EcoloCap Solutions Inc. (OTC:ECOS), American Electric Power Company, Inc (NYSE:AEP), and Broadwind Energy Inc. (NASDAQ:BWEN) are in a valuable position to benefit from the energy-storage capabilities provided by battery systems. As wind energy is becoming more popular, companies are utilizing battery technology in attempts to achieve maximum energy-storage capabilities.
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Electrical Distribution Market
As mentioned in the New York Times, increased wind farm operations associated with low demand has caused companies to dump energy in the late night while prices are low. If possible, most companies would rather sell high and save low. Companies generating energy through the use of wind and solar systems are forced to sell to those companies that own local distribution networks. Prices are determined mostly by the forces of supply and demand, and government subsidies are associated in the determination also. Selling when prices are high enables companies engaged in the alternative energy market to experience higher profit margins.
Individuals consuming electricity see very little volatility in their monthly electric bill. Government regulations and subsidies have enabled consumers to experience a relatively level electric market. Also, companies managing electrical distribution can remain confident that consumers will purchase electric power due to relative affordability. Alternative energy companies on the other hand are constantly faced with volatile market prices. As mentioned above, these alternative energy companies are forced to sell at whatever the market is asking.
Companies Are Using Batteries to Store Energy Until Prices Rise
One of the world’s largest wind farm operations is being introduced in the Mojave Desert region. Several other alternative energy operations are stepping up as well. In the midst of a growing market, companies generating wind energy are struggling to alleviate price volatility by installing battery storage systems. The impossibility of transporting electricity without the use of lines has caused many companies to focus on implementing battery storage systems as well.
New York companies are researching big electrical storage applications that would enable them to purchase power at a low price and sell when prices rise, enabling quick profits to be achieved. Also, companies can use the battery storage systems in attempts to conserve energy reserves as well as cut down on green house gases that are emitted from the use of various energy substances. As mentioned in N.Y. Times, many individuals in the Renewable energy industry are determined that “renewable goals can be met.” If the energy source is periodic, “you can’t do that without batteries of some sort,” stated Peter Rosegg, a spokesman for the Hawaiian Electric Company.
Hawaiian Electric Company has entered into an agreement with the North American-based company First Wind to purchase electricity. First Wind is in the process of developing a 30-megawatt wind farm that will have enough power to run about 30 Super Wal-Marts. Xtreme Power of Austin, Tex. will install a 15-megawatt battery to assist the company in attempts to conserve unused energy. The battery will cost around $10 million, and enable the company to achieve a 90% storage delivery rate.
Companies That May Benefit
EcoloCap Solutions Inc. (OTC:ECOS) focuses on the development and marketing of a alternative energy products with the assistance of nanotechnology departments. The company is engaged in the development of other technological breakthroughs as well. The Nano Lithium X batteries offered by EcoloCap show superiority of energy reserve over other batteries in the market, representing a “50%+ cost advantage in the lithium battery market.” Also, the Lithium X battery offered by ECOS is light-weight, compact, and carries the ability to perform in harsh environments.
At the start of 2010, EcoloCap acquired assistance from Enersol Energy Solutions, a leader of battery and energy system consulting firms in the U.S. The consulting firm will assist in providing ECOS with an accurate and precise cost benefit analysis of upgrading the expansion of manufacturing facilities world-wide. ECOS has devised a plan to construct a production facility in Seoul, Korea, enabling increased production of its proprietary Nano Lithium Battery to be achieved.
American Electric Power Company, Inc. (NYSE:AEP) and Broadwind Energy Inc. (NASDAQ:BWEN) may benefit from batter storage capabilities as well. In Presidio, Tex, AEP has just completed the installation of a 4-megawatt battery system. The system is not connected to any specific wind farm. The primary goal of the company is to improve energy reliability for the town of Presidio. BWEN currently assists other companies that are employed in the installation and production of wind farms.
The alternative energy markets have gained considerable recognition. Societies are transitioning over to more alternative methods of energy consumption. Various government policies provide incentives for alternative energy companies to remain operational. Wind power companies are recognizing the potential to conserve energy when needed. Also, it is evident that battery storage systems enable companies to save energy when prices are low and sell when prices are high, providing companies with increased revenue reports. Battery consumption is likely to jump in the near future and EcoloCap is well-positioned to meet demand.