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Bob Meinetz's picture
Nuclear Power Policy Activist, Independent

I am a passionate advocate for the environment and nuclear energy. With the threat of climate change, I’ve embarked on a mission to help overcome the fears of nuclear energy. I’ve been active in...

  • Member since 2018
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  • Aug 20, 2021
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"California has hooked up a grid battery system that is almost ten times bigger than the previous world record holder, but when it comes to making
renewables reliable it is so small it might as well not exist.
The new battery array is rated at a storage capacity of 1,200 megawatt hours (MWh); easily eclipsing the record holding 129 MWh Australian system built by Tesla a few years ago. However, California peaks at a whopping 42,000 MW. If that happened on a hot, low wind night this supposedly big battery would keep the lights on for just 1.7 minutes (that’s 103 seconds). This is truly a trivial amount of storage.

Mind you this system is being built to serve just Pacific Gas & Electric. But they by coincidence peak at about half of California, or 21,000 MWh, so they get a magnificent 206 seconds of peak juice. Barely time to find the flashlight, right? There is no word on what this trivial giant cost, since PG&E does not own it. That honor goes to an outfit called Vistra that does a lot of different things with electricity and gas. But these complex battery systems are not cheap.

This one reportedly utilizes more than 4,500 stacked battery racks, each of which contains 22 individual battery modules. That is 99,000 separate modules that have to be made to work well together. Imagine hooking up 99,000 electric cars and you begin to get the picture.

The US Energy Information Administration reports that grid scale battery systems have averaged around $1.5 million a MWh over the last few years. At that price this trivial piece of storage cost just under TWO BILLION DOLLARS. At 103 seconds of peak storage that is about $18,000,000 a second. Money for nothing."

Discussions
Joe Deely's picture
Joe Deely on Aug 20, 2021

Love it Bob - keep writing/sharing this stuff.  As I've said in the past, we know whatever you write the opposite will happen.

In this case we may have a new record in how fast you are wrong.

Your article mentioned:

The new battery array is rated at a storage capacity of 1,200 megawatt hours (MWh)

Yesterday, Vistra came out with a press release announcing it had finished Phase 2 of this project and storage capacity is now 1,600 MWh.

 The 100-megawatt expansion now brings the facility's total capacity to 400 megawatts/1,600 megawatt-hours, making it the largest of its kind in the world.

Plus it looks like more is on the way...

Morgan continued, "What's great about this particular site is that it has the space to support even further expansion – up to 1,500 MW/6,000 MWh – while responsibly utilizing our existing site infrastructure, including existing transmission lines and grid interconnection

Then you said:

The US Energy Information Administration reports that grid scale battery systems have averaged around $1.5 million a MWh over the last few years.

EIA came out with new report earlier this week - Battery Storage in the United States: An Update on Market Trends.

Average battery energy storage capital costs in 2019 were $589 per kilowatthour (kWh), and battery storage costs fell by 72% between 2015 and 2019, a 27% per year rate of decline.

This new report only uses data thru 2019 so we 'll have to wait to see what 2021 costs actually are...

Keep it coming Bob - the more you trash solar/storage the faster it will get installed and the cheaper it will get.

Bob Meinetz's picture
Bob Meinetz on Aug 20, 2021

Joe, though I don't have time to respond to the steady stream of pro-renewables propaganda here, I will point out that price reductions for installed batteries are asymptotic, not linear (look it up). They are approaching an asymptote of ~$500/megawatthour - completely impractical for serving as the coveted cure for intermittency, the Achilles' Heel of renewables underachievement.

Any expectation of lower prices is as reasonable as one the sun will shine all night long. :)

Joe Deely's picture
Joe Deely on Aug 20, 2021

They are approaching an asymptote of ~$500/megawatthour - completely impractical for serving as the coveted cure for intermittency, the Achilles' Heel of renewables underachievement.

I'd love to see $500/MWh Bob but I'm guessing you meant $500 per kWh.

Also, interesting that you understand that prices are much lower than the $1,500,000 per MWh you use in your calculations but you still continue to use that number.  Talk about propaganda...

