An Interesting Business Model For Storage From Fluence

• Fluence's energy storage complex in Lancaster, California is one of the largest in the world and provides a range of grid services
• It makes grid more resilient by providing backup power in the event of a power grid failure and by helping to maintain the balance between supply and demand
• The project is a finalist for the smarter E AWARD 2023, which recognizes innovative energy storage projects that are helping to create a more sustainable and resilient energy system.

Fluence, a global player in energy storage segment, has developed an interesting business case for its owned-and-operated complex of 2 battery storage systems in Lancaster, California. The complex provides grid support during periods of high demand, reduces blackouts, and is used for frequency regulation and integration of renewable energies. In the event of a power grid failure, the batteries serve as backup.

The core business model is the management of the energy arbitrage market. Due to the volatility of electricity prices at the energy exchange, battery storage projects are becoming so attractive that they can now finance themselves. This is made possible primarily by software-based smart bidding, i.e., the marketing of the storage on the electricity market.

The system comprises the first project, the "Lancaster Area Battery" (LAB) with 508 MWh and 127 MW, and Luna, a standalone storage project that was deployed at a later point with 400 MWh and 100 MW. In total, the project has a storage capacity of 908MWh and an output of 227 MW, which makes it one of the largest energy storage complexes in the world.

The business proposition was one of the finalists for the smarter E AWARD 2023, an award given to innovative energy storage projects that contribute to the decarbonization of the energy system.

The text is an excerpt from TaiyangNews New Solar Products Overview H1/2023, which can be downloaded for free here.