Solicitation purpose:
The purpose of this solicitation is to advance short- to long-duration stationary energy storage technologies. The development and advancement of these technologies is critical to establish a robust portfolio of energy storage that enables a more nimble grid to maintain reliability and accelerate the deployment of renewables as California transitions to 100 percent clean energy.
California is projected to need 52,000 MW of grid-connected energy storage capacity to reach the targets of Senate Bill 100, which requires that 100 percent of electricity retail sales and state electricity needs be met with renewable and zero-carbon resources by 2045. The need for long-duration energy storage, in particular, has also increased due to climate change, increasing use of renewables, and growing electric load.
To date, stationary commercial lithium-ion batteries have been successfully deployed for intra-day (<4 hour) peak-load shifting, firming of solar and wind generation, and other grid services. Li-ion technology faces several challenges, however, including high costs, supply chain limitations, scarcity of critical materials, flammability risks, and degradation over many charge and discharge cycles. As research addressing these issues could help to promote significantly stronger outcomes for stationary energy storage applications, stationary storage will be focus of this solicitation. Further development of non-lithium battery technology is also needed to decrease potential supply chain risks, improve safety, and lower the cost of short- and long-duration energy storage.
In addition to nascent storage technologies, there is growing interest in how stationary energy storage can provide multiple services to the electric grid and amplify its benefits and value (see guidance established by California Public Utilities Commission Decision 18-01-003). Stacking multiple use cases from one energy storage system can increase the value proposition and revenue streams for these installations and benefit overall electric system reliability.
This solicitation will enable more strategic and high-value implementation of energy storage in transmission, distribution, and customer domains to support grid reliability and achievement of clean energy policy goals. Additionally, it will support demonstrations that benefit historically under-resourced communities at risk of being left behind in the clean energy transition. Funded projects could advance short- and long-duration energy storage technologies in terms of cost, performance, safety, and supply chain diversification, and should demonstrate the benefits of various energy storage use cases to support grid reliability.
Project Requirements:
Projects funded under this solicitation can encompass innovative short- or long-duration thermal, electrochemical, and/or mechanical energy storage technologies. Applications to either Group 1 or Group 2 must describe how the proposed innovation and project will enable a pathway to meet the following target performance metrics:
- Levelized cost of storage (LCOS) of <$0.05/kWh. A useful guide for calculating the LCOS can be found in the Department of Energy Energy Storage Grand Challenge Cost and Performance Assessment.
- Calendar life of >10 years of operation.
- Roundtrip efficiency of >50% DC-DC.
Group 1 Requirements
- Group 1 projects must develop and improve upon existing or novel pre-commercial short- or long-duration energy storage system (ESS) technologies targeting stationary storage markets.
- Only technologies at Technology Readiness Level (TRL) 3, 4 or 5 are eligible.
- Projects must improve ESS cost-effectiveness, safety, system performance (i.e., roundtrip efficiency, energy density, cycle life), reliability, siting flexibility, and/or supply chain sustainability compared to the current state-of-the-art.
- Innovations of interest include advanced battery components or materials; controls, software, and monitoring technologies; manufacturability; and enclosure or system design.
- Applicants must identify the barrier(s) inhibiting commercialization of their proposed innovation and explain how their project will help overcome those barrier(s).
Energy storage technologies not eligible in Group 1 include the following:
- Commercially competitive technologies (note: lithium-ion-based projects are eligible if the technology innovation meets the requirements above)
- Energy storage for mobile applications such as electric vehicles, aviation, or vehicle-to-grid innovations
- Hydrogen
Group 2 Requirements
- Group 2 projects must demonstrate an innovative combination of ESS technology, location, and storage use cases. Applicants must identify the barrier(s) inhibiting commercialization of their proposed combination and explain how their project will help overcome the barrier(s).
- Only technologies at TRL 6 or 7 are eligible.
- Projects that can demonstrate benefits to Low-Income, Disadvantaged, or Tribal Communities will receive preference in the scoring process.
- Group 2 projects must demonstrate innovative stacking of at least two grid services using the same storage asset to optimize customer and grid benefits. Examples of these benefits include avoided renewable energy curtailment, customer outage mitigation, and grid infrastructure upgrade deferral, as well as environmental benefits such as greenhouse gas emissions or air pollution reductions. Projects must adhere to adopted rules set by CPUC Decision 18-01-003 for multiple-use applications of energy storage. Projects are encouraged to participate in services in the grid domain above their interconnection point.
- Group 2 projects must demonstrate “electricity in – electricity out” storage systems with a power output of 100 kW or greater. Projects that consist of multiple individual storage systems are eligible if they add up to at least 100 kW and still demonstrate stacking of multiple services using the same system.
- Demonstrations must operate for a minimum of 12 months to collect relevant field data to inform replicability and bankability for future commercialization.
- Applications that describe the use of a commercial technology for a non-innovative or non-unique use case will not be considered responsive to Group 2. Non-innovative or non-unique use cases are considered use cases where specific types of energy storage technologies are already a commercially competitive solution in California.
Projects not of interest in Group 2 include the following:
- Commercial Li-ion batteries deployed with conventional use cases, such as behind-the-meter customer storage
- Thermal storage without electricity discharge capabilities
- Hydrogen
- Dates:
- Phase 1 application due date: August 8, 2024
- Phase 2 application due date: October 30, 2024
Funding:
- Total available funding: $30 million
- Group 1 R&D awards will range from $1 - $2 million
- Group 2 Demonstration awards will range from $4 - $10 million.
- Group 1: Match funding is required in the amount of at least 10% of the requested CEC funds.
- Group 2: Match funding is required in the amount of at least 25% of the requested CEC funds. The match funding requirement is reduced to 10% for projects whose demonstration site is located in and benefiting a California Native American Tribe, Disadvantaged Community, and/or Low-Income Community.
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