John Jung, president and CEO of Greensmith Energy
Since 2008, Greensmith Energy has provided energy storage software and integration services to utilities and power providers. Greensmith is responsible for deploying about a third of total U.S. energy storage capacity in 2016. It was recently acquired by Wärtsilä, a 183-year-old Finnish company which supplies flexible power plants to the U.S. market. We caught up with John Jung, president and CEO of Greensmith Energy, to learn more about the company’s role in solar+storage and what the acquisition will mean for it.
Can you tell me a little about Greensmith Energy?
Our mission is to make energy storage a fundamental part of a cleaner, more intelligent distributed energy infrastructure.
Greensmith provides grid-scale, behind-the-meter and microgrid energy storage solutions. Our core specialty is in software capable of dynamic, multi-layered control. Now in its fifth generation, our GEMS software optimizes the performance of energy storage by lowering costs and maximizing the system’s return on investment throughout its life.
The company also offers a C&I and micro-grid solution called OMNI4, a modular intelligent energy storage system complete with batteries, an inverter, and Greensmith software.
We also offer full service development of turnkey energy storage solutions, including modeling, site design, supply chain management/procurement, integration, installation, commissioning and O&M monitoring services. In fact, most of our projects are turnkey systems with ongoing monitoring services for operations and maintenance.
Who uses your products/services?
Greensmith’s platform enables utilities, EPC companies and independent power producers to manage and monitor individual systems or entire fleet of systems, identifying and diagnosing equipment issues in real time, and extending system performance for an increased return on investment. Customers include AEP, E.ON, Duke, JCI, Oncor, and AltaGas, which see energy storage as a strategic part of their future success.
The Omni is a plug-and-play product for utilities, developers and other energy partners. It can be pre-assembled and integrated for an EPC contractor, or Greensmith can do the installation.
How do you think software will enable more solar+storage?
Software is becoming paramount to the widespread proliferation of solar+storage facilities to ensure stable grids and economical project. A system should no longer be designed for a single, static use but rather multiple functions and revenue streams, while remaining adaptable for expanding needs.
Can you talk about Greensmith’s role in bringing so much storage online in California last year due to the Aliso Canyon leak?
When AltaGas looked to replace the lost peaker plant capacity with energy storage, Greensmith’s GEMS software was able to meet the primary need of resource adequacy, as well as provide additional services such as frequency regulation, voltage control, demand response and emergency backup to maximize the economics.
Our 20-MW / 80-MWh energy storage system was the largest system to be built in response to the Aliso Canyon gas leak, and the first to be commissioned. The project had a very tight construction and delivery time frame, but we were able to work with our partners such as Samsung, Parker Hannifin and ABB to design, integrate, install and commission the system in less than four months.
What challenges still exist in the solar+storage market?
There are countless players across many industries, inevitably operating on a range of communications protocols with varying degrees of cyber security protections. This progression and expansion in a world of increased cyber-crime commands diligence in providing more consolidated, securely protected communications to ensure an impenetrable electrical infrastructure. While physical security enhancements like fences and surveillance cameras are necessary to safeguard the grid, hackers are principally interested in data, not hardware. Hackers will exploit the weakest link in the chain of communications at any point between the network operation center and the end customer. The energy storage industry, as a provider of grid stability and safety, must play a growing role in protecting the grid from intentional disruption.
Another challenge is adaptability. Many companies go to market with offerings that address specific aspects of the value chain, but may be resistant to market demands which require operational agility. Early on, we saw strong market demand for full-service, turnkey facilities, and the flexibility to provide various levels of expertise and coordination on a project by project basis. The market is evolving, and it’s our recommendation to maintain adaptability along the way.
What value does the recently announced acquisition of Greensmith Energy by Wärtsilä bring to your customers?
The acquisition of Greensmith will enable Wärtsilä to expand its footprint in the energy storage market and position itself as a leading global energy systems integrator. Together, Wärtsilä and Greensmith will deliver energy storage solutions including a hybrid power plant, which incorporates internal combustion engines, solar PV and energy storage. In addition, this partnership will enable us to offer complete life cycle management, tier 1 components, and global EPC and service capability.