could big batteries be big business in california? - home energy storage system

The California Utilities Commission has called on utilities and private companies to install about $5 billion worth of batteries and other forms of energy storage to help the State Grid cope with unstable power from wind power and solar power.
The need to store energy has become urgent as the state plans to obtain a third electricity from renewable sources by the end of the decade.
The shift in strategy could bring some significant opportunities for small start-ups, including a company called Stem.
Stem is located in an abandoned showroom in milbray, California.
Right across the highway from San Francisco International Airport.
The company's goal is not just to help the state grid.
Tad Glauthier, vice president of Stem in charge of customer development, said: "The products we produce reduce the electricity cost of the enterprise . ".
In fact, the first priority of Stem is to focus on personal business.
To explain how this works, Glauthier walks up to several large computer monitors hanging on the wall.
"The display on the right shows the power load on the car wash across the street," he said . ".
Charts are everywhere.
When the car washer is waiting for business, there will be lulls --
Big spikes occur when the blower, vacuum cleaner and other large equipment are turned on.
"If you only look at the range in the last 15 minutes, it's an incredible volatility," says glathier . ".
"Utility companies must provide them with electricity.
"It turns out that for those periods of high demand, the Car Wash has to pay extra electricity.
All companies in California are billed for their peak use and total electricity consumption.
So if the car wash can scrape off these power peaks, they can also scrape off the extra cost from the electricity bill.
Stem does this: when demand surges, the battery starts so that companies don't have to draw too much from the grid.
Its battery pack installed in the enterprise looks like a sparkling gym locker controlled by a small computer connected to the Internet.
The job of a computer is to decide when a company should draw energy from the battery rather than from the grid.
When the company's energy demand is low, it can charge the battery.
"With the Stem system, they won't use less power," explained Glauthier . ".
"They just use power at a higher level.
"By doing so, the company is reducing the bill portion based on peak electricity usage.
So is Stem just building a system that allows companies to "play" their electricity bills?
Glauthier said no.
"You help absolutely [power grid]
He said.
But Glauthier is probably a bit ahead of here.
"Now, it only helps customers," says Haresh Kamath, a battery expert at the Electric Power Institute near Palo Alto.
The battery will eventually help the State Grid cope with the ups and downs of wind and solar power supplies, Kamath said.
But it takes a lot of battery power to change the status quo.
That's why the California Public Utilities Commission has called for billions of dollars of energy storage to be installed between now and 2020.
"If you have a small energy storage system in everyone's home or in every business, it can have a significant impact on the entire grid," Kamath said . ".
"Of course, it's hard to do this right now because it's a relatively expensive product.
"Everyone wants the huge demand for batteries to help reduce costs as well.
Battery can help solve the problem of short circuit
Power fluctuations-
For example, it's like when a cloud passes through a solar panel, or when the air is stationary at a particular wind farm, these clouds are generated.
They can help keep the grid stable as operators match supply and demand for the second time.
Stem plans to expand its operations in order to play a role in stabilizing the grid.
Grid operators actually pay for the service, so it could be another source of revenue for Stem.
Glathier said that so far, the company has only installed 10 systems, but there are still 150 orders in the project.
Once the critical mass is reached, the company will be able to control all the batteries it installs from one central location.
"It took us 1/2 years to get here, and I think there are still three to four years before we actually open the door," said Glauthier . ".
They do have competitors, including Tesla Motors, which works with a solar company and is also involved in the business.
This competition is not just about improving battery technology, but about inventing business models that will make energy storage practical.