Raikar, Silverpeak: Couldn`t you do it on the HQ side and not load the memory network? Raikar, Silverpeak: I was at the MIT energy initiative only three weeks ago, and that discussion took place on storage. I think lithium-ion is a very sophisticated battery for a very simple application. It is designed for cars. It is supposed to be compact, lightweight and have much faster charging cycles. None of this is necessary in the case of a power plant. It`s like driving a Ferrari to get your food. If you are looking for batteries to provide in energy applications, they are about 3% to 4% of all batteries provided. Cars pay the price, and whatever cost-effectiveness we see, it`s from vehicles. Arm, ENGIE Storage: We`ve seen 7 to 20 year olds everywhere. Longer durations apply to Solar Plus memories.
O`Brien, Siemens FS: Well, PG E is really a non-starter on the credit side. If you look at SoCaled, it`s not bankrupt right now, and you have the same risks as the PG-E — a spark and a multi-billion dollar fine and bankruptcy. So there is always a bit of a reluctance to answer it. I think what is interesting about a SoCaled battery project is that resource adequacy contracts may not be as excessive as some of the wind contracts. We have a very large portfolio of California PPAs and a real risk is the invalid in the contracts, but an even greater risk is the renegotiation of contracts. Today, if the storage contracts are equivalent to a wind PPP of USD 75/MWh, we are comfortable saying that we can have a risk of bankruptcy there – and we don`t like it – but it`s not as risky as an old wind farm. Power Purchase Agreements (PPA) accelerates energy use by deferring the high ex ante costs associated with the construction of facilities. These products are not uniform.
Essentially, three value streams are monetized by PPPs: energy, capacity and revolving credit. Traditional electricity producers typically use PPAs to monetize energy and capacity primarily through the use of a toll system. Solar PPAs typically use PPAs to monetize energy and renewable credits through a purely energy contract. S2 AAEs can effectively monetize all three resources and could take the form of a capacity contract or an energy-based contract.