Year in review 2022: BESS technology providers IHI Terrasun, LS Energy Solutions, Mitsubishi Power - Pro Bid Energy (2023)

Year in review 2022: BESS technology providers IHI Terrasun, LS Energy Solutions, Mitsubishi Power - Pro Bid Energy (1)

Thoughts from a trio of energy storage technology providers and system integrators on the year just gone, and what lies in store in 2023 (no pun intended).

Our respondents in this edition are all vying to gain a foothold in key battery storage markets around the world, but understandably with a primary focus on North America’s booming opportunities.

However, as you’ll see from their responses, even within the North American market, opportunities are spreading from the existing energy storage market strongholds of Texas and California to other US states, to Canada.

And there is of course plenty going on outside the North American market too, as the global need for energy storage is becoming widely recognised.

It’s fair to say our three interviewees come from companies at quite different stages of their journey into that global market.

Mitsubishi Power Americas is involved in major large-scale battery storage projects with recent project contract awards in regions including the south-eastern US and Chile.

The company’s battery storage solution, called Emerald, is based on lithium iron phosphate (LFP) battery technology, but Mitsubishi Power Americas is involved with a broad range of other technologies, including working on what could be the largest green hydrogen storage facility in the US, the ACES project in Utah.

LS Energy Solutions, backed by South Korean conglomerate LS Group, began deliveries of its first containerised battery energy storage system (BESS) units last year, after LS Group acquired the grid-tied energy storage division of inverter maker Parker Hannifin in 2018.

IHI Terrasun is a system integrator working on some of the largest solar-plus-storage projects in the US, such as developer Primergy Solar’s US$1.9 billion Gemini Solar-plus-Storage plant in Nevada. Gemini will include 1.4GWh of batteries, with cells to be supplied by CATL, alongside 690MWac/966MWdc of solar PV.

What did 2022 mean for your energy storage business, and how did it compare with the year before that?

2022 exceeded our expectations in many ways. We went through a wave of commissioning 1.5GWh of projects in California and Texas, which are historically robust markets for battery storage. The year has also seen a transition to other markets in the Eastern US and emerging market opportunities in Canada, Latin America, and Western Europe.

We started the year mostly focused on US-based project opportunities and the anticipation of a US$3 billion to US$4 billion market. That has quickly evolved into a more global view of opportunities across Canada, Western Europe, Latin America, and the US with an estimated US$9 billion market outlook over the next two years.

Overall, it was a strong year not only for Mitsubishi Power but the energy storage industry as a whole.

Tom Cornell, Senior VP of energy storage, Mitsubishi Power Americas

For LS Energy Solutions (LS-ES), 2022 was the year of product fine-tuning and getting into the big league of energy storage system integration.

LS-ES launched its all-in-one (AiON) energy storage solution in the fall of 2021 and spent 2022 certifying our AiON energy and power series, as well as taking the all-in-one concept to our customers. We ended the year with six awarded projects and installation underway on three of them.

Ravi Manghani, director of strategy and analytics, LS Energy Solutions

2022 has been a year of tremendous growth, both for the industry and IHI Terrasun. With the Inflation Reduction Act (IRA), the need for storage has skyrocketed and that is amplifying an already increasing and expanding market. This hot market keeps getting hotter.

The war in Ukraine has further illustrated that energy independence – both regional and national – is essential for a stable and sustainable economy. And that has also increased the need for energy storage worldwide.

We’re seeing increases both in the size of projects – to the orders of magnitude to what we saw only two years ago, but also the frequency of new projects being developed. This year has seen a notable increase in the speed of the energy transition with the strong boost to climate and energy funding provided by the IRA.

Ray Saka, VP sales, product management and services, IHI Terrasun

What were some of the biggest gains and steps forward made by the industry, including your company, during the last 12 months?

One of the biggest steps forward we have seen as an industry is the increased confidence and adoption in battery energy storage outside of the mature markets in the United States, including California and Texas. Mitsubishi Power is seeing this within our business with the projects awarded in the Southeast United States and Chile.

