Energy storage: What a cool $24 million in series C will mean for Ice Energy

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By Kevin See

Ice Energy added $24 million to its coffers in a Series C funding round, from investors including TIAA–CREF's Global Social and Community Investing Department, Energy Capital Partners, and Good Energies. The company intends to use the influx of capital to support implementation of its 53-MW project currently underway with the Southern California Public Power Authority (SCPPA) and drive additional sales to utilities.

The focus on utilities accompanying this announcement aligns with Ice Energy's positioning as an energy storage firm rather than merely an air-conditioning company. Ice Energy's recent comments stress the ability of their Ice Bear unit to shave peak energy demand by making ice with low-cost power in the evening and cooling buildings with that ice during peak daytime hours.

There is discussion about ice-energy storage and potential difficulties due to footprint issues. While this remains an issue in locations where space is a premium, utilities remain interested in the peak shaving abilities of Ice Energy's systems, exemplified by agreements with Austin Energy, Toronto Hydro, and SCCPA.

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Currently, the Ice Bear units carry a maximum cooling power of five tons, with 30 ton–hours of cooling available. This amounts to approximately six hours of cooling for roughly 2,000 ft2 of floor space, requiring the additional usage of conventional air conditioning in many climates. Initial calculations place the payback period for building owners at more than five years, which on the consumer side makes this something less than an obvious investment.

Alternately, utilities, ratepayers, and owners eligible for demand response incentives stand to gain substantially, with the SCCPA estimating that the 53-MW project could reduce peak electrical demand by up to 65 GWh annually. Ice Energy's substantial financial support and deployment in peak shaving applications bodes well, indicating investors and utilities believe that the economics will shake out in favor of ice-energy storage.

Kevin See is an analyst for Lux Research, which provides strategic advice and on-going intelligence for emerging technologies. For more information, visit the Lux Research site.

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