to 5000 m a.s.l.

up to 105 °C

RENEWABLE ENERGY

Safe even in the MEET US IN MUNICH

harshest environment. 14.06. – 16.06.2023

Hall A4 | Booth 560

The Original MC4 by Stäubli –

the world-leading connectors for PV systems.

When it comes to photovoltaic power stations, measurable success depends

on even the smallest details. Designed with Swiss precision craftsmanship, our
connectors help you prevent unnecessary and costly downtime. To ensure
longstanding performance, trust the partner’s products with a superior safety track
record and proven reliability in high altitudes and high temperatures.

Stäubli – The safe choice in solar power connections

www.staubli-renewable-energy.com
ADVERTORIAL

AlpinSolar PV plant in the Swiss Alps at 2,500m above sea level,

operated by Swiss energy service providers Axpo and IWB

Are there other examples of use in harsh environments?

We also see more installations of PV systems in the agricultural sector,
also called Agri-PV. Agri-PV goes from installations on animal sheds to PV
modules as roofs of greenhouses. Additionally, outdoor installations as
protection against strong winds, or as shade in the field, are being used
more and more.
Solar power plant in the Atacama desert, Chile

What kind of environments would those be? What additional requirements are to be faced here?
Currently, there is a lot of talk about floating PV (FPV). A market that has Standardisation for these types of installations is still in its infancy. But some
grown rapidly with systems installed on inland lakes, near-shore or even experience has already been gained from the field. For example, it has been
off-shore, i.e., in the open sea. known for some years that increased resistance to ammonia is required for
PV installations on the roof of animal stables. And yes, our connectors meet
Are there already normative requirements for such FPV systems? this requirement as well. Other influencing factors, such as higher tempera-
Unfortunately, not yet. In the standardisation committee, we recently started tures and humidity in greenhouses, or potential effects from chemicals, are
with an installation standard for floating PV systems on inland waterways, currently being investigated.
i.e., rather calmer waters. However, at Stäubli we researched in advance
what requirements are placed on PV connectors in such floating PV systems Do you see more examples of harsh environmental conditions?
under certain conditions, e.g., when the modules are submerged for a few Well, for example, additional requirements for PV plants in terms of salt mist
days by a high snow load. resistance, for installations near the sea. Our MC4 PV connector portfolio is
also tested and approved according to IEC 61701, which means they are
And Stäubli has taken precautions here as well? salt mist resistant.
The good thing is that we didn’t have to take any additional precautions on The PV industry is growing rapidly, and the applications are becoming
our connectors. We have again subjected our existing connectors to tough more diverse - and so are the requirements for the technical components. At
tests and have again received confirmation from TÜV Rheinland that they Stäubli, we will continue to do everything we can to find solutions with our
have a degree of protection against the ingress of solid foreign bodies and components, even for new applications.
water in accordance with IEC 60529 of IP 68 (1m/168h). This means - refer-
ring to the second code number 8 - that the MC4 as well as the MC4-Evo Thank you, Guido, for this interesting conversation.
2 can lie in a water depth of 1m for a period of 10 days without water
penetrating. www.staubli-renewable-energy.com

50 | May 2023 | www.pv-tech.org

 system integration

Advanced Grid Functionalities in

State-of-the-Art Inverters for Solar
Photovoltaic Systems
Inverter Technology | Gamesa Electric’s latest white paper explores the advanced functionalities that
solar and battery inverters should be able to provide to enable greater integration of renewables
into the grid and thus contribute as a key element to enhanced grid reliability and stability.

T
he world is going through a signifi-
cant transformation in the energy
sector as renewable energy sources,
distributed generation, decarbonisation,
and demand increase are rapidly chang-
ing traditional sources of energy. In this
context, solar photovoltaic (PV) and battery
storage inverters must fill the gap left by
synchronous generators and be able to
offer the same services to ensure stable and
secure grid operation.
The reduced inertia present in the grid,
due to the decommissioning of large
power plants and the intermittency of
renewables, poses significant challenges to
its stability. As a result, frequency variations
caused by momentary imbalances are
higher and recur more often.
In this article, we will discuss the grid
functionalities that state-of-the-art invert- such as synchronous generators (which A Gamesa Electric these new players while maintaining a null
ers should offer in order to meet the most allow the dynamic control), capacitor PV converter impact on end-users.
of the Proteus
demanding grid requirements. We will banks, or inductive loads. Frequency As a result, TSOs are forced to impose
product family
take a look at the challenges faced by control is achieved by balancing the power new features and functionalities on these
grid operators and the contribution of the generated and the power consumed, new energy sources to ensure proper grid
Proteus family of state-of-the-art inverters ensuring a steady grid frequency. Variations operability, coining new terms such as
from Gamesa Electric to address these of any value will cause a frequency change smart grid, grid-forming, or black-start.
challenges. that has to be corrected by modifying the
active power. The rotor angle control is Power plectronic converters and
Grid stability and control related to the stability of the synchronous grid stability
In traditional generators, the most widely generator’s rotor angle and its capacity to The addition of new energy sources based
used device is the synchronous genera- keep synchronism after a disturbance. on power electronic converters to replace
tor, an electrical machine whose shaft rotating electrical machines is leading to
speed has a direct relationship with the Challenges faced by grid operators variations in the grid behaviour during
frequency of the grid. This allows it to The decarbonisation process of the energy frequency control regulations. Power
adjust its voltage output and respond to sector is leading to the substitution of electronic converters have a completely
changes in grid frequency by modifying traditional large generators by renew- different performance compared to rotat-
its operating point. These devices greatly able energy sources such as solar, wind, ing machines.
contribute to the power grid stability due and energy storage, based on power- On the one hand, they have a very short
to the damping they provide against distur- lowered decentralised units composed of timescale response, and on the other, they
bances. The stability of any power grid is electronically controlled devices (power do not contribute to system damping
achieved by controlling parameters such converters). The progressive substitution of created after a frequency change due to
as voltage control, frequency control, and large generators is becoming an increas- the absence of massive rotating shafts.
rotor angle control. ing challenge for transmission system This decrease in inertia capacity affects
Voltage control is performed by control- operators (TSOs), which must ensure grid grid control and, in the worst case, it could
ling the reactive power through devices reliability and stability despite the entry of destabilise it. To address this, grid opera-

www.pv-tech.org | May 2023 | 51

 system integration

allows it to perform the FFR functionality at

plant level rather than at the inverter level.
Black-start is a service that allows the
power converter to restart the grid after
a blackout. In the event of a blackout, the
power converter must be able to start
generating power immediately, even
without a grid connection, to restore
power to critical loads. This requires the
power converter to be able to operate in
island mode, where it generates power
independently of the grid, and then resyn-
chronise with the grid once power has
been restored. Black-start is an essential
service because it ensures that power
can be restored quickly after a blackout,
preventing extended power outages.
Gamesa Electric’s Proteus family of
inverters is designed to meet the most
tors are imposing grid support capabilities Machine (VSM) where the inverter control demanding grid requirements and offers
to ensure grid stability. can emulate the synchronous generator all of the advanced functionalities required
Grid-following inverters are capable of performance. for grid support. The Proteus inverters are
provide synthetic inertia (also known as Fast Frequency Response (FFR) is a capable of operating in both grid-following
virtual inertia), where the electronic device service provided by power converters to and grid-forming modes, providing the
can emulate the inertia that used to be compensate for short-term frequency flexibility required to meet the needs of
provided by rotating machines. However, deviations in the grid. This service requires the grid. In addition, the Proteus inverters
providing virtual inertia is not enough, it a fast response time from the converter offer fast response times and the ability
is necessary to provide additional ancillary to ensure grid stability. FFR is essential to provide virtual inertia, ensuring that
services to ensure grid stability, such as fast because small deviations in frequency can the grid remains stable even in the face of
frequency response, black-start, or power cause large changes in the grid and lead to large frequency deviations.
quality support. instability. To demonstrate the capabilities of
For example, if the frequency of the grid the Proteus inverters, Gamesa Electric
Advanced grid functionalities in decreases, the active power generated conducted a series of real-world tests on
state-of-the-art inverters by the power converters must increase to the equipment. The tests were designed
In this context, state-of-the-art inverters compensate for the deviation. Conversely, to simulate a variety of grid conditions,
are the new generation of equipment that if the frequency of the grid increases, the including black-start scenarios and
incorporates the necessary functionalities active power generated by the power frequency deviation events. The results of
to be active elements in grid opera- converters must decrease. Without the the tests showed that the Proteus inverters
tion. These functionalities include Fast ability to respond quickly to frequency were able to respond quickly to changes in
Frequency Response (FFR) and Black-Start, changes, the power converter would be grid conditions and provide the necessary
among others. unable to stabilise the grid, leading to ancillary services to ensure grid stability.
In grid-forming mode, the converter is a power outages. In conclusion, the transition to cleaner
voltage source (it can create the electrical The response must be fast enough, energy sources is essential for achieving
grid by itself) with the ability to control which is why they are normally requested a zero-carbon future, but it also presents
both the active and reactive power, thus at the inverter level to avoid communica- significant challenges for the power grid.
creating and maintaining a stable grid tion delays. However, one of the main The reduced inertia of the grid due to
voltage and frequency. The control strat- advantages of the Gamesa Electric Orches- the decommissioning of large power
egy used is known as Virtual Synchronous tra controller is that its quick response time plants and the intermittency of renewable
sources has made it necessary for PV and
battery storage inverters to fill the gap left
by synchronous generators and provide
Grid-feeding with FFR droop vs
Grid-forming with FFR droop the necessary grid support services to
The power response of a BESS with ensure stable and secure grid operation.
grid-forming is greater and faster than Grid-forming inverters such as Gamesa
grid-feeding operation, since a system with Electric’s Proteus family offer the advanced
VSM has greater inertia as well as greater
functionalities required for grid support,
damping. Therefore, in addition to the power
that the BESS injects thanks to the droop, including fast frequency response, black-
another very rapid increase in active power is start, and power quality.
added due to the contribution of the inherent The White Paper can be viewed on
virtual inertia of the VSM.
Gamesa Electric website:
www.gamesaelectric.com

52 | May 2023 | www.pv-tech.org

 system integration

Power evolution. After gas turbine power dropping (red line) the load power (green line) is
quickly restored by Proteus PCS (blue line).

Voltage and frequency variation. The grid is recovered and controlled by BESS working as grid-
forming (parallel operation). Microgrid can be sustained over a long period of time while waiting
for the gas turbine or any other synchronous generator to recover from a fault.

The No.1 source for in-depth & up-to-the-minute news, blogs, technical
papers, and reviews on the international solar PV supply chain covering:

Manufacturing | Technical innovations | Markets & Finance | Events

Sign-up for the PV Tech newsletters for the biggest stories in PV from around the world.
Subscribe for free: pv-tech.org/newsletter

www.pv-tech.org | May 2023 | 53

 system integration

Q&A with Juan Barandiaran

Following publication of the white paper, Andre Lamberti caught up with Gamesa Electric’s CEO
Juan Barandiaran and spoke with him about the history of the company and the development of the
technology it deploys.

PV Tech Power: Can you give a brief advanced grid functionalities provided by speed to meet the net-zero objectives.
outline of Gamesa Electric’s journey grid-forming inverters. Therefore, the challenge goes beyond the
towards equipping the renewable In addition to compliance with future purely technological and has very impor-
energy sector? grid codes, we anticipate that custom- tant operational and policy aspects.
Juan Barandiaran: Gamesa Electric has a ers will demand this technology in order
long tradition as a manufacturer of electri- to access additional revenue streams Where do you see the biggest opportu-
cal equipment with a long experience through ancillary grid services. nities in the European market and why?
of more than 90 years in the business Europe has just increased its target for
and a track record of more than 60GW How does Gamesa Electric’s grid- the share of renewables in total energy
manufactured. Its creation dates back to forming technology differ from what consumption to 45%. To get closer to this
1930 when it started as a small manufac- is already in place? Do you see it ambitious target, a massive deployment of
turer of electric motors and generators. ultimately replacing traditional grid renewables will be needed alongside the
The milestone that set its course towards generators? electrification of society. This process of
renewable energies was the acquisi- There are no technological limitations ‘renewable electrification’ is already provid-
tion of the company 20 years ago by that prevent us from seeing a 100% ing great opportunities and will undoubt-
what is today Siemens Gamesa. As part renewable electricity mix at some point. edly create even more.
of Siemens Gamesa, Gamesa Electric The limitations are probably permitting- In addition to well-known and mature
expanded its product portfolio by adding bottleneck-related, grid-related or in technologies such as wind and solar, we
inverters and converters for wind, solar, terms of supply chain capacity, but the will see massive deployments of different
storage and hydrogen applications to the technology exists and is fully capable of types of storage, not forgetting the key role
aforementioned generators. replacing conventional generators. that hydrogen can play as an energy vector
Today, Gamesa Electric has eight As for Gamesa Electric’s experience, I not only for storing energy but also for
production sites on three continents and would say that what makes it stand out decarbonising hard-to-abate industries.
employs more than 800 people, a quarter the most is the experience accumulated The market will undoubtedly grow
of whom are engineers. Its business is over years of development, validation exponentially, and it is therefore crucial
mainly wind power, but in 2022 it tripled and real projects. Siemens Gamesa has a that the legislative proposals made in
its orders for solar and storage inverters, hybrid wind, solar and storage farm where recent months to protect and support
partly thanks to the great success of its it tests and validates all developments. Europe’s renewable industry are success-
Proteus product. In addition, Gamesa Electric has already ful, as it will be very difficult to meet this
implemented advanced functionalities challenge without a strong and healthy
When did the company first consider in its converters in commercial wind local supply chain. „
making grid-forming and black-start projects. All this experience results in
inverters? How has the technology continuous improvements applied to our Author
developed since then? Proteus and Orchestra products.
Juan Barandiaran is the CEO
Our engineers started years ago develop-
of Gamesa Electric, a global
ing software that would allow inverters What are the main challenges to the power electronics leader
to be an active element in grid stability, renewables industry adopting the in the renewable energy
but the fact is that the demand from the technology? industry. With engineer-
market and customers has come later, It is important not to underestimate the ing and MBA background and over 30
years of experience, Barandiaran has a
when the penetration of renewables calibre of the challenge ahead. We are
proven track record of successfully lead-
forced the search for technical solutions talking about replacing in a few years a ing and directing various companies
that allow intermittent renewable sources conventional generation fleet that has and divisions within Gamesa, including
to offer grid services similar to those taken decades to build, especially in the wind, photovoltaics, energy storage
traditionally offered by conventional more developed countries. Undoubtedly, and hydroelectric generation. Under
his leadership, Gamesa Electric has
power plants. grid-forming technology in renewable
expanded its operations to multiple
In countries such as Australia, these sources is a key part of the energy transi- countries and increased its market
functionalities are already required and tion, but there are other equally key areas share in these sectors. Barandiaran is
valued by the market and the trend such as storage, demand-side manage- known for his strategic vision, strong
of retiring conventional synchronous ment and smart grids, among others. leadership skills, and commitment to
innovation and sustainability. He also
generators, and adding renewable gener- I believe the main challenge we face in
serves as VP of CIC energiGUNE energy
ation will lead more and more markets the sector is to be able to fit all the pieces storage research centre.
to establish requirements related to the together and to do so with the necessary

54 | May 2023 | www.pv-tech.org

 DEMY
PV ACA ep. 2023

EU
, 17 S
Sunday ter Now!
Regis y.com
w w. p v -academ
w
40th European
Photovoltaic Solar Energy

PVSEC
Conference and Exhibition

2023 18
September
22

2023
Lisbon
Portugal
ird CCL
Early B Lisbon
k et s until
tic Congress
J u n e 2023
30 Centre

TAKE ADVANTAGE OF THE REDUCED REGISTRATION FEES AND SECURE

YOUR TICKET NOW.

EU PVSEC - the world‘s largest platform for PV research, development and

technology
ʯ & XHNJSYNȁH (TSKJWJSHJ 5WTLWFRRJ \NYM T[JW  NSXUNWNSL QN[J
presentations
ʯ & LWJFY SZRGJW TK 5FWFQQJQ *[JSYX TKKJWNSL NSXNLMY NSYT XUJHNȁH 5;
topics
ʯ A fast growing B2B Exhibition, connecting research and industry
ʯ A lively Industry Summit, addressing the market‘s most pressing issues

Register now and join the global PV community in Lisbon in September!

EUPVSEC.ORG
 plant performance

Managing Solar Portfolios by

Performing Device-Level Analytics:
Using AI and Data Science
AI Analytics | Stuti Gupta, Solar Lead at Prescinto, an AI-powered asset performance management
platform for solar, wind and energy storage assets, and Prescinto Performance Excellence Head
Abhishek Puttanna on the role of artificial intelligence in monitoring and optimising photovoltaic
assets.

Credit: Wikicommons, Kallerna

Need of Advanced Analysing a plant’s overall perfor- Prescinto makes
the case for artifi-
PV plants in response to the pertinent
mance is typically done using a top-down problems in present-day PV O&M. Among
O&M Solutions for approach. We first assess the low-perform-
cial intelligence-
enabled monitor-
the solutions discussed in this article is
ing devices by digging deeper into the the role of AI and Data Analytics in solving
Managing Solar project-level, inverters and, finally, the
ing of solar assts.
Pictured here these problems, where models are applied

Assets string-level. However, this process is not

very time-efficient and mainly depends on
is the Andasol
150MW power
to solar plant data to identify performance
issues successfully. The highlight of the
plant in Andalusia,
Operation and Maintenance (O&M) of Solar subject-matter experts (SMEs) identify- Spain. article is that we detail these approaches
(PV) Farms/Plants impacts the industry’s ing bottlenecks to rectifying underper- applied to investigate and identify the
growth and performance levels as a whole. formance issues faster. In addition, these underperformance issues at various levels
The O&M sector comprises many processes corrective measures are not exhaustive for in the project.
- Technical Asset Management, PV Plant the vast sizes of current Renewable Energy
Operation, Plant Maintenance, Data portfolios. Introduction to Solar PV O&M
Monitoring, KPI-based plant Performance Big Data Analytics can bring added One of the key branches in the photovol-
Tracking, Spare Parts Management, and value at any stage of O&M objectives: taic industry (PV) that have evolved into a
Revamping & Repowering. Currently, O&M from analysing collected information, fault key player is Operation and Maintenance
service providers are developing advanced detection and diagnosis to optimisation (O&M). The quality of O&M services
solutions that are more data-driven to via advanced monitoring system recom- rendered significantly affects PV plants’
meet the market demands, raising the mendations. This report aims to review long-term reliability, generation and ROI
bar for performance enhancements each the usage of Analytics and AI to manage expectancy.
coming year. the component-level performance of It is universally acknowledged that

56 | May 2023 | www.pv-tech.org

 plant performance

high-quality O&M services can help reduce

potential risks, reduce the levelised cost
of electricity (LCOE), and positively impact
the investors’ return (ROI). According to the
Solar Risk Assessment Report, incorporat-
ing 70% corrective maintenance into the
Source: BNEF Data as on November 25, 2022

annual service fee (fixed rate) of O&M

can reduce the overall O&M cost by 28%,
which can boost the equity returns by 10%,
with typical ROIs for solar assets ranging
between 10-15%. Moreover, in today’s
highly competitive O&M market, manual
albeit standardised practices can be
challenging to implement, while advances
in the sector’s digitalisation are paving the
Figure 1: Annual Project Capacity Addition. way for improvements and cost reduction.

Market Dynamics
The Bloomberg New Energy Finance
(BNEF) report estimated that global solar
PV installations will grow at an annual
average of 8% from 2021 to 2030. In 2023
alone, 316 GWDC of annual capacity
addition is expected, with the utility-scale
sector dominating the overall global
installed solar capacity (Figure 1). Needless
to say, future large-scale installations
provide vast opportunities for growth and
capital investment in this segment.
The O&M market is expected to grow
at a steady pace of 14%. The Asia-Pacific
Source: Wood Mackenzie (based on Q3 2021 update)

market is expected to reach nearly US$5.7

billion by 2030, followed by Europe, the
Middle East and Africa with US$5.2 billion
and North, Central and South America with
US$4.1 billion. Of this US$4.1 billion, the US
alone will have a significant market share
of US$3.5 billion in 2030, making it the
largest market (Figure 3). This emphasises
that the O&M market segment has a huge
potential market to attract investors.
To estimate the competitiveness among
Figure 2: Top O&M Market players. O&M providers, an important metric would
be the monetary compensation (say, in
dollars) per kW. As per the table in Figure
3, the per kW O&M cost undergoes only
a marginal change as the project size
increases, indicating limited economies of
Source: Wood Mackenzie (based on Q3 2021 update)

scale. Hence, there is a scope for identify-

ing improvements in the O&M segment to
lower the O&M costs and boost the ROI.

Current Best Practices in O&M

Solar Power Europe (SPE) leads and
coordinates the development of O&M best
practices and is a significant member-led
industrial association representing over
260 companies involved in the entire
solar value chain. The Lifecycle Quality
Figure 3: O&M Scope Costs. Workstream also produces the O&M
Best Practice Guidelines report, updated

www.pv-tech.org | May 2023 | 57

 plant performance

It creates a simulated environment with all

plant configurations, design & structural
information replicated, in addition to
the performance history of the plant.
Source: SolarPower Europe O&M Best Practices Guideline

Furthermore, the virtual twin thus created

operates in tandem with the live plant and
receives the latter’s status, performance
& health data throughout the lifecycle. In
contrast to traditional software, a Digital
Twin factors in the precise environmental,
geographical & locational information,
thereby ensuring accurate plant replica
creation for more detailed experiments.
An ideal Digital Twin, once created,
centralises plant information and feeds
the same into AI/Machine Learning
and launched every two years. The fifth modern-day technologies are gaining Figure 4: O&M algorithms. These algorithms help process,
edition (the most recent from 2021) is steam owing to immense benefits & the Best Practices. conceptualise and model the real-world
based on work that has resulted from returns they promise to offer. responses of the plant. Furthermore, the
the contributions of over 30 solar experts live flow of plant sensor data ensures that
from about 20 global companies, includ- Information Modeling the algorithm undergoes constant learning
ing O&M service providers, asset owners Solar O&M professionals across the and transforms into a self-adaptive intel-
and managers, energy consultants, and world are aiming to build more efficient ligence system.
technology and digital solutions providers. processes, reduce costs & risks and drive Numerous other innovative mecha-
This Solar Power Report recommends O&M profitability. Stakeholders across nisms are also emerging in the evolving
proper hazard identification, careful the PV lifecycle are now adopting the BIM solar O&M sector. To quote a few examples,
planning, regular documented inspections, (Building Information Modelling) principle Drone Technologies are becoming a
and maintenance. It also covers personnel to achieve the same. popular choice for thermal inspections of
and training, technical asset management As reported by the Trust PV Project, solar sites. O&M professionals are adopting
(TAM), power plant operation, and mainte- BIM, a Data Management Framework, is a them to achieve an impeccable 70% reduc-
nance. TAM involves supporting activities proven technique for ensuring the avail- tion of cumbersome manual activities.
aimed at ensuring optimal solar power ability of all asset data at the right time and Similarly, Automated Cleaning Processes
plant operation, including maximising place. The BIM principle closely syncs with powered by robotic brushes and wipers
energy production, minimising downtime, digital technologies, implemented across are making significant strides. They are
and reducing costs. These guidelines are a the PV plants’ lifecycle stages. It involves replacing traditional water mechanisms
powerful tool for asset managers to adopt chalking out the processes and compo- and offering the support of Dry Cleaning
the best practices for the existing instal- nents that produce information at different Robots for areas with severe water short-
lations. stages. BIM solves the core challenge of ages.
The key focus is O&M optimisation information loss as the solar asset switches Last but not least, asset owners are now
through scheduled maintenance and ownership or project stages. It achieves adopting Digital Solutions as the missing
reducing the losses incurred before correc- the same by producing a Single Source of piece of their ever-growing solar asset
tive maintenance is implemented. Figure Truth and keeping a dynamic track of all puzzle. These solutions enable solar profes-
4 explains how maintenance is broadly plant components – for example, configu- sionals to connect the dots between the
classified. Scheduled Maintenance (SM), ration changes, repowering Initiatives, etc. sensors and plant data to deliver insights
because it is planned in advance and Using BIM, an O&M contractor can lever- for plant generation optimisation. In
done periodically, can prevent faults from age a central information powerhouse to addition, they’re also introducing the solar
occurring. Some desired practices involve analyse historical performance and plant industry to AI/ML algorithmic powerhous-
scheduling these tasks in accordance with metadata, give the right inputs and carry es to provide value using predictive plant
the manufacturer’s endorsements and out proactive actions. This can include, performance analytics.
conducting them during non-peak hours, for example, analysing key KPIs, contrac-
preferably during night hours. SM aims to tual obligations, field data & inspections,
attain an optimum balance between the anomalies & more, thereby producing a Big Data Analytics
cost incurred and the increase in the life future-proof intelligent O&M engine.
and yield of the system. for PV O&M
Digital Twins
Digitalisation and Innovations in Another innovation that has caught the Data Acquisition
Plant O&M eye of the industry is the concept of Digital A report by MarketsandMarkets estimates
With the solar industry aiming at achieving Twins. that the DAS (Data Acquisition System)
an ambitious global scale, the industry As the name suggests, the Digital Twins market holds the potential to grow at an
has its eyes set on modern technological concept thrives on producing a Virtual impressive CAGR of 5.5% in the coming
innovation to drive this growth. These Model or a Digital Copy of the solar asset. years till 2026. Therefore, it’s safe to say that

