{"id":11861,"date":"2016-11-04T15:28:31","date_gmt":"2016-11-04T19:28:31","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/alevo-swimming-against-the-current\/"},"modified":"2016-11-04T15:28:31","modified_gmt":"2016-11-04T19:28:31","slug":"alevo-swimming-against-the-current","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/alevo-swimming-against-the-current\/","title":{"rendered":"Alevo: Swimming Against the Current"},"content":{"rendered":"

In a presidential race defined by personal insults, accusations, and circus-like theatrics, there is at least one issue on which the candidates agree; the need for energy reform.\u00a0 Both candidates, despite differences in how to achieve the goal, acknowledge the importance of a drastic change in energy policy in order to produce cleaner energy at lower cost.1,2<\/sup> And with good reason as the burning of fossil fuels has accelerated the rate of climate change which has been linked to extreme weather events, the salinization of cropland from rising sea levels, and human health risks. 3,4<\/sup> Among the quest to reverse or slow the effects of climate change, renewable energy has been seen as the white knight. Yet renewable energy has its limits and has not proven the silver bullet that many had hoped. However, where others see a challenge, clever companies see an opportunity.<\/p>\n

At least that\u2019s what Alevo, an electrical grid storage company believes. \u00a0Alevo\u2019s aim is to store and deploy renewable energy on a mass scale, lowering the cost per KWhr and mitigating one of renewable energy\u2019s worst traits: inconsistency. \u00a0A big issue with renewable energy is that it is fickle. Even in Wyoming the wind doesn\u2019t blow all the time and Arizona sees a cloudy day once in a while.\u00a0 Thus, the supply of renewable energy is irregular and often insufficient to meet peak demand. This mismatch of supply and demand is known as the power-gap and is precisely what Alevo is trying to solve.<\/p>\n

Alevo produces massive grid storage batteries, which can store up to 2MWhr.5<\/sup> To put that into perspective, the average home uses about 11,000 KWhr per year.6<\/sup> These massive batteries allow a consumer such as a municipality, an island, or a datacenter to smooth peak demand times and source energy from cheaper sources during off-peak times.\u00a0 Improving technology has allowed significant advancement in the battery space. Alevo\u2019s edge partly lies in the battery technology itself with the patent of a Lithium-battery construction infused with an inorganic electrolyte.\u00a0 This electrolyte allows the production of a safer battery that can stand up to higher cycles, the number of times it can be charged and discharged.7<\/sup> The opportunity is thought to have enormous market potential by providing substantial cost savings in a commodity market.\u00a0 South Africa alone was modeled to save over $1B in annual energy costs.8<\/sup><\/p>\n

Opportunity, however, breeds competition.\u00a0 Tesla, a techy car manufacturer, has already voiced its intentions of moving into the grid storage space with the construction of a $5 billion battery factory in Sparks, NV, expected to be in operation this year.9<\/sup> JB Straubel, Tesla\u2019s chief technology officer, believes passionately in the idea of batteries, not only to fuel his cars, but also to bring renewable energy into the reach of everyday people.10<\/sup> \u201cThe potential is huge\u201d, says Mr Straubel, \u201cthe economics in many cases have already crossed a threshold to where battery packs can effectively store renewables on a very big scale.\u201d11<\/sup>\u00a0 In fact, Tesla has already begun to move into the energy storage space in conjunction with another of the Elon Musk\u2019s start-ups, Solar City.\u00a0 As of 2014, over 1,000 households in California have a battery pack installed along with solar panels installed by Solar City.12<\/sup><\/p>\n

To meet increasing demand as well as ward off competition, Alevo has invested in supercomputing technology to allow for better forecasting and more robust demand management. The new capability has allowed Alevo to better model cost drivers on an electrical grid to pinpoint areas in need of improvement. The analysis has proved so insightful that Alevo has begun selling the supercomputer capacity to non-competitors.13<\/sup> In fact, when the supercomputer is fully built out, it will join the list of the 25 most powerful computers in the world. 14<\/sup> The likes shared with the National Super Computer Center in Guangzhou China or NASA\u2019s Pleiades computer.15<\/sup><\/p>\n