Cost for car batteries are now below $200 per kWh and continue to drop rapidly but somehow you think batteries for energy storage should be more than twice as expensive and will not have a learning curve. Love it Bob - the more you say the better batteries will do.

By the way Bob - I forgot to mention. You said:

Mind you this system is being built to serve just Pacific Gas & Electric. But they by coincidence peak at about half of California, or 21,000 MWh,

A couple of things - the peak should actually be in MW not MWh. Also, what year are you writing about here? Because in 2021 - PG&E has lost responsibility for more than half of their generation to CCAs...  PG&E generation is getting smaller every year.

 

Bob Meinetz's picture
Bob Meinetz on Aug 20, 2021

"PG&E has lost responsibility for more than half of their generation to CCAs...  PG&E generation is getting smaller every year."
 

CCAs don't generate any energy. In fact, you might be surprised to learn that nearly all energy purchased by CCAs in PG&E's service area is either: 1) generated by a PG&E subsidiary, or 2) purchased by PG&E, then resold to CCAs so they can add their completely useless, fictional markup to rip off CA electricity customers.

Or did you think those who bought "100% solar" electricity were getting an exclusive blend of electricity sources specially mixed for them?

Making grid electricity is not like making a smoothie.

Joe Deely's picture
Joe Deely on Aug 20, 2021

CCAs don't generate any energy. In fact, you might be surprised to learn that nearly all energy purchased by CCAs in PG&E's service area is either: 1) generated by a PG&E subsidiary, or 2) purchased by PG&E, then resold to CCAs so they can add their completely useless, fictional markup to rip off CA electricity customers.

Wow Bob you're right - I am surprised. You really do have some inside information there.

Below is a list of some storage agreements that CCAs have recently signed...for those solar/storage projects where they pretend that the solar is charging the storage. 

Are the sellers on this list "secret PG&E subsidiaries" or are these sellers lying and the buyer is really PG&E?

Is sPower a PG&E subsidiary? EDF? Clearway? Goldman Sachs? Next Era? or for example did Recurrent Energy really sell the Slate project to PG&E and not MBCP/SVCE? 

One other thing Bob - are you saying that these "secret PG&E subsidiaries" own generation that is not included in PG&E annual 10K as reported to the SEC? 

 

Bob Meinetz's picture
Bob Meinetz on Aug 21, 2021

"Are the sellers on this list 'secret PG&E subsidiaries' or are these sellers lying and the buyer is really PG&E?"

There you go with the conspiracy theories again, Joe. Don't know who you're quoting, but it wasn't me - PGE's list of subsidiaries is public. Each of PGE's sources of energy is actually owned by a subsidiary (Diablo Canyon is something like "Diablo Canyon Generation Properties LLC"). Please google the list, then explain to me the purpose of each - or why any honest company would need 250+ subsidiaries to conduct business in a single U.S. state.

Re: CCAs, you're either confused or you didn't read what I wrote. They don't generate electricity - as community choice aggregators, they aggregate - kind of like a fence, in street lingo. Your list isn't a list of CCAs, but startups, financed by venture capitalists, who have discovered how easy it is to make money by storing a tiny volume of dirty energy - 250, or 60 MWh - and selling it to CCAs as crystal-pure electricity generated by the sun, wind, or donkeys on a treadmill.

Most of the reps at CCAs are as clueless as the public - they actually believe the renewable-battery-holistic nonsense about the sources of their electricity. Even principals have nothing to fear -  they're not only unregulated by any state or federal agency, they are permitted - by CA law - to not publicly divulge any of the details of their power purchases. It's "proprietary information", after all. No one questions it because they're paid to not question it. Simple - like taking candy from a baby.

Nathan Wilson's picture
Nathan Wilson on Aug 22, 2021

Using Joe's $589/kWh EIA-2019 number, the battery for a 200-300 mile electric car (50-75kWH) would cost about $29k-$44k.  That's within a factor of two of being economical for a big fraction of the market.

On the other hand, for a hypothetical solar powered grid, a 12 hour utility-scale battery, with a 2x derating factor (to preserve cycle life), would cost a whopping $14/Watt.  Assuming (for nuclear comparison's sake) that the battery is replaced at 10, 20, and 30 years, using 5% compound interest (P/F=0.614, 0.377, 0.231); that's a total overnight cost of $31/Watt, even before you buy the electricity to charge it.  Uneconomical by a factor of 10x (e.g. compared to $2-3/W for coal or nuclear in China and India).

So batteries work a lot better for cars than for grid power. 

A much cheaper grid solution would be to use batteries with 30-60 minutes of capacity.  Then you have time to throttle-up your fossil fuel fired power plants when the sun sets.  Guess which solution cost-conscious electricity consumers will demand?

Joe Deely's picture
Joe Deely on Aug 23, 2021

Nathan - you said:

Using Joe's $589/kWh EIA-2019 number, the battery for a 200-300 mile electric car (50-75kWH) would cost about $29k-$44k.  That's within a factor of two of being economical for a big fraction of the market.

Let's be clear the $589/kWh is not "Joe's number".  I was just pointing out that EIA had come out with published numbers that are much lower than the EIA numbers Bob continues to use for his blatant misinformation.

If I was going come up with a current price for batteries - I would estimate around $250/kWh. Perhaps you missed an article from last month where I mentioned that Tesla has come out with a pricing page for their Megapacks.  Their price is $278/kWh - which would have some built in margin.  My assumption would be that other developers can build systems for slightly less.

 

As for your other assumptions - 

Assuming (for nuclear comparison's sake) that the battery is replaced at 10, 20, and 30 years

Not a good assumption - the PPAs these storage providers are assigning are for 20+years. Also, I hope you understand that these systems are very modular - if part of the battery fails or loses performance then that module can easily be replaced. No need to replace the entire battery.

A much cheaper grid solution would be to use batteries with 30-60 minutes of capacity.

Well as you can see from my chart in earlier comment it appears that most developers are using batteries with a duration of 4 hours. I'm guessing this because early adopters can take advantage of large amount of arbitrage between morning and evening prices on CAISO and the evening price spike currently last 3-4 hours. However, in the medium/long term the evening prices should flatten out more as storage amount grows.

Related to your comment - when LS Power added their 250 MW Gateway project last year  it had only one hour of duration but they planned for more.

"We built Gateway as a shorter duration project, but we built it so we had room in the buildings... to expand that capacity when we had customers for that capacity," King said.

Makes sense to add the tough and more expensive interconnection first and extend duration later with batteries that are further down the cost curve. 

We now have a rapidly expanding WW battery ecosystem. Prices are gonna continue to fall rapidly and the technology is gonna continue to improve. The main issue I see for the short-term is gonna be the competition between automakers and storage developers for limited capacity until production scales.

By the way, I would recommend reading the full recent EIA Report - Battery Storage in the United States: An Update on Market Trends. Closer to reality than most of the stuff EIA comes out with.

Bob Meinetz's picture
Bob Meinetz on Aug 23, 2021

Joe, can you provide a link to the screenshot in your post above? There is a link that reads View product details that doesn't work. Based on some of your prior posts, I suspect some of those details wouldn't be supportive of the solar + batteries utopia you envision. Link, please.

"Also, I hope you understand that these systems are very modular - if part of the battery fails or loses performance then that module can easily be replaced. No need to replace the entire battery."

Nathan never suggested the entire battery pack would need to be replaced at once. The fact batteries can be replaced module-by-module has no effect on their performance, which deteriorates progressively for all lithium-ion batteries. Like solar panels, performance of which deteriorates by ~1%/year, but much more quickly.

Like solar panels, their value depreciates over time. In 2031, Tesla's 1200.8 MWh battery system might be able to store 600.4 MWh, making their effective price double what purchasers paid just a decade earlier. They could continue to operate them, but why?

If I were a cynic, I would think they will be carting them off to the landfills to which they're sending the solar panels they installed in 2001, and trying to sell replacements to a new generation of idealists. But I'm an optimist. I believe the next generation will fully understand the renewables-con millennial capitalists had foisted on their parents. The next generation will be busily installing new modular reactors - because they will understand the performance of nuclear plants improves over time, unlike batteries and solar panels, and time will be in even shorter supply.

Generation Atomic

Joe Deely's picture
Joe Deely on Aug 23, 2021

Nathan never suggested the entire battery pack would need to be replaced at once. 

Bob, perhaps you can explain to us where Nathan accounts for a partial replacement when he does his calculation.

The fact batteries can be replaced module-by-module has no effect on their performance

Interesting... so if I replace a module of a system that has failed - in other words contributes 0% to overall system - with a new module which will perform at 100% - I see no effect on overall performance.  Wow... I did not know that. 

Joe, can you provide a link to the screenshot in your post above? 

Well let's see - you could :

1) use the link I provided in my post above...

hint: "pricing page"

2) you could use the link in the "article from last month"...

hint:" brand new ordering page"

3) or you could Google "Tesla megapack pricing" and click on order now button.

Just a suggestion - but maybe you should take off those blinders when you read...at least downsize them.

 

Bob Meinetz's picture
Bob Meinetz on Aug 23, 2021

Joe, again: the performance of all lithium-ion batteries quickly deteriorates. They rarely "fail" - and when one module does, it does so spectacularly, taking many others along with it:

"A lithium-ion battery container near Phoenix caught fire in April 2019, and after first responders opened the door to the enclosure, it exploded, sending several of them to the hospital."

https://www.greentechmedia.com/articles/read/aps-battery-fire-explosion-...

"Interesting... so if I replace a module of a system that has failed - in other words contributes 0% to overall system - with a new module which will perform at 100% - I see no effect on overall performance."

Despite a lack of evidence it's ever occurred anywhere, let's assume your hypothetical situation might occur somewhere in the future: one (1) lithium-ion battery module mysteriously fails without exploding into flames. It is replaced. The price of that module has doubled, hasn't it? Either by failure or gradual deterioration, your cheap batteries aren't as cheap as you thought. Are they?

Joe Deely's picture
Joe Deely on Aug 23, 2021

Joe, again: the performance of all lithium-ion batteries quickly deteriorates. They rarely "fail" - and when one module does, it does so spectacularly, taking many others along with it:

So just to be clear Bob - are you saying that performance of each of  the "modules" in the Tesla Moss Landing installation below will basically be the same over the next x years?  and that they will all be replaced at the same time?  

It is replaced. The price of that module has doubled, hasn't it?

Gotcha Bob - so if a system has 10 modules the

cost to replace a single module  = 

  • the total system cost/10.  

Am I doing that calculation correctly?

Are you also saying that if I were to take one of the  3.0MWh megapacks in the photo and replace it with a new megapack either one month, one year, five years or ten years from now it will cost the same as original installation?

Couple of more arithmetic questions for you Bob - 

Vistra just increased the size of its Moss Landing installation from 300 MW/1200 MWh to 400MW/1600MWh. Should I assume that the cost of this battery upgrade was 1/3 the cost of original battery?

Vistra has further plans to upgrade this installation in the future:

Morgan continued, “What’s great about this particular site is that it has the space to support even further expansion – up to 1,500 MW/6,000 MWh – while responsibly utilizing our existing site infrastructure, including existing transmission lines and grid interconnection.

This second expansion would be 4400/1200 or 3.66x as big as original system. Should I multiple the cost of original system by 3.66 to get cost of this expansion?  Would that be correct?

 

Bob Meinetz's picture
Bob Meinetz on Aug 25, 2021

"So just to be clear Bob - are you saying that performance of each of  the "modules" in the Tesla Moss Landing installation below will basically be the same over the next x years?  and that they will all be replaced at the same time?"

No, like I wrote two posts ago, which you seem to have deliberately forgotten:

"Nathan never suggested the entire battery pack would need to be replaced at once. The fact batteries can be replaced module-by-module has no effect on their performance, which deteriorates progressively for all lithium-ion batteries. Like solar panels, performance of which deteriorates by ~1%/year, but much more quickly."

I have no more time for your mind-numbing renewables run-around, Joe - it was almost fun. Have a nice evening - and catch up on that arithmetic! :)

Bob Meinetz's picture
Thank Bob for the Post!
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