58 | May 2023 | www.pv-tech.org

 www.intersolar-events.com

INTERSOLAR EVENTS
—
The World’s Leading
Exhibition Series
for the Solar Industry
Q JUNE 14–16, 2023, MUNICH, GERMANY
www.intersolar.de
Q AUGUST 29–31, 2023, SÃO PAULO, BRAZIL
www.intersolar.net.br
Q SEPTEMBER 5–7, 2023, MEXICO CITY, MEXICO
www.intersolar.mx
Q JANUARY 17–19, 2024, GANDHINAGAR, INDIA
www.intersolar.in
Q JANUARY 17–19, 2024, SAN DIEGO, CA
www.intersolar.us
Q APRIL 16–18, 2024, DUBAI, UAE
www.intersolar.ae
Q INTERSOLAR SUMMITS WORLDWIDE
www.intersolar-summit.com Follow us
 plant performance

as the solar industry grows, DAS systems core components. These include panels, Similarly, the temperature data from the
will continue to achieve stronger adoption inverters, meters, relays, transformers, weather monitoring station (WMS), essen-
for PV monitoring applications. weather stations, and more. As essential as tial to calculate key KPIs like Temperature-
A Data Acquisition System lies at the they are for seamless operation, the pieces corrected Performance Ratio (PR), is also
core of a PV monitoring system. It helps of equipment generate data in different collected. As a best practice, module
fetch a wide variety of data from numerous formats at different frequencies. All this temperature data should also get recorded
pieces of equipment on the solar farm. information may even reside at different at a granularity of at least 15 mins. More
Data Acquisition for most plants begins at locations and in different time zones, intro- sensors may also be required across large
the sensor-level. Various sensors, such as ducing time-series irregularities – these plants to capture module temperatures
thermocouples, anemometers, pyranom- differences create data inaccuracies, errors at different representative positions. For
eters, etc., help capture data points such and raise security concerns. In addition, example, capturing temperature variations
as temperature, humidity and irradiance they further induce data quality concerns between modules located in the centre
and more. Once captured, these sensors such as junk values, outliers, false positives and the edge locations of the plant. Apart
convert the physical information into and more. The granularity/frequency of from temperature data, meteorologi-
electrical signals for further processing. data generation (1-min, 5-min, 15-min and cal data such as wind direction & speed,
The weak signals generated by sensors are even 60-min intervals) makes it further- rainfall, ambient temperature, snowfall,
then conditioned to ensure noise isolation more challenging to integrate this data etc., are also acquired from weather
and ultimate conversion into a digital and build a cohesive dataset. monitoring systems, anemometers and
signal with the help of an ADC. As suggested in the O&M Best Practices shielded thermometers.
The network layer helps connect the report by SolarPower Europe, one of the In addition to the above, inverter and
different on-ground devices to the plant best ways to tackle Data Aggregation energy meter data is utilised for calculating
SCADA for a seamless data flow. It achieves concerns is to have a robust data quality performance KPIs. While it is often used
the same using either a Wired Network module. Ensuring that the PV monitoring for invoicing, energy meter data is the
based on Ethernet/RS-485 Serial Interfaces platform has automated data filtering best reference for measuring energy and
(with Modbus Protocol) or a Wireless capabilities is critical for an asset owner. calculating plant PR and yield.
Network designed on Zig-bee, LoRA, Wi-Fi Similarly, performing data validation A typical central inverter project without
or GSM-based communication. Modern analysis over time spans of 1 to 15 mins string monitoring has approximately
layers may also use Cellular Networks helps eradicate time-series irregularities 300 tags (parameters). Assuming a data
based on NB-IoT/5G communication. The in the plant data. To further streamline frequency of 1 min, the average number
network layer may sometimes include Aggregation, there must be an emphasis of data points received daily would be a
a Data Processing module, popularly on transforming data into a normalised/ minimum of 432,000. This value increases
designed using Raspberry Pi, Arduino or standardised format that follows standards to approximately 1.44 million data points
PLC-based microcontrollers, which helps such as IEC 61724. for a string inverter project with about
process the incoming data and pushes the 1,000 tags. Handling such a significant
data to the application layer for interfacing Data Monitoring and Performance volume of data points and performing
& analysis of the equipment performance. Analysis analysis requires technological sophistica-
The aggregated data collected from plants tion.
Data Aggregation should be analysed on the following levels:
A Data Aggregation mechanism is then • Portfolio/Plant Group Level – Minimum Portfolio-Level Analysis
used to aggregate the data a solar plant Analysis Requirement Portfolio-level performance analysis &
and its associated equipment produces, to • PV Plant Level – Minimum Analysis data monitoring for large-scale projects
extract actionable insights and make data- Requirement can present numerous hurdles. However,
driven decisions for plant optimisations. • PV Inverter Level – Minimum Analysis the primary challenges associated with
However, what makes Data Aggrega- Requirement managing a sizeable solar portfolio include
tion a mammoth task, is the sheer volume • PV String Level – Recommendation for the following:
and, more importantly, the diversity of Insightful Analysis • Conditional Diversity: Including
Figure 5: DAQ
data a plant produces. Each solar plant Systems Global Shading, Inclination, Orientation, etc.
houses a wide variety of equipment as its Market Trends. The monitoring system collects this • Asset Scale & Multitude: Utility-scale
plant data from various sources. Taking the projects with MW scale plant capacities.
example of irradiance and radiation data, • Lack of Expertise: Larger team and stake-
these are collected by irradiance sensors holders who aren’t solar professionals.
Source: MarketsandMarkets, DAQ Systems Market

and pyranometers, respectively. Here, as • Equipment Variations: Multiple inverter

an industry best practice, having at least brands, tracker systems and solar panel
2 pyranometers in the solar plane array, technologies.
with a data record granularity of at least • Regulation Variations: Various national
15 mins, is recommended for rich data • and local regulations and contractual
collection. In addition, high-quality satellite • obligations
data services Solcast/SolarGIS can also be
leveraged as data sources here. These are On the other hand, digitalised platforms
Size Report

of great help in the event of losing data successfully address the above challenges
from faulty sensors as well. at various stages of performance monitor-

60 | May 2023 | www.pv-tech.org

RE+
RENEWING
WHAT’S POSSIBLE
SEPTEMBER 11-14, 2023
LAS VEGAS, NV

SAVE THE DATE!

FEATURING

RE-PLUS.COM
 plant performance

throughout the monitoring/reporting

period. As a best practice, the threshold
should be set at 1% of Plant Availability
or 1% of PR for a 1 month long reporting
period.
The current state of the art in loss
bucketing depicts a more detailed categori-
sation into the following verticals – Control-
lable, Partially-controllable, and Uncontrol-
Source: Prescinto Inc.

lable Losses – with further sub-categories.

This is demonstrated in Figure 6.
A robust analytics engine can also offer
corrective/recommended action-based
next steps.
ing. The following points outline the weather and satellite data, theoretical Figure 6: Loss
benefits of a digital solution: module degradation rates & statistical Bucketing of a PV Device Analytics
Plant.
• Digital solutions enable remote monitor- forecasting methods to offer accurate Fault Classification: From Plant to
ing of PV plants, reducing man-hours predictions. In addition, as an industry best Inverter to String
and increasing O&M effectiveness. practice, experts utilise two key KPIs, RMSE Remote fault detection can be a suitable
• Digital solutions can create databases (Root Mean Square Error) and MAE (Mean replacement for various investigative and
for equipment that can be replicated to Absolute Error), to validate the accuracy of inspective tasks traditionally performed by
configure various devices in the system. these prediction reports. operation engineers.
• Data-driven corrective maintenance Inverter-level faults can result in the
through digital solutions reduces the Key Performance Indicators (KPIs) following plant losses: AC Loss, Downtime
burden on solar professionals who Plant performance is tracked through Loss, Clipping Loss and Inverter Efficiency
can’t be deployed at multiple locations fundamental categories of Key Perfor- Loss. Systematic losses, on the other hand,
simultaneously. mance Indicators: Plant KPIs and O&M include Shading and Cleaning Losses. In
Service Provider KPIs. addition, there can also be other losses,
Distributed Project Portfolios The Plant KPIs offer quantitative indica- such as Irradiation Loss. In such situa-
Managing a variety of projects spread tors that represent plant performance tions, using a top-down approach helps in
across different geographical locations and yield. These include Reference, functional analysis. It allows for identify-
often poses additional challenges: Expected and Specific Yield, Performance ing the faults straight from the inverter
• Clipped effects may cause errors in yield Ratio, Temperature Corrected PR, Energy to the string-level and categorising them
analysis. Performance Index, Technical Availability accurately to chalk out the required correc-
• Season-dependent shading effects (for (Uptime) and Tracker Availability. On the tive actions. A typical 1MWac plant has
example, trees, chimneys, etc.) may other hand, O&M Service Provider KPIs approximately 100 strings (assuming 400
also introduce inconsistencies in yield capture time-series data and mainte- Wp module wattage, 28 modules/string
analysis. nance aspects of the plant. These include and an AC/DC ratio of 1.2). With utility-scale
• Monitoring databases can often Acknowledgement Time, Intervention plants of almost 200 MW, performing string
encounter incorrect/missing base Time, Response Time, Resolution Time, analysis on 20,000 strings can be quite
parameters such as tilt, orientation, etc. Schedule Attainment and Preventive v/s challenging.
• Localised irradiation measurement at Corrective Maintenance Ratios. The following image [Figure 7] shows
each project can often be too expensive. the performance of strings based on their
Loss Bucketing current w.r.t, the best-performing strings,
Project-Level Analysis A fault-induced generation loss is consid- and their digital twins. This kind of string-
Generation Forecasts ered a significant cause of concern when it level device analytics helps us rank string
Figure 7: Device
The project-level analysis includes impacts the Performance Ratio (PR) & Plant Analytics of performance by estimating the deviation of
generation forecasts that typically leverage Availability beyond a threshold - measured String. the string current w.r.t the best-performing
string and their digital twins.
With the introduction of bifacial module
technology in the solar industry, asset
owners focus on adopting trackers in
utility-scale plants. Performance Genera-
tion at the string-level can also be analysed
through losses from trackers not operating
correctly. The following image [Figure 8]
shows the loss of energy generation due to
Source: Prescinto Inc.

the misoperation of trackers.

Big Data Mining algorithms can thus
help in performing failure root-cause
identification for larger portfolios as well.

62 | May 2023 | www.pv-tech.org

 plant performance

Including new devices and ever-

advancing technologies further makes
overall performance analysis even more
crucial. Another challenge is the complex-
ity of projects to drive/operate hybrid
projects that integrate Solar Energy,
Wind Energy and Battery Energy Storage
Systems. Upgrading module technologies
Source: Prescinto Inc.

from standard Mono-facial Modules to

HJT/TOPCon Technologies might pose
unique challenges in field performance.
Similarly, in BESS, adopting new battery
technologies like Solid-state/Sodium-ion
Conventional Approach: Physical Figure 8: Device to perform string-level analysis and Batteries would require in-depth analytics
Models Analytics of identify the string performance. Here, from a performance point of view. These
Tracker.
The conventional approach to identify- type analysis of the fault phenomenon altogether result in making performance
ing issues in the solar plant is through associated with photovoltaic systems analytics even more sophisticated.
physical models. For instance: Common determines the appropriate Artificial
photovoltaic faults associated with PV Intelligence algorithms for fault detection Conclusion
modules are generally one of the five key modelling. For instance, Residual Neural An effective approach is necessary
categories: Hot Spot Faults, Degradation Networks (ResNet), Bayesian Neural to improve the underperformance
Faults, Short Circuit Faults, Open Circuit Networks (BNN), Probabilistic Neural identification process and reduce the
Faults and Shading Faults. Networks (PNN), Fuzzy-logic techniques, time required to resolve device issues. In
Each fault category corresponds to Artificial Neuron Networks (ANN), etc., addition, this solution should allow for
a specific physical phenomenon and and more. drilling down from the portfolio level to
is identified using I-V & P-V Curves and Apart from fault identification, data the string level quickly and efficiently.
models such as One-diode Model. preprocessing forms an assignable part of This would drive cost savings through
However, this approach is highly time- AI applications in the field of Solar Energy. reduced manpower requirements and
consuming as it requires an in-depth Many experts have attempted, e.g., increased energy generation. A digital
analysis of large data values and requires Kalman Filter Fast Fourier Transformation solution, commonly called an Asset
a lot of subject matter expertise. AI-driven (FFT), to achieve clean data availability for Performance and Management (APM)
data models can address this issue by expediting calculation speed. platform, to address these requirements
training large data sets on particular is thus an essential means for renewable
algorithms and making the process much Recommendations asset owners and operators. „
more efficient. Challenges and Way Forward
Globally, the size of Renewable Portfolios Authors
Artificial Intelligence Data-Driven is now accumulating to meet the ever-
Models increasing energy demands and net-zero Stuti Gupta is the Solar Lead
at Prescinto, an AI-powered
Data-driven models with an Artificial emissions targets set by various world
asset performance manage-
Intelligence core are often applied across countries. For example, the US aims to ment platform for solar,
data preprocessing, processing and post- achieve a total solar installation capacity wind and energy storage
processing techniques. of 850GW by 2030, eventually reaching a assets. Stuti brings a wealth of experi-
For example, the Pattern Recognition net-zero emission target by 2050. ence of working in the solar industry,
Figure 9:
Methods used focusing on asset management, design
approach can identify shadow-related Challenges for managing scale include
in Data-based & engineering, and solar module
losses. Additionally, the correlation of requirements for additional subject- technology. Besides her technology
Fault Detection
plant parameters like irradiation w.r.t. Algorithms for PV matter expertise, workforce and techno- management role at Prescinto, she’s
string currents can be an ideal approach Systems logical advancements in the future. an alumna of the Indian Institute of
Technology (IIT), Bombay, and holds a
Master’s Degree in Renewable Energy
Science.

Abhishek Puttanna is the

Performance Excellence
Head at Prescinto.
Abhishek has worked in
the renewable energy
industry for more than seven years.
He has rich experience in leading
Digital Transformation, Performance
Management & Operations of Utility-
scale/C&I Solar and BESS projects. He
holds an Electrical Engineering Degree
from Delhi College of Engineering.

www.pv-tech.org | May 2023 | 63

 products

Product reviews
Trackers Vanguard 2P bifacial tracker and high performance Vertex N (NEG21C.20) modules

TrinaTracker achieves yield and snow loads and high significantly reducing the balance of system
performance with higher wind stabil- winds – even cyclonic (BOS) cost over the product’s lifecycle.
ity: Trina Solar is launching the second winds. The shorter
generation of its fully integrated Vanguard and wider piling post Unique features & benefits: All Trina Solar
2P bifacial tracker and high performance for the 2P Vanguard ‘Vertex’ modules use larger-size solar cells,
Vertex N (NEG21C.20) modules. Developed tracker, in combina- 210mm long, that generate more power
in collaboration with wind engineering tion with its patented than earlier generation, smaller-size cells.
consultancy, Rowan Williams Davies & Irwin spherical bearings, The company’s solar modules incorporate
Inc. (RWDI), the tracker offers a complete enables deployment on sites with extremely other market-leading technologies, such as:
solution of stability under extreme weather uneven terrain. multi-busbar (MBB) for greater light absorp-
conditions. tion; non-destructive cutting for better
Technical solution: The first-generation mechanical performance; and high-density
Market & Applications: Trina Solar is the trackers were powered by a single electric packing to maximize the surface module
only solar module manufacturer that can motor which operated multiple drive area. The tracker includes the TrinaTracker
provide an integrative module and tracker points through a mechanical drivetrain, with ‘Supertrack’ algorithm that optimises the
solution with its Vanguard 2P bifacial tracker the second-generation tracker has multiple panel tilt - to maximise light absorption and
for utility-scale PV power plants with high motors to reduce installation and mainte- electricity generation – using topographical
winds and uneven terrain. nance time, improve uptime and ensure and machine learning from real time data
improved tracking synchronisation at all on weather and inter row shading. Bifacial
Industry challenges: The trackers are times. The Vanguard 2P second generation modules can reduce the levelised cost of
designed to withstand difficult weather tracker enables angle alignment through electricity(LCOE) by 4% and significantly
conditions: high heat and humidity, extreme the mechanical action of three actuators boost project investment rate of return (IRR)
cold temperatures, flood inundation, heavy powered by individual motors, therefore for investors, according to the company.

Microinverters Hoymiles HMS-C series of microinverters

Smart energy provider and microinverter module can Hoymiles’ classic HMS series. The C and D
manufacturer Hoymiles has released new influence series all come with 1600VA, 1800VA and
microinverters that are expected to lower the size of 2000VA output power PV module options.
the upfront cost for customers while not your overall Output power up to 2000VA.
compromising the overall performance. harvest.
The new HMS-C series of microinverters Microinvert- Unique features & benefits: The new
are available in Europe, North America and ers realise HMS-C series have four input channels,
Oceania, and the HMS-D series of the true meaning that one microinverter can be
microinverters are available in Latin potential of connected with four into one (4-in-1)
America and Asia Pacific. solar by giving seamless, always-available solar panels at once, for the same capacity
performance. If one module fails or runs demand. CEC peak efficiency is up to 96.7%,
Market & Applications: Commercial and into issues, the rest of the system stays up promising greater solar yield, lower per-watt
residential rooftops with new mainstream and running at peak performance in 4-in-1 costs and shorter payback period.
high performance PV modules microinverters.
Availability: Currently available in Europe,
Industry challenges: Using traditional Technical solution: These microinverters North America and Oceania Latin America
inverters, even one under-performing are the cost-effective versions added to and Asia Pacific.

Piling robot Built Robotics RPD 35 autonomous solar piling system

Built Robotics has launched the robot piling utility-scale solar project. Solar piles are
drive RPD 35, the world’s first fully autono- generally steel H-beams 12 to 16 feet in
mous solar piling system for large-scale PV length and up to 200 pounds in weight. A
power plants. The ‘Exosystem’ installed on typical solar farm requires tens of thousands
excavators enables the machines to operate of piles to be installed.
autonomously. It includes an all-weather
enclosure and full-vision safety -sensors. Technical solution: The RPD 35 combines
all the steps in the piling process – survey,
Market & Application: An autonomous pile distribution, pile driving, and inspection
h-beam piling system for rapid, safe and – into one package. With the robotic pile
precise piling on large-scale PV power driving (RPD 35), a two-person crew can
plants. install over 300 piles per day. the machines to operate autonomously. It
includes an all-weather enclosure, proximity
Industry challenges: Piling is a complex Unique features & benefits: The ‘Exosys- radar, 360° cameras, GPS tracking, and a
construction activity at the heart of every tem’ is installed on excavators to enable powerful liquid-cooled computer.

64 | May 2023 | www.pv-tech.org

 Sa v
all e
tick 15%
ets on
PVT se cu
P15 ode:

7 - 8 November 2023 | New Yorker Hotel, New York

10 Years of Connecting Solar & Storage Projects with Capital

What to Expect This Year:

400+ 80+ 25+ 78% 25+

Attendees World-Class Presentations/ Decision Makers States
Speakers Panels Represented

Our 2023 Speakers Include

Aaron Klein Alice Heathcote David Sandbank Sripradha Ilango Chris McKissack Lan Adair Sasa
Managing Director, Power Chief Financial Officer Vice President - Distributed Chief Financial Officer Chief Executive Officer Director
and Renewables Team Strata Solar Energy Resources Soltage Glidepath Enhanced Capital
Storage Expert Technologies (New York
KeyBanc Capital Markets State Energy Research and
Development Authority)
NYSERDA

Our 2023 Sponsors

Supporting Sponsors

Exhibitors Editorial Partners

Register for your ticket today! financeusa.solarenergyevents.com

 Design and Build

Transforming the Urban Landscape:

BIPV and Nature-Based Solutions for
a Greener, New Era of City Living

Building-Integrated PV | Architect Dr Silke Krawietz on how Building-integrated Photovoltaics can Credit: Shutterstock, chanchai duangdoosan

be used in existing and new buildings and urban structures to create built-up environments that
harness the power of nature.

A
s the world continues to face the stakeholders in the real estate and finance Singapore, Super- aesthetic appeal of buildings and urban
challenges of climate change, sectors for urban transformation, as well trees at Gardens spaces.
by the Bay. The
pollution, and depleting natural as into the impact of the new IPCC report On the other hand, nature-based
tree structures
resources, there is an increasing need for on urban planning and decarbonisation are fitted with solutions involve harnessing the power of
transformative approaches to urban devel- efforts, and key drivers and trends shaping photovoltaic nature to address urban challenges, such
opment. One such approach is the integra- the future of urban living. panels. as stormwater management, enhancing
tion of Building-integrated Photovoltaics Building-integrated Photovoltaics (BIPV) green spaces, promoting biodiversity,
(BIPV) and Nature-Based Solutions (NBS) in solutions offer a unique opportunity to improving air and water quality and
city planning and design. harness solar energy by incorporating climate adaption. Nature-based Solutions
This article explores the potential of photovoltaic modules into the fabric of (NBS) leverage nature and the power of
these innovative technologies in shaping buildings and urban structures, enabling healthy ecosystems to protect people,
a new era of urban living that is both them to generate clean, renewable energy optimise infrastructure and safeguard a
sustainable and harmonious with nature. on-site. This not only reduces the reliance stable and biodiverse future.
It also delves into the collaboration of on fossil fuels but also improves the NBS are defined by the International

66 | May 2023 | www.pv-tech.org

 Design and Build

Union for Conservation of Nature (IUCN) ever-increasing demand for energy to responsible for around the same share of
as “actions to protect, sustainably manage, power cities. This has led to a growing CO2 emissions (C40, Energy & Buildings).
and restore natural or modified ecosystems reliance on fossil fuels, which are not only According to the IPCC report the global
that address societal challenges effectively finite but also contribute to air pollution energy use in buildings could double or
and adaptively, simultaneously provid- and climate change. In order to mitigate even triple by 2050, as the world’s popula-
ing human well-being and biodiversity these negative impacts, cities must focus tion living in cities is projected to increase
benefits.’’ on generating renewable energy from further in the next decades. Therefore,
By combining these two strategies (BIPV clean sources like the sun, wind, and on-site generation of electricity through
and NBS), cities can transform their urban water. integration of renewable energies and in
landscapes into greener, more resilient, and Renewable energy generation in urban particular building-integrated photovolta-
energy-efficient spaces, paving the way for areas not only helps to reduce green- ics (BIPV) has a huge untapped potential.
a environmentally friendly future. Moreover, house gas emissions but also creates local
incorporating NBS in urban design, cities jobs and stimulates economic growth. Collaboration of stakeholders in
can foster a sense of connection between Furthermore, it enhances energy security the real estate and finance sector
people and nature, promoting well-being and reduces the vulnerability of cities to for urban transformation
and enhancing the overall quality of life. fluctuations in global energy markets. The finance sector can also contribute
In the face of the new IPCC report and As cities continue to grow and evolve, to the cities’ transformation by creat-
the urgent need for decarbonisation, cities embracing renewable energy technolo- ing new business models that support
must embrace a whole-system interliving gies is crucial for ensuring a sustainable the adoption of BIPV and NBS. This may
approach that characterises communities and resilient future. include climate finance solutions that
in nature. This requires re-greening cities, The international net-zero targets incentivise the development of projects
enhancing BIPV solutions for electric vehicle cannot be met without considering the incorporating these technologies, as
charging infrastructure, and implement- importance of buildings and in particular well as collaboration with the real estate
ing innovative and inclusive climate action cities, based on the fact that worldwide, sector to ensure the availability of suitable
emerging from cities. buildings are responsible for 37% of properties for such projects.
global carbon emissions and 34% of Achieving urban transformation
The importance of renewable Singapore, Aerial energy demand (Source: GlobalABC requires the concerted efforts of stake-
view of the
energy generation in urban areas Status Report 2022). At a global level, holders from various sectors. In particular,
artificial island
With more than half of the world’s popula- Gardens By the cities consume more than two-thirds collaboration between the real estate and
tion now living in urban areas, there is an Bay. of the world’s energy resources and are finance sectors is crucial for developing

Credit: Shutterstock, Only Fabrizio

www.pv-tech.org | May 2023 | 67

 Design and Build

Singapore, Super- Supertrees, located at Gardens by the Bay,

tree detail with PV are a great example. These Supertrees
modules
incorporate photovoltaic panels into their
design. The electricity generated from
these panels is used to power the lights
that illuminate the Supertrees at night.
Of the 18 Supertrees in this urban
parkland, 11 are fitted with solar photo-
voltaic systems, creating electricity that
Credit: Gardens by the Bay

provides light within the site’s conserva-

tories.
The Supertrees act as vertical gardens,
generating solar power, acting as exhaust
air towers for nearby conservatories, and
collecting rainwater.
new business models that promote the Re-greening cities and creating
adoption of BIPV solutions and NBS in harmony with nature through BIPV Marina Bay Sands Hotel, Singapore
cities. These stakeholders play a critical and NBS Among other buildings in Singapore
role in providing the necessary resources, Re-greening cities through the integration that have adopted BIPV technology is
expertise, and support for the imple- of BIPV and NBS is essential for creating the Marina Bay Sands Hotel, which has a
mentation of innovative urban solutions. harmony with nature and fostering a new rooftop solar panel system. This technol-
This collaboration can take various forms, age of urban living. By incorporating green ogy is not only environmentally friendly
such as joint ventures or public-private spaces, promoting biodiversity, and invest- but also cost-effective for building owners.
partnerships, which can help mobilise the ing in clean energy technologies, cities To further improve energy efficiency,
necessary resources and expertise. can significantly improve their ecological Marina Bay Sands installed a 145 kWp solar
For example, real estate developers footprint and enhance the quality of life power system atop the Sands SkyPark
and investors can contribute by prioritis- for their inhabitants. – the highest location of solar panels in
ing sustainable building practices and For example, Singapore has embraced Singapore. Covering an area of 880 square
incorporating BIPV and NBS into their the concept of a ‘City in a Garden’ by metres atop the SkyPark walkway, the roof
projects. This not only helps to create integrating green spaces and BIPV of the restaurant Spago, and the roofs on
more sustainable cities but also enhances solutions throughout its urban landscape. the elevator shafts of Tower 1 and Tower
the long-term value and attractiveness of This includes the creation of parks, 3, the 536 solar panels generate enough
their assets. gardens, and green corridors that not energy to power all lighting on the Sands
Another example of successful only serve as recreational spaces but also SkyPark and will enable Marina Bay Sands
collaboration between the real estate and promote biodiversity and improve air to reduce carbon emissions.
finance sectors is the development of quality. The government of Singapore has taken
green bonds, which are used to finance proactive steps to promote BIPV technol-
projects with environmental benefits, such Gardens by the Bay, Singapore ogy in the city. They offer subsidies and
Singapore,
as renewable energy generation, energy BIPV in Singapore has become a popular Marina Bay Sands incentives to building owners who install
efficiency, and climate adaptation. solution for the city’s energy needs. The Hotel. BIPV systems. This has encouraged more
This includes providing climate finance
solutions that promote investment in BIPV
and NBS projects, as well as supporting
the development of innovative financial
instruments that enable cities to access
the necessary resources for urban trans-
formation.
By investing in projects that incorporate
BIPV solutions and NBS, the finance sector
can support the decarbonisation of cities
and help them reach vital climate targets.
Furthermore, collaboration between
these stakeholders can lead to the
development of innovative financing
Credit: Shutterstock, Vichy Deal

mechanisms, such as performance-based

contracts, which link financial returns
to the environmental performance of
projects. This can help incentivise the
adoption of BIPV and NBS, as well as
encourage the continuous improvement
of these technologies.

