Battery Storage in Jordan
What is Battery Storage
Battery storage allows for energy to be stored over time. Energy may be generated at 5:00pm
then, but actually used at 8:00pm. One might ask, why not just produce energy when it is
needed? Two reasons are often cited. First, when using renewable energy sources, energy isn’t
always available -- the sun might not be shining at 8:00pm. Battery storage offers reliability and
convenience. Second, when demand for energy is really high (let’s say at 7:00pm), even if it is
possible to generate energy and meet the need, it may be really expensive to do so. While low
cost generators are enough to meet base load, peak load often requires peaker plants, peak
generators that tend to be much more expensive. In that case, it may be less expensive to
generate the energy earlier using the base load generator, store it, and use it later, thus
eliminating or decreasing the need for the expensive peaker plant. There are often
environmental benefits to this because peaker plants tend to use non-renewable sources.
Battery storage is applied in two main ways: large-scale battery storage and residential battery
storage. Large-scale battery storage is typically paired with a generator. For example, a solar
farm might have a large-scale battery storage solution which stores energy produced during
hours of sunlight for use after hours of sunlight. Residential battery storage has a similar
function, but is paired with residential energy systems. A residential renewable energy owner
may add battery storage to their system to maintain power when power goes out, or to increase
independence from the grid.
History of Battery Storage in Jordan
In 2015, Jordan signed a Memorandum of Understanding with AES Energy Storage for 20MW
of energy storage.
In mid 2017, the government of Jordan issued a Request for Submissions of Interest (REOI) for
technical and financial offers for 30MW/60MWh of energy storage at a Ma’an substation. The
benefits of the energy storage would include: ramp-rate control of PV and wind power
generators in the local area, reduced amount of thermal generation needed for spinning
reserves, and to shift renewable energy generated off-peak to times of peak demand, limiting
grid curtailment. The project was scheduled to be completed April 2019 and is estimate to cost
US$40 million. Bids came from Saudi developer ACWA Power, Japanese companies Marubeni
and Itochu, Hanwha Energy from South Korea, Chinese players TBEA Xinjiang Sunoasis and
GLC Intelligence Energy, and German renewable company Innogy, a subsidiary of the utility
RWE. In 2018, the government shortlisted 23 companies of 41 that expressed interest.
In August 2017, Jordan signed a Power Purchase Agreement (PPA) for a solar-plus storage
project including 11 MW of PV with a 12MWh lithium-ion battery. The project is being executed
by Jordanian PV manufacturer and EPC Philadelphia Solar, and financed by Capital Bank
Jordan. Operations were kicked off in February of 2019.
Sources
https://www.energy-storage.news/news/jordans-government-could-have-30mw-60mwh-
electricity-storage-plant-finished
https://www.energy-storage.news/news/jordans-solar-plus-storage-expansion-project-reaches-
financial-close
Advantages of Battery Storage
Electric Vehicles
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Renewable Energy
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Easing Pressure on Grids
In the US, many states have started programs called Bring your own Battery that compensate
residential battery storage owners for allowing the utility to use the residential battery storage
during times when the grid has a large amount of pressure. Rhode Island, Massachusetts, and
Vermont are key examples. This is beneficial to utilities because it allows them to avoid making
costly repairs or upgrades to grids and increases reliability.
Decreased Utility Reliance on Back-up Generators and Capacity Payments
NEPCO expects that the storage project will also decrease its reliance on back-up energy
reserves -- in other words, whereas NEPCO currently pays generators capacity payments to be
available for energy generation, whether or not that generation actually ends up being used,
with battery storage, NEPCO could decrease the size of these payments because less energy
will be necessary during peak times -- much of the need will be met by stored energy. NEPCO
will instead pay the battery storage provider capacity payments for being available to store
energy, whether storing energy is or is not actually necessary. This rate is likely lower than for
generators.
Battery Storage and TOU Rates
Residential renewable energy owners can use paired storage solutions to decrease their
spending on energy. The renewable energy owner may sell their energy to the utility when they
have more than they need (usually during the day). Some utilities, though, or other energy
traders, are willing to pay a premium for energy that is sold when it is most needed -- 5:00pm-
7:00pm. This is called a Time of Use (TOU) Rate. With battery storage, a residential renewable
energy owner can save the extra energy that is produced by their system for that time period
and then sell it to the utility at the later time point, at the higher price. This can also work for EV
chargers. Similarly, a battery storage owner can use their battery during peak hours to avoid
having to pay higher rates during peak hours.
Image 1.
Sources
https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/how-
residential-energy-storage-could-help-support-the-power-grid
Innovation
Used EV Batteries as Storage
Technological innovation has allowed for used EV batteries to be used for battery storage
applications. After an EV battery is no longer useful for its original intent, it is usually recycled or
disposed of, but it can also be refurbished as an EV battery, or used continuously for non-EV
applications that require less power. By “stringing together” many used EV batteries, it’s
possible to use the storage of the batteries for general applications, like pairing with residential
storage.
Sources
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/second-life-ev-
batteries-the-newest-value-pool-in-energy-storage
https://bracewell.com/sites/default/files/news-
files/MENAs%20Potential%20First%20PF%20Energy%20Storage%20System.pdf
https://renewablesnow.com/news/philadelphia-solar-switches-on-menas-largest-solar-plus-
storage-park-643449/
