ESA Newsletter

(By special permission from ESA, here is their latest newsletter.)

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NEWS BOLTS
A MONTHLY NEWSLETTER FOR ENERGY STORAGE ASSOCIATION MEMBERS

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A NEW YEAR AT THE ESA
The ESA has listened to its membership and is being responsive to what the membership says it wants from the ESA. In our survey of ESA members over the last few months, the number one thing you want from the ESA is promotion and a forum so that potential customers are aware of the value and opportunities for including energy storage in their business plans. Energy Storage: It’s About Time! Is the theme for our new brochure and our marketing campaign for the next several years? Our new brochure should be available at the Spring meeting and the ESA staff is hard at work to deliver this message throughout the industry.

Our upcoming meeting in Phoenix is also focusing on the customer. The meeting’s preliminary agenda (mailed last week) includes presentations by power quality customer’s that have incorporated energy storage, electric utility customer’s that are installing energy storage, and fuel cell developers incorporating energy storage into their designs. Along with the exceptional visits to Arizona Public Service Company and Salt River Project (not to mention the amenities available in the Phoenix area), we expect our meeting to have outstanding attendance.
I recently was invited to participate in a plenary session on Alternative Generation and Storage at IEEE’s Winter Power Meeting at Tampa, Florida. I used the opportunity to present our standard ESA electronic presentation (available to any ESA member) and the response was overwhelming. More than 30 participants immediately asked for more information and I suspect several will attend our upcoming meeting in Phoenix. I am more convinced than ever that the interest in energy storage is at an all time high. However, we must be more proactive in delivering our message.

Thus, the objective of our brochure and marketing campaign.

Our membership is reflecting the transition taking place in the electricity business. We are picking up several new members while others have merged, downsized, or gone out of business. We cannot improve without ideas, feedback and commitment from our membership. As always, contact us at any time by phone, fax, and email or via our website and stop in to pay us a visit the next time you are in Washington, DC. Register for the Spring meeting early and do not forget your dues with registration and encourage other business partners, customers, and colleagues to participate in the ESA.

Jon Hurwitch, ESA Executive Director

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ENERGY STORAGE ON NATIONAL PUBLIC RADIO

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MEETINGS AND WORKSHOPS ESA Spring 1998 Meeting

The Spring 1998 ESA meeting is fast approaching. The preliminary agenda and registration materials are in the mail. As always, we anticipate changes to the agenda, additions and deletions as well as details on the presentations. Updates to meeting program will be available via the ESA world wide web site.

This meeting is shaping up to be very exciting and we hope that you will find the new format refreshing. The Feature Forum is dedicated to presentations on how customers are using energy storage technologies. We have avoided over-booking this session so that the presenters can give longer, more detailed presentations and there is time for questions and answers.

The Fuel Cell Storage Session will both serve to introduce fuel cell technology, a close relative to energy storage, and the potentially interactive relationship between fuel cells and storage, particularly for grid-independent systems. The remaining sessions are broken into the three primary applications for storage, utility, power quality and renewables. In addition to a strong program, we have two tours planned at Salt River Project and Arizona Public Service Company.

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ESA/SEIA to Host PV-Battery Storage Discussion at SOLTECH

The Energy Storage Association will be co-sponsoring a session at the SOLTECH meeting on Monday, April 27, 1998. The SOLTECH , Interstate Renewable Energy Council and Utility Photovoltaic Group annual meetings are being held in Orlando, Florida, April 25-30, 1998.

For more information on the panel discussion, please contact the ESA. For information on the SOLTECH meeting contact the Solar Energy Industries Association at 202/383-2670.

————————— EESAT ’98 Meeting

The ESA has received copies of the meeting program and registration and will be distributing them at the meeting in Phoenix. If you need copies ahead of time, please give us a call and we will put them in the mail to you.