68 | May 2023 | www.pv-tech.org

 Save 15%
on all tickets
with code
PVTP15

6-7 June 2023 | Napa, USA

Understanding PV module supply to the

U.S. market in 2023 & 2024
“An excellent experience, bringing many “Excellent speaker line up and relevant “To have access to the biggest module
of the key players in the US solar module topics of interest. Overall a great event.” manufacturers and hear about their latest
market to one place.” Andrew Sundling, White Pine Development technologies, factories, and initiatives in an
Kevin Graves, Oriden Power intimate setting was incredibly valuable.“
“Excellent! Great speakers, eye-opening Shawn Shaw, Camelot Energy Group
“Excellent content, and a first-class group content, and an intimate networking setting
of attendees.” with the who’s who of the solar industry.” “This is a critical conference for those
Jesse Nickerman, PI Berlin Karen Drozdiak, First Solar involved in procuring or operating PV
technology.”
Rob Andrews, Heliolytics

Contact us for more information

w moduletechusa.solarenergyevents.com e [email protected]

The industry’s most trusted PV module supplier bankability rankings

– quarterly-updated analysis from PV Tech Research
The report provides everything you need to benchmark all your existing/potential suppliers against each
other in terms of bankability, limit your supplier short-lists to only the most financially stable, risk-averse
companies and help you avoid the near-bankrupt entities claiming to be “Tier 1 suppliers”.

• Unparalleled company data, analysis and forecasting for

more than 50 of the major global module suppliers to the
industry, refreshed each quarter
• Financial operations of each company - both public-listed
and privately-held - in a clear, understandable format, all
benchmarked to PV industry operating norms
• Technology and module shipment trends, updated
quarterly, forecast to the end of current calendar years,
including company in-house production by region,
technology and capex/R&D
• A must-have for buyers of modules or anyone undertaking
assessment of potential suppliers at the utility scale level.

We are offering free introduction webinars to companies interested in accessing the full range of services
available – email [email protected] to find out more marketresearch.solarmedia.co.uk
 Design and Build

Credit: Shutterstock, Olrat

building owners to adopt this technol- La Seine Musicale,
ogy and contribute towards a sustainable Boulogne-Billan-
future. court, France.
In conclusion, BIPV in Singapore has
become an essential part of the city’s
sustainability strategy. With increasing
awareness about environmental issues,
more and more buildings are adopting
the technology.

Credit: Shutterstock, ChristopherGerorge

The Supertrees and Marina Bay Sands
Hotel are just a few examples of how
BIPV technology has been incorporated
into Singapore’s urban landscape. With
the government’s support, it can be
expected to see more buildings adopting
BIPV technology in the near future.
Tokyo in Japan and and Kuala Lumpur
in Malaysia are two cities that have La Seine Musicale, Innovative BIPV solution.
also taken significant steps towards
integrating BIPV and NBS in their urban
landscapes. In Tokyo, various initiatives low-carbon society between Tokyo and La Seine Musicale, France
have been implemented to promote the Kuala Lumpur has been created, focusing In Europe there are also exceptional
use of solar energy in buildings, such as on initiatives for buildings to decarbonise. landmark examples for BIPV, such as La
the Solar City Tokyo project, which aims The Malaysian capital, on the other Seine Musicale featuring an egg-shaped
to install rooftop solar panels on 100,000 hand, has adopted the River of Life project, auditorium and a wall of solar panels that
homes by 2030. which involves the revitalisation of the move to follow the path of the sun. The
Tokyo implemented the world’s city’s river systems using NBS, such as rain Japanese architect’s Paris-based office
first urban Cap-and-Trade Program gardens, bioswales and wetlands. By learn- Shigeru Ban Architects collaborated with
(TCTP) already in 2010, requiring CO2 ing from these case studies, cities around local architect Jean de Gastines on the
reductions from large commercial and the world can develop their own strategies complex near Paris, located on the Ile
industrial buildings. This programme also for re-greening and creating harmony Seguin close to Boulogne-Billancourt.
supported the adaption of BIPV solutions with nature, including use of solar energy The ovoid structure’s latticed laminated-
in the city. in buildings through innovative BIPV timber frame is sheathed in glazing and
A city-to-city collaboration for solutions. sheltered from direct sunlight by a sail-

70 | May 2023 | www.pv-tech.org

 Design and Build

like surface covered with photovoltaic The new era of urban living: key of these facilities, making them more
modules. drivers and trends attractive to users and the surrounding
The triangular sail is mounted on rails The new era of urban living is character- community.
that allow it to follow the path of the ised by various key drivers and trends,
sun, therefore increasing its efficiency such as the growing awareness of the Conclusion: Embracing the
and ensuring the lobby behind is need for sustainable development, the power of BIPV solutions for cities
shaded throughout the day. increasing demand for energy-efficient and nature-based strategies for a
buildings, and the rising importance sustainable future
Envisioning a sustainable future: of climate resilience. These drivers are In conclusion, the integration of BIPV
whole-system interliving in shaping the adoption of BIPV solutions solutions and nature-based strategies
urban communities and NBS in cities, as well as influenc- in city planning and design offers a
Building-integrated Photovoltaics and ing the way urban spaces are planned, unique opportunity for transforming
Nature-based Solutions in urban design designed, and managed. the urban landscape into greener, more
can pave the way for a sustainable One of the main drivers of this resilient, and energy-efficient spaces.
future characterised by whole-system new era is the growing awareness of By harnessing the power of renewable
interliving, where communities in cities the need to reduce CO2 emissions to energy and natural processes, cities
function in harmony with nature. This mitigate climate change. This has led to can address various environmental
vision entails the development of urban the development of various initiatives, challenges, such as climate change, air
spaces that are resilient, adaptive, and such as the C40 network, which brings pollution, biodiversity loss and resource
self-sustaining, with minimal reliance together cities from around the world depletion.
on external resources and energy to share knowledge and best practices The various opportunities described
inputs. for reducing emissions and enhancing above for integration of photovoltaics
Achieving this vision requires a shift climate resilience. The new IPCC report into urban structures could be applied
in the way cities are planned, designed, also highlights the importance of decar- by city administrations for enhancing
and managed, with an emphasis on bonisation efforts in urban areas, given renewable energy production in cities
the interconnections between various their significant contribution to global and to enhance the quality of life of its
elements, such as energy, water, food, emissions. inhabitants.
and waste. By adopting a systems Another key trend in the new era of To realise this vision, it is essential
approach, cities can optimise the use of urban living is the increasing demand for for stakeholders from various sectors,
resources, minimise their environmen- energy-efficient buildings. This has been including the building industry, finance
tal impact, and enhance their resilience driven by the rising costs of energy, as sector, and local governments, to
to climate change. well as the growing recognition of the collaborate and develop innovative
environmental and health benefits of solutions that promote the adoption
Integrating NBS and BIPV in energy efficiency. BIPV solutions offer a of BIPV and NBS. By working together,
urban design unique opportunity for cities to meet this these stakeholders can pave the way for
The integration of NBS and BIPV in demand by harnessing solar energy and a new era of urban living.
urban concepts is a critical step towards incorporating it into the built environ- By embracing the power of BIPV
transforming cities into greener, more ment. solutions and nature-based strategies,
resilient spaces. This can be achieved cities can create a new era of urban
by incorporating these technologies in The untapped potential of BIPV for living that is not only environmentally
various aspects of city planning, such electric vehicle charging infra- friendly but also economically viable
as zoning, building codes, and urban structure and socially inclusive. Now is the time
design guidelines. For instance, cities The integration of BIPV solutions in cities for cities around the world to seize
can encourage the adoption of BIPV not only offers the potential for renew- this opportunity and work together to
solutions by offering incentives, such able energy generation but also presents create a sustainable and resilient future
as tax breaks or subsidies, for property an opportunity for the development of for all. „
owners who install photovoltaic electric vehicle (EV) charging infra-
systems on their buildings. structure. With the global push towards
In addition, cities can promote electrification of transportation, there is a Author
the use of NBS in urban design by growing need for accessible and reliable
Dr. Silke Krawietz is an architect specialised in
incorporating green infrastructure, charging infrastructure in urban areas. biophilic design, sustainable buildings and renew-
such as green roofs, vertical gardens, BIPV systems can be integrated into able energies, in particular Building-Integrated
and permeable pavements, into their the design of EV charging stations, Photovoltaics (BIPV). She earned her Ph.D. with hon-
planning and development processes, providing a clean and renewable source ours at TU Darmstadt, Germany. She collaborated for
many years with the European Commission and the European
in combination with BIPV solutions. of power for charging electric vehicles.
Institute of Innovation & Technology (EIT), EIT InnoEnergy. Dr.
This can not only enhance the aesthetic This not only reduces the reliance on Krawietz is the CEO and Founder of SETA Network, an architec-
appeal of urban spaces but also provide fossil fuels but also contributes to the tural consultancy which aims to combine the environment, tech-
various environmental benefits, such decarbonisation of the transportation nology and architecture and help create buildings that harness
as improved air quality, reduced heat sector. Furthermore, the incorporation the power of nature, through BIPV, Biophilic Design and Nature-
based Solutions. Dr. Krawietz is member of the Global Alliance
island effects, and enhanced biodiver- of BIPV in EV charging infrastructure
for Buildings and Construction (GlobalABC), Paris.
sity. can also enhance the aesthetic appeal

www.pv-tech.org | May 2023 | 71

ADVERTORIAL

The smarter E Europe: enormous

potential of parking lot PV
S olar Promotion Group writes on the benefits of carports with
integrated photovoltaics
Ambitious climate protection goals and the energy sovereignty pursued
by many countries are turning photovoltaics (PV) into a game changer. In
addition to solar installations in open fields and the roofs of private homes,
alternative spaces are on the rise: Parking lot PV, which includes PV installa-
tions on carports as well as roofing over vehicle parking lots.
These applications come with many advantages: Twice as much use can be
made of developed areas, the roofing provides sun and weather protection
and, in conjunction with wallboxes and charging stations, the electricity can
be used right where it is generated.
With parking lot PV, companies in the industrial sector and properties
used for commercial purposes are able to secure their own supply with solar
power, while large parking lot facilities can contribute to the development of a kilometers result in a specific yield of 930 kilowatt hours (kWh) per year, assum-
comprehensive charging infrastructure for electromobility and, in turn, to the ing PV is applied to the entire surface of these spaces. This would correspond
transportation transition as a whole. to a technical capacity potential of 59GW peak (GWp).
As another positive side-effect, operators gain a considerable boost to their
reputation: By producing and using clean electricity, they fulfill their climate Long planning times and high investment costs
protection obligations and generate added value from parking lot areas. In However, parking lot PV has several obstacles to overcome to make its big
addition, the roofing protects the surface of the parking lot. breakthrough: Owing to regulatory building specifications, both planning
According to Market Data Forecast statistics, in 2022 the global solar carport times and standards are currently higher than for traditional roof-mounted
market reached a record high of US$524 million and is predicted to grow to systems. Investment costs are also higher, as specialist roofing structures are
US$685 million by 2028. included in the calculations.
In Germany alone, the potential for parking lot PV is enormous: Almost a There is also a lack of incentives for existing parking lots. At least some
quarter of the 215 gigawatts (GW) of installed PV capacity targeted by the German states have introduced a PV obligation for new parking lots. When it
German government for 2030 could stem from parking lots, says Fritz Haider comes to the German Renewable Energy Sources Act (EEG), there is also room
from the Fraunhofer Institute for Solar Energy Systems ISE. According to his for improvement: Parking spaces with PV roofing are considered to be other
calculations based on OpenStreetMap data, parking lots cover a total area of structural installations, which makes them subject to base remuneration.
47,060 hectares with around 360,555 parking spaces. This does not currently reflect the fact that investment costs are up to 50%
Calculations based on a technical surface area potential of 284 square higher than for regular rooftop installations, and leads to parking lot PV only

72 | May 2023 | www.pv-tech.org

 ADVERTORIAL

Solar carports can feed the power straight into the parked vehicles

being considered economically viable in conjunction with self-consumption at their Silverton Assembly Plant production site in Pretoria, South Africa. It
and electromobility integration solutions. covers 3,610 parking spaces, meeting 35% of the plant’s electricity demand.
The largest PV parking lot in Germany is currently being built at the MOSOLF
Slimline structures made from natural materials Group’s logistics centre in Rackwitz, Saxony. The installation will span an area
The installation of parking lot PV systems has a lot to offer in the way of of nine hectares and consist of 35,000 solar modules, reaching a peak capacity
creative scope: Besides building a roof across the entire parking lot area, of 16MW and covering approximately 6,000 parking spaces. The green energy
another option is to cover the parking spaces only. Aesthetically pleasing produced is fed into the grid and the installation generates 40 times more
carport structures are possible thanks to developments aimed at keeping steel electricity than the company itself consumes.
frames and roofs as lightweight as possible, as well as promoting the use of Another large-scale project was carried out in Germany, at Düsseldorf Weeze
natural materials such as wood. Airport. A 4MW solar installation is mounted over 66 carports, which covers
A good example of this is the PV carport located on the premises of utility 1,350 parking spaces, and the electricity produced is used directly by the
company EnergieDienst in Rheinfelden, Germany. The 504 PV modules form airport.
a semi-transparent roof covering. A hybrid structure comprised of wood and
steel was used to construct the roof. The installation also features 14 wallboxes, Solar carports at The smarter E Europe 2023
each with a charging power of 22kW alternating current (kW AC), and a 110 The latest trends and innovations for PV carports will be presented at The
kWh battery storage system. smarter E Europe, the continent’s largest platform for the energy industry, and
its four parallel exhibitions Intersolar Europe, ees Europe, Power2Drive Europe
Pioneering projects in parking lot PV and EM-Power Europe from June 14–16 at Messe München. The outdoor area
The world’s largest parking lot PV system is currently located in Biddinghuizen features an exhibition segment on solar carports.
in the Netherlands: This 35MW solar carport has 90,000 solar panels and covers At these exhibitions, visitors will learn more about the latest applications
15,000 parking spaces connected to an events venue, where several large and intelligent combination solutions. They can expand their expert knowl-
music festivals are held every year. Just 1% of the electricity generated is used edge at the four accompanying conferences, seven topical exhibition forums
to operate the festivals and the rest is fed into the grid. During the periods as well as numerous side events. More than 2,200 exhibitors will be showcas-
when no festivals are taking place, sheep graze on the 35-hectare site. ing their products on 180,000 square meters across 17 exhibition halls and an
The automobile manufacturer Ford utilises parking lot PV as a way to help outdoor area. More than 85,000 international visitors are expected to attend.
achieve its company goal to exclusively use climate-neutral electricity by 2035.
Ford has installed a 13.5MW parking lot PV system with 30,226 solar modules www.thesmartere.de/home

www.pv-tech.org | May 2023 | 73

 financial, legal, professional

Nationally Significant Infrastructure

Projects: A key enabler of the UK’s
energy transition
NSIPs | George Heynes explores how the UK’s Nationally Significant Infrastructure Projects
regulations support the transition to a green energy economy

consent, which combines planning permis-

sion with a range of separate consents
from different agencies. Crucially, it also
set time limits for various stages, requiring
the Planning Inspectorate to determine
whether to accept an application within 28
days, examine it for six months and then
make a recommendation to the relevant
Secretary of State, who is then given a
further three months to decide whether to
grant it.
Credit: Wikicommons, ANeely2020

“While it may not have gone as far

as many in the industry would like, this
process has facilitated the accelerated
deployment of much-needed solar, helping
bolster generation capacity and energy
security.”
Indeed, the NSIP process has seen
several successes within the energy indus-

I
n the UK, renewable power genera- UK solar project the Planning Inspectorate, a government try, especially in the solar sector where 10
tion technologies grow in both scale agency which became responsible for projects have been explored as part of the
and number, with impending decar- NSIPs under the Localism Act in 2011. NSIP regime.
bonisation targets looming in the coming The process has been regarded as The first solar project to be accepted
decades. positive since its inception and has reduced under the NSIP process, the 373MW Cleve
But with planning constraints impacting the time to achieve development consent Hill Solar Park, started construction in
the rollout of solar and other renewable to an average of around four years instead late April 2023. Once complete, which is
energy projects across the UK, Nationally of the eight years, for example, it took to scheduled for the end of 2024, it will be the
Significant Infrastructure Projects (NSIPs) consent Heathrow Terminal 5 via a conven- UK’s largest solar and battery site featur-
could be required to bolster the generation tional planning inquiry. ing more than 150MW of battery energy
capacity of the nation. Multiple solar projects are currently storage.
NSIPs were first introduced via the being explored as part of the NSIP scheme Jon Chappell, senior policy adviser at
Planning Act 2008 in a bid to streamline in the UK. But how have NSIPs already the National Infrastructure Commission
key developments for the UK to achieve supported the renewable and solar sector? (NIC), believes NSIPs can further enhance
targets in the fields of energy, transport, And how could the reforms benefit the the solar industry by helping deliver
water, waste and wastewater. wider UK energy system and bolster energy massive projects, much like Cleve Hill, at a
As the Russian invasion of Ukraine in security prospects? rapid pace. For this however, the planning
February 2022 plunged much of Europe system must be flexible.
into an energy crisis, the UK government How NSIPs are supporting the UK “With the cost of solar generation
stressed the need to both decarbonise energy transition continuing to drop and the technology
and improve energy security. For this, NSIP The NSIP process, according to Matthew further improving the yields available
projects could become an important tool. Pixton, head of planning for SSE Solar and from new projects, we think it’s important
The current process involves several Battery, was created to streamline and that the future planning system is flexible
stages. These include pre-application, improve England’s planning regime when enough to recognise the changing nature
acceptance, pre-examination, examination, it was introduced in 2008. of the market, the technologies, and the
recommendation and decision as well as a He says: “The NSIP process set up a potential for delivering at scale,” Chappell
post-decision. The process is conducted by ‘one-stop-shop’ for projects to gain says.

74 | May 2023 | www.pv-tech.org

 financial, legal, professional

Credit: Pxfuel
“For example, the threshold currently in Multiple solar a 2035 date for a solar and storage site in a public ignorance, but also an absolute
place for solar projects to qualify as NSIPs projects are Durham. vacuum in public policy,” says Mark Owen-
currently being
is too low, and no longer reflects how the NSIPs, as discussed by Chappell, could Lloyd, project lead for the Botley West solar
explored as
technology is delivering a much higher part of the NSIP be one method in removing this obstacle project, in response to the public consulta-
yield for the same amount of land. Under scheme in the UK and still allowing large-scale renewable tions on the Botley West project.
the local planning system, projects below energy to be connected to the grid. “[The Botley West project] is a hard sell
50MW can get approved in less than a year.” to immediate neighbours such as people
Chappell adds: “But with projects under Obstacles when constructing NSIPs who are located three fields away from the
the NSIPs process taking anywhere up With the UK’s NSIP scheme having first project – they don’t want the countryside
to four or five years to get approval, this been introduced to support the creation of to change, which you can understand, with
means only the largest projects – above key, large-scale infrastructure projects up West Oxfordshire already saturated with
200MW – make commercial sense for and down the UK, several challenges and housing applications.”
developers to take forward. The end-result obstacles have come to light. Public consultations grant several
is a gap in the market for medium-sized One of the most important challenges opportunities for project developers
projects, and we think this could create to overcome is community perception. to engage with the local communities
pinch points in the solar market, with Often these large-scale projects are met and answer any concerns that may be
negative implications for future capacity. with resistance from local communities. presented. To this end, public consultations
“Securing grid connections has been This occurred for one of the UK’s largest can provide educational opportunities to
challenging, and one of the long-term proposed NSIPs – Botley West, an 840MW inform the general public. This could be
solutions to this is the rollout of new solar project in Oxfordshire. invaluable to projects currently in develop-
electricity transmission infrastructure, Project developer PVDP launched a ment, and Botley West is no different.
which is usually delivered through the public consultation in November 2022 with “There’s a lot of education you can do via
NSIP system. That’s why the Commission aims to submit a Development Consent consultations, and this is really important
has recommended that delivery of new Orders (DCO) application to PINS by the because a lot of people who come to them
transmission infrastructure be treated as a end of 2023. The project would be split are open to being persuaded. We’ve had a
high priority by the government.” across three sites in Cherwell, West Oxford- very high attendance so far and interest-
Grid connection delays have caused shire and Vale of White Horse. ingly, the parish councils have been very
major issues for the UK energy market with PVDP has been working with both supportive,” Owen-Lloyd says.
many projects now having to wait until landowners and landlords to support the “It’s good to get out there and talk to
2030 to connect new large-scale renewable project in the local area and support its people about it and I think we got a lot
generation projects. Speaking at the Aurora renewable journey. This includes Blenheim of support. The feedback coming on our
Spring Forum in March 2023 in Oxford, Estate, with whom PVDP is working to channels has been about 50/50 of support
Octopus’ CEO Greg Jackson branded ensure that the project plans are aligned and condemnation, so we’re hitting the
connection delays as ‘unacceptable’ as he with the landowners’ long-term strategies. spot with some.”
confirmed that Octopus had been offered “These consultations reveal not only As stated by Owen-Lloyd, the public

www.pv-tech.org | May 2023 | 75

financial, legal, professional

consultations have been an opportunity speed of consent. If the UK is to meet its developers invest in understanding the
to guide not only their initial proposal 2035 decarbonised power system target, communities they work in and bring them
for Botley West, but also to educate the there is a fundamental need to speed up on the journey to net zero. Incorporating
general public on the project and alleviate the development process of NSIP projects, this consideration into any reform would
some of the concerns surrounding it. particularly for renewable generation. benefit the sector as a whole by reinvig-
SSE’s Pixton also believes there are “In the last decade, the average speed orating developers’ licences to operate
benefits in aligning the project to support of consenting has shifted from 2.5 years – raising the bar in terms of accepted
local communities – helping to improve to over 4 years, and much of that can be practice while driving equity in surround-
the general consensus for large-scale NSIP attributed to the delays caused by local ing communities.
projects. Pivotal in achieving this is public objections and the frequency of judicial “Shifting perceptions away from
engagement. reviews. That delay creates significant costs, projects being done to them, without
“Delivering a major infrastructure project adds to frustrations on all sides, and delays meaningful consent, would also reduce
is no mean feat, wherever your project is delivery of the infrastructure we need,” the likelihood of them receiving the kinds
located. However, securing community Chappell says. of opposition that can cause serious
buy-in is crucial, regardless of location. Best But with the average speed of consent- project delays. While tied to bad practice,
practice developers have found equity, a ing rapidly reducing, and set to be resolved many in the industry see these unfor-
cornerstone of our engagement strategy, as part of NSIP reforms by the UK govern- tunate outcomes as symptomatic of a
to be a key driver of this,” says Pixton. ment, what else could be included to system that fails to provide certainty.”
“We’re confident that as a country, bolster the support from NSIPs? “At SSE Solar and Battery, we have set
there is widespread support for the a target of energising 1GW of solar and
green economy, and solar and battery Reforming the NSIP process battery capacity by 2027. To deliver on our
technologies already play a vital role in Earlier this year, the government stated ambitious goals, we need a regime that is
this. However, some cynical developers that the current NSIP system does not efficient and projects certainty.”
have done a poor job at communicating move with the focus and speed that is Streamlining the NSIP process could
the need for their project, its benefits, and required – something that is becoming be fundamental to ensuring not only
what it will entail for nearby communities – increasingly concerning with regards to the the development of the UK’s renewable
which will inevitably lead to opposition. As UK’s decarbonisation targets. generation sector, but also in securing
they will affect more people, due to their The government disclosed several investment to ensure the nation’s energy
size, this often equates to more backlash. reasons why there is a need to reform the sector maintains its competitiveness and
“By seeking opportunities to maximise NSIP process, one of which includes an attractiveness with the US and the EU.
the benefits of our projects for the commu- increase in the average length of time it The NIC recently released a report
nities we operate in and thoroughly engag- takes for a case to reach decision. The time detailing several recommendations to
ing with local people on this, we are aiming it took to reach a DCO increased by 65% help support the NSIP process and UK
to deliver a new generation of best practice between 2012 and 2021 from 2.6 to 4.2 renewable sector. One of the key areas
schemes, efficiently and fairly.” years. it believes should be reformed is the
Community support is also referenced Along with this, more projects are planning system to speed up the process
by Chappell as a key issue to address requiring multiple extensions of time at in developing NSIPs.
for NSIPs. However, instead of commu- the decision date. This is a key issue in the “Expanding the UK’s use of solar power
nity engagement, Chappell believes that process for offshore wind projects, with is an essential component in delivering a
“improving the way those trade-offs are the government citing the technology as low carbon economy through a successful
managed and communicated in any having some of the largest quantities of shift to fully renewable, resilient electricity
planning application will help increase deadline extensions in the statutory stages. generation. Despite the success of the
trust in the process”. To solve the issues around the NSIP contracts-for-difference in delivering
Chappell says: “Trade-offs between process, the UK government has commit- new solar capacity at lower prices, the
national and local needs are always going ted to reforming key areas. This includes planning system can sometimes create
to be feature of major infrastructure setting a clear strategic direction, bringing uncertainties for large solar projects,” says
projects, but improving the way those forward operational reforms to support Chappell.
trade-offs are managed and communi- faster consenting, realising better “It’s essential that we speed up the
cated in any planning application will help outcomes for the environment, recognising planning system for NSIPs to ensure
increase trust in the process.” the role of local authorities and strengthen- delivery of the new renewable generation
“That’s why we’ve recommended ing community engagement and improv- infrastructure the country requires.”
government develops as soon as possible ing system-wide capacity and capability. “The recommendations we’ve made
a framework setting out how different The government is hoping to pilot some to government in our new report – such
tangible benefits – such as proximity-based of the aspects of the reforms in September as five-yearly updates of National Policy
payments for households, or funding for 2023 with hopes to review the proposed Statements, better sharing of environ-
local projects – are applied, to make it clear reforms from 2025. mental data, and more tangible benefits
to communities as early as possible what On what Pixton would like to see for communities hosting new projects
they, as well as the country as a whole, will included within the NSIP reformations, – should, if accepted, help deliver a
gain.” he says: “The government should be planning system that’s faster, more flexible
Alongside this, another crucial aspect considering how the process can be further and better able to balance the needs of
has entered the NSIP debate – the average streamlined while also ensuring cynical operators, investors and communities.” „