As more battery energy storage assets are successfully commissioned and continue to meet customer expectations, it is resulting in more confidence and understanding of the many roles battery energy storage has in the energy landscape as a generation and transmission asset.

The passing of the Inflation Reduction Act in the US will be the next catalyst for energy storage and propel the market forward.

Tom Cornell, Senior VP of energy storage, Mitsubishi Power Americas

Any mention of 2022 has to include the passage of the Inflation Reduction Act. For the first time, standalone energy storage will enjoy tax credit incentives similar to other renewable technologies. The industry deserved a pat on the back for never stopping to advocate for [the] storage ITC.

The timing couldn’t have been better as there’s a massive opportunity in front of us to decarbonise the power grid and storage will have a key role to play in getting there.

Another big gain, which truly still has to materialise is the recognition that for the US energy storage market to prosper, the country will also need to advance as a manufacturing hub for strategic energy storage components such as batteries and inverters.

On the topic of manufacturing incentives, LS Energy Solutions supports the inclusion of inverters for advanced manufacturing credits and has requested the Treasury to go one step further to explicitly include storage inverters for those benefits.

Outside of IRA becoming law, other noteworthy gains and steps have been in the area of interconnection reform, as FERC, as well as a few ISOs under its jurisdiction, have started on the path of streamlining of interconnection rules that will enable deployment of the massive backlog of solar, wind and storage assets.

Ravi Manghani, director of strategy and analytics, LS Energy Solutions

This year, IHI Terrasun launched our next generation power plant software for control, advanced diagnostic and monitoring of storage and solar-plus-storage systems. This solution allows for vendor-agnostic integration as well as augmentation and long-term power plant maintenance. We’ve built an analytical system for monitoring and diagnostic of assets, so we’re able to provide bankable 10- and 20-year long-term service agreements (LTSAs), and at times even longer, such as the work we’ll be doing for the Gemini Solar and Storage project in Nevada.

The biggest step forward for the industry, and one that is long overdue, is the development of diversified supply chains for batteries. The world will have so much demand as we electrify everything from cars to mobile phones, all of which will need batteries.

So far, battery production has been centred in China with very few limited options outside. With the IRA, there is now ample incentive for US-based manufacturing of batteries, and we hope to see those incentives adopted around the world to create a truly diverse supply chain.

Ray Saka, VP sales, product management and services, IHI Terrasun

Year in review 2022: BESS technology providers IHI Terrasun, LS Energy Solutions, Mitsubishi Power - Pro Bid Energy (2)
Year in review 2022: BESS technology providers IHI Terrasun, LS Energy Solutions, Mitsubishi Power - Pro Bid Energy (3)

The industry faced some well-documented challenges during the year, with the highest profile being supply chain constraints. How have those challenges affected the industry and how should they be confronted?

The challenges affecting battery storage and solar projects have been a huge topic this year. These challenges affected not only the supply but also costs related to projects forcing our independent power customers to renegotiate their power purchase agreements (PPAs). Despite the challenges, the impacts have mostly resulted in project delays instead of outright projects being cancelled.

The height of the supply chain challenges will be an inflection point in our industry along with the IRA as we evaluate our supply models and as the industry looks to diversify the supply chain across multiple continents.

Tom Cornell, Senior VP of energy storage, Mitsubishi Power Americas

For the US to truly see the fruits of accelerated renewable deployments, including storage, a lot of manufacturing will have to be onshored and re-shored.

Without a clear roadmap for such, the industry is destined to face the pains of extended delivery times, higher costs, and trade policy-related uncertainties. For instance, we saw lead times of 60-70 weeks on transformers and lead times of similar scale on other components needed to integrate storage solutions.

In addition to these delays, the industry has also had to open to alternate suppliers, and in general, expand the universe of suppliers to mitigate availability constraints. While a diversity of suppliers is generally good for competition, it has also opened up the need for robust quality control.

Ravi Manghani, director of strategy and analytics, LS Energy Solutions

Source diversification is the best solution to bottlenecks and constraints. Right now, China is effectively the only lithium refiner in the world. That must change if we are to succeed in creating a robust supply chain and enable worldwide manufacturing of Lithium-ion-based batteries.

