The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Utility Xcel Energy launches Colorado virtual power plant scheme for Tesla, SolarEdge owners

LinkedIn
Twitter
Reddit
Facebook
Email

Xcel Energy has launched a new scheme for customers in Colorado, rewarding them for allowing the utility to use their battery storage systems to provide grid services.

The US utility provider’s Renewable Battery Connect scheme is open to its residential and business customers in the state, and will provide US$500 per kW of storage for up to 50% of the equipment cost of a solar-charged battery storage system.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

There is also a higher US$800 per kW rate for eligible low-income customers and a US$100 annual incentive for participating for five years for all.

Through the virtual power plant (VPP) programme – which is shorthand for the aggregation of distributed energy resources (DER) such as home batteries, solar and smart thermostats to provide services akin to a centralised power plant – Xcel will be able to manage peak demand for electricity in its Colorado service area.

Basically, during high demand periods, typically the hotter days of the year when air-conditioning loads put particular strain on utility grids Xcel will schedule a demand response event using the batteries’ stored energy to inject flexible capacity into the grid.

Solar and storage technology and services provider SolarEdge said in a press release this week that its DC-coupled SolarEdge Home Battery product has been made eligible for the scheme. The enrolled systems will be onboarded to SolarEdge’s portfolio of Grid Services, through which the company can offer a suite of services suited to different applications from demand response and frequency regulation to energy trading and optimisation.  

At present, the only other provider with eligible equipment is Tesla with its Powerwall and Powerwall II residential battery storage systems.

According to an info sheet from the utility, Xcel said it would guarantee participating customers always have 40% so they would have it in case they need backup as well as to perform any other functions as they ordinarily would. Through logging into either Tesla or SolarEdge’s monitoring apps, the customer would also be able to see how the battery is being operated during the utility’s demand response ‘control events’.

After several years of the potential of VPPs being widely talked about in the renewable energy industry, and a few more subsequent years of limited pilot and trial deployments, it appears major utilities such as Xcel – which is present in eight states – are looking to roll them out on a wider scale.

A report published earlier this year from energy consultancy Brattle Group and commissioned by tech giant Google, found that US utilities could make up to US$35 billion in savings on their costs of supplying electricity over the next decade by leveraging virtual power plant (VPP) technology.

Read further coverage of activity in the virtual power plant space on Energy-Storage.news here.

22 May 2024
London, UK
At the time of writing, Europe had had its most successful year in terms of Power Purchase Agreements (PPAs) with a record 7.8GW of renewable energy contracts signed. As we gather in May 2024 for the third edition of the Renewable Energy Revenues Summit, the energy landscape continues to evolve rapidly, influenced by the beating drum of climate change, volatility around power prices and the need to decarbonise power procurement as well as generation.
22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

April 24, 2024
The New York City Industrial Development Agency (NYCIDA) has approved five BESS projects while governor Kathy Hochul has announced groundbreaking on a sixth, all in all totalling around 42.5MW of capacity.
Premium
April 23, 2024
The energy storage arm of Canadian Solar said the technology ‘has more complexity than solar’ when it comes to nearshoring manufacturing away from China, and local cell manufacturing could be part of the long-term strategy to leverage domestic content incentives.
April 23, 2024
The market for deploying energy storage at data centres saw announcements this week from Digital Realty and Enel X in Ireland and Exowatt in the US.
Premium
April 23, 2024
Energy-Storage.news Premium speaks with Michael Phelan, CEO of energy management solutions provider GridBeyond, following €52 million Series C funding round.
April 19, 2024
South Africa’s electricity minister has said the largest solar-plus-storage project in the Southern Hemisphere is evidence of efforts to mitigate the country’s difficult energy security situation.

Most Popular

Email Newsletter