76 | May 2023 | www.pv-tech.org

(;3262/$5 (66 (;32 %$77(5< &+$5*,1*,1)5$(;32 *5((11(:'($/ (;32
ZZZH[SRVRODURUJ (;32
ZZZHVVH[SRFRNU ZZZEDWWHU\H[SRFRNU ZZZJUHHQQHZGHDOH[SRRUJ

62/$5 (66È%%$77(5<< &+$5*,1*

62/$5È(66
*5((11(:'
*5((1 1(:'($/
($/(;32
(;32
+VOF5VF5IV
,*/5&94&06-,03&"

&91040-"3 &44&910
˖
4JODF

POMZ
FYIJCJUJPO
TQFDJBMJ[FE
JO
&YIJCJUJOH
*UFNT
&44
$PNQPOFOUT

&RVJQNFOU

QIPUPWPMUBJD
FOFSHZ
JO
,PSFB &44SFMBUFE
5FDIOPMPHZ
$POUSPM
&OHJOFFSJOH
GPS

0QUJNBM
&OFSHZ
$POTVNQUJPO
&44
4ZTUFN
˖
4ZOFSHZNBYJNJ[JOH
CZ
TJNVMUBOFPVTMZ
IPTUJOH

SFMBUFEJOEVTUSZTIPXT
BOE
DPOGFSFODFT
#"55&3:$)"3(*/(*/'3"&910
˖
)JHI
QSPYJNJUZ
PG
UIF
WFOVF
CFJOH
IFME
BU
,*/5&9
&YIJCJUJOH
*UFNT
#BUUFSZ

#BUUFSZ
.BOBHFNFOU
48

MPDBUFE
JO
UIF
4FPVM
NFUSPQPMJUBO
BSFB 4ZTUFN
#BUUFSZ
.BUFSJBMT

$PNQPOFOUT
#BUUFSZ

˖
.BSLFUJOH
TVQQPSU
UISPVHI
PGGJDJBM
NFEJB
4PMBS
1SPEVDUJPO

1SPDFTTJOH
4ZTUFN
#BUUFSZ
3FDZDMJOH

5PEBZ
NBHB[JOF
BOE
*OEVTUSZ/FXT 
8BTUF
#BUUFSZ
4ZTUFN
#BUUFSZ
$IBSHJOH

*OGSBTUSVDUVSF
4ZTUFN
˖
&YIJCJUJOH
*UFNT
1PMZDSZTUBMMJOF
4JMJDPO
4PMBS

.PEVMFT
4PMBS
1PXFS
BOE
1PXFS
(FOFSBUJPO
(3&&//&8%&"-&910
&RVJQNFOU
4PMBS
$FMM
&WBMVBUJPO
5FTU
BOE
&YIJCJUJOH*UFNT(SFFO&OFSHZ.PCJMJUZ*OEVTUSZ-PX
"OBMZTJT
&RVJQNFOU
4PMBS
.BUFSJBM
BOE
$BSCPO%JTQFSTJPO&OFSHZ4NBSU(SFFO*OEVTUSJBM
$PNQPOFOU
4PMBS
1SPEVDUJPO
&RVJQNFOU
$PNQMFY4DIPPM#VTJOFTT
1IPUPWPMUBJD
4USVDUVSF
BOE
*OTUBMMBUJPO
4ZTUFN

4PMBS
4ZTUFN
*OTUBMMBUJPO4*v0.
4FSWJDF

3&4&37&
:063
3&(*45&3
'03

#005) '3&&
&/53:

*OUFSOBUJPOBM



$BMM

]
JOUFSFYQP!JOGPUIFDPN
]
XXXFYQPTPMBSPSH
$POUBDU6T $IJOB



$BMM

]
FJMFFO!IPOPSHSPVQTDPN
]
XXXIPOPSHSPVQTDPN
financial, legal, professional

Texas PV market ripens as

major global investors drive
financing flurry
US Solar | Tom Kenning looks at the rise of solar power in Texas, a US state better known for
its role in the oil and gas industry, where a beneficial tax regime and an abundance of project
land work in favour of building out solar power generation.

W
hile California has tradition- Most of the latest projects announced SEG Solar’s different transmission and distribution
ally dominated solar headlines for Texas require large amounts of land, 1.7MW parking providers in Texas make public all the
lot solar project
in the US, Texas is now set to but compared to other states in the US, requirements for interconnection, which
at Austin Interna-
become the leading market in the country, Texas has plenty available, and big spaces tional Airport in streamlines the process. Permitting is also
demonstrated by a spate of financing deals that are close to transmission lines, says Texas said to be far easier in Texas than in most
and PPA signings in recent months. Texas’ Sylvia Leyva Martinez, senior research other US states.
interest in PV has also skyrocketed since analyst at Wood Mackenzie. Texas also
the Winter Storm Uri left millions of Texans has a huge production of oil and gas that Texas the lone ranger
without power as snow and ice paired with can be accessed by factories requiring Texas plays by its own rules in a number of
ultra-low temperatures caused widespread high energy loads. Taxes are also very low areas including permitting, isolated grids
disruption in February 2021. in Texas with no state tax, making it less and a lack of labour unions. The Electric
Unlike natural gas infrastructure above expensive than many other states that Reliability Council of Texas (ERCOT), which
ground, solar can still work in freezing mandate local tax, state tax and federal tax. runs the Texan grid, for example, is not
conditions. Recent months saw agri-voltaic “For renewable projects, the processes under federal regulation and has its own
specialist Pristine Sun bag funding for Texas for interconnection, transmission and regulatory practices.
projects, as did PV developers like Leeward distribution are easier compared to other “One thing that is very different in
Energy; and further upstream, manufac- states,” adds Martinez. “You only need local ERCOT versus other ISOs or RTOs is winteri-
turers like SEG Solar and solar recycling approval to get a large project ongoing sation of assets,” says Martinez. “ERCOT
specialists Solarcycle also obtained compared to state approval, or having does not require assets to be winterised,
financial backing. Few industry commenta- more entities involved, so it takes less time so there are lower costs compared to
tors had any substantial concern about the to develop a big project.” developing in other regions. It’s easier and
infamous fall of Silicon Valley Bank, which The Southern state also offers transpar- to some extent less expensive to develop
was a major investor in community solar. ency to clean energy developers. The projects in ERCOT just because they have

78 | May 2023 | www.pv-tech.org

 financial, legal, professional

their own regulatory frame that is less strict Helming. “Now, it’s probably three to five but no policy changes were highlighted.
compared to a federal level.” years to get through interconnection.” Instead the change has come through the
This sentiment is backed up by Jim backdoor with a shift to power purchase
Wood, CEO of SEG Solar, a Houston- Texas was always a global energy agreements (PPAs).
headquartered PV module manufacturer hub Historically, getting long-term PPAs is
which produces both TOPCon and N-type Texas is by far the largest producer of crude difficult in Texas, says Helming. Thus, many
PV modules at its Texas factory. oil in the US and has a history immersed in wind projects were built under merchant
“Look at states like California,” he says. oil and gas production. contracts, which brought more risk due to
“It’s very onerous to build out there “At a very high level, Texas has always uncertainty over future power sale prices.
whether you’re building a solar power been a global energy hub, so it’s no However, corporate buyers for renewable
plant, or you’re building a manufacturing surprise that as solar becomes the king of energy, including big tech companies for
[plant]. First and foremost, there’s signifi- energy, Texas will become the king of solar,” data centres, Fortune 2000 companies, and
cantly more permitting regulations, versus says Jesse Simons, chief commercial officer manufacturing facility developers, have
Texas which isn’t as onerous.” of Solarcycle, a pioneering PV recycling started entering the market in recent years.
There’s very little unionised labour and specialist which has a facility in Texas. “Your customer for a solar farm isn’t just
there’s a very good supply of non-union “Connected to that Texas is the fastest utilities anymore,” adds Helming. “It can be
labour, which brings down all the costs, growing solar state in the country. It will corporate buyers and they’re often willing
whether to build a plant, or even a factory, soon have more solar than any other state.” to sign 10- or 15-year contracts, which is
Wood adds. The state is so large that land is relatively long enough to raise the financing to build
cheap and it benefits from high irradiation a project, and those customers are invest-
CREZ dividends and an extremely flat geography making it ment grade and highly credit-worthy.
The current solar momentum in Texas very easy to install the largest-scale multi- So, it’s a market condition rather than a
can also be traced back to its Competi- gigawatt solar projects. regulatory condition that has improved
tive Renewable Energy Zone (CREZ) Given its history of energy infrastructure, the attractiveness of getting your customer
initiative, begun in 2005 and completed the Texan workforce is also well trained and offtake.”
in 2014, which aimed to drive massive versed in the energy landscape.
new wind energy capacity addition, says “Even though they’ve mostly been Financing players and SVB calm
Troy Helming, founder of Pristine Sun, a working in oil and gas, there’s a reason why According to Wood Mackenzie’s database,
community and utility-scale PV devel- BP Solar, Shell and these other companies amongst operational and development
oper specialising in agri-voltaics. As solar are stepping in and leading on a lot of big projects, some of the largest financiers
matches wind in terms of generating wind and solar and storage projects,” adds and investors for Texas solar appear to
power at different times of the day, this Simons. “They understand energy and this be CIT Group, Bank of America, Morgan
push for wind in Texas meant that PV could is essentially just another form of energy.” Stanley, U.S. Bank, Wells Fargo, and North
come in to fill the gaps. America Development Bank. However,
While there is capacity on the trans- Market changes not regulation Martinez adds the caveat that there could
mission lines for solar, which makes it SEG Solar’s changes be other large players in the market since
photovoltaic (PV)
attractive, getting into the interconnection PV Tech Power asked industry commenta- the analyst firm’s financing data captures
module manufac-
queue is not so easy. turing plant in tors whether any regulatory changes about 10% of all such capacity in Texas.
“It used to be a year or two,” says Texas, US had spurred the sudden financing surge, Martinez has not heard of any major
concerns around the demise of the major
community solar investor, Silicon Valley
Bank (SVB), in terms of its effects on other
banks. Instead, she notes that most indus-
try players are more concerned with the
forthcoming definition of the US’ domestic
content regulation, which will incentivise
the use of certain pieces of domestically
sourced equipment. Several manufacturers
have said their plans will adapt in direct
response to whatever the final guidance is.
For PV power plants, most of the large
utility-scale global players, all of the major
banks and the standard tax equity, finance
players are in Texas, says Wood.
“They’re all there financing, especially on
the tax equity side for projects, and there’s
some large funds out there that companies
are using and those funds are looking for
more of a fixed return or an alternative to
bonds or other types of fixed income.
“It’s similar to most of the US. All the

www.pv-tech.org | May 2023 | 79

financial, legal, professional

projects need tax equity financing, and “Developers may be looking to avoid over where to locate PV Projects. It is easy
because tax credits play a large part of that, higher curtailment risk in a region where to find land in Texas, but hard to find it
it’s all the major companies and financial much solar has already been developed,” near a transmission line that has capacity.
institutions that make profits and have lots adds Martinez. Secondly, agri-voltaics can be chosen as
of taxes. That’s who’s financing.” The PV sector in Texas is dominated by a way to keep landowners happy with
Ultimately, commentators said that large utility-scale projects using economies royalty payments or lease payments from
there is far more capital chasing invest- of scale to overcome financing hurdles, so the developer as well as continuing to
ments in Texas than there are projects. there are far fewer 5-30MW medium-size draw an income from a rancher wanting
“It’s basically to the developers’ advan- projects. to graze livestock on the property or, if
tage because it’s driving down the cost “In Texas, projects tend to be 250MW the soil is appropriate, a contract farmer
of capital as there’s more competition for and up for the most part and so you really growing crops.
debt, tax equity and sponsor equity,” says need scale to make it work,” says Wood. “It’s “In some rare cases, we’re buying the
Helming. “It’s been the case for probably economics work because the land is really land, because we’ve noticed in Texas, there
about the last four to five years and it’s cheap and labour is cheap.” are a lot of landowners who are ageing,
accelerated pretty substantially here in the “On the residential side, Texas works and the kids are not in the family business,”
last two years.” great. It’s an unregulated market so there’s says Helming. “They’re not interested in
quite a bit of residential solar.” being a rancher or a farmer and so they
Storm Uri Wood again referred to the outages want to sell the land rather than sign a
Storm Uri was a game changing moment during Storm Uri and how the crises 25-35-year lease. So that’s new for us. We’re
for Texans’ relationship to power since created a lot of demand for household PV. starting to figure out how to partner with
blackouts hit most of the state for a few Wood, whose manufacturing firm SEG investors who want to help us buy the
days in February 2021, impacting not just Solar is located in Houston, says: “There’s land.”
electricity but also water supplies. Some a famous hockey player named Wayne Pristine Sun always uses trackers spaced
of the wind turbines did not have cold out far enough from each other to allow
weather packages to help with de-icing “The Southern state offers trans- agricultural practices to continue. Most

parency to clean energy develop-

the blades during the storm and were plants have livestock around them, but
affected by the freezing conditions, but it can involve simply planting native
Helming says most of the turbines have ers. The different transmission wildflowers to support bee colonies as a
now been upgraded in response. While minimum. Farmers can also grow alfalfa
solar production during the day matches and distribution providers in Texas for livestock or vegetables amongst these

make public all the requirements

up well with the large air conditioning projects, taking advantage of 3-4 hours of
demand for nine months of the year during extra shade each day from the solar panels.
hot days in Texas, one of the biggest attrac- for interconnection, which stream-
tors for solar PV is its ability to perform in Future transmission unlocked
freezing conditions. lines the process” Most of Texas is part of an island grid
“There’s still a lot of above ground run by ERCOT with little movement of
natural gas infrastructure where the Gretzky who once said ‘you go where the energy back and forth, which contributes
pipeline pops up out of the ground to go puck is going not where it’s been’. When to transmission bottlenecks, which is the
through a pumping station,” says Helming. you look at subsequent years, the Texas key challenge for solar development.
“And most of those are gas powered market is going to become the largest However, Pristine Sun is collaborating with
pumps, rather than electric pumps. So if market in the US in both residential and a sister company, Earth Grid, to develop
the gas is frozen, the pump shuts off. But utility-scale. So, when you look at that underground transmission lines to be able
solar doesn’t have that problem. It doesn’t market, for us, it makes a whole lot of sense to import and export large quantities of
matter if it’s really hot or really cold, it to locate in Texas, because it cuts down on energy into and out of ERCOT.
keeps producing.” transportation costs, there’s a port there, “That will help solve some of the grid
and labour is very competitive. challenges in Texas and it will also enable
Developing PV projects “There’s a lot of talent. There’s a lot of vast new resources of both solar and wind
One of the biggest problems in Texas is folks that work in the energy industry. to get to the load centres of the big cities
that generation and load can sometimes And as we see a transition from traditional in Texas,” adds Helming – noting that trans-
be far away from each other, and it can be natural gas, oil and other types of power, I mission is the biggest impediment to the
complicated to develop PV projects close think we’re going to continue to see a lot of growth of clean energy not just in Texas
to load centres due to land availability. those folks look for jobs in renewables.” but in most places across the globe.
Wood Mackenzie’s analysis shows that the “I am very bullish on the Texas market
top counties for projects in development Agri-voltaic opportunities for solar, mainly because the economics
(by MW capacity) at present are Wharton, Helming’s firm Pristine Sun develops agri- of solar compete very well,” says Helming.
Lamar, Falls, Swisher, Milam, and Fort Bend. voltaic projects, an idea born a number of “It’s way cheaper than coal and nuclear and
This a noted shift from the top counties in years ago out of regulatory challenges at slightly cheaper or way cheaper than gas
terms of operational capacity, which are a time when the American Farm Bureau depending on where you are in the state.
mostly located in the ERCOT West zone Federation was trying to stop PV projects So the economics will drive significant
– Pecos, Andrews, Upton, Brazoria, and in the US. growth in solar for at least the next five to
Denton counties. Transmission is a key driver in decisions 10 years.” „

80 | May 2023 | www.pv-tech.org

 plant performance

From Niche to Necessity:

Insuring Renewable Energy
Insurance | Jason Kaminsky, CEO, kWh Analytics, on how renewable asset owners and their insurers
are adapting the way they assess risk from natural catastrophes and extreme weather events.

I
n recent years, there has been a significant and solar was regularly underwritten, and tions, with some unable to secure insurance
shift in the role of insurance and the way became more prevalent in the market, with for their assets at all. We entered into what’s
policies are written for renewable energy generous terms for the insureds. called a ‘hardening market’, meaning vital
projects. The rapidly declining cost of the That was, until 2019. insurance was more expensive and more
technology, federal policy changes, and A few factors contributed to a change difficult to obtain.
energy price inflation have brought about a in how projects were underwritten and Today, renewable asset owners and their
surge in the development and use of renew- priced. First, as an industry, we began insurers are undergoing an evolution in the
able energy sources, and along with it, the building solar projects in regions that had way they approach risk. Using the influx of
need for specialised insurance coverage greater exposure to natural hazards, such available data for solar, wind, and battery
to protect these projects. Inherently a risk as hail storm risk in Texas. Second, cost assets has become key to better under-
transfer vehicle, insurance has become an pressures on power purchase agreement standing and protecting against exposures
essential part of the project finance puzzle. (PPA) rates resulted in tightened operations from natural catastrophes and extreme
Simply put, if an asset is uninsurable, it is and maintenance budgets, and some of the weather events.
unfinanceable. basics in risk management (such as vegeta-
Although opportunities abound in the tion management) were overlooked. These Natural Catastrophe Models in
renewable industry, rapid, massive growth two factors, combined with significant fire, Evaluating Extreme Weather Risk
does not come without challenges for insur- flood, and hail events between 2019 and To assess the risk of a renewable energy
ers. Clean energy is a fairly nascent asset 2023 resulted in outsized losses for many facility, underwriters typically evaluate
class with the first projects of material size renewable energy assets. the exposures in two categories: natural
built in the early 2000s. Early on, renew- At the same time, global carriers were catastrophes (broken into six primary
able energy found its way into the hands of facing an array of losses across all business perils: hurricane, earthquake, wildfire,
underwriters who analysed adjacent asset segments from the increasing impact of severe convective storm (including hail
classes (like power or oil and gas), whose natural disasters, which led to a generally and tornado), winter storm, and flood) and
view on the risk, at the time, did not demon- conservative approach to pricing property attritional risks (risks that are not associated
strate a significant loss profile. In the years risks across the entire insurance industry. with catastrophic events, such as theft,
following, as carriers gained more experi- Asset owners began to experience tight- equipment breakdown, etc). For solar assets,
ence, insurance coverage for wind, battery, ened capacity and stricter terms and condi- many of the losses are driven by natural
catastrophes, while the attritional risk profile
is generally stable. In contrast, equipment
failures have been more significant loss
drivers for both offshore and onshore wind
sites.
Extreme weather risk is typically
evaluated and understood using natural
catastrophe (‘nat cat’) models. A typical nat
cat model utilises a stochastic event set for
each peril, simulating tens of thousands
of hypothetical events, which yield a
frequency and severity profile of events at
a given location, such as the number and
magnitudes of earthquakes or the number
and maximum wind speeds of hurricanes.
Each event in the stochastic event set
is then transformed into a loss prediction
using a vulnerability function. In essence,
this function converts a wind speed of X
into a distribution of predicted losses (in
dollars) of Y. The models typically allow a
user to select many characteristics of the

82 | May 2023 | www.pv-tech.org

 plant performance

underlying building type to generate a loss like ABS and VDE, have developed their own historical data to estimate the likelihood of
forecast: a brick building will behave differ- models to incorporate industry expertise future events, such as accidents or natural
ently than a steel building in an earthquake, into the results and generate a loss forecast. disasters. Actuaries use this information to
and both will behave differently than a Testing labs like RETC and PVEL have set insurance rates, estimate reserves, and
solar power plant. However, given the rapid demonstrated that not all modules handle manage risk.
growth in the solar market and more limited hail the same way and that the tilt angle of Data allows for more accurate and
data available to model developers, they the module on a tracker can weigh heavily efficient modelling techniques. Traditionally,
often use a proxy building type to mimic into the odds of a significant claim versus property insurance was based on COPE infor-
what they estimate may happen to a solar minor damage. Leading asset owners are mation (Construction, Occupancy, Protec-
power plant. developing strategies to be informed when tion, and Exposure). With the rising emphasis
As an output from the model, an insur- hail is impending in order to send signals to on the value of data, modelling firms are
ance underwriter then receives a result that their operators to put the trackers into hail now able to leverage large sets of loss data
is not dissimilar from the P-values often stow. to more accurately fit vulnerability curves,
associated with a solar generation forecast. The good news is that innovation is as well as more expansive historical weather
An ‘exceedance probability’ curve conveys happening quickly, and the industry is data to improve their stochastic event sets.
the results in terms of return periods: for collectively figuring out how to best apply While nat cat modelling agencies have
example, a 1-in-100 year loss is a P99 risk. the models and data that exist. These broadened their capabilities across indus-
These are generated on a peril-by-peril basis models and data come into play in an tries and new construction types, model
for any given location, and are often distilled important debate happening right now developments have lagged for renewables
into commonly used metrics: average in the industry over how much insurance and especially PV, as they are relatively new
annual loss (AAL) – the average value of should be required for an asset owner to asset classes with minimal historical loss data
annual losses over the modeled period – secure project financing. Tax equity investors publicly available.
and probable maximum loss (PML) – a loss and lenders are not underwriting natural Generally, carriers use the recommended
expectation that is expected to be exceeded catastrophe risk, but they are at risk of proxy structures, valuing a portion of the
once over a defined period, such as 250 or losing their invested capital if a significant, site as a building, a portion as electrical
500 years. uninsured loss happens on the site. Up until equipment, a portion as substations, etc.,
While this sounds very elegant, some 2019, it was not atypical for an owner to be but not accounting for the various electrical
context is warranted about why these able to easily and cheaply procure full limits or glass components included in this asset
models are not a panacea. First, the models for their assets. class, or for protective measures sites may
were developed for insurance companies to have in place. While insurance companies
model portfolios of assets. Insurance compa- Managing Risk Through Effective have begun to address this with modifi-
nies purchase insurance themselves (in Modelling ers and credits/debits to adjust for some
the form of reinsurance) and if a carrier has After the insurance carriers began resiliency factors that are becoming more
exposure to 10,000 homes along the Eastern demonstrating significant losses, it became well-understood, e.g. stow, there are many
seaboard, they want to know their exceed- much more expensive to procure full factors which remain unaccounted for in
ance probabilities for a bad hurricane. limits for all of the underlying perils, and typical insurance underwriting.
The models have been extended to price in some cases impossible. Underwriters Different entities have approached
individual locations, but there is an element began pushing more of this risk onto the enhancing solar modelling differently. For
of false precision at this level of granularity. asset owner, asking them to hold higher example, VDE Americas, an engineering
Second, there are multiple models available deductibles and ‘sublimitting’ the limits for advisory company for renewables, has
commercially, and some proprietary models key natural catastrophe perils. This presents developed its own hail risk assessment tool
developed by large carriers. Third, the a challenge for the bank and asset owner based on a blend of radar- and spotter-
models are most accurate for the key perils alike: while we can model these risks for identified hail events to yield a theoretically
where most insurance is purchased globally, an exceedance probability curve, what more accurate event set. However, the lack
such as hurricanes, earthquakes, and flood. the industry has come to appreciate is of available data, intentional data collection,
The underlying models to support the that actual losses and claims have at times and rapid PV technology transformation in
events most important to the solar industry, exceeded even some of the worst forecasts the industry has led to slow improvement
such as hail, are simply not as robust or as out of these models. in risk modelling for these assets, further
accurate. Fourth, the models generally lack As the industry continues to face various contributing to the current hardened
any data on how solar assets perform, and challenges, the importance of managing property insurance market. As more industry
proxy asset classes inaccurately represent risk through effective modelling techniques stakeholders recognise the value of data,
solar. To put it another way, the vulnerability becomes increasingly critical. With the help potential efficiencies in modelling, risk
curves are wrong. of data, models are now able to leverage transfer, and asset resiliency will continue
When you put it all together, the act large data sets of loss data and meteorologi- to become unlocked. Once insurers begin
of pricing an insurance policy becomes cal data to improve their stochastic event to utilise the power of data to incorporate
challenging. Solutions have emerged to help sets, leading to more accurate physical loss site maintenance, resiliency measures, and
address these deficiencies in the market. and performance estimations. thorough underwriting into their risk assess-
Insurance underwriters, like kWh Analytics, A critical aspect of managing risk in ments, the burden of the hardening market
have used real industry loss data to model various industries, including insurance, may ease for asset owners.
renewable energy assets more accurately in finance, and even healthcare, is actuarial Risk model vulnerability curves are
any given location. Third party consultants, modelling. This statistical method utilises adjusted on a peril by peril basis to best

www.pv-tech.org | May 2023 | 83

 plant performance

align with the loss database. A consistent,

Case Study
but not surprising, issue is that industry
standard vulnerability curves are drastically KWh Analytics has begun to address some of the modelling deficiencies caused by the lack of industry wide
underestimating PV losses due to hail. Build- data by utilising their own extensive renewables database. The REAL (Renewable Energy Adjusted Loss)
model accounts for equipment, performance, and management data from over 300,000 operating assets
ings are not a sufficient modelling proxy as
and over US$50B in loss history at solar sites to give a more accurate and fair representation of potential risks
most of the damage is isolated on the roof. for these assets.
The potential risk for a roof is also measured
differently than it is for a glass panel, as the Site Maintenance: Properties with operations and maintenance logs and well-laid plans for vegetation
management, torque audits, and general inspections of the site have a different and often more positive risk
hail crack size and the value of the roof is
profile than other sites lacking comprehensive O&M plans.
a minor fraction of the asset compared to
the value of modules at PV sites. Solar farms In-depth underwriting: Nat cat models for traditional real estate utilise secondary building characteristics
are also more spatially expansive and value which consider each characteristics’ influence on modelled building exposures. Similar model modifiers and
technical considerations must be made for solar to get an accurate view of risk. Example points from the
should not be modelled as single points.
REAL Assessment include:
• Hail: Stow programs considering monitoring capabilities, time to trigger hail stow, stow angle, glass
Vulnerability thickness, and tempering will have an altered risk profile.
The REAL model also makes further adjust- • Flood: In the case of flooding, solar modelling best practices have been adopted to model a solar site,
ments to take site resiliencies into account, as opposed to an individual building, with the implementation of site gridding (placing many points
shifting the vulnerability curve up or down overlaying a site footprint). However, with the rapid development of solar and relatively infrequent flood
map updates, models often do not consider the updated topography of a site and any site prep or build
to represent the increase or decrease in risk
considerations. Many large utility scale sites are not laid out in a neat square. Instead they follow the
respectively. In the case of hail, research has natural topography and may have site cut-outs to allow for flood drainage, elevating where possible to
been completed to suggest that stowing bring sites above the 100 year or 500 year flood plains.
modules ahead of a severe convective
Resiliency Measures: Assets designed for regional perils will fare better in these extreme weather events.
storm can significantly reduce the impact
Sites in the central US which employ panels with thicker, tempered glass and utilise a robust hail stow
energy of hailstones. While loss data can program may have a significantly lower AAL (Average Annual Loss) than those without. While sites in
give indications of the impact of resiliency California don’t need to consider hail, maintaining a low fire fuel load via vegetation management becomes
factors on risk of loss, evaluation of some more important. Likewise, while building in or near a flood zone, height of panels and equipment pads
become a main driver of losses. The risk of a PV site raising panels and electrical equipment up to the 500
technological improvements may rely on
year flood elevation should be evaluated differently than PV built at a lower height.
physics based models or lab based testing
to collect data until robust field data is able
to be collected and evaluated. industry by evaluating the performance viable and that energy providers can meet
of a site for financing purposes. These the demands of their customers.
Addressing the Discrepancies in engineers use various models to estimate However, recent research from the
Renewable Energy Production the energy production potential of a site, 2022 Solar Risk Assessment has shown
Estimations taking into account factors such as location, that production estimations provided by
Asset energy production is another area climate, topography, and equipment. By independent engineers have been nearly
where modelling and data can be criti- providing accurate production estimations, 8% over actual production. This discrepancy
cal, and independent engineers play an independent engineers help to ensure that is due to a number of factors, including the
important role in the renewable energy renewable energy projects are financially fact that the models used by independent
engineers do not always accurately account
for the variability of renewable energy
resources. In addition, unexpected changes
in weather patterns and equipment perfor-
mance can also contribute to discrepancies
between estimated and actual energy
production.
To address this issue, kWh Analytics
is using more sophisticated modelling
techniques that take into account a wider
range of variables and provide more
accurate predictions of energy production.
Utilising data, companies like kWh Analytics
have constructed a data-driven probability
distribution that combines all of the dispa-
rate risk factors of a solar PV project into a
single insured production figure, and are
able to price this risk and move production
volatility into the insurance markets. This
lowers the risk on the cash flow streams
A vulnerability curve, also known as a damage ratio curve, describes the amount of expected damage given
for lenders and investors, making it a more
an intensity of an event (e.g. hail size). The REAL model leverages a dataset of loss events specific to solar
to fit a curve (represented by the dotted line), which yields higher expected damages than the traditionally appealing investment opportunity and
used curve, represented here by a solid line. This figure is illustrative only, with no real data included improving financing terms.