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Other Upcoming Meetings

Marriott Boca Center, Boca Raton, Florida
For information call, 561/997-2299, or www.alber.com

HydroVision98: Exploring Our New Frontiers
July 28-31, 1998
For information call, 816/931-1311, or. www.hydrovision98com

Powersystems World ’98: Managing your Facility in a New Energy Marketplace
November 7-13, 1998
Santa Clara Convention Center

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ESA Participates at IEEE Winter Power Meeting Plenary Session

ESA Executive Director, Jon Hurwitch was one of five invited panelists for the Plenary Session on “Alternative Energy Generation and Storage: Concepts or Becoming Operational Reality?” The other panelists were, Gilbert Cohen, Kramer Junction Company; Douglas Hyde, Green Mountain Energy Resources; Ernesto Terrado, World Bank; and Richard Walker, Central and Southwest Services.

The Plenary Session attracted more than 1000 delegates primary from the U.S. electric utility industry. Jon delivered an abridged Energy Storage Overview presentation which was well received and generated a number of prospective ESA members.

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1998 ESA Index

The Energy Storage Association is in the process of updating the ESA Index for 1998. If you have any changes or additions to your listing or that of your colleagues, please forward that information to the ESA as soon as possible. We hope to issue the 1998 Index at the Spring meeting in Phoenix.

1998 ESA Member Directory
This year the ESA will be preparing a directory of its membership that will include a discussion of the products and services offered by member companies. The directory will be available in electronic form via the ESA website.

We are asking members to please send us, preferably in electronic form, a brief write up about the company; information on your energy storage product and services; photos or other graphics, but in particular the company logo; contact name and information; and the URL address for a company website.

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WHAT’S NEW
ESA Welcomes New Member, KEMA

The Energy Storage Association continues to stretch its membership boundary. In February 1998 KEMA Nederland B.V., a major Dutch utility became the second European ESA member. KEMA has been a participant in the International Energy Agency Annex IX and has its own storage research program. We will all have the opportunity to meet representatives from KEMA and hear more about their interest in energy storage at the ESA meeting in Phoenix.

Omnion and AC Battery Reunited

Delphi and Omnion believe the prospects for AC Battery” power quality products are substantial, particularly in light of the ever-increasing sophistication of manufacturing and data processing operations and the potential power supply problems that may occur as utility deregulation moves forward. AC Battery products offer unique technological advantages over competitive products in the field.

Trace Engineering and Statpower Technologies Announce Merger Plans

Trace Engineering Corporation of Arlington, Washington and Statpower Technologies Corporation of Burnaby, British Columbia, Canada signed a Letter of Intent to merge the two businesses in November of 1997. The merger, expected to be completed in the first quarter of 1998, will result in the world’s leading manufacturer of small electronic power inverters.
According to Trace Engineering President Bill Roppenecker, “Trace and Statpower make an excellent strategic fit. We have complimentary technologies, products, and market strengths. By joining forces we get the critical mass necessary to effectively serve the rapidly growing market for mobile and renewable power sources.”

Trace Engineering and Statpower Technologies develop and manufacture electric power inverters, battery chargers, and other power conversion products for a variety of markets including the recreational vehicle, marine truck, mobile office, backup power, and renewable energy markets.

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Department of Energy 1999 Budget Request
The Administration has submitted its fiscal year 1999 budget request to Congress. The House and Senate are expected to begin hearings on the budget this month.

The budget for energy efficiency and renewable energy programs has jumped from $908 million in 1998 to a proposed $1,198 million in 1999. This increase of 32% will help to support the President’s proposed Climate Change Technology Initiative for clean energy research and development.

The budget request breakdown by major program offices is:

$322M – Utility
$167M – Industrial
$293M – Transportation
$ 34M – Federal Energy Management
$317M – Buildings, States & Communities

The energy storage program request for 1999 stands at $6 M up from $3.9 M in 1998, and includes funding for the ESA-backed Storage 2000 initiative. The Energy Storage Association backed the recommendation of the President’s Council of Advisors on Science and Technology (PCAST) to increase the energy storage program budget to $20 M in 1999 to support renewable generation and storage programs. The ESA will work with the Sustainable Energy Coalition to continue to push for the PCAST budget recommendations during appropriations hearings in Congress.

