http://analysis.smartgridupdate.com/transmission-distribution/ferc-order-755-storage-market-make-beacon-power-profitable said:
The DOE picked a winner in the now bankrupted Beacon Power flywheel energy storage, says its new owner, Rockland Capital. Changes in electric power regulation can have a disruptive effect, unleashing billion-dollar markets overnight. One example of such a new market is the one being created by the new FERC Order 755, about to take effect in the United States in October of this year.
“The price of renewable energy technologies will continue to drop, while the price of natural gas will rise,” said commission member John Norris of the U.S. Federal Energy Regulatory Commission (FERC) ... The FERC rule is designed to enable much more solar and wind on the US grid by offering better compensation for providers of frequency regulation that provide the faster-ramping storage technologies needed to do that. ... The grid now needs frequency regulation that can ramp up in seconds.
One company that trail-blazed exactly the kind of faster storage that the new FERC rule incentivizes had spent $200m designing, patenting and building a fast-responding 20 MW capacity mechanical balancing system that can ramp up in seconds, based on familiar flywheel technology. But it’s bankrupt. Bankruptcies are usually an indication that a company is offering a product that is behind the times: something the market no longer needs. But in the case of Beacon Power’s bankruptcy the opposite has thought to ocurred largely because it was ahead of its time, ...
For those of you who may not know much about Beacon Power it had been the recipient of $43m from the U.S. Department of Energy (DOE) Section 1705 loan guarantee programme for the world’s first ever flywheel energy storage project it built in Stephentown, New York.