84 | May 2023 | www.pv-tech.org

 plant performance

The growth of the sector and rapid

technology improvements have led to a
vastly different insurance landscape than
just a few years ago. In the past, insuring
renewable energy assets was uncharted
territory, with few insurers having the
expertise to underwrite this asset class. As
databases expand and models improve to
better simulate and understand risk, the
industry continues to mature.
Carriers have a unique role to play, not
only in the growth of renewable energy,
but in the resilience of the assets. With their
comprehensive understanding of property,
performance, and natural catastrophe risk,
carriers – and the underwriters they employ
or support – can encourage resilient design,
construction, and management of sites.
Improved technology, such as stow capable
trackers, storm detection systems, and smart
cleaning systems, have made way for new
and better ways to protect assets, and carri-
This histogram is an illustrative example of the predicted probability distribution for 1 system. The client’s
P50 energy expectation is represented as a dashed line at 170 MWh, whereas kWh Analytics’ estimate is ers can be at the forefront of this revolution
represented by the solid line at 168.8 MWh, and is the median of the distribution. Overlayed on this histo- by incentivising insureds to take advantage
gram in red shows the typical coverage range for downside production scenarios. of these advancements. By sharing their
expertise and data with their clients, insurers
From a sponsor’s perspective, protecting such as historical weather data and insights can help insureds to take measures that
downside risk on renewable energy invest- from published studies, to estimate the reduce the risks of natural catastrophes and
ments is pivotal. When an energy project uncertainty on the deterministic modeling, other hazards, ultimately contributing to the
underperforms, this has direct impacts on such as the occurrence of rare but impactful sustainable growth of the renewable energy
expected revenue, leading to potential events. sector.
losses. Therefore, it is important to have a In studies using actual client data, the The renewable insurance industry has
holistic understanding of production risk kWh Analytics P50 forecast, while lower than changed drastically and rapidly. Though
and the included factors. a client’s estimations, has proven to conform the market has faced a recent hardening,
One of the primary drivers of plant under- more closely with actual production curves. updates to technology, data collection, and
performance is unscheduled equipment resiliency provide hope for a future where
maintenance and failures. This can result Carriers as Catalysts extreme weather risk is better mitigated, and
in significant downtime and lost energy With the rise of solar energy, the insurance overall asset risk is shared appropriately. By
production, leading to lower overall project industry has had to adapt to the unique sharing information and incentivising asset
returns. In a recent analysis completed on risks and challenges that come with insuring resiliency, renewable energy asset owners
behalf of the US Department of Energy, data solar sites. Modelling agencies have broad- and insurers can work together to create a
modelling found that 80% of energy losses ened their view to include more accurate more sustainable future for all. „
come from just 10% of maintenance tickets. construction and occupancy classes specific
Author
When looking at the breakdown of culprit to solar sites and the advent of big data and
equipment, inverters cause 46% of energy machine learning algorithms has greatly Jason Kaminsky is the CEO
and co-founder of kWh
losses, higher than all other components. aided in this process.
Analytics, a provider of
Trackers, transformers, and downtime Machine learning algorithms can identify Climate Insurance for renew-
related to replacing and servicing modules trends and anomalies in data that would able energy assets. He is
are also common causes of underper- be difficult or impossible for humans to passionate about activating insurance
formance. These issues can be mitigated detect, enabling actuaries to analyse vast capital into climate-forward opportuni-
ties and has helped grow the company
through proper maintenance and monitor- amounts of data to identify patterns and
from its creation. Prior to joining kWh
ing, but unexpected failures can still occur. make more informed decisions leading to Analytics, Jason spent over three years as
Advances in data modelling find that more accurate predictions and better risk a Vice President of Environmental Finance
layering probabilistic modelling on top of management. at Wells Fargo Bank, where he originated
standard deterministic modelling allows As a result, models have been adapted to and financed tax-equity investments. KWh
Analytics specialises in unique risk transfer
actuaries to evaluate uncertainties not well include solar-specific secondary modifiers
products using real-world project per-
defined with deterministic modelling alone. to appropriately tune results based on site formance data and decades of expertise,
Deterministic modelling: Using system characteristics. With these advancements, such as the Solar Revenue Put production
design specifications to estimate the output insurers can more effectively underwrite insurance and kWh Property Insurance.
of the system under ideal conditions. solar sites and provide better coverage to The company has insured over US$4 bil-
lion of assets to date.
Probabilistic modelling: Using data, their clients.

www.pv-tech.org | May 2023 | 85

 Save 20%
on your ticket
with code:
PVTP20

14-15 November 2023 | Warsaw Marriott Hotel, Warsaw, Poland

Building Critical Partnerships to Accelerate Solar

Deployment in Central & Eastern Europe
Key Themes for 2023
Update on Regulatory Addressing Grid Getting PV Projects De-Risking Offtake Approaching
Frameworks on Solar Connections to the Ready-To-Build Structures & PPAs Solar M&A
Policies Stage

Market Deep Dives Co-Locating Storage The Regional Impact Best Practice Asset Investing in Solar
with Solar of the Rebuilding of Management for Solar in an Unstable
Ukraine’s Grid Macroeconomic
Environment

2023 Sponsors
Gold Sponsors Silver Sponsor

Supporting Sponsor Exhibitor Editorial Partners

Enquire now for speaking opportunities: lss@solarmedia | lsscee.solarenergyevents.com

 financial, legal, professional

How will the UK CfD scheme fare

against the rising cost of capital?
Renewables support | Lena Dias Martins explores the UK government’s Contracts for Difference
scheme which supports the country’s move to a zero-carbon economy.

T
he Contracts for Difference (CfD)
scheme is one of the UK govern-
ment’s chief mechanisms for
supporting low-carbon electricity generat-
ing projects.
Alongside FIDER (an early form of the
scheme) the CfD scheme has supported
a total of 26GW of renewable generation
capacity across the UK since its first alloca-
tion round (AR1) which ran from October
2014 to March 2015.
This includes bolstering the UK’s solar
generation capacity to 15GW, according

Credit: Sebastian Ganso, Pixabay

to Chris Hewett, chief executive of Solar
Energy UK.
Earlier this year however, market
research company Cornwall Insight
warned that the support offered by the
CfD scheme to solar and other renewable
generations projects is threatened by
inflation and the consequent rising cost of
capital. “It’s a really good mechanism to allow projects were awarded CfDs in AR4 with a
PV Tech Power looks at the UK’s CfD these projects to become more viable and combined total of 2.2GW.
scheme’s success to date and explores eventually, perhaps even open up other Solar generation projects will also
what threats it faces. routes to market. What we’ve seen along- be able to bid in the current AR5 which
side increasing investor confidence, is that opened on 30 March 2023.
The ‘undeniable’ success of the UK learning rates become more favourable; so This year solar photovoltaic (PV) has
CfD scheme so far as the technologies have developed and been allocated into ‘Pot 1’ dedicated to
A CfD is a private law contract that is been produced, the cost of development established technologies and will be able
awarded through private auction. Once has come down quite significantly.” to bid for a share of £170 million budget
agreed, the counterparty (which in the UK In February 2022 the government for projects greater than 5MW.
is the government) will pay the difference announced that the CfD auctions were to Other technologies in Pot 1 include
between the strike price agreed at auction run annually, rather than every two years hydro and remote island wind.
and the renewable generator’s revenue. to accelerate the domestic production of “It can only be a good thing for the solar
This offers investment security by renewable electricity. sector that it is included in the allocation
allowing renewable generators to bid The first of these annual allocation rounds,” said Mark Williams, senior analyst
for a guaranteed revenue stream for the rounds was allocation round four (AR4) at Energy UK, the trade association for the
duration of the contract; thus, encouraging which ran from December 2021 to July UK’s energy industry.
investments in renewables. 2022. AR4 was the biggest round to date, “If you can get a project over the line
“The CfD scheme has been undeniably with contracts awarded to almost 11GW of within the next year, the chances are you’d
successful, I would say. It gives renew- renewable generation capacity in total. benefit from prices in the hundreds-per-
able projects the stability they need by AR4 was also the first allocation round megawatt-hour for next year, so there’s
providing secure revenues, leading to in which solar was allowed to participate that trade-off between CfDs and other
investor confidence and increased viability, since the first allocation round in 2015. routes to market.
especially when they’re in those early Alongside wind, solar was able to apply for “It’s broadly going to be a positive thing.
stages of development,” Jamie Maule, a share in the £10 million allocated budget We saw 2GW come through for AR4 but for
research analyst at Cornwall Insight, told from a total of £285 million. AR5 I suspect will be somewhat less than
PV Tech Power. In total, 66 ground-mounted solar that. Who knows what future allocation

www.pv-tech.org | May 2023 | 87

financial, legal, professional

rounds hold but we need tens of gigawatts Weighted average cost of capital for onshore wind and solar PV projects between 2017 and 2023, with a
over the next decade, so [re-introducing dashed vertical line marking the application window for Allocation Round 4 of the CfD scheme
solar into CfD allocation rounds] is going to
be important.”

The threat of the rising cost of

capital
The current volatile macroeconomic and
geopolitical climate has caused inflation
and interest rates to soar.
These circumstances are exacerbated
by the ongoing energy crisis, supply chain
issues and labour shortages, ultimately

Graph: Cornwall Insight

driving renewable projects’ capital expendi-
ture higher and higher.
The CfD scheme indexes the strike
price to the Consumer Price Index (CPI)
to account for price fluctuations to help
protect generators from inflation; however,
unprecedented rises in supply chain costs especially solar,” added Williams from The ASP is the highest strike price limit
are putting additional strain on renewable Energy UK. per MWh of electricity generated that a
energy developers and is affecting the CfD Investment uncertainty is now a consid- project of a particular technology can
scheme’s ability to guarantee expected erable threat for renewable energy projects achieve, even if a project clears at auction
returns as much as possible and, by exten- and the recent budget announced for AR5 at a higher price.
sion, generating investor confidence. has caused some concern within the UK In comparison, the Reference Price
Concerns over the hindering effect this energy sector. (the price compared to the strike price in
could have on the decarbonisation of the In March 2023, the UK government the auction to calculate how much the
UK’s energy system have been raised by a confirmed the CfD budget for AR5 to be contracts cost) for AR5 is £48.99/MWh (in
number of industry players. £205 million (including £170 million for 2012 prices).
According to Cornwall Insight the established technologies such as solar) – “It appears that the parameters of the
current climate has increased the weighted down from £265 million for AR4. allocation rounds are arbitrarily harsh and
average cost of capital (WACC) of renewable RenewableUK warned that the budget I think that’s really worrying,” continued
projects by 4% in comparison to early 2021. sent “the wrong investment signals”. Williams.
Maule explained the effect of the rising “Unfortunately, in the light of global “If you look at the fifth allocation round
cost of capital on renewable projects: “To inflationary pressures, the budget and coming up, we are really worried about
boil it down, it means that the required rate parameters set for this year’s CfD auction that, because the budget is much lower.”
of return (RRR) to make a project finan- are currently too low and too tight to Williams warned that current strike
cially viable and secure capital investment unlock all the potential investment in wind, prices are “unrealistically low” and that
is rising – this comprises both debt and solar and tidal stream projects which the Energy UK is expecting CfD Reference
equity. industry could deliver,” added Renewa- Prices to be much less than wholesale
“On the one hand, rising interest rates bleUK’s economics and markets manager electricity prices to be out to the end of the
are raising the ‘cost’ of incurring debt while Michael Chesser. decade.
unfavourable macroeconomic condi- A lower budget means that the strike Stagnant strike prices that fail to keep
tions – including an insufficient market risk prices offered by CfDs – especially for solar up with wholesale energy prices make it
premium – are causing equity investors to – could threaten the effectiveness of the more difficult for renewable projects to
demand higher rates of return. scheme. generate revenue, thus making them less
“So, while projects are subject to As recorded in the UK government’s sustainable.
inflationary pressures, they are also having Contracts for Difference Allocation Round 5 “For projects on a CfD, and thus fixed
to generate higher returns if they want to Allocation Framework, 2023, the Adminis- strike prices (revenues), it may well be that
remain viable and go to market.” trative Strike Price (ASP) for solar PV in AR5 your project is less viable and investable
Energy UK warned that the rising cost of for projects with delivery years from 2025 at this point because with everything
capital alongside the Electricity Generator to 2028 is £47/MWh (in 2012 prices). getting more expensive, you are stuck with
Levy – which imposes a windfall tax of 45%
on electricity generators for “extraordinary
The government’s capped administrative strike prices (£/MWh) and delivery years for different technologies
returns” – has increased the cost of develop- from AR1 to AR5
ing low carbon generation projects by 20%
Table: Cornwall Insight

to 30%, increasing to as much as 50% for

specific projects.
“We are seeing capital costs increasing
and this will make it harder to make invest-
ment decisions for renewable projects,

88 | May 2023 | www.pv-tech.org

 financial, legal, professional

stagnant revenues, unable to access the promising growth making the nation one which is what we’re expecting to see,
wholesale market, and less able to generate of the prominent players in the European unless those projects can go through the
profits,” said Maule. market, and the CfD scheme has been a CfD route instead, what you’re going to
These effects are already being seen for significant constituent in this success. have is projects not progressing. That’s not
projects that won CfDs in AR4. To continue this upward trajectory, the what we want, and higher budgets are an
“We’ve already seen some media reports UK will need to keep building on the CfD important part of that.”
from developers who secured projects scheme to ensure it remains relevant to the Further updates to the CfD scheme are
during AR4 calling on the government for current volatile market. also in the pipeline as the UK government
further support. Some of these projects In April this year, the UK’s Department continues its Review of Electricity Market
under AR4 do have the ability to generate for Energy Security and Net Zero (DESNZ) Arrangements (REMA).
higher revenues through the merchant said it would consider a “major reform” to Launched in July 2022, REMA seeks to
nose prior to their CfD start date but that the CfD scheme by allowing applicants to explore changes in the UK’s wholesale
could be limited by the Electricity Genera- be awarded wider benefits offered by their electricity market to help protect against
tor Levy,” added Maule. projects. volatile gas prices and bolster the nation’s
“For many of these projects, the chang- These ‘non-price factors’ include: energy security.
ing and unforeseen macroeconomic addressing skills gaps; supply chain The first part of the review constituted
conditions have resulted in an inability to sustainability; helping drive sector invest- an initial REMA consultation, with the
generate the sort of profits that they were ment; and supporting the UK’s energy majority of respondents being genera-
expecting. The strike prices they previously security. tors and developers, to establish a holistic
agreed were viable at the time but now Responding to the announcement Ana vision and a set of objectives for the UK
they are proving to be too low.” Musat, RenewableUK’s executive director electricity market.
Another factor curbing the success of policy, commented: A summary of the consultation
of the CfD scheme is the now limited “Designing the right framework for responses was released in March 2023. It
option for renewable projects to enter the Contracts for Difference is absolutely found that 67% of respondents felt that the
merchant market before the start of their crucial if we’re to attract the billions of current form of the CfD discourages provi-
contract. pounds of private investment we need to sion of ancillary services.
“The Low Carbon Contract Company build more clean energy projects faster – at Some respondents suggested additional
now has more power to enforce CfD the very time when international competi- options to reform the CfD, including
start dates within the delivery year when tion for capital and expertise has never extending contract lengths, auction
projects are seen to have begun commer- been more intense. process reform and allowing existing
cial operations,” continued Maule. “Going forward, it’s clear that awarding generators to bid for CfDs.
“Prior to these changes, generators CfDs shouldn’t just be based on a race to With the first step of the review now
could enjoy greater access to wholesale the bottom on prices, but it should also completed, REMA will collate both profes-
markets before their CfD start date, allow- take account of the wider economic and sional and consumer inputs in order to
ing for a period of higher revenues that environmental benefits which this industry make an informed decision on the future of
allowed them to generate a faster return on can deliver.” the UK energy market, including deciding
investment and insulate themselves from In light of the current volatile macro- what the future CfD scheme will look like.
unforeseen rises in supply chain and/or economic environment, re-assuring “We’re in a very different world now,
commodity costs.” and re-engaging renewable investors is where gas prices are going to be structur-
paramount to continue the growth of UK ally higher as we shift to more energy
AR5 to provide useful insight solar power. coming from liquified natural gas (LNG)
The UK government has indicated that “One thing that the energy market across Europe. We should try to deliver all
the outcome of AR5 will provide a useful absolutely hates is uncertainty – it provides possible renewable projects where the
insight into the current costs of technolo- a really difficult investment landscape,” said CfD strike price is lower than the expected
gies that can be used to inform future Tom Faulkner, head of asset & infrastruc- price of gas, and that is not what upcoming
allocation rounds. ture and networks at Cornwall Insight. allocation rounds are currently set up to
“Our flagship renewable energy auctions “The CfD scheme and the renewables deliver,” summarised Williams.
are hugely successful in strengthening landscape in general in GB has been very “The best thing for consumers, the thing
Britain’s energy security, securing last year successful in terms of getting up the curve. that will bring down bills, reduce carbon
a record capacity of reliable, affordable and The next step will be ensuring certainty for emissions and help energy security, is to
clean energy – enough to power around 12 investors, ensuring that people are able to have as much capacity as possible come
million homes,” commented a government access the revenues they want.” forward. And I don’t think that’s currently
spokesperson. One route to investor confidence is to what the main motivating factor behind
“The Contracts for Difference scheme increase the CfD budget to provide a more the CfD scheme is. It’s still about driving
also plays a critical role in attracting large attractive alternative to the merchant down those prices.
scale solar projects and investments to market. “We’re probably now in a world where
the UK. Solar energy will be key as we go “A higher CfD budget would certainly we’ve driven down prices to almost as low
further and faster to power Britain from help,” said Williams from Energy UK. as they will go and it’s now about sustain-
Britain and increasing our solar capacity “This is because if, through the Electri- ably delivering capacity; that requires a
five-fold by 2035.” city Generators Levy, you are taking away slight change in thinking that I don’t think
The UK’s renewables landscape has seen those more merchant routes to market, we’re quite seeing yet.” „

www.pv-tech.org | May 2023 | 89

 PV Us
yo Tec e co
u r h2 de
20 egis 0 wh
% ter en
of fo
f! r

4-5 July 2023, Athens, Greece

Establish your place within the Southern

European Energy Transition
Our 2023 Speakers Include
Keynote Speaker Conference Chair (Day One)

Vassilis Triantafyllos Dr Sotiris Kapellos Isabel Rodriguez Angela Wiebeck

Special Advisor to the Secretary General for Energy COO Managing Director - Renewable Chief Sustainability
and Mineral Resources HELLENiQ Renewables Energy Investments Officer
Hellenic Ministry of Environment and Energy (and Chairman, HELAPCO) Glennmont Partners Aquila Capital

Inspire change. Gain unique insights. Grow your network.

Register for your ticket today by

scanning the QR code!
2023 Sponsors
Diamond Sponsor Gold Sponsor Bronze Sponsor

Exhibitor Editorial Partners Partners

For sponsorship opportunities contact: [email protected] lssse.solarenergyevents.com | #LSSSE

 Presented to you by:

storage & smart power

111
94 News
The latest news from the world of energy storage.

95-99 Net Zero’s Missing Link: Long Duration Energy Storage

By Julia Souder, CEO of the Long Duration Energy Storage Council.

100-104 How we delivered the 98MW/196MWh Pillswood BESS Project

By Alex Thornton, operations director at Harmony Energy.

106-110 Cloud-based analytics for de-risking BESS deployment and operation

By Kai-Philipp Kairies, CEO of ACCURE Battery Intelligence, and Dr Stephan Rohr, Sebastian Becker and Dr.
Matthias Simolka of TWAICE.

111-113 Canada’s energy storage leaders have valuable lessons to teach

Ontario and Alberta account for the bulk of Canada’s installed, planned and proposed large-scale energy
storage today. The rest of the country can lean on the experiences and lessons learned. Andy Colthorpe hears
from developers and expert voices.

114 -117 Italy’s grid-scale energy storage market: a sleeping dragon

Cameron Murray writes about the nascent market for large-scale battery storage in Italy, which could see a
massive expansion in the short term.
 www.energy-storage.news

EMISSIONS-FREE TECHNOLOGY
Towards a renewable energy future
Energy storage is a key Our insights News, views and
component of any serious into industry interviews, analysis
attempt to integrate large developments and and opinion from
shares of renewable energy notable projects across the energy
and a key flexibility tool for provide key storage value chain
Scan QR Code to intelligence for the for a business
sign up to the daily
modern energy networks
global market. audience.
newsletters all over the world, both on
and off-grid.

240
Or visit www.energy-storage.news/newsletter Over

countries
3,700,000
Part of the Solar Media Ltd group, which includes , Annual pageviews
the world’s number 1 solar PV technology website
(Google Analytics)
 Storage & smart power

Introduction
Welcome to another edition of Storage & Smart Power, brought to you by Energy-Storage.news.
It’s been an interesting three months since the last time I wrote one of these editor’s intros. As 2022 drew to a close,
it felt like a new era was beginning for energy storage. The Inflation Reduction Act would change forever a market
landscape in the US that was already evolving quickly and Europe’s policymakers had finally come to the realisation that
storage is vital to an energy independent and low carbon future.
Positive policy developments elsewhere, from Australia to India, the Philippines, Turkey and Japan, left many of us
aware that we were looking at an industry growing so fast that it might be unrecognisable within a few years.
The market isn’t just growing, it’s maturing. That’s a phrase that’s often thrown around too easily, but it’s accurate
in this case. Many of the issues impacting energy storage, like supply chain bottlenecks or long grid interconnection
queues, to some extent make the industry a victim of its own success. Meanwhile much of what drives it forward is
down to the years of hard work put in by its pioneers, early adopters and early movers.
This year, we’re even holding our first-ever awards, after eight great years of Energy-Storage.news and Energy
Storage Summit events around the world. The Energy Storage Awards will this year focus on European activities, with a
ceremony to be held in London in September.
In the next edition of this journal, we’ll take a look at the Inflation Reduction Act and the North American market
more broadly; early signs are that many in the industry are still getting their heads around some of its more complex
provisions.
This time out, and coinciding with the launch of Energy-Storage.news Premium, our new subscription service, we
offer you perhaps the most eclectic edition of Storage & Smart Power to date – with five feature articles, it’s certainly the
biggest.
With duration of storage assets seen to increase as markets mature, Long Duration Energy Storage Council (LDES
Council) executive director Julia Souder’s excellent overview of the technologies, market opportunities and challenges
for LDES is very timely indeed.
For now lithium-ion remains very much the mainstream technology of choice, and Alex Thornton from developer-
investor Harmony Energy offers a case study on how the 196MWh Pillswood Li-ion BESS project in England was
delivered.
Elsewhere, Energy-Storage.news reporter Cameron Murray and I take a look at two markets that could be poised to
join the ‘maturing market’ conversation in the next few years: Italy and Canada. Plenty more to come on those topics for
Premium subscribers on the site, too.
Last, but not least, we’ve somehow persuaded friendly rivals ACCURE and TWAICE from the world of cloud-based
battery analytics to discuss why the industry needs to mature and rethink the commissioning process.
We’re very fortunate to have so many great industry participants and experts working with us, and we owe every
success to you, the readers, and the industry. Thanks for subscribing and reading.