We have also seen promising development of non-lithium technologies such as sodium and zinc-based energy storage systems, which also hold promise in diversifying the supply chain.

Another important topic that does not get enough attention is the shortage of skilled labour in the electrical fields from master electricians to electrical engineers who are going to be needed over the next 30 years to achieve the transition to renewable energy.

More skilled workers retire every year than enter the profession, so there is already a shortage. Add to that the growing demand of renewable energy transition and the country will be unable to meet our climate targets in 2030.

This is a great opportunity to train and invest in our young adults who could secure well-paying jobs for decades to come. To meet the need, we must invest in outreach, workforce training and retraining, and mentoring. Plenty of great work is already being done to address this problem, but it will need to be significantly scaled if we want to build the solar, wind, and storage installations that will power our lives in 2030, 2040 and beyond.

Ray Saka, VP sales, product management and services, IHI Terrasun

Which technology and industry trends would you recommend our readers keep a close eye on in 2023?

There are several trends around energy storage people should keep a close eye on in 2023:

  • The improvement in lithium-Ion cell technology that currently exists. We are typically deploying 280 amp hour (Ah) cells and are moving toward over 300Ah cells, which will improve Lithium Ion’s density and more cost effective.
  • Developments in other cell chemistries including Sodium-ion as more R&D investment is placed in it
  • Longer duration storage in the 8-hour and above range through some demonstration projects using flow and nickel hydrogen-based technologies

Tom Cornell, Senior VP of energy storage, Mitsubishi Power Americas

At the risk of sounding a pessimist, 2023 in many ways will look a lot like 2022 in terms of battery costs and supply tightness. 2022 is primed to end with lithium carbonate prices at an all-time high and while the larger economy is slowing down after a year of high inflation, I suspect that the prices in 2023 will be a bit stickier in the energy storage world. There are certainly some promising trends to look out for, such as higher energy density products from several LFP suppliers, and further commercial advancement from a few non-lithium technologies.

Ravi Manghani, director of strategy and analytics, LS Energy Solutions

2022 has been a big year for many companies and consortiums to announce giga-sized battery factory plants in the US.

While it takes years to build a factory, in 2023 we will begin to see whether these plans materialise into ground-breaking ceremonies which will determine the trajectory of the rest of the ‘20s decade. If we see factories being built, we can expect an ease in the constriction of the battery supply in three to four years. If we don’t, batteries will continue to stay a prime commodity.

Ray Saka, VP sales, product management and services, IHI Terrasun

Year in review 2022: BESS technology providers IHI Terrasun, LS Energy Solutions, Mitsubishi Power - Pro Bid Energy (4)

What are the biggest priorities for your company, and for the wider industry, in 2023 and beyond?

Managing growth. With the rapid industry growth and expanding market opportunities, we are expanding our team to double its current size in the next 12 months while balancing the need for capital investment into people and R&D efforts supporting product development.

Successful Implementation of 2GWh of projects. We will always prioritise the commitments made to our customers to deliver projects in a safe and reliable way.

Understanding and leveraging the effects of the IRA. When the treasury department guidance is out, this will shape our strategy going forward with domestic content.

We will also be keeping an eye on what happens with Canada’s version of the IRA over the next year as well.

Tom Cornell, Senior VP of energy storage, Mitsubishi Power Americas

Our priority for 2023 is to start delivering 100+ MWh project orders, and we’re extremely proud of what we’ve accomplished with the AiON product in such a short amount of time.

Additionally, we will be adding more product options for our customers in terms of capacity and technology options. We want our customers to able to have a variety of solutions to choose from, all standardised and factory assembled to provide ease of onsite installation and reliable operation.

This pretty much dovetails into the biggest priorities for the industry – scale, standardisation, and certainty. Scale is a well-understood requirement and doesn’t need elaboration.

For the industry to become more robust, and yes, profitable, we need to move away from selling projects to selling products, and for our developer customers to be able to operate portfolios of assets. That’s how we grow and do so taking on proportionate levels of risk.