Excerpts from the President’s State of The Union Address

In his State of the Union Address in January, President Clinton introduced his proposal for $3.6 billion in tax incentives over the next five years that will go directly to consumers in an effort to get advanced energy efficiency and renewable energy technologies into the marketplace.

Some specific tax credits include:

– 20% credit on purchase price for energy-efficient building equipment which includes: fuel cells, electric heat pump water heaters, advanced natural gas and residential size electric heat pumps, and advanced central air conditions;
– 15% credit for qualified investment up to a maximum of $1,000 for solar water heating systems and $2000 for rooftop photovoltaic systems;
– five year extension of 1.5 cent/kWh tax credit for electricity produced from wind or closed-loop biomass

A copy of the report containing the proposed tax incentives is available via the world wide web at: www.treas.gov/press/releases/grnbk98.html.

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The National Regulatory Research Institute Issues Unbundling Report

According to a recent report, Unbundling Generation and Transmission Services for Competitive Electricity Markets: Examining Ancillary Services, the nationwide cost of ancillary services is about $12 billion a year, roughly 10% of the cost of the energy commodity. The report sponsored by the National Regulatory Research Institute and prepared by Oak Ridge National Laboratory is available from NPRI for $29.95 by calling 614/292-9404 (report number NPRI 98-05.)

The report notes that although the utility industry has made substantial progress in identifying and defining the key ancillary services, much remains to be done. Developing metrics, determining costs, and setting pricing rules are important because most ancillary services are produced by the same pieces of equipment that produce the basic electricity commodity. Thus, production of energy and ancillary services is highly interactive, sometimes complementary and sometimes competing. In contrast to today’s typical time-invariant, embedded-cost prices, competitive prices for ancillary services would vary with system loads and spot prices for energy.

The individual ancillary services differ substantially in their features, competitiveness, provision, and pricing. Operating reserves, for example, can likely be provided by competitive markets. The primary supplier cost for this service is the opportunity cost associated with foregone energy sales; significant fuel costs are incurred only when these reserves are called upon to respond to the loss of a major generation or transmission outage.

The report provides an overview of the twelve ancillary services plus details on two of those services, operating reserves and voltage support.

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Cara Molinari Joins ESA Staff

On February 17, Switch Technologies welcomed new staff member Cara Molinari. As Executive Assistant, Cara will be taking over the responsibilities of ESA Coordinator including handling communications with members, finance, office administration, meeting planning, library maintenance, and website updates.

Prior to joining Switch, Cara was a Work Assignment Manager and Communications Specialist for Technical Resources International, Inc. of Rockville, Maryland. Cara brings experience in the preparation of communications and marketing materials including newsletters, brochures, and educational materials; and meeting planning to Switch and the ESA. Cara received her BS in Sociology and Italian Studies from St. Joseph’s University. Cara is fluent in Italian and proficient in Spanish and French.

You will have an opportunity to meet Cara in person at the upcoming ESA meeting in Phoenix.

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Premium Power RFP Issued

The Department of Commerce, Advanced Technology Program released a request for proposals for premium power technology research and development. The goal of the program is to promote U.S. economic growth by supporting sustained, High-Risk Research and Development to accelerate progress in power technologies critical to changes occurring in information systems, telecommunication, and distributed electric power. Technologies within the scope include advanced rechargeable batteries, photovoltaic arrays, fuel cells, ultracapacitors and flywheels. In FY98, $82 million is available for new projects.

Proposals for the first round are due April 8, 1998. Proposal kits can be obtained by calling the ATP hotline at 800-ATP-FUND or e-mail at: atp@nist.gov. Information on the premium power program is also available via the ATP website at: www.atp.nist.gov/www/press/cbd98-03.html.

ESA NEWS BOLTS
JON HURWITCH, Executive Director
LAURA WALTEMATH, Projects Director
CARA MOLINARI, ESA Coordinator

Please contact ESA office at:
301-951-3223
jwitch@switch.smart.net

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