It’s unclear what’s ahead for federal policy on microgrids and distributed energy with the changing of the guard in Washington, D.C. But the Obama administration pushed the resources in its final energy blueprint issued last week.

“Transforming the Nation’s Electricity System,” the second installment of the Department of Energy’s Quadrennial Energy Review looks at the rapid technology overhaul on the grid and the challenges that result.

The 500-page report sets out 76 recommendations covering a broad range of energy issues. Specific to microgrids and distributed energy, they include:

Expanding federal programs to demonstrate the integration and optimization of distribution-system technologies

Significantly increasing federal research, develop and demonstration of clean electricity

Increasing federal support to help states value and incorporate the resources into their energy plans

The report points out ways the federal government can help microgrids and distributed energy from a technical, market and regulatory position.

For example, it recommends that a federal advisory committee look at ways to harmonize retail and wholesale electric rates. Among other things the committee would explore state and federal roles in pricing and operation of distributed energy, energy storage, and microgrids.

The report also points out a lack of organized commodity markets for distributed energy. This may change over time, the report says, and points to New York’s Reforming the Energy Vision (REV) as a possible model.

The report also calls for leveraging existing DOE programs to provide technical assistance in development of microgrids, distribution management systems, communications and sensors, energy storage and cybersecurity.

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The bellwether state of Massachusetts often serves as a focal point of energy innovation. Now it has set its sights on energy storage policy.

Over the last few months local and national energy players of various ilk – utility, competitive market, microgrid, distributed energy, renewables, environmental and social justice – have honed in on the state.

Their interest comes as Massachusetts gets ready to set a target for energy storage development that utilities and possibly other electricity providers would be required to meet. Late last month Judith Judson, state energy commissioner, took the next legal step in determining an energy storage target would be ‘prudent.’

Now the state is seeking comments by January 27 on a variety of issues associated with the target, including whether to strive for 600 MW of energy storage — the amount recommended in a state report issued in September — or another target.

The state plans to set the target in July. It also intends to issue a request for proposals offering $10 to $20 million in energy storage grants at a yet to be determined date.

Industry players already have had plenty to say about what’s ahead. Several filed comments last month with the Department of Energy Resources. Some of them have been working in California, the lead state on energy storage policy. They want to bring lessons learned in California to Massachusetts.

Here’s a sampling of what various, sometimes opposing, industry players said Massachusetts should do about energy storage policy.

Utilities on energy storage policy

Utilities are taking a customarily careful approach. Comments filed by Eversource, National Grid and Unitil pushed for aspirational, rather than mandatory targets that carry penalties if the goal isn’t met. They described energy storage as a “nascent technology” and urged that targets reflect manufacturing and development capabilities.

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Microgrids and energy storage can help U.S. states assure energy supply during disasters, according to two papers recently issued by the National Governors Association (NGA).

The papers emerged from an effort NGA undertook last year to identify best energy practices that have emerged from Superstorm Sandy.

A six-state team studied lessons learned from New Jersey after being pummeled by the storm in 2012. The teams, from Hawaii, Maryland, Michigan, North Carolina, Oklahoma and Rhode Island, then went on to create action items to guide their own state efforts.

The action items are described in the paper, “Improving State Coordination for Energy Assurance Planning and Response.”

Among other things, the states are exploring the feasibility of using microgrids and other forms of distributed energy resources, creating robust energy plans, improving utility/government communications, and cataloging critical energy assets.

For example, Rhode Island is working to identