
China's Contemporary Amperex Technology Co. Ltd., a maker of lithium-ion batteries, launched its U.S. energy storage business |
As U.S. energy storage developers install ever-larger segments of their multigigawatt-sized project pipeline, the industry is stepping up its efforts to allay concerns over technology safety and performance, especially related to lithium-ion batteries.
"It has combustible materials, but so does gas and coal," said Steve Fludder, CEO of NEC Energy Solutions Inc., a Massachusetts-based subsidiary of Japanese information technology company NEC Corp. NEC has quadrupled its global installed base over the past year to nearly 1,000 MW and expects to double that in the next year, Fludder said.
The industry's challenges were highlighted by the failure in April of Arizona Public Service Co.'s 2-MW lithium-ion battery array, which exploded in Surprise, Ariz. The incident, which sent several firefighters to the hospital, put the Pinnacle West Capital Corp. utility subsidiary's ambitious energy storage plans on hold.
Dozens of battery system fires have occurred in South Korea and other countries in recent years, sparking concerns about lithium-ion battery safety just as the industry prepares to expand to a 158-GWh annual market worldwide by 2024, according to Wood Mackenzie Power and Renewables.
Still, the industry remains confident in the safety of its technology. NEC recently installed a 500-kW battery system next to a playground at an elementary school in Eugene, Ore. Another technology integrator, Sonnen Inc., an affiliate of Royal Dutch Shell PLC, is placing residential batteries inside more than 600 apartments at a complex under construction outside Salt Lake City, Utah.
"We are more than proud to put our battery in a living room because we know [fire risk] is negligent and there is no safety hazard," said Sonnen CEO Blake Richetta.
"We've taken heed of [recent accidents] and already taken steps to ensure we are limiting risk to the greatest extent possible," said John Zahurancik, COO of Fluence Energy LLC, a joint venture of AES Corp. and Siemens AG, which installed the APS system. Once the investigation into the root causes of the fire is complete, Fluence plans to share the lessons industrywide in an effort to stop such accidents from occurring.

NEC Energy Solutions Inc. supplied this 500-kW lithium-ion battery storage project at an elementary school |
1st standards
Collecting the expertise of technology experts and fire researchers, the National Fire Protection Association, or NFPA, in September released the first comprehensive standards specifically addressing safety measures at energy storage installations. The new standard, known as NFPA 855, outlines criteria for safe installation and operation of stationary batteries, including fire suppression, detection and ventilation systems, in addition to emergency protocols and other requirements.
"While energy storage systems provide countless benefits and applications, the technologies do not come without risk," Brian O'Connor, an engineer at NFPA, said in a news release. "NFPA 855 aims to mitigate risk and ensure that all installations are done in a way that takes fire and life safety into consideration."
Another prerequisite for establishing batteries as a major grid resource is ensuring that systems meet or exceed performance expectations.
A failure "doesn't have to be catastrophic," said Cherif Kedir, CEO of Renewable Energy Test Center, LLC, owned by Japan's Marubeni Corp. "It just has to hit your balance sheet in a negative way and it's still a bad deal."
Partnering with VDE Renewables GmbH, a certification and quality assurance affiliate of German electrical and electronics trade association VDE, the Renewable Energy Test Center has launched a new "bankability testing" service in North America. Involving tests in California, Germany and Singapore, the program is designed to help developers, customers and financial backers understand and secure the high performance and reliability of their energy storage projects, while also meeting safety and quality standards.
"You are investing hundreds of millions of dollars assuming that your system is going to last 10 or 15 years," Kedir said. "If in five or seven years you are only getting 5 or 10% of capacity, that's a huge disaster."
