As the energy storage sector is in a maturing phase where concepts such as operation, performance and applications are sometimes not defined in a uniform manner, an industry consortium led by DNV, has developed the GRIDSTOR Recommended Practice (RP) on grid-connected energy storage systems. This has formed the backbone of the technology review as well as the market study review and the technology comparison. GRIDSTOR definitions for calendar lifetime, cycle lifetime, end-of-life and expected lifetime have been applied, accounting for the technology review, where typical values for various applications, such as frequency response, spinning reserve and peak shaving have been used from the RP for reviewing the market assessment.
DNV performed a third-party assessment of a novel energy storage technology. Our effort focused on three main areas:
- Technical and bankability review of the inorganic lithium battery energy storage technology
- Market review and the applicability of this technology for different climates
- Comparison of this technology with other storage technologies available in the market.
The technology review consisted of a product evaluation, performance evaluation, safety evaluation and evaluation of company strength and stability. The market assessment consisted of a review of an existing market study, including suitability of the technology for applications relevant to that market. The technology comparison was performed for several parameters, such as charge rate (C-rate), cycle lifetime, round-trip efficiency, calendar life and a Levelised Cost of Storage (LCOS).
The assessment provided the investor with a clear understanding of the claims made by the manufacturer, whether these are likely to be met and what are the main risks identified. The outcome of the market study review has provided the investor a clear view what is missing and whether it can be used for an investment decision. The technology comparison has enabled the investor to assess their relative advantage of developing a Joint Venture with the target company.