Newark, N.J-based PSEG Global LLC and energy storage pioneer Michael Nakhamkin have formed Energy Storage and Power LLC (ES&P), a joint venture to exclusively market, license, support the development and supervise project execution of the second generation of compressed air energy storage (CAES) technology.
CAES technology stores off-peak energy – in the form of compressed air in an underground reservoir – and releases this energy during peak hours. CAES can be used for load management of intermittent renewable energy resources or as a stand-alone intermediate generation source for capturing energy arbitrage, capacity payments and ancillary services.
Nakhamkin will be the chief technology officer of the joint venture. Roy Daniel, who has been with PSEG since 1994 in various management positions, will be CEO. He has served as asset manager for PSEG Global's generation in the U.S. and Asia and structured over $1 billion of worldwide transactions working for PSEG Global.
This second-generation CAES technology has numerous features and advantages that position it to become an important part of the electricity sector, including:
– greater scalability and a lower capital cost per MWh of power storage relative to other power storage technologies,
– rapid power response rate, which is critical to enhancing grid stability and compensating for the intermittency of renewable energy resources such as wind and solar,
– the ability to arbitrage the difference between off-peak and on-peak power prices, and
– the use of proven, multisource, standard components applied in a novel configuration, resulting in lower capital cost with established processes and procedures.
‘We see strong market potential for CAES in the traditional power industry as well as for the growing renewable energy industry,’ says Daniel. ‘Energy storage is the missing piece of the puzzle for a green, affordable and reliable electric grid for the 21st century. CAES units can manage wind output to create a highly valuable, firm, dispatchable product.’
ES&P will license its technology to customers, as well as optimize the performance of CAES plants and provide technical support throughout the CAES project design, development and construction processes. Potential customers of ES&P's CAES technology include electric utility companies, independent power producers, wind developers and transmission owners.
SOURCE: PSEG Global