The investments have paid off thus far, with Alevo continuing to differentiate itself as a leader in the grid storage space.\u00a0 However, competition and fluctuating energy prices pose a constant threat.\u00a0 The move into supercomputing was a deft one, but the company will continue to need to diversify away from simple storage solutions in order to hedge against possible falls in fossil fuel prices.\u00a0 The move into supercomputing will give them a treasure trove of data.\u00a0 They should leverage this data to not only improve their battery offerings, but also provide data consulting services to energy users.\u00a0 The more data they have, the more self-reinforcing the cycle becomes.\u00a0 If successful, Alevo may prove viable an important step towards mass use of cheaper, cleaner energy.<\/p>\n

 <\/p>\n

Word count: 765<\/p>\n

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 <\/p>\n

 <\/p>\n

Endnotes<\/strong><\/p>\n

1<\/sup> \u201cClimate Change,\u201d Hillary Clinton Campaign website<\/p>\n

https:\/\/www.hillaryclinton.com\/issues\/climate\/<\/a> , accessed October 2016.<\/p>\n

 <\/p>\n

2<\/sup> \u201cAn America First Energy Plan,\u201d Donald Trump Campaign website<\/p>\n

https:\/\/www.donaldjtrump.com\/policies\/energy\/<\/a> , accessed October 2016.<\/p>\n

 <\/p>\n

3<\/sup> U.S. Global Climate Change Research Program, \u201cClimate Change Impacts in the United States,\u201d Thomas R. Karl, Jerry M. Melillo, and Thomas C. Peterson (eds.), 2014, p.9., http:\/\/downloads.globalchange.gov\/usimpacts\/pdfs\/climate-impacts-report.pdf<\/a> , accessed November 2016<\/p>\n

 <\/p>\n

4<\/sup> \u201cThe Reality, Risks and Response to Climate Change,\u201d The AAAS Climate Science Panel, 2014, pp 4,<\/p>\n

http:\/\/whatweknow.aaas.org\/wp-content\/uploads\/2014\/07\/whatweknow_website.pdf<\/a> , accessed November 2016<\/p>\n

 <\/p>\n

5<\/sup> \u201cThe Alevo Gridbank,\u201d Alevo Company website<\/p>\n

http:\/\/alevo.com\/gridbank\/what-is-a-gridbank\/<\/a> , accessed October 2016.<\/p>\n

 <\/p>\n

6<\/sup> \u201cHow Much Electricity does an American home use,\u201d U.S. Energy Information Administration website<\/p>\n

https:\/\/www.eia.gov\/tools\/faqs\/faq.cfm?id=97&t=3<\/a> ,accessed November 2016.<\/p>\n

 <\/p>\n

7<\/sup> \u201cThe Alevo Gridbank,\u201d Alevo Company website<\/p>\n

http:\/\/alevo.com\/gridbank\/what-is-a-gridbank\/<\/a> , accessed October 2016.<\/p>\n

 <\/p>\n

8 <\/sup>\u201cAlevo, The Other Energy Storage Gigafactory, Begins to Stir,\u201d Forbes<\/em><\/p>\n

http:\/\/www.forbes.com\/sites\/peterdetwiler\/2016\/05\/10\/alevo-the-other-energy-storage-giga-factory-begins-to-stir<\/a> , accessed October 2016.<\/p>\n

 <\/p>\n

9<\/sup> \u201cTesla Gigafactory,\u201d Tesla Company website<\/p>\n

https:\/\/www.tesla.com\/gigafactory<\/a> , accessed November 2016.<\/p>\n

 <\/p>\n

10 <\/sup>\u201cTesla\u2019s Electric Man,\u201d The Economist<\/em><\/p>\n

http:\/\/www.economist.com\/news\/technology-quarterly\/21635332-jb-straubel-charged-more-electrifying-californian-carmaker-he<\/a> , accessed October 2016.<\/p>\n

11 <\/sup>IBID<\/p>\n

\u00a0<\/sup><\/p>\n

12 <\/sup>IBID<\/p>\n

 <\/p>\n

13<\/sup> \u201cAlevo, The Other Energy Storage Gigafactory, Begins to Stir,\u201d Forbes<\/em><\/p>\n

http:\/\/www.forbes.com\/sites\/peterdetwiler\/2016\/05\/10\/alevo-the-other-energy-storage-giga-factory-begins-to-stir<\/a> , accessed October 2016.<\/p>\n

 <\/p>\n

14<\/sup> IBID<\/p>\n

\u00a0<\/sup><\/p>\n

15<\/sup>\u201cTop 500 List,\u201d Supercomputer website<\/p>\n

https:\/\/www.top500.org\/list\/2015\/11\/<\/a> , accessed October 2016.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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