Andy Colthorpe
Editor
Energy-Storage.news @ Solar Media

www.energy-storage.news
Visit the site and subscribe free to the Energy-Storage.News
newsletter today. Technology with the capacity to change the world.

www.pv-tech.org | May 2023 | 93

NEWS | From Energy-Storage.news
US grid-scale BESS capacity reached 9GW/25GWh production capacity, the other making LFP pouch cells for energy
in ‘record-breaking’ 2022 storage systems. According to LG Energy Solution (LG ES), the LFP
The US utility-scale battery storage sector achieved its highest-ever production line would be the “first ESS-exclusive battery produc-
annual deployments in 2022. According to trade group American tion facility in the world” and is expected to begin production in
Clean Power Association, 4,027MW and 12,155MWh of large-scale 2026.
battery energy storage was deployed in the country last year. That
exceeded the previous record, set just a year before in 2021, when Planning approval for ‘Super Battery’ to replace
3GW/9.5GWh was commissioned. That amounted to an increase in coal power plant
cumulative operating battery storage of 80% in megawatt terms, Planning approval was given in February for the Waratah Super
bringing it to a total of 9,054MW, and a total 25,185MWh of energy Battery by the government of New South Wales, Australia. The
storage capacity – an increase of 93% in megawatt-hours. During project will help the state overcome the 2025 decommissioning of
the fourth quarter, 850MW/2,375MWh of battery storage was Eraring, a 2,880MW coal power plant. Scheduled to come online
commissioned. That was an increase of 31% year-on-year. that same year, the NSW government has awarded the project
the status of Critically Significant Infrastructure, fast-tracking its
UK FFR prices fall to three-year low development. The battery storage project has a contract in place to
Firm Frequency Response (FFR) auction prices in the UK have hit deliver System Integrity Protection Services (SIPS) with developer
their lowest level since 2019 as market saturation begins to take Akaysha Power – owned by Blackrock – handed a SIPS contract to
effect, market analytics platform Modo Energy said recently. The guarantee at least 700MW/1,400MWh to secure the stability of the
firm said the auction during April saw a drop in volume require- network and reliability of electricity supply. Akaysha Power has
ments leading to 86% of all bidded volumes, totalling 1.59GW, contracted Powin Energy to deliver the BESS.
being rejected in each EFA block (Electricity Forward Agreement)
for May delivery. Perhaps more significantly, the reference price for
this month’s tender round is just £5.69 (US$7.13)/MW/hour, a 16%
fall on April and the lowest price since Modo started collecting the
data back in January 2020. Prices were above £20/MW/hour from

Credit: Energy Corporation of NSW.

September to November 2022.
Waratah Super
Europe’s ‘first’ LFP gigafactory opens in Serbia Battery will help
replace Eraring
ElevenEs has opened a lithium iron phosphate (LFP) gigafactory in
coal power
Serbia, which it claimed is the first in Europe. The facility in Subotica plant, due for
has opened with the aim of reaching 500MWh of annual produc- decommissioning
tion capacity in 2024. The firm, which was spun out of aluminium in 2025.
processing company Al Pack Group, is aiming to reach 48GWh of
production capacity in five years’ time across two gigafactories. The SRP and Plus Power constructing 1GWh BESS
LFP gigafactory will produce prismatic cells for the electric vehicle project in Arizona
(EV) and stationary energy storage system (ESS) markets. A 250MW/1,000MWh BESS project in Arizona broke ground in
April, through utility Salt River Project (SRP) and developer Plus
California utility signs PPA with NextEra for eight- Power. The Sierra Estrella project will serve SRP customers during
hour project times of peak demand on the grid and will help the utility integrate
California utility Clean Power Alliance has inked a 15-year PPA more renewable generation into the mix. The four-hour lithium-
with NextEra Energy Resources for an eight-hour duration energy ion BESS is expected to come online in summer of 2024. It is one
storage project. Clean Power Alliance (CPA) announced the long- of two large-scale projects the utility has contracted for which will
term power purchase agreement (PPA) with energy giant NextEra help it achieve a doubling of its 400MW BESS capacity target by
Energy’s clean power arm last week (7 April). The PPA secures the summer 2024, along with the 90MW/360MWh Superstition project,
offtake from NextEra’s 75MW, long-duration Desert Sands Energy also from Plus Power. Plus Power will design, build, and operate the
Storage facility in Riverside County, California, starting in June Sierra project with batteries “assembled in the US”.
2026. CPA is one of California’s many CCAs, smaller community-
owned utilities which provide local communities an alternative to Europe reached 4.5GW of battery storage
the state’s big three investor-owned utilities PG&E, SDG&E and SCE. installed in 2022
This is its fourth battery energy storage system (BESS) PPA deal. Europe reached 4.5GW of cumulative installed battery storage
capacity last year, and could hit 95GW by 2050, according to LCP
LG Energy Solution building US factory with Delta and Aurora Energy Research respectively. Some 1.9GW
16GWh dedicated to battery storage of grid-scale battery storage was installed across the continent
LG Energy Solution will build a new battery cell factory in the US including the UK in 2022 and at least another 6GW is expected in
with 43GWh annual manufacturing capacity, including 16GWh 2023, according to LCP Delta’s quarterly European Market Monitor
dedicated to the stationary energy storage market. The company on Energy Storage, published with the European Association for
will invest KRW7.2 trillion (US$5.5 billion) into the production plant Storage of Energy (EASE). By 2050, Europe is expected to install
in Queen Creek, Arizona. Scheduled to break ground this year, the at least 95GW of grid-scale battery storage systems, according to
complex will feature twin production facilities, one for cylindri- separate figures from Aurora Energy Research, which itself found
cal 2170 battery cells targeting the EV sector with 27GWh annual 5GW of grid-scale storage is online today.

94 | May 2023 | www.pv-tech.org

 Storage & smart power

Net Zero’s Missing Link: Long

Duration Energy Storage
LDES | Julia Souder, CEO of the Long Duration Energy Storage Council, explores energy storage as
the cornerstone of power grids of the future.

C
hanging times are calling for strong- towards a cleaner and more sustainable technologies. Under the current plan,
er policies as governments around future, while being a strong economical 1.2TW of renewables capacity will need to
the world continue to increase their investment. be installed by 2030, however this must
renewable energy ambitions, including at be combined with significant increases to
the G7 Summit in Japan, where member Enabling Europe’s Renewable energy storage to ensure European energy
countries pledged to increase capacity of Future systems can perform effectively. To meet
offshore wind by 150 gigawatts and elevate The European Union is currently investing that significant increase in renewables, the
solar capacity to 1 terawatt by 2030. As the significant resources into the clean energy LDES Council has estimated Europe will
world accelerates the transition to more transition, motivated by the need to meet require over 200GW of energy storage by
sustainable energy sources, the need for net zero emission goals and to ensure 2030.
flexible energy storage solutions is critical. energy security following Russia’s invasion Whilst REPowerEU specifically includes a
At present, short duration energy of Ukraine. While Europe successfully focus on the use of photovoltaic, hydrogen,
storage technologies are added to many navigated its first winter without Russian and heat pumps, and set targets for their
electric grids and infrastructure across the imports, Kadri Simson, the European deployment, it fails to do the same for
globe, but have limitations on safety, how Commissioner for Energy, has stressed that LDES. EU policies must incentivise a diverse
long energy can be stored, and expected there is more work to do to reduce the range of LDES technologies that address
lifetime value. dependence of electricity bills from the the range of intra-day, multi-day, and
Long duration energy storage (LDES) can price of gas and to stop overlooking the seasonal storage needs that will provide
help solve these challenges while providing critical role of storage. the flexibility the EU needs to meet its
an array of benefits to diverse industries The European Council recently raised its diverse system needs. Only through these
and communities. LDES technologies renewable target for 2030 to a minimum important changes for clean energy will
can store power for extended periods of of 42.5%, which doubles the existing there be successful transition towards a net
time – from multiple hours, days, weeks, share of renewable energy in the EU, and zero future.
months to seasonal – storing energy from countries such as Spain can lead the way in
wind, solar and other clean sources in an surpassing this as Spain recently reached LDES: The Power of Diverse
affordable, flexible, reliable, and sustain- 56% solar generation on the electric grid. Technologies
able way. Many LDES technologies are At a time when Europe is facing electricity Since 2019, over US$58 billion in commit-
already commercially available today, but and natural gas prices that are over ten ments have been made by governments
to scale to the level needed to reach the times higher than historical averages, LDES and companies to LDES , which shows the
world’s decarbonisation goals, the potential is essential to creating affordable, reliable, significant progress of the market in recent
for LDES needs to be fully realised with clean energy systems, by decreasing the years.
supportive policies that support an acceler- amount of renewable energy curtailed and However, this only represents a small
ated clean energy transition. saving billions of euros whilst also boosting slice of the true potential of this technology.
LDES provides multiple benefits across energy security. Research conducted by the LDES Council
the energy and heat sector, making it a criti- The European Commission’s REPow- shows that the market has a potential to
cally important component of any sustain- erEU plan aims to safeguard Europe’s reach US$4 trillion through deploying 8TW
ability initiative. For one, LDES makes wind energy security by increasing the rollout of of LDES by 2040, resulting in delivering
and solar dispatchable every hour and renewables, diversifying energy supplies US$540 billion in cost savings.
seasonally as it balances the variability of and speeding up the deployment of clean There is a tremendous amount of
renewable energy sources to match load
and demand. LDES enables the provision of
reliable and continuous power, even during
periods of high demand by providing
energy shifting services reducing the need
for fossil fuel power plants, further contrib-
uting to a low carbon energy system.
Working to decarbonise global
communities is why LDES is an essential
technology that will underpin the transition

www.pv-tech.org | May 2023 | 95

 Storage & smart power

chemical bonds in materials, such as hydro-

gen or ammonia. They can be produced
from a variety of different energy sources,
including renewable energy, nuclear power
and fossil fuels and produce high energy
density fuels. Hydrogen for example can
be stored as a compressed gas, in liquid
form or bonded to other substances. After
conversion, chemical storage is particu-
larly flexible, as it can feed power directly
into energy grids, or be stored for later
use during peak periods or seasons. The
chemicals produced can also be sold into
the industrial or transportation sectors,
providing alternative revenue streams from
their production and avoiding waste.

innovation and diversity in LDES, repre- new gravity-based energy storage systems Thermal energy storage (TES)
sented by four main LDES technology types are in the early stage of commercial devel- There is an urgent need to decarbonise
(mechanical, electrochemical, chemical, opment, which function by storing energy the heat sector to achieve net zero, as it
and thermal), and a myriad of sub-types. by lifting mass that is then released when represents 45% of energy related emissions
This makes LDES suitable for many different the energy is needed. and TES can play a critical role in this.
applications, and regions, whether urban, There are three main types of TES
rural, or remote systems, as well as industrial Electrochemical energy storage systems: sensible heat which includes
and island energy grids and various types of Currently, electrochemical energy storage molten salts, rock material, thermopho-
infrastructure. (which involves many elements in the tovoltaic (TPV), and concrete, latent heat,
The below guide reviews the four main periodic table) is amongst the most widely and thermochemical. The materials used in
types of LDES technology, each offering recognised forms of energy storage these types of systems are often cheap and
unique characteristics and parameters. With (batteries), as it is a category which includes abundant, which is a particular strength
the right level of investment, they could lithium-ion. However LDES forms of of TES.
be delivered at speed and scale to unlock electrochemical energy storage can provide The technology behind the systems
tremendous environmental and economic 6 to 12+ hours, and multi-day solutions to involves converting electric energy from
benefits. support renewable energy fluctuations, the grid into thermal energy that is then
have no fire risk, and are more stable. stored as thermal potential. When running
Mechanical energy storage Electrochemical energy storage works by at full capacity, the systems store energy
Mechanical energy storage is often referred converting the chemical energy contained in tanks, rocks, cement, salts, and low cost
to as the experienced guide of LDES. The in its active materials into electric energy mediums from hours to weeks, or months
most well-known and widely recognised through an electrochemical oxidation- before converting it back to electrical
form is pumped hydro-storage (PHS), which reduction reverse reaction. These batteries energy when needed. This can then
is widely used for load balancing around can be divided into the following basic provide upwards of 10 hours of electricity
the world by grid operators, and can also groups: standard batteries, modern, special and capacity can be increased by increas-
provide an array of ancillary services. It was batteries, flow batteries, and high tempera- ing the total volume of the storage tanks,
first deployed in 1907 and provided 160 GW ture batteries. cylinders, etc.
of global storage power in 2019 – over 90% These solutions operate over six hours TES when combined with renewable
of the global energy storage total. and have a wide range of advantages as energy sources, waste heat, or surplus
The majority of mechanical energy they are safer to deploy, easily scalable, have energy production, accelerates the
storage technologies work by storing kinetic no detrimental effects from deep discharge, replacement of heat or cold generation
energy through a series of complex systems have minimal self-discharge as well as lower from fossil fuels. In Europe alone, the
that use heat, water or air with compressors, levelised costs of storage and long-life International Energy Agency has estimated
turbines and other machinery. As a spring cycles – many over 20 years. In sum, electro- that 1.4 million GWh of power per year
becomes compressed or stretched, it stores chemical batteries hold great promise and could be saved through the use of heat
the potential energy which can be utilised are already being widely deployed across and cold storage. This would avoid 400
by releasing the spring back to its original the globe in a variety of different environ- million tonnes of CO2 in the building and
shape. Other popular forms of mechani- ments. Electrochemical batteries are rapidly industrial sectors, which are amongst the
cal energy storage that are available today scalable, which significantly reduces the hardest to decarbonise. According to the
include compressed air energy storage overall costs of these technologies and Australian Solar Thermal Research Institute
(CAES), where air is compressed and stored helps to realise their vast potential. (ASTRI), concentrated solar thermal power
within underground reservoirs, and liquid for utility-scale power generation will be
air energy storage (LAES) which works by Chemical energy storage the lowest-cost technology for eight-hour
cooling air to its liquid state and storing it Chemical energy storage refers to the storage in 2050, at just over A$100/MWh,
within insulated containers. More recently, process of storing energy in the form of compared with lithium-ion battery at

96 | May 2023 | www.pv-tech.org

Your indispensable guide to achieving business growth in 2023

SAVE 35%
ON YOUR FIRST YEAR AS A PV TECH
PREMIUM SUBSCRIBER.
USE CODE: PVTPOWER

PV TECH PREMIUM

249
US$

per year

PV TECH PREMIUM CONTENT

„ Regular insight and analysis of the industry’s biggest
developments
„ In-depth interviews with the industry’s leading figures

PV TECH POWER JOURNAL

„ Annual subscription to PV Tech Power journal
„ Access to the PV Tech Power archive, including all
previous journals and technical papers

EVENTS
„ Exclusive webinars and interactive ‘Ask the Editor’
sessions
„ Discounts on Solar Media’s portfolio of events, live
and virtual

Subscribe at:
pv-tech.org/pv-tech-premium
 Storage & smart power

A crucial barrier to LDES adoption is the

need for new policy and regulation. For
LDES to be available to support the decar-
bonisation of energy systems in 2026 and
beyond, signals need to be created today to
spur scale-up, investment, and adoption.
Most climate targets and current policies
aim at 2030, which is less than seven years
away. To truly decarbonise economies and
reduce emissions, policies must change
today to address tomorrow’s needs. Scaling
up the LDES value and supply chain must
start now to provide the savings tomorrow.
There are three types of policy support
which can drive action towards net zero:
long-term market signals, revenue mecha-
nisms and direct technology support.
Long-term market signals critically
provide a more secure investment case for
A$140/MWh and pumped hydro at around As there is a rise of renewable energy LDES as they provide certainty and trans-
A$155/MWh. integrated in power and heat systems parency, while more strategic planning
The LDES Council’s recent report on around the world, LDES will need to for storage capacity targets, and clearer
net-zero heat points to the power of be deployed faster to provide system procurement targets will aid the incorpora-
TES in helping to abate industrial needs flexibility, reliability and stability. Three tion of LDES into inclusive grid planning,
such as mining, refining, agriculture, and key challenges are: rising power supply ensuring climate needs are meet with LDES
aluminium. TES for high-pressure steam and demand imbalances, an increase in flexible solutions. Carbon pricing and the
production can generate up to 16% IRR, transmission congestion, and a decrease removal of fossil fuel subsidies also helps
and TES with co-generation in an off-grid of system inertia. These can all be solved to level the playing field in the coming
setting can generate up to 22% IRR, regard- by introducing LDES technologies to decades.
less of the additional value of flexibility. provide flexibility into the power and heat Revenue mechanisms will be necessary
By nurturing a supportive ecosystem sector across different time spans, allowing for improving project financial viability
between business leaders, policymak- renewables to meet constant demand. The for both customers and investors, and
ers and investors, the potential of TES ups and downs of variable generation are Contracts for Difference, Caps & Floors
technologies, which are commercially flattened out to a continual source, allow- and 24/7 Purchase Power Agreements
available and ready to be deployed, can be ing clean energy to be stored via LDES at (PPAs) can all also be leveraged to achieve
harnessed to tackle this crucial sector. And times when supply exceeds demand and this. These tools provide mechanisms for
most importantly, reaching that 8TW goal released at times when demand exceeds ensuring the multiple value streams LDES
will see a cost savings of US$540 billion supply. provides are compensated and provide
annually. Current transmission and distribution financial certainty.
planning does not incorporate the multiple Another tool gaining global attraction
The Future of LDES: Challenges, value-adds of LDES including an array of is hourly accounting for renewables, and
Barriers, and Market Opportunities ancillary services (blackstart, load following, LDES can provide this flexibility, security
to Scale LDES Globally synchronous inertia, frequency response) and reliability. Today’s pay-as-produced
While there are many positives to LDES, that provide additional reliability and renewable PPAs, which account for supply
there are still barriers to overcome to create flexibility, and models must be updated to and demand on an annual basis, only
a new economy and ecoystem based on reflect the multiple benefits to the system achieve 40-70% decarbonisation of the
climate dependent generation. and markets. off-taker’s actual electricity consumption,
while exposing off-takers to market price
risks stemming from the variability of
renewables. Instead, 24/7 clean PPAs offer
a more precise means of matching supply
and demand as renewables contribute
an increasing share of global generation
capacity.
Finally, direct technology support is
needed to fast-track significant growth in
public-private partnerships, provide invest-
ments from governments, and to amplify
the need and targeted tenders to acceler-
ate innovation and delivery. This is critical to
validate need and ensure innovations and

98 | May 2023 | www.pv-tech.org

 Storage & smart power

policies and targets and adding specific

LDES goals, strong policies can be devel-
oped that support the procurement and
scale up of long duration energy storage
technologies. By reaching these goals and
with proper investment, policy support
and incentivisation, LDES is a commercially
available solution available today that has
tremendous environmental and economic
benefits, creating a cost-optimal net-zero
energy system that benefits communities
around the world.
It’s very simple. By developing clear LDES
existing technologies can scale to meet the there is no way to reach renewable targets targets across all regions to support the
growing demand and need to decarbonise without these essential technologies. The rapid growth of renewable energy, provid-
all economies. diversity of LDES can also meet global ing market mechanisms that drive invest-
By leveraging these mechanisms regional demands and provide options ment and unlock opportunities for LDES to
through supported policies, a marketplace for different geographies and community work within the existing marketplace, and
can be created that can retrieve benefits needs. creating an environment that supports 24/7
from LDES and ensure support to scale to LDES provides affordable and reliable clean power purchase agreements (PPAs),
the large needs which are already widely storage solutions that can help balance the policymakers can ensure wind and solar
supported through global renewable variability of renewable energy sources by resources are not wasted, while support-
energy targets and goals. providing flexibility, reducing fossil fuels ing the US$4 trillion market opportunity
dependency, and contributing to a more of LDES and US$540 billion in cost savings
How LDES can lead the energy equitable, sustainable, and clean energy once 8TW of LDES is implemented world-
transition system. wide. The time to act is now, and there is
As the world increasingly transitions Regulators and policymakers can take no way to reach global clean energy goals
towards renewable energy sources, the immediate action to support the clean without LDES as a critical component in the
importance of LDES cannot be overstated – energy transition. By building on existing energy transition. „

Future Events

11-12 July 2023 | Singapore 19-20 September 2023 | London, UK 26-27 September 2023 | Warsaw, Poland

28 September 2023 | London, UK 17-18 October 2023 | Santiago, Chile 31 Jan - 1 Feb 2024 | London, UK

For more information visit: solarmedia.co.uk/events

www.pv-tech.org | May 2023 | 99

 Storage & smart power

How we delivered the

98MW/196MWh Pillswood
BESS Project
Case Study | Alex Thornton, operations director at Harmony Energy, gives us a deep dive into the
biggest battery storage project in Europe, including the bold decision to be an early-mover into
2-hour lithium-ion BESS, in a market of much shorter duration assets.

Credit: Harmony Energy.

FACT SHEET: TIMELINE: • November 2021: Construction begins

Project name: Pillswood BESS • 2016: Planning and preparation begins • November 2022: System is energised
Location: Hull, UK o a) Technical analysis of the distribution • January 2023: Phase 2 fully operational
Capacity: 98MW (196MWh Lithium-ion) network • March 2023: Official launch and site
Energisation date: November 2022 o b) Negotiations with landowners opening
Developer/asset owner: Harmony o c) Design phase
Energy, Harmony Energy Income Trust • 2017: First planning application submit- PROJECT OVERVIEW:
(HEIT) ted The Pillswood Battery Energy Storage
Battery technology providers: Tesla • December 2020: Planning rights secured System (BESS) near Hull in northern England
Distribution network operator: Northern • April 2021: Contract with Tesla signed was officially opened by Harmony Energy
Powergrid • November 2021: HEIT lists on the and its investment company, Harmony
London Stock Exchange Energy Income Trust, in March 2023.

100 | May 2023 | www.pv-tech.org

Get the inside
track on the energy
storage sector
Enjoy 12 months of exclusive analysis

Premium subscription benefits include

ENERGY-STORAGE.NEWS PREMIUM CONTENT
• Regular insight and analysis of the energy storage industry’s biggest developments
• In-depth interviews with the industry’s leading figures

PV TECH POWER JOURNAL

• Unlimited digital access to the PV Tech Power catalogue, previously published by PV Tech,
dating back to 2014. Including more than 30 editions

EVENTS
• Exclusive webinars and interactive ‘Ask the Editor’ sessions
• Discounts on Solar Media’s portfolio of events, in-person and virtual Just
$249
USD/year

Subscribe at: energy-storage.news/premium

 Storage & smart power

This 98MW/196 MWh scheme is concept of Pillswood was born. During the four-year development
Europe’s largest by capacity, using a Tesla The next stage involved pre-planning period of this project, we encountered
2-hour Megapack technology system. consultations with the local planning fundamental challenges which led to us
The site is located next to National Grid’s authority. During this stage, we identified changing our plans multiple times and the
Creyke Beck electricity substation. The key risks to the project. The main risk being access track is just one example of this.
world’s largest offshore wind farm, Dogger the site’s status as a flood sacrifice zone, Securing the land rights with four differ-
Bank, also feeds into the same substation, used as a floodplain to prevent people’s ent landowners was one of the largest
planned to be the connection point for the houses flooding in the event of an extreme pieces of work during the entire project,
first two phases of Dogger Bank. weather event. This would necessitate with in-house staff and lawyers from all
an elevation of the batteries and formed stakeholders involved in negotiating, draft-
Investigating the potential for a founding principle of the layout of the ing and executing the land agreements.
energy storage in the UK project.
The project was conceived in early 2016, Entering the design phase
when Harmony Energy made a leap of Securing property rights Once the grid connection was confirmed
faith into the energy storage sector. As Harmony Energy then entered into negoti- at 98MW, Harmony Energy could begin
a company, we had a strong belief that ations with landowners and adjacent the design phase within the space avail-
the energy storage market in the UK was landowners with a view to obtaining a able. The design had two elements to it:
fundamental to the country’s ambitions long-term lease for the project build. the new DNO 132/33kV substation; and
to decarbonise. The UK’s target at the time Initially, it was planned for the site our battery system. There were around
was a commitment to an 80% reduction of access to utilise existing level crossings. four or five different iterations over the
greenhouse gas emissions by 2050. Although we received initial consent for process. We worked in close partnership
European and UK government policies this, following further discussions with and collaboration with Tesla in order to
were driving a reduction in emissions Network Rail, it became clear that this adapt the design to make sure we were
and, in the UK, we were also seeing a would be too complicated due to local creating the best solution whilst trying
reduction in the reliance on centralised site constraints. Further solutions were put to value engineer within the specific site
coal-fired power stations. With the result- into consideration, including the option of constraints.
ing movement towards wind and solar, we building a new bridge across the railway. Due to the designation of the site, we
firmly believed that BESS had an increas- However, this option proved challenging were faced with the task of designing
ing role to play in the energy supply of the technically and financially so was deemed the first ever project of this scale to be
future. unsuitable. elevated on a steel platform. As the site is
In 2016, we had already started conver- The remaining option was to build a located in a flood sacrifice zone, our design
sations with Tesla about the potential for new access road from the west, and we needed to incorporate the elevation of
2-hour lithium-ion batteries. Where other subsequently began discussing terms for equipment which would raise the batteries
UK developers were only speaking about that option. Negotiations began in pursuit from the ground without impacting on the
30 minute or 1-hour duration batteries, of extremely complex agreements with volume of water that the site could accom-
we identified that the UK energy system three separate landowners who could modate in a flood event. This brought
would need longer duration storage as we grant alternative access across their land. many challenges as the design needed to
continued to decarbonise and decentralise
generation.
Harmony’s mission statement was clear:
develop, build, own and operate energy
storage projects at utility-scale with
lithium-ion batteries being the product of
choice.

