New York Battery Project Aims to Prove Safety of Residential Energy Storage

A 3.75 megawatt-hour lithium-ion battery system installed in a Buffalo, New York, apartment building is designed to store excess energy during periods of low demand and power the building when the electricity grid is strained and costs are high. The project at Peace Bridge Place, an affordable housing complex, is intended by its manufacturer, Viridi, and state officials to demonstrate that large-scale battery systems can operate safely in residential settings.

The system is capable of powering the complex for several days and is considered one of the largest battery installations in a U.S. residential building, according to manufacturer Viridi and developer Good Carbon Co. Jon M. Williams, CEO of Viridi, stated that the primary obstacle to the widespread adoption of distributed battery storage has been safety concerns, citing past incidents with battery products.

Experts indicate that deploying large, safe batteries in apartment buildings is a crucial step in transitioning from fossil fuels to renewable energy sources. However, such projects have been uncommon due to their cost and fire risk concerns. While batteries are increasingly paired with solar and wind projects, and homeowners use smaller units for rooftop solar energy storage and backup power, integrating large systems into residential buildings presents unique challenges.

Batteries are essential for maintaining a consistent power supply from intermittent sources like solar and wind. They charge when renewable energy generation is high and discharge during periods of peak demand. The Peace Bridge Place system can also store excess electricity generated from hydropower, a significant source in New York.

When electricity demand is high, the Peace Bridge complex will utilize the battery system. The building will receive compensation from the utility for reducing its draw from the grid and for potentially supplying power back to it. This arrangement is expected to lower the complex's overall electricity costs for residents and provide backup power during outages.

The New York State Energy Research and Development Agency (NYSERDA) provided funding for the Peace Bridge Place project, aligning with its objective to include disadvantaged communities in the clean energy transition. Doreen Harris, President and CEO of NYSERDA, emphasized that the project helps demonstrate the safety and feasibility of these types of installations.

Viridi manufactures its battery systems in Buffalo and Richmond, California. David Hochschild, Chair of the California Energy Commission, expressed admiration for the company's work, noting the significant role batteries play in California's grid reliability and the state's high percentage of clean energy. He believes the battery industry is poised for substantial growth in the coming decades.

Concerns about large battery fires have led to opposition in some communities. However, the Electric Power Research Institute reports that battery failure rates have decreased as more systems are installed. Viridi reportedly invested $10 million and six years into developing a fireproof container for its batteries, a process that included significant testing and destruction of battery units.

Viridi's safety approach involves using plates, pouches, and spacing to isolate individual battery cells. According to Williams, this design prevents energy from spreading to adjacent cells if one fails, containing any resulting heat or fire. The company's system successfully passed a test where a battery was intentionally made to fail while covered in cheesecloth, which did not ignite or char, according to test records.

In April, Viridi announced that its battery energy storage system received UL 9540 certification from TÜV Rheinland, meeting stringent safety standards for indoor installation without requiring additional building fire suppression systems. Jigar Shah, an expert in clean energy financing and deployment, highlighted Viridi's consistent success in passing rigorous safety tests.

Shah predicts a significant increase in home battery adoption for backup power by 2030 and believes that strategic battery deployment can meet more electricity demand and obviate costly grid upgrades. The Peace Bridge Place project was chosen due to the building's all-electric nature, including its geothermal heating and cooling system, and its need for resilient power. The local utility, National Grid, supported the initiative because local electricity demand can sometimes exceed supply.

Peace Bridge Place qualifies as affordable housing, with residents earning no more than 80% of the area's median income. Good Carbon Co. suggests that energy storage will be integral to future multifamily housing developments.

Viridi has been manufacturing in Buffalo since 2018, with its battery systems also in use at a local medical research building. The company's plant has the capacity to produce enough battery packs annually to power approximately 14,000 average U.S. homes for 24 hours.

NYSERDA's Harris stated that New York requires more solutions for grid reliability and cost management, a priority for Governor Kathy Hochul. Hochschild mentioned that California is adding 2,000 battery storage systems weekly and that a large battery facility is under construction in Fresno County, reinforcing his belief in the battery industry's imminent expansion.