Ravi Manghani, director of strategy and analytics, LS Energy Solutions

Creating a diversified supply for batteries and power conversion systems (PCS) is top of mind. Going further, we will be looking at ways to offer more functionality (application stacking) from energy storage systems.

Right now, most installations are used to perform only one to three applications, usually storing electricity that would otherwise be curtailed, but storage can offer so much more for the electricity grid with correct system design and the right power plant controller.

For any industry, having a single source of any product is risky, so diversification will be essential across the board next year and beyond.

Demand for energy storage is already heating up and with the IRA and the energy crisis in Europe and around the world, the push for additional energy storage resources will continue to accelerate. In 2023, we will see whether the supply constraints begin to ease up so the demand can be met with supply.

Ray Saka, VP sales, product management and services, IHI Terrasun

Additional reporting by Cameron Murray.’ publisher Solar Media will host the 5th Energy Storage Summit USA, 28-29 March 2023 in Austin, Texas.Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.


Who makes BESS battery? ›

Battery energy storage systems (BESS) from Siemens Energy are comprehensive and proven. Battery units, PCS skids, and battery management system software are all part of our BESS solutions, ensuring maximum efficiency and safety for each customer.

What is BESS Solar? ›

A BESS is a type of energy storage system that uses batteries to store and distribute energy in the form of electricity. These systems are commonly used in electricity grids and in other applications such as electric vehicles, solar power installations, and smart homes.

What is the use of storing energy? ›

Energy storage can reduce high demand, and those cost savings could be passed on to customers. Community resiliency is essential in both rural and urban settings. Energy storage can help meet peak energy demands in densely populated cities, reducing strain on the grid and minimizing spikes in electricity costs.

Who makes the best electric battery? ›

The leading battery supplier, CATL, expanded its market share from 32% in 2021 to 34% in 2022. One-third of the world's EV batteries come from the Chinese company. CATL provides lithium-ion batteries to Tesla, Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen, and Volvo.

How long do BESS batteries last? ›

Dividing the total wear cost of the BESS battery life by the annual wear cost can lead to an expected life. Life expectancy is expected to be 8.31 years.

What is the life span of BESS? ›

Actual steady-state operation of BESS on the grid. Consequently, the expected lifespan of the BESS from the above method is estimated to be 31,104 MWh/6094 MWh/year = 5.1 years.

How long does BESS charging last? ›

A BESS rated at 1MW & 1MWh can provide 1MW for an hour, of 0.5MW for 2 hours, or 0.25MW for 4 hours etc.

What are the disadvantages of energy storage systems? ›

Disadvantages High energy losses in some cases due to waste heat. Chemical energy storage converts low-energy substances into high-energy ones. Water, for example, can be converted into hydrogen by means of electrolysis.

What is better than solar panels? ›

Wind turbines on average harness 60% of the energy that passes through them, compared with the 18% - 22% efficiency of solar panels. Therefore, it is undeniable that a home wind turbine can produce more electricity than several solar panels.

What are the disadvantages of battery storage? ›

Some of the disadvantages of battery stored energy systems include:
  • Shorter service life. While a flywheel storage device has around the same service life as the UPS, batteries generally need to be replaced several times over the same period.
  • Higher maintenance requirement.

What EV company is backed by Bill Gates? ›

Form Energy Inc., an energy-storage company backed by Bill Gates's Breakthrough Energy Ventures, is planning a $760 million factory in West Virginia, the latest plant announced in the aftermath of President Joe Biden's landmark climate law.

What is the most promising battery technology? ›

Most Advanced Battery Technologies That Will Power the Future
  • New-Generation Lithium-Ion Battery.
  • Lithium-Sulfur Battery.
  • Saltwater Battery.
  • Solid State Battery.
  • Cobalt-Free Lithium-ion Battery.
Jan 22, 2023

Who is number one battery in the world? ›

Table 2: Top 12 Global Li-ion Battery Manufacturers
1LG ChemKorea
8 more rows

What company has the greatest lithium-ion battery? ›

CATL (Contemporary Amperex Technology Co. Limited) has become the largest lithium-ion battery manufacturer in 2022, overtaking its main competitor LG Energy Solution.