The Pillswood project is born

Following the review of the Electricity
Distribution Network data, we identified
Creyke Beck substation, at Cottingham
near Hull, as a potential viable grid
connection point for a large-scale BESS.
This initial technical analysis including
a desktop appraisal of the site, led us to
confirm that there was sufficient capacity
at this substation to connect a project of
this size.
Credit: Harmony Energy.

Local Distribution Network Operator

(DNO) Northern Powergrid confirmed that
there was sufficient capacity and reinforce-
ment on the network for batteries with a
combined grid connection of 98MW. The

102 | May 2023 | www.pv-tech.org

 Storage & smart power

Harmony Energy Income Trust Plc (HEIT),

on the London Stock Exchange, raising
£210 million. HEIT has preferential rights
to acquire and build out the next 1GW of
Harmony Energy’s development pipeline
into the future which provides investors
with an opportunity to participate in the
construction and growth of the battery
energy storage and renewable energy
market in the UK.
HEIT acquired and funded the project
for Pillswood at the construction-ready
stage – once planning, grid connection,
construction and battery supply contracts
and the lease option over the land had
been secured. As a result, investors were
Credit: Harmony Energy.

protected against the usual development

risks inherent in a project like this, while
benefitting from value uplift as the project
went from construction to operation.
One of the most remarkable aspects
of battery energy storage schemes like
Pillswood is that they are constructed
solve three singular needs: to guarantee locally by Wilson Power Solutions in without depending on government
that the platform was structurally sound Leeds subsidy which is a significant benefit to
on engineering terms; to ensure that the • Two 33kV customer switch rooms taxpayers and consumers in the UK. Histor-
project could operate safely even in a supplied by CRT in Italy ically, new renewable energy infrastructure
once-in-a-century-flood event (combined • One 1.4km access track has always required subsidy to make them
with the added likelihood of the access • Over 20,000 m2 site – the size of three financially viable.
being inaccessible during such a flood); football pitches side by side
and to maintain the cost-effectiveness of • A new 132/33kV substation constructed Forging ahead with construction
the solution. by Northern Powergrid despite supply chain challenges
This made the design totally unique, Work began in autumn 2021 with the
with all the electrical equipment designed Getting the project shovel-ready construction of a 1.4km access track,
to sit approximately 1.8 metres above During the development phases, Harmony complete with two bridges and two
ground level. The height calculations were Energy submitted numerous planning culverts. The track runs across agricultural
made in consultation with the environ- applications, all taking into account the fields so in order to prepare the ground
ment agency and local planning authority latest developments in lithium battery for the build, the topsoil needed to be
according to both detailed engineering technology. After 17 revisions, we submit- stripped, the soil stabilised through the
design data and thorough risk assess- ted our final 98MW grid connection injection of lime to form a hard formation,
ments which took historical data, flood planning application to the local planning and then compacted stone was added
modelling and additional safety factors authority. on top.
into account. Due to the sustainable credentials In January 2022, we began to prepare
In light of these discoveries, we consult- of the batteries which do not produce the battery site itself, which involved
ed a structural engineering company to emissions, the council took the view that the installation of 478 individual piles,
carry out some preliminary structural the construction of the battery energy each to a depth of around 15m. These
design work to determine the feasibil- storage site would be a necessary develop- were installed to support the steel frame
ity of this elevated platform even before ment. Our plan also proposed landscaping elevating all of the electrical equipment
negotiations with Tesla on contracts had to create biodiversity gains, including trees approximately 1.8m off the ground.
taken place. and over 1km of hedge planting on the Ground beams were inserted to connect
The final proposed design incorpo- site and along the 1.4km access track. All the piles, before our specialist construction
rated the construction of four large steel of this results in a minimal impact on the team began building up the legs of the
platforms. This had the added advantage landscape. platforms on which the batteries would sit.
of the fact that all electrical cables were By the end of 2020, we had secured grid Constructing the scheme to a tight
run above ground, reducing the amount of capacity, planning and land rights which timescale in a challenging geopolitical and
cable trenching and civil works on site. meant we were ready to move on to the global supply chain environment was no
next stage. mean feat. International shipping issues
The final site design incorporated: were affecting lead times, particularly on
• 78 individual mega pack battery units, HEIT acquires and funds the project the electrical equipment which we were
manufactured in the United States In November 2021, Harmony Energy reliant on. To reduce the risk of delays
• 40 MV/LV transformers, manufactured successfully floated its investment arm, on components, we spoke directly with

www.pv-tech.org | May 2023 | 103

 Storage & smart power

Successful energisation of the performance tests, to make sure that the

project batteries were performing as they should
As the construction phase begins to finish, do.
thoughts turn to energisation. Before we After an intensive period of testing and
could energise the site, all parties have control procedures, the Pillswood scheme
to ensure that the new system is safe and was fully energised a month ahead of
ready to be switched on. We engaged schedule and in time to support National
with the control centre for Northern Grid in providing stable, secure power to
Powergrid to run through a sequence of the network over the challenging winter
safety checks and tests in order to make period.
sure that the site would not impact the The project will continue to be operated
network. Numerous cold commissioning through Autobidder, Tesla’s algorithmic
checks were done on all the equipment trading platform. Autobidder has demon-
manufacturers and suppliers, often spend- including cable pressure, sheath tests, strated a strong track record over the past
ing days negotiating a multitude of assets, communications tests and emergency two years in managing both the Holes
from steel beams to cranes, trucks and stop buttons. Bay and Contego BESS projects. These are
staff. The global supply chain was experi- The moment then came for Northern two existing battery storage projects also
encing significant strain as we came out of Powergrid to close their 132kV circuit developed by Harmony Energy Limited in
Covid-19 lockdowns but through effective breaker and energise the transformer. conjunction with FRV.
communication we were able to maintain There were no loud noises, lights or
and develop strong relationships with the surprises which was exactly what every- An exciting future ahead for BESS
supply chain, allowing us to mitigate much one was hoping for. Despite knowing that projects
of the impact. the works were completed by profession- Looking to the future, the whole globe
During the access track construction, we als, there was a sense of relief from the needs to come together collectively to
also encountered a number of under- Harmony team as we left site at 11pm on support developments like these if we
ground utilities. Safe working practices a Friday night knowing that the Northern want to enable clean energy generation
and bespoke construction strategies were Powergrid transformer was energised. and to protect the future of our planet.
deployed to protect and mitigate any Following the first stage of energisa- The Pillswood BESS project is the first
immediate or future impact on the in-situ tion, Northern Powergrid was able to of eight similar battery energy storage
utilities. energise their 33kV switchboard. Shortly schemes scheduled for delivery by HEIT in
after that, the project was energised as the coming year. Harmony also has plans
Rapid construction of the new Northern Powergrid closed the metering to replicate its UK success in continental
substation circuit breakers. Once again, the teams Europe to address the urgent need to
Simultaneously to this, Northern Power- and Senior Authorised Persons (SAP) from deploy significant volumes of BESS to
grid was working hard on the construc- Northern Powergrid, Tesla and G2 worked support the deployment of intermittent
tion of the new distribution substation as a single unit to ensure that the system renewable energy generation.
adjacent to our site. Northern Powergrid was energised in a safe and controlled In the medium to long-term, we see
had a large scope of work to complete manner. With the energisation documen- the technology moving towards longer
to connect our project which included tation issued, Northern Powergrid left duration batteries. With the growth of solar
refurbishment of a 132kV circuit breaker, the project team to conclude the on-site and wind, battery energy storage sites will
installation of 132kV cable and building activities. be even more important for a sustainable
a new 132/33kV substation with 33kV future. „
switchboard. Again, due to the nature of Rigorous testing before the project
the site, Northern Powergrid’s new assets officially goes live Author
were built on a raised platform so that Each 33kV circuit was energised under Alex Thornton has over 15
the equipment could be lifted out of the a controlled routine and the MV/LV years’ experience building
flood zone. Due to the scale, complexity transformers were energised and left to and managing fast-growing
and timescales of the project, Northern ‘soak’ overnight. Further safety checks businesses in the renewa-
bles energy sector. As
Powergrid worked at an incredible speed, followed, along with control procedures,
operations director at Harmony Energy,
safely delivering the build of their works in and breaker tests. Tesla then conducted a developer, owner and operator of
record time. their own tests where they moved energy utility-scale battery storage projects,
During this phase, the Harmony Energy around within the batteries. Thornton manages and supports its
team coordinated the three parties: North- Finally, we moved into the live commis- project development, delivery and asset
management teams. He also oversees
ern Powergrid, the distribution network sioning tests where all of our previous
the build-out of Harmony’s battery
operator providing grid connection; Tesla, hard work is put under scrutiny. Firstly, energy storage systems. He works
providing the Megapack batteries; and G2, commissioning tests are carried out at closely with Tesla, Balance of Plant con-
the subcontractor responsible for plant 20% as part of the G99 procedures. Once tractors, DNOs and local stakeholders at
construction including civil work, the passed, these restrictions are lifted to all stages of project delivery. Harmony
Energy is currently focused on develop-
access track, and facilitating connections enable the system to be tested at 100%
ing projects in the UK, France and New
between transformers and megapacks. power. Alongside these G99 commission- Zealand.
ing tests the project team also conducted

104 | May 2023 | www.pv-tech.org

 Sa
tic ve
ke 20%
t
PV s us on
TE e c al
CH od l
20 e:

27-28 June 2023,

Hilton Tower Bridge, London UK

The UK’s New Landscape for Utility & Rooftop Solar:

Opportunities Within a GW+ Annual Market

250+ 60+ 70% 8 175+

Attendees World-Class Senior Hours of Companies
Speakers Stakeholders Networking Represented

REGISTER FOR YOUR TICKET TODAY! uss.solarenergyevents.com #USS23

Our 2023 Sponsors

Diamond Sponsor Gold Sponsor Silver Sponsors Bronze Sponsor

Supporting Exhibitor Editorial Partners Partners

Sponsor

uss.solarenergyevents.com [email protected]
 Storage & smart power

Cloud-based analytics for de-risking

BESS deployment and operation
BESS analytics | Energy storage assets are versatile, profitable low carbon resources that need
the right conditions and guidance to deliver value from the very start of operation. How we look
at commissioning can determine the outlook for the asset for a lifetime, write Dr Stephan Rohr,
Sebastian Becker and Dr Mathias Simolka from TWAICE.

Introduction downtime of the system, hence, negatively Get what you pay for (since you are
More than 1,600 battery energy storage affecting the business case of asset owners. paying a lot!)
projects with a total capacity of 386GWh Whilst downtime for BESS maintenance Commissioning
have been announced for 2023-2025 can be scheduled to keep revenue loss to Before deploying an energy storage
around the world, according to market a minimum, unplanned downtime cannot system, a process generally referred to as
research group Rho Motion. One visible be accounted for in daily operation. “commissioning” takes place to test and
trend is an increase in the average size In a worst-case scenario, asset owners verify that the storage system and its
of storage systems. The average storage miss out on significant revenue because components are installed and configured
size planned to be deployed in 2023 is their energy storage system is out of opera- correctly.
170MWh, this will increase to 230MWh tion during a spike in energy prices, as seen Commissioning is performed once the
in 2024, and is likely to reach 600MWh in in the Texas power crisis in 2021. project is handed over from the EPC to the
2025. Not all detectable errors will immediate- owner. The aim is also to test the operabil-
Another trend that has been shaping ly lead to BESS failure. Some issues appear ity of the storage at its initial state in terms
the energy storage market over the past less serious as they do not pose an immedi- of performance, reliability and safety. To
years is, however, coming to an end. ate safety risk but can have considerable put it simply, not only are the keys handed
Companies were enjoying favourable financial consequences. For example, a over, but also the responsibilities and risks
battery and project costs, but due to recent poorly configured cooling system (e.g. the regarding the asset.
developments, project costs can exceed cooling swirls are not ideally positioned The results of this process are provided
US$1 million per installed MWh. The in the container) can cause inhomogene- in a commissioning report that provides
increasing prices have led to an adoption ous aging, therefore leading to a shorter detailed information about the system’s
of lithium iron phosphate (LFP) cells in battery lifetime, in which case the overall set-up and performance, which can be
the battery energy storage system (BESS) return on investment is lower. used to identify and resolve manufacturing
industry, but whilst these come with a cost Despite these challenges, storage issues, underperforming components and
advantage, they come with a disadvantage projects can be extremely profitable when to ensure compliance with regulations.
– accuracy in controlling the BESS. you have an ecosystem of partners and Energy storage commissioning is not
BESS projects do not only come with tools in place to help you prevent costly a standardised process and includes
high costs, but also with high risks of failures and ensure availability. different aspects depending on what has
failure or unplanned downtime. Between
2015 and 2022, 58% of energy storage
system failures happened in the first
two years of operation. Two thirds of the
incidents occurred in the first year, shortly
after the storages were deployed.
These incidents have many different
causes, from cell and fan issues, cooling
system errors, inverter breaks, battery
management system (BMS) malfunctions,
and more. Figure 1 below illustrates this
point with data taken from the EPRI BESS
Failure Event Database.
Energy storage system failures do not
only pose safety risks, but they also cause
storage downtime. Availability rate is a
crucial part of the equation to ensure a
profitable business case for the energy
storage project. Fixing malfunctions
Figure 1: ESS Failures vs. System Age
and repairing defects lead to temporary

106 | May 2023 | www.pv-tech.org

 Storage & smart power

been agreed between the different parties. Incident Action

So it is not only about testing all physical
Weak cells are identified due to Modules with self-discharge issues
components and electrical connections for
observations in various KPIs should be replaced
functionality. As the BESS also needs to be
compliant with local and national safety System design failure diagnosis based on Cooling system should be redesigned
temperature analyses
regulations, the report usually also includes
details on safety features of the system Strings and Modules should showcase Modules with identifiable outlier
data sheet based behaviour for relevant KPIs which represent
and the fire protection concept. The report
manufacturing issues and defects should
provides evidence that the system has been be replaced
configured correctly (particularly software),
to ensure that operation within the specified One of the significant drawbacks of focus on the system level may not provide
parameters. commissioning reports for batteries is that this level of detail, leading to continued
Industry standards for commissioning they often focus on the system level, which use of underperforming sub-components
reports have not yet been developed, but is not where most issues are happening. and decreased efficiency.
more and more common practices are Most problems occur at the sub-compo- Commissioning reports require a lot of
emerging. nent level, such as individual cells, modules work and time onsite, which can prolong
or strings. the construction timeline and push the
Importance of the battery in the commis- Therefore, a commissioning report that start of revenue generation further into the
sioning process only analyses the system level may miss future. It is essential to invest the necessary
The battery is the most expensive part of crucial information about underperform- time and resources to ensure that the
energy storage projects (making up 40-50% ing sub-components, leading to decreased battery system is functioning optimally,
of the cost) and the most complex, for efficiency and potential system failure. but efficiency should be the key.
number of different reasons. Let’s focus on For example, if one cell is not functioning Lastly, if the commissioning report is
why that is from a commissioning perspec- correctly, it may not be detected by the carried out by the EPC contractor, there
tive. process if the other cells in the module are may be no neutral party involved, meaning
• Unlike most other components, the compensating for its lack of performance. that incentives for detailed checks might
battery is not either working or not This can lead to continued use of an under- be limited. While neutrality is difficult
working – there are many shades of grey performing cell, ultimately affecting the to define, conflicts of interest could
when assessing a battery’s performance. overall efficiency of the system. arise when multiple projects need to be
What is the system’s state of health? To The overall system performance is commissioned within a tight timeline.
what degree is the promised round-trip determined by the weakest sub-compo- Thus, having a neutral party involved in
efficiency achieved? nent; hence it is essential to identify the commissioning process is essential
• The commissioning process is usually underperforming and high-risk strings and to ensure that the report is unbiased and
carried out at system level, thus provid- modules as early as possible. Identifying thorough.
ing system-level KPIs. This only tells half and replacing these underperforming
the truth about what is really going on sub-components can significantly improve The benefits of more insights
within a battery energy storage system, the efficiency and lifespan of the system. Deeper insights than can be provided with
as it does not provide the vital informa- However, commissioning reports that only onsite commissioning are crucial to get
tion about issues on cell or module
levels. What is the state of health of each
module? Is the HVAC system capable of
controlling the temperature homogene-
ously within the entire container? What
is the initial energy spread of the single
strings?

What commissioning typically includes

The part of the commissioning covering
the battery typically includes information
such as the system’s capacity, efficiency,
and power output. It also includes details
on issues that were identified during the
commissioning process and the steps taken
to resolve them. Additionally, the report will
serve as the foundation in case of warranty
claims or disputes about the asset’s status.

What commissioning does not typically

include Figure 2: All strings are tested in the observed operation range, levering different methods. The deviation
However, conventional storage commission- from the acceptable operations can be observed and underlying issues can be identified, which are in these
ing comes with drawbacks. cases weak cells within the string and imbalances

www.pv-tech.org | May 2023 | 107

 Storage & smart power

an overall picture of the asset and uncover To make it more concrete, a vital Figure 3: Screen a safe and long lifetime as well as high
more manufacturing failures, system design component of battery safety involves from TWAICE availability.
Safety Solution
failures or other issues. detecting anomalies and trends outside Digital commissioning is one option to
Let’s look into the inside of a storage the norm. Deviations from the average deal with these challenges. Once digital
system and at three common findings that distribution in resistance and tempera- commissioning has been carried out on
could be fixed with additional KPIs. ture, for example, could indicate side an asset, the data connection is estab-
reactions within battery cells. These are lished and in-life analytics can finish what
You got off to a great start – now the incidents you want to know about and digital commissioning has started.
keep up the good work! fix as quickly as possible. Having enough
Successful commissioning and the detec- time to fix such anomalies before they Authors
tion of potential anomalies in the early escalate will help to keep storage availabil-
Dr. Stephan Rohr is
phase of storage life is only the first step ity high. Co-CEO of TWAICE. Before
to profitable and reliable energy storage Energy storage management systems founding TWAICE with Dr.
operations. After deployment, in-life (ESMS) usually do not provide sufficient Michael Baumann, Stephan
monitoring and analytics is essential to information to ensure health and safety completed his Ph.D. at
the Technical University of Munich
ensure high availability and avoid safety- of energy storage systems. Such systems
after working in start-ups, PE, and in
critical incidents. do not provide an analysis of historical consulting.
data and hence do not supply the neces-
In-life analytics for a safe and healthy sary data to detect long term trends or Sebastian Becker: Sebastian
operation anomalies. is Director of Partnerships
& Industry Strategy for the
Using safety analytics, possible safety
Energy sector at TWAICE.
incidents can not only be identified, but Conclusion In his role, he drives the
grouped into meaningful technical units so Battery energy storage systems are TWAICE go-to-market
that trends can be detected, and Operation valuable assets. As much as BESS are approach to enable integrators,
& Maintenance (O&M) teams can plan and advantageous in storing and trading developers and owners of battery
energy storage systems to get the most
act accordingly. energy, reliable insights are essential to
out of their assets.
One temperature or voltage value outside ensure continuous operation and optimal
the boundaries is not necessarily a cause for performance of the batteries. At the Dr. Matthias Simolka:
immediate concern, but an accumulation beginning of the storage life, the storage Matthias Simolka is part
could be a long-term risk. Values occurring needs to be commissioned. However, the of Technical Solution
Engineering at TWAICE.
outside safety-critical thresholds must be main concern with conventional commis-
In this capacity, Matthias
interpreted correctly and considered in the sioning is that it often lacks detailed bridges the gap between Sales, Product
context of other KPIs. Notifications can be insights into the batteries. Digital commis- and Tech, working with all teams
helpful in finding out when an unsafe level sioning can provide the necessary insights to ensure maximum value and the
has been reached. This is where battery to ensure problems can be solved before optimal solution is delivered to battery
customers.
analytics is the ideal solution. deployment. This lays the foundation for

108 | May 2023 | www.pv-tech.org

 Storage & smart power

Using battery analytics to support

BESS commissioning: A technical
deep dive
By Dr. Kai-Philipp Kairies, ACCURE Battery Intelligence

T
he BESS commissioning phase tions of internal resistances in a BESS
is the first and crucial opera- shortly after its commissioning. The
tional step for companies to batteries fall into distinct groups:
become profitable with big batteries. Dr (a) The left-most group shows highly
Kai-Philipp Kairies of ACCURE provides desirable properties: The distribution of
insights into typical technical commis- internal resistances is centred around a
sioning challenges and how advanced low value and has a small standard devia-
battery analytics can support owners and tion. The EOL testing and sorting at the
operators. factory clearly worked here.
In this article we examine four typical (b) The middle and right group show
technical challenges BESS assets face at the opposite: The distributions are
the beginning of their lifecycle and how centred around higher values, with
Figure 1: Distribution of internal resistances of a BESS
battery analytics can help to overcome higher standard deviations. In layman’s
them. All are based on real-life BESS terms: The cells in the middle are B stock,
projects with sizes between 20MW and Importantly, cell production quality the cells on the right are trash.
200MWh, informed by ACCURE’s experi- and consistency are essential for optimal A deeper look into the electric and
ence with over 2.5GWh of connected BESS performance. Like a chain, the electrochemical properties suggests that
battery assets. Insights are anonymised performance of a battery system is the cells came from different production
and modified to respect the confidential- defined by its weakest link. Single-cell batches and probably used different
ity of ACCURE’s customers. failures in battery racks can lead to components (e.g., a different electrolyte
accelerated ageing, system imbalance, or separator). It was also clear that the
1. Battery cell quality or even catastrophic events such as fires right group did not fulfill the quality
Battery cells are the heart of a BESS; and explosions. As the numbers of cells criteria promised to the client. These
their quality makes or breaks a system’s deployed grow exponentially, the risk battery cells were liabilities. Based on
ability to provide value. But high battery of unplanned incidents also increases. the performed cloud analytics and a
quality is not a given. Even the best cell This represents massive challenges for summarising report created by ACCURE,
manufacturing lines have significant asset managers who are responsible a pragmatic solution was found between
scrap rates and produce batteries of for companies’ growing fleets and the the involved parties.
varying qualities. New cell chemis- associated operational complexity.
tries, exponential growth, accelerating Today, the industry typically uses 2. Battery Management System
product development cycles, and the end-of-line (EOL) testing and sorting at (BMS) failures
advent of new suppliers hyper-scaling the factory to ensure a minimum cell The BMS is the brain of a battery. It
into the market have not improved this quality and to deal with the inevitable ensures the battery is not operated
situation. spread in cell properties during battery outside of its specifications and provides
In the last three years, manufacturers production. One typical test is to use an abstract values like state of charge (SOC)
of battery cells for stationary applica- AC power source providing a current to the overlying energy management
tions almost completely reinvented their pulse at 1,000 Hz to measure the internal system. To operate, it continuously tracks
commercial products: Cathode material resistance of the cells. Cells with similar the voltage, current, and temperature
changed from nickel-manganese- properties are grouped, and outliers go of all battery modules. If a sensor fails or
cobalt (NMC) to iron-phosphate (LFP). straight to recycling. Internal resistance is the BMS logic is corrupted, potentially
Form factor transitioned from pouch or not typically evaluated during commis- dangerous situations can arise:
cylindrical to prismatic. And the capacity sioning and operation, but it should be. • Unexpected shutdown of a battery
per cell increased from ‘small’ (3-50Ah) Today, internal resistance can be tracked rack because the BMS (falsely) believes
to ‘huge’ (270-500 Ah). Challenges in by combining battery management a battery has reached its operational
terms of production quality and consist- system (BMS) readings and advanced limits
ency come naturally with this level of cloud computing capabilities. • Erroneous SOC calculation, leading to
transition, especially given the short In Figure 1, ACCURE’s advanced cloud an underutilisation of the asset and
timeframe. analytics platform depicts the distribu- increasing system imbalance

www.pv-tech.org | May 2023 | 109

 Storage & smart power

batteries generally have a higher raw a fire. And if the water did no apparent
material availability, lower costs per damage, a contractor might be incentiv-
kWh, and a lower energy density. This ised to find pragmatic ways to deal with
lends itself well to stationary applica- seemingly minor incidents.
tions. However, one major challenge One example of such a pragmatic
when working with LFP batteries is SOC solution was found by ACCURE when
estimation. While the SOC estima- analysing the temperatures of battery
tion for NMC batteries typically is less containers during the commission-
than 5 percentage points (pp), it can ing phases. In Figure 4 the current
be 10-25pp for LFP. Such deviations and temperature profile of one of the
dramatically reduce the value of an containers is depicted. Although the
asset, as it will not be optimally traded. system is inactive, the temperature
Figure 2: Deep discharging of a battery during commissioning
Additionally, as the inverters distribute steadily rises over several days.
the power according to the containers’ A simple failure of the HVAC system
SOC, an inaccurate SOC estimation can does not explain the observed thermal
create balancing problems. behaviour. If the sun heated the
Figure 3 shows the SOC of a BESS container, temperature dips should occur
during a late part of the commission- at night. But the temperature rises stead-
ing phase. The greater than 30pp ily over days, reaching more than 60°C at
SOC difference between the racks is its highest, then falling back to the base
striking – and in this case incorrect. value of around 20°C. All other contain-
Using cloud-based algorithms, it was ers showed normal behaviour during this
shown that the actual spread at the phase, with temperatures around 20°C.
time was significantly smaller and that One plausible solution to this riddle is
some of the initiated balancing activi- using a dehumidifier after water damage.
Figure 3. SOC of a BESS during late stages of commissioning ties actually increased the problem. It was probably well-intended. However,
In the given example, the error was it had violated the battery’s warranty
• Deep discharging, leading to the pinpointed using ACCURE’s cloud- conditions.
dissolution of copper from the anode based analytics, and the issue was
tab and the risk of internal short quickly addressed through recalibra- Summary
circuits tion. Without battery analytics, the site The commissioning phase of BESS is
• Overcharging, leading to a thermal would have gone online significantly essential for its performance but also a
runaway event later or in a low-performing way. source of delays, conflict, and potential
future underperformance. Owners and
These issues are not academic theories 4 Water leakage and heat operators that leverage their (already
of ‘what could go wrong’ but a collection damage existing) battery data can avoid delayed
of actual events that ACCURE observed Problems with water have been a delivery, underperformance, and lengthy
in real-life BESS. The observed incidents repeated source of worry for BESS. discussions with their contractors about
were also not minor: Going 50mV above Failures of the cooling or fire suppres- potential claims. Leaning on highly
the upper voltage limit for a few minutes sion system started several high-profile specialised battery experts, a complete
is hardly an ‘overcharging’ problem; fires over the past few years. But not evaluation of the batteries can be done
pushing an already instable NMC battery every water issue automatically leads to concurrently with commissioning. After
to more than 4.35 V regularly is. site acceptance, continuous battery
Figure 2 shows a case of deep monitoring de-risks the operation and
discharging that happened during ensures asset performance every day of
commissioning. During commission- the year. „
ing, deep discharges can easily occur
by accident – through parasitic loads Authors
or faulty active balancing. If a battery is
Dr. Kai-Philipp Kairies is a
deep discharged beyond a certain depth scientist and entrepreneur
and duration, its warranty can be voided, focusing on innovative
and it can no longer be considered safe. battery energy storage
The dissolution of copper can lead to solutions. He worked as a
battery researcher and consultant in
internal short circuits weeks for months
Germany, Singapore, and California.
later. Such a battery needs to be taken Since 2020, he is CEO of ACCURE Battery
out of operation. Digital monitoring can Intelligence, a battery analytics solution
inform these discussions. provider that supports companies in
understanding and improving their
batteries’ safety and longevity to
3 SOC errors and imbalanced racks
reduce risk and increase value and
Since 2020, most new BESS use lithium- Figure 4: Current and temperature profile of one container in sustainability.
ion LFP batteries rather than NMC. These a BESS.

