Italy’s Green Energy Storage has the European licence. It is building a prototype with the Kessler Foundation at Trento University, backed by EU funds. “We have a chemistry that is ten times cheaper than anything on the market,” said Salvatore Pinto, the chairman.
“We are speaking to three utilities in Europe and we will install our first battery as a field test next year,” he said.
It is a race. Tim Grejtak, an energy expert at Lux Research, said Lockheed Martin and Pacific Northwest labs are both working on their own organic flow batteries, while others are developing variants with designed molecules.
I do not wish to single out this particular technology. I cite it as an example of how fast the picture is evolving as the world’s scientific superpower mobilizes in earnest, and investors start to chase the immense prize. Consultants Mckinsey estimate that the energy storage market will grow a hundredfold to $90bn a year by 2025.
Once storage costs approach $100 per kilowatt hour, there ceases to be much point in building costly ‘baseload’ power plants such as Hinkley Point. Nuclear reactors cannot be switched on and off as need demands – unlike gas plants. They are useless as a back-up for the decentralized grid of the future, when wind, solar, hydro, and other renewables will dominate the power supply.
I will be writing about the economics of offshore wind in coming days but bear in mind that renewables generated 18pc of UK power last year, and this is expected to double by the late 2020s as wind and solar capacity reach 50 gigawatts (GW). Once the power can be stored for overnight use, there will be extended periods in the summer when no base-load is needed whatsoever.
Perhaps the Hinkley project still made sense in 2013 before the collapse in global energy prices and before the latest leap forward in renewable technology. It is madness today.
The latest report by the National Audit Office shows that the estimated subsidy for these two reactors has already jumped from £6bn to near £30bn. Hinkley Point locks Britain into a strike price of £92.50 per megawatt hour – adjusted for inflation, already £97 – and that is guaranteed for 35 years.
That is double the current market price of electricity. The NAO’s figures show that solar will be nearer £60 per megawatt hour by 2025. Dong Energy has already agreed to an offshore wind contract in Holland at less than £75.
Michael Liebreich from Bloomberg New Energy Finance says the Hinkley Point saga will be taught for generations as a case study in how not to run a procurement process. “The obvious question is why this train-wreck of a project was not killed long ago,” he said.