Which company is best for lithium-ion battery? ›

Lithium batteries are gaining a lot of traction in consumer electronic devices because of their low weight, high energy density, and longer lifetimes.
Top 10 Lithium Battery Manufacturer in India, 2023
  • Mahindra – EV. ...
  • Hyundai – EV. ...
  • Ola – EV. ...
  • Amarraja (Amaron) – EV. ...
  • Exide – EV. ...
  • Panasonic – Telecom. ...
  • LG -Telecom. ...
  • Samsung - Telecom.
Nov 14, 2022

How long will a 13.5 kWh battery last? ›

Two popular systems on the market, for example, have capacities of 10 kilowatt-hours (kWh) and 13.5 kWh. With the average home drawing 750 to 1,000 W of power per hour during a blackout, the 10 kWh battery will last 10 to 12 hours and the 13.5 kWh battery will last 13.5 to 16.8 hours.

What are two disadvantages of grid level energy storage systems? ›

But there are many disadvantages such as high cost, low energy density and complex maintenance [45].

How many years will a Tesla Powerwall last? ›

How many years can a Tesla Powerwall last? The Tesla Powerwall and Powerwall+ are warrantied to last 10 years with an end-of-warranty output of 70% of their original capacity. After this time frame, there is no guarantee for how long the battery will last or what charging capacity it will maintain.

What animal has a lifespan of 2 weeks? ›

The Sign Eviota is known to have The Shortest Lifespan of Any Fish. Found in Australia's Great Barrier Reef, the sign Eviota lives for only two weeks and spends the first half of its life in larval form.

What animal has a lifespan of 40 years? ›

Record Mammal Life Spans (in captivity)
Name of AnimalLife Span
Seal (Common)30
Sheep (Bighorn)15
Sheep (Mouflon19
47 more rows

What animal has the lowest life expectancy? ›

The Sign Eviota, Eviota sigillata, a tiny coral reef fish, completes its entire life cycle within an eight week period. This species has the shortest lifespan of any vertebrate.

Is it OK to charge your EV every night? ›

The short answer to the question is no. In general, you should not charge your electric car every night. It isn't necessary in most cases. The practice of charging an electric vehicle every night can shorten the lifespan of the car's battery pack.

Should I charge my ebike every night? ›

Normally, you do not need to charge an electric bike after every ride. Nevertheless, if the battery capacity falls below 40% then you must charge it to around 80% -85%. Or if you are intending a long-distance trip the following day, then you should charge it to a complete 100% after your ride.

Can you leave rechargeable batteries on the charger all the time? ›

Leaving the battery on charge You can leave a battery/radio in the charger once charging is complete. Leaving a battery in the charger will not overcharge or damage it. You can remove a battery/radio from the charger at any time without harming the battery, the radio, or the charger.

What are 3 drawbacks to storing solar energy in batteries? ›

Disadvantages of A Solar Battery
  • Energy Storage is Expensive. The cost of energy storage is quite high and can quite easily increase the cost of your solar PV system substantially. ...
  • Increased Complexity of Your Solar System. ...
  • Increased Maintenance For Your Solar. ...
  • Lifespan of Home Battery.
May 3, 2018

What is the most efficient energy storage system? ›

It turns out the most efficient energy storage mechanism is to convert electrical energy to mechanical potential energy, for example by pumping water up a hill, said Chu. When the electricity is needed, the raised water is released through turbines that generate electricity.

What is the biggest downside to solar electricity? ›

Disadvantages of Solar Energy
  1. Cost. The initial cost of purchasing a solar system is fairly high. ...
  2. Weather-Dependent. Although solar energy can still be collected during cloudy and rainy days, the efficiency of the solar system drops. ...
  3. Solar Energy Storage Is Expensive. ...
  4. Uses a Lot of Space. ...
  5. Associated with Pollution.
Feb 24, 2023

Why solar panels are not popular? ›

Essentially, the two biggest problems are cost and infrastructure. Fossil fuels are cheap, reliable, and familiar, because they've been around for longer. Switching to solar can intimidate people, because the upfront cost is often high, even though it's lower than it's ever been before.