110 | May 2023 | www.pv-tech.org

 Storage & smart power

Canada’s energy storage leaders

have valuable lessons to teach
Lessons for BESS | Ontario and Alberta account for the bulk of Canada’s installed, planned and
proposed large-scale energy storage today. The rest of the country can lean on the experiences
and lessons learned. Andy Colthorpe hears from developers and expert voices.

C
anada could be reason- take a few steps up gradually”, and New should perhaps be considered analogous
ably expected to reach at least Brunswick’s government-owned utility to how we generally look at the US as
5,000MW of cumulative battery NB Power is currently seeking bids for comprising many different state, trans-
energy storage systems (BESS) by 2030 50MW. mission, or wholesale market constructs.
across all provinces and territories. However, Canada’s different provinces There is less coordination at sub-national
According to consultant Patrick Bateman, represent a “patchwork” of different level in Canada, however, he says.
that figure comes from adding up electricity markets, with different struc-
the few hundred megawatts already tures, rules and regulations, and activity LT1 procurement
installed to major announced devel- so far is largely concentrated in Ontario Ontario’s LT1 procurement, through
opments like the 250MW/1,000MWh and Alberta – around 94% of the entire which around 2,500MW of energy
Oneida project in Ontario, that province’s projection, according to Bateman. storage will be contracted for through
2,500MW procurement, a big pipeline of Both those provinces have a pretty competitive solicitation, along with a
standalone and hybrid storage projects strong head start; Ontario has about similar amount of new gas resources, is
in Alberta and smaller developments in 225MW of large-scale behind-the-meter serving a primary function of contribut-
other provinces. energy storage resources installed at ing to resource adequacy.
In fact, much more is likely to come industrial facilities to mitigate Ontario’s “We’ve got nuclear retirements and
by then, says Bateman, who has been unique Global Adjustment Charge peak refurbishments taking some capacity
retained by Energy Storage Canada for pricing tariffs, while Alberta has about offline. We’ve got load growth, not only
market development activities in Atlantic 100MW of battery assets providing from electrification, but also some very
Canada. The Atlantic Canadian province operating reserves to the grid. significant electrification projects and
of Nova Scotia, for example, has an Bateman points out that there are sectors, greenhouses are really increas-
integrated resource plan (IRP) that calls fundamental market drivers as well as ing in southwestern Ontario, and then
for 200MW of storage by 2030, but the interesting projects in all of Canada’s 10 there’s some steel and aluminium plants
IRP is undergoing revisions and “could provinces and three territories. These that are switching over to electric arc
furnaces,” all contributing to significant
load growth, Patrick Bateman says.
While adding much-needed dispatch-
able firm capacity, new resources
contracted for will be able to participate
in ancillary services markets. It seems
likely Ontario will see other energy
storage added too, including non-wires
alternatives (NWA) projects at the distri-
bution level, and more commercial and
industrial (C&I) projects.
Alberta on the other hand has just
100MW of operating reserves today. Yet
as a rapid adopter of renewable energy
as well as a traditional home of carbon-
Credit: Northland Power Inc.

intensive energy industry activity, there

is a fundamental need for clean energy
resources.
Of around 2,500MW of energy storage
project applications waiting for grid
connections in the Alberta Independ-
Rendering of the 250MW/1,000MWh Oneida project, from NRStor with partners including IPP Northland ent Electricity System Operator (AESO)
Power and technology providers Aecon and Tesla. queue, about two-thirds are standalone

www.pv-tech.org | May 2023 | 111

 Storage & smart power

Credit: Hydrostor.
NRSTor and technology provider Hydrostor completed the world’s first advanced compressed air energy storage plant (pictured) in 2019.

energy storage and the remaining third Alberta storage tariffs in One company with projects in that
hybrid renewables-plus-storage or transition interconnection queue is Westbridge
thermal generation-plus-storage. The 100MW of BESS installed in Alberta Renewable Energy. Founded just a
“A lot of these projects have posted today, for example, provide operating couple of years ago, Westbridge is devel-
in-service dates of 2023-2024, and reserves, “and some initial exploration of oping five large-scale solar-plus-storage
it’s probable that some of them will providing primary frequency response projects in Alberta.
be pushed back to the 2025 to 2030 as well”, Bateman says. However, work to Each of those is planned with 2-hour
timeline, but there’s really a very duration BESS in the 100MW range,
substantial amount of projects proposed paired with around 300MWp of PV per
already,” Bateman says.
Ontario phased out its use of coal
Canada’s different provinces site. While Westbridge also develops
standalone storage projects in other
power generation a few years ago, in represent a patchwork of differ- territories, in Alberta, co-location with
what was then the single biggest carbon renewables offers the quickest path to
emissions reduction measure in North ent electricity markets, with differ- grid connection, Westbridge special
America, while Alberta has just achieved
that goal, seven years ahead of a 2030
ent structures, rules and regula- advisor and technical expert Alex Dickin-
son says.
target. That’s great, says Bateman, but tions, and activity so far is largely Francesco Cardi, VP of development of
in Ontario much of that capacity was Westbridge, adds that Alberta is a “great
replaced by cleaner-but-still polluting concentrated in Ontario and place for solar development,” which he
gas plants (“taking two steps forward
and one step back”) while Alberta
Alberta says is well-planned and straightforward,
with clear requirements for developers.
currently mulls that decision-making It also helps that it isn’t yet saturated
process. or becoming saturated in the way that
It is an often-encountered trend when develop an appropriate storage tariff has other leading solar market hotspots
looking at the energy storage indus- not been completed despite an ongoing like California are, and there are “a lot of
try: the technologies involved are far modernisation process. planned transmission lines as well” in the
newer than the market and regulatory “The AESO has initiated a new process province, as well as existing transmission
constructs they have to abide by. One with a view to having the storage tariff lines, connecting energy production to
challenge both provinces face – and modernised by the middle of next demand centres in the cities, perhaps
that the other provinces will no doubt year. So if that goes through, and if it’s an unintended upside of its history as a
wrestle with too – is that market partici- favourable, a lot of these projects in the fossil fuel intensive economy.
pation is limited by those structures connection queue might move forward The Alberta market’s likely evolution
today. more quickly,” the consultant says. is impossible to predict, Cardi says. The

112 | May 2023 | www.pv-tech.org

 Storage & smart power

fundamental drivers for energy storage and C&I BESS, to the 250MW, 4-hour While both Westbridge and NRSTor
are there, as variable renewable energy duration Oneida project. see the immediate future of energy
sources represent a growing share of the Oneida has been five years in develop- storage largely comprising fast-respond-
energy mix, but as a developer the key ment already and represents just another ing lithium-ion BESS assets, there’s room
characteristics of its planned projects are deal NRSTor has brokered with Ontario’s for other technologies, especially as the
flexibility and optimisation to adapt to Independent Electricity System Operator need for duration increases.
changing conditions. (IESO), albeit one on an unprecedented
“We’re looking at fast response scale. Transferable lessons and provin-
systems so that we can adapt as the “Many different kinds of service agree- cial competitiveness
market evolves. Our revenue streams in ments” between NRStor and the IESO What is important is that lessons
two years’ time, we would imagine would have helped lay the foundation for large- learned in Ontario particularly, as well
be totally different to revenue streams in scale storage development in Ontario, as in Alberta, can be applied to the rest
six years’ time. But what that difference claims Jason Rioux, the company’s chief
is, we can’t say.” development officer.
Westbridge, as a pure play devel- Ditto the different technology types Especially with several provinces
oper, is looking to get its projects to
late stage development and sell them
NRSTor has explored, which Rioux
says were representative of Ontario’s
still reliant on coal, cleaning up
on. That includes the flagship George- early adopter status of energy storage the grid and using the grid more
town (278MWp PV, 100MW/200MWh technologies at single-digit megawatt-
BESS) and Sunnynook (330MWp PV, scale over the past decade or so. efficiently, experiences from
100MW/200MWh BESS) projects that it
hopes will be ready to begin construc-
A flywheel from now-defunct technol-
ogy company Temporal Power was
Ontario – mistakes as well as
tion this year, with the rest to follow over NRSTor’s first-ever project, and it is still successes – can be an important
the next two to four years. providing frequency regulation to the
Ontario grid today. The company still springboard
‘Absolute necessity’ to adopt adjusts how that facility operates to
storage provide new services to the market.
Another developer active in Canada, Meanwhile the A-CAES project is the of Canada too. Patrick Bateman says
NRStor, can reasonably be described as world’s first compressed air plant to that although the market structures
one of the country’s pioneers of energy run without thermal generation, using and regulations need to be tailored,
storage. In business for over a decade, technology from Ontario-headquartered the technology lessons are almost all
largely focused on Ontario, the company Hydrostor. transferable.
has worked on a broad range of different “When these first projects get through Jason Rioux agrees, adding that
projects and technology types: it owns all of the heavy lifting, it sets the stage Canada’s other provinces don’t now need
and operates an advanced compressed- for compressed air energy storage Alberta’s first years of pilot projects proving out what’s
large-scale BESS,
air energy storage (A-CAES) system and projects of the future to be able to move already been proven elsewhere. Ontario’s
Windcharger,
a flywheel-based system, in addition to ahead without similar roadblocks,” Rioux went online in 2,500MW RFP, for instance, shows that
working on everything from residential says. 2020. scaling up energy storage is “not a crazy
idea”, but that it is in fact “an absolute
necessity to adopt storage in smart
and scalable and quick ways for each of
these provinces, especially the ones that
are looking to decarbonise their power
grids”, Rioux says.
Especially with several provinces still
reliant on coal, cleaning up the grid and
using the grid more efficiently, experi-
ences from Ontario – mistakes as well as
successes – can be an important spring-
board, Rioux claims.
“It’s becoming a little bit clearer
now as well that the jurisdiction of the
province with the most energy storage
wins, in respect to how you trade energy
with your neighbours, and managing
Credit: TransAlta via Twitter

clean energy supplies for your jurisdic-

tion’s benefit. Those that are further
behind are going to suffer in their energy
management and operations and in the
commercial aspects of delivering low
cost energy to their customers.” „

www.pv-tech.org | May 2023 | 113

 Storage & smart power

Italy’s grid-scale energy storage

market: a sleeping dragon
Grid-scale battery storage | Cameron Murray writes about the nascent market for large-scale battery
storage in Italy, which could see a massive expansion in the short term.

T
he Italian grid-scale energy storage
market is set to become one of
the most active in Europe in the
next few years, having been close to
non-existent until now. While the residen-
tial sector has boomed thanks to home
storage’s inclusion in the ‘superbonus’
energy-efficiency renovation tax credit,
the front-of-meter grid-scale is only just
picking up pace.
In this piece, we interview executives
from three developers looking to gain a
foothold in the market: Aquila Capital,
Field Energy and Innovo Group.
Research firm LCP Delta recently
forecast that after annual grid-scale
deployments of just 20MW in the last few
years, Italy would deploy 800-900MW in

Credit: Innovo
both 2023 and 2024, second in scale only
to the UK.
Conversations with the developers
indicate that the figure is likely to be
much lower in 2023 but potentially made UK, Germany and elsewhere, because Render of a by Terna last year, first in their scenarios
up for in 2024, with 2023 being the year of similar factors to those countries,” co-located and now in their development plan as a
battery storage
for “sorting out all the issues around says Kilian Leykam, Investment Manager system need. And that’s why everyone
project in Italy
storage” and 2024 seeing the “gigawatts of Battery Storage for Aquila Capital which from Innovo is gearing up to provide this capacity,
deployment”, one says. announced plans to develop battery Group. which is going to be a really significant
Ingeteam and Renantis look set to storage projects in Italy in early 2022. amount between now and 2030.”
bring large systems online this year but “There is a recognition that renewa- Rodolfo Bigolin is CEO of Innovo
most others appear to be targeting 2024. bles need to be deployed a lot faster and Group, which last year formed a 50:50 JV
Utility Enel announced in early 2023 that that gas is a bad way to provide flexibility – iCube Renewables – with Spanish utility
construction would start in Q2 on 1.6GW to the grid and manage peak demand.” Iberdrola to deploy solar, wind and also
of battery storage projects for a 2024 With that came a policy recogni- battery storage projects in Italy.
commercial operation date (COD). tion from Terna last year that it needed He says the recognition that storage is
Transmission system operator (TSO) energy storage to achieve that. In Febru- needed to integrate Italy’s big renewa-
Terna says that some 94GWh of new ary 2022, just before it handed out over bles pipeline has combined with a capital
energy storage will be needed to integrate 1GW of capacity market contracts to market which is now more comfortable
the country’s renewable energy pipeline, battery storage projects, the TSO called with and willing to invest in energy
although this may include some pumped the technology the “indispensable new storage.
hydro energy storage (PHES). lungs of our electricity system”. “In Italy, through our JV with Iberdrola
The 2030 target is around 15GW by UK battery storage developer Field has we have an indicative target of 1GW for 6
power and 80GWh by capacity, according since announced plans to join Aquila in hours (duration). We have nothing under
to Aquila and Innovo Group (respectively). the market, with the setting up of an Italy construction yet, around 200MW under
office and the appointment of Emanuele development with COD 2024-2025, while
“Mainstream, recognised and with Taibi as country manager. the remaining will likely be the end of
more players coming in” Taibi, who joined after nine years at 2025 and 2026.”
“In 2020, storage was not on the radar the International Renewable Energy Field says it is in the process of devel-
of many players but it is now moving Agency (IRENA), says: “The need for utili- oping its pipeline in Italy and would only
mainstream in Italy as it has done in the ty-scale storage was finally recognised be able to share details later in 2023.

114 | May 2023 | www.pv-tech.org

 Storage & smart power

In January 2022, Aquila signed a new take shape. The regulatory environ- time shifting, and leave the provision
cooperation agreement with Soltec ment has been trending towards a really of services as merchant, to allow better
Power Holdings to co-develop 421MW strong deployment of renewables, and “stacking” of revenues with different risk
of solar PV projects in Italy and an then once you’ve got that of course you profiles and better asset optimisation.
additional 90MW of energy storage. need storage,” Bigolin says. The process does mean that Innovo’s
When asked for an update on its Italy Field’s Taibi dives into the specifics of development strategy is something of a
storage pipeline, Aquila gives a similar the regulatory changes. The regulator’s “moving target” at the moment, Bigolin
end-point target to Innovo Group but consultation 393 from 2022 outlines a says.
did not provide any additional details: specific mechanism dedicated to energy But in any case, the Italy market
“Given the attractiveness and size of storage to be procured via auctions run opportunity is much bigger than just
the Italian market, we have the ambition by Terna, the TSO, he says. ancillary services.
to build up a portfolio beyond 1GW in The consultation by the Italian
BESS in Italy,” a spokesperson says. Regulatory Authority for Energy, The revenue opportunities
All three firms appear to be develop- Networks and Environment (ARERA) The market opportunity in Italy started
ing projects on a develop, build and has closed in December and should be similarly to the UK, as Aquila Capital’s
operate model rather than flipping released as a new regulation in “a matter Leykam explains.
them. of weeks”, Taibi says. “The market started with the fast
“There is basically no operational That will then go to Terna which will reserve auction which gave the initial
grid-scale market at the moment,” says run a consultation with the industry, impetus to start the battery business
Bigolin. “Enel is the only one with a allowing stakeholders and operators to case, with fixed revenues for the first five
sizeable portfolio in Italy, and there are comment on the proposed new auction years, similar to the first UK FFR auctions
now a few other players developing system. This timeline means the imple- which also provided firm revenues over
small-to-medium size projects.” mentation of the new regulation – and several years,” he says.
the first energy storage auctions carried The fast reserve auction in Italy took
Auction wins in the medium-term out by Terna under it – should take place place in late 2020 and saw five-year
and positive noises in the long- in late 2023/early 2024, Taibi and Bigolin contracts to provide the service awarded
term both say. to 250MW of battery systems, for the
The grid-scale Italian energy storage years 2023-2027. The auction’s biggest
market has been kickstarted from two Time-shifting and services winners were Enel and France-headquar-
different directions. “This planned energy storage capacity tered utility Engie.
The first was big wins for battery will do multiple things. One is time-shift- The first project to be brought online
storage projects in ancillary service and ing of renewables, very relevant in Italy to provide this service was a standalone
capacity market auctions by Terna, in because of the large amount of solar 9MW/8MWh project in Liguria, North
2020 and 2022, respectively. here,” Taibi adds. Italy, in March 2023, commissioned by
The second is a policy recognition “The other one is to provide grid renewable energy developer Renantis,
from Terna that energy storage will be services to Terna but it’s a bit more formerly Falck Renewables.
needed to integrate the country’s large controversial in terms of how it is going However, the fast reserve auction does
renewable energy pipeline. Italy has a to look once it’s finalised.” not look set to be repeated, Leykam
target to deploy 60G of renewables by Essentially, the current proposal adds. Most future business cases for
2030, and plans to turn off all coal plants would see the auctions contracting energy storage in Italy are now being
by 2025. the entire capacity of a battery storage structured around the capacity market
“Last year was the first in a decade asset, including the provision of grid plus energy arbitrage, unlike most of
where we saw a real, multi-gigawatt services, whereas operators would prefer Europe where ancillary services are the
renewable energy development market to have auctions covering energy, as in main share.
Credit: Innovo

Render of a co-located battery storage project in Italy from Innovo Group.

www.pv-tech.org | May 2023 | 115

 Storage & smart power

Credit: Enel
An Enel wind farm in Italy. The utility is the first big player in Italy’s grid-scale energy storage market.

Batteries won substantial contracts while the North might be more focused charging from the solar, says Girolami.
in the February 2022 capacity market on grid services. “You’ll have two separate lines of
auctions by Terna, which gave 15-year Bigolin says battery storage projects connection so that your battery can
contracts for 2024 delivery year. Enel will have five or six different revenue access the energy market,” he says. “The
alone won over 1 GW of battery storage streams and these will depend not only TSO is not incentivising hybridisation yet
projects through this, 93% of the total on the region, but the node at which the but it could in future.”
storage capacity awarded, which it project is connected. With a different revenue stack, Italy
has started building in Q2 2023 as Alberto Arcioli, Director, Energy & looks set to move to medium discharge
mentioned previously. Of the total, Infrastructure, for Aquila Capital, says: durations of four-eight hours much faster
500MW is in Sardinia. “In Italy, you have the seven price zones than the UK or German markets did at a
Taibi says this quantity of battery which drive the economic profile of comparable point of development.
storage winning capacity market Terna is envisioning an average
contracts came as a bit of a surprise to discharge duration for energy storage on
everyone, and was driven by the impres- “Most future business cases for the grid of eight hours by 2030, weight-
sive capex reduction the technology had
achieved in the years leading up to it.
energy storage in Italy are now ed between battery energy storage and
pumped hydro.
The almost immediate upturn in capex being structured around the Innovo Group’s Bigolin says: “In Italy
costs in the sector afterwards might we plan to develop the most flexible
have caused “a bit of an issue”, he adds, capacity market plus energy assets possible, meaning that we can
although it did trigger a commitment to
deploying a significant amount of energy
arbitrage, unlike most of Europe start by building a one-hour battery and
then after the first years we can repower
storage in the country by government, where ancillary services are the that to a four, six or eight-hour battery,
regulator and the TSO. whatever is needed at that point in time.
Stefano Girolami, engineering direc- main share” But that’s pretty complicated to imple-
tor at Innovo Group, says the smaller ment.”
ancillary services market to-date is partly energy generation. Within those, you He adds that the firm’s ideal project
due to Italy’s frequency control and grid have sub-zonal aspects to the balancing size for a battery is 40-70MW, a so-called
service needs already being relatively market which bring Italy somehow closer ‘sweet spot’ which mitigates the risk
well-serviced by its hydropower portfo- to a nodal model. Here we have the same of revenues being cannibalised by a
lio. problem as the UK but in reverse – our competitor’s battery system.
renewable production is mainly in the Leykam from Aquila on the other hand
Geographical differences and South while demand is mainly in the reckons durations will be between two
‘skipping a step’ in storage North.” and four hours.
durations However, battery storage projects
All interviewed agreed that battery are nonetheless most likely going to be The role of BESS providers, EPCs
storage projects located in the South, standalone or at most co-located, rather and optimisers
where the bulk of Italy’s solar PV pipeline than hybridised with solar PV with a Despite the quicker move to medium or
is located, would focus on time shifting, shared grid connection and the battery longer discharge durations all interview-

116 | May 2023 | www.pv-tech.org

 Storage & smart power

ees say that initial projects would use The main existing engineering, applications are fairly simple. The
lithium-ion technology. procurement and construction (EPC) same is true for standalone projects
“ARERA is taking a technology neutral firms which are already active on the below 10MW. However it still remains
approach in its regulation but auctions grid in Italy are those coming forward for to be seen if the current permitting
obviously have to be designed to some potential projects, Girolami adds. One framework is adequate.”
extent with specific technologies in of these is SAET, part of Renantis Group He adds there are around 300GW of
mind. There is a gap in the 8-12 hour which brought the first system for fast projects in the interconnection queue,
space in terms of technologies today. We reserve online in March this year. mostly wind and solar.
don’t know yet which technology will fill On the topic of optimisers, Field will
that gap most competitively, but there’s be bringing its own energy trading Conclusion
a lot of interesting development happen- platform Gaia to optimise its projects, It’s an exciting time for those looking
ing on long duration energy storage while Aquila says it plans to use third- to gain exposure to Italy’s grid-scale
(LDES),” says Taibi. party optimisers to play its systems into market which has, until now, been
Girolami highlighted Fluence, the markets. virtually non-existent as some inter-
largest battery storage system integrator “There are a few players in Italy doing viewees say.
in the world, as a potential big player in this but it’s somewhat lacking, and There is clearly a lot still to play for
providing BESS technology for projects there’s definitely room for more,” Leykam in providing the BESS technology,
in Italy. The firm is deploying one of the says. optimisation services and financ-
projects which Enel will use to service Fluence also provides its energy ing for the quantity of projects the
its fast reserve auction wins. Girolami trading and optimisation services along- country needs. Perhaps there is even
also highlighted the China-based BESS side its physical BESS product. room for more developers too.
providers Sungrow, Huawei and CATL. Exactly when projects start to
Last year, competitor Nidec ASI Grid challenges break ground from a multitude of
announced orders from Italy of As in many other countries, delays in developers outside of first-mover Enel
1.35GW/5.4GWh by an unnamed getting a grid connection are a challenge will depend on what comes out of
company. Interestingly, the details in Italy. Aquila’s Arcioli says delays can the policy implementation process
and timeline closely match up with be over six years in some places while outlined earlier.
the projects being deployed by Enel. elsewhere there is no delay at all and Battery storage projects have a
Spain-based energy conversion equip- projects can connect immediately. And wealth of opportunities to target,
ment specialist Ingeteam is deploying the general permitting framework may from ancillary services to capacity
a 70MW/340MWh project for, again, an need to change too, he adds. markets to energy trading, and devel-
unnamed company, set to come online “If you have a solar plant and want opers are now positioning projects to
in 2023. to add a battery, municipal permitting best take advantage of these. „
Credit: Terna

Terna is the transmission system operator (TSO) in Italy, and is central to regulatory change needed to help the grid-scale storage market kick on.

www.pv-tech.org | May 2023 | 117

 regulars

| advertisers & web index

Advertiser Web address PAGE No.
Aiko Solar en.aikosolar.com 31
Delta-T Devices www.delta-t.co.uk 27
Energy Taiwan www.energytaiwan.com 81
Energy-Storage.news www.energy-storage.news 92
Energy-Storage.news Premium www.energy-storage.news/paywall-tags/premium 101
EU PVSEC www.eupvsec.org 55
Expo Solar Korea www.exposolar.org 77
Hoymiles www.hoymiles.com 25
Huawei solar.huawei.com 5
Intersolar Global www.intersolarglobal.com 59
JA Solar www.jasolar.com Inside Back Cover
JinkoSolar www.jinkosolar.com 21
Large Scale Solar CEE lsscee.solarenergyevents.com 86
Large Scale Solar SE lssse.solarenergyevents.com 90
LONGi Solar www.longi.com Inside Front Cover
PV ModuleTech USA / Bankability Report moduletechusa.solarenergyevents.com 69
PV Tech Premium www.pv-tech.org/paywall-tags/pv-tech-premium 97
RE+ www.re-plus.com 61
Risen Energy www.risenenergy.com 11
SNEC pv.snec.org.cn 43
Solar & Storage Live UK www.terrapinn.com/exhibition/solar-storage-live 41
Solar & Storage Finance USA financeusa.solarenergyevents.com 65
Stäubli www.staubli-renewable-energy.com 49
Tesvolt www.tesvolt.com 15
Tongwei en.tw-solar.com 7
Tongwei en.tw-solar.com 37
Trina Solar www.trinasolar.com Outside Back Cover
UK Solar Summit uss.solarenergyevents.com 105

| next issue
The US and the Inflation Reduction Act

Solar power generation in harsh climates

The maturing solar/storage co-location concept

SUBSCRIBE TODAY! www.pv-tech.org/power

118 | May 2023 | www.pv-tech.org