What is the biggest disadvantage of a lithium-ion battery? ›

Despite its overall advantages, lithium-ion has its drawbacks. It is fragile and requires a protection circuit to maintain safe operation. Built into each pack, the protection circuit limits the peak voltage of each cell during charge and prevents the cell voltage from dropping too low on discharge.

Is it worth having a battery with solar panels? ›

Solar batteries can be a handy add on to your solar panel set-up. Whilst you can still make full use of your solar panels without a solar battery; the benefits of having solar batteries means you might rely less on the grid and be able to store and use the electricity that your house generates.

Is it better to have more solar panels or more batteries? ›

More panels means greater square footage of solar cells exposed to the sun, resulting in higher efficiency and longer runs times into the earlier morning and later evening when very little sun is available. If you're needing just an hour or two of longer run time, try adding another line of panels.

Who are the 3 battery manufacturers? ›

Yet nearly all the 12-volt car batteries built and sold in the US come from either Clarios, East Penn or Exide, the main manufacturers.

Who manufactures Apple battery? ›

Foxconn Battery Cell Plant: Apple supplier Foxconn begins work on its 1st EV battery plant, Auto News, ET Auto.

What brands of batteries are made by Johnson Controls? ›

Lead acid battery brands produced under this business unit include Continental, OPTIMA, Heliar, LTH, Delkor and VARTA automotive batteries.

Who are the 3 car battery manufacturers? ›

Car Battery Brands

Most aftermarket car batteries sold in the U.S. are made by three companies that build them for retailers: Johnson Controls, which supplies more than half of the market; Stryten; and East Penn. They are sold under various names and built to the specifications of retailers, so performance can vary.

Which is the number 1 battery brand? ›

#1 Exide Industries Limited

1947) is the leading manufacturer of automotive and industrial lead-acid batteries in India. As of 2021, the Kolkata battery major had a revenue of Rs 15,258 Cr with average 3 years sales growth of 15.81 percent. Exide has international footprints as well.

Which is the No 1 battery company in world? ›

Who is the largest battery producer in the world? Lento Industries Pvt. ltd is the best battery manufacturer in world (2023).

What battery company does Bill Gates own? ›

Form Energy Inc., an energy-storage company backed by Bill Gates's Breakthrough Energy Ventures, is planning a $760 million factory in West Virginia, the latest plant announced in the aftermath of President Joe Biden's landmark climate law.

Who is Tesla's new battery supplier? ›

What company makes Tesla's batteries? Tesla is currently working with Japanese company Panasonic, its longtime partner, and South Korea's LG Energy Solutions, the second largest battery supplier in the world. They supply the EV maker with cells containing nickel and cobalt.

Which battery Company is used by Tesla? ›

CATL is the world's largest electric vehicle battery maker and supplier to the likes of Tesla and Ford.

What company holds the Forever battery? ›

Forever batteries have arrived.

But believe it or not, QuantumScape stock is far from the only solid-state battery stock out there with millionaire-maker potential.

What battery company did Elon Musk buy? ›

The Tesla Energy Batteries Announcement

Elon Musk's May 2015 announcement was much anticipated. In May 2015, Musk announced Tesla Energy, expanding the company's capabilities into a new reporting segment, now called energy generation and storage. The two inaugural products were a home battery and a grid battery.

Who makes Walmart great value batteries? ›

East Penn Manufacturing

The midwest company has four automotive battery plants and supplies batteries to other manufacturers. Their relationship with Walmart is well-known, and they've supplied EverStart batteries to Walmart for years.

Who makes Costco Interstate batteries? ›

Alkaline Batteries

Not only do they sell the Kirkland brand but they also sell Duracell. They sell AA, AAA, C, D, and 9V sizes. What is this? Much to my surprise, the Costco CEO recently divulged that Kirkland batteries are actually made by Duracell.

What battery will replace lithium ion? ›

Sodium-ion batteries are an emerging technology with promising cost, safety, sustainability and performance advantages over commercialised lithium-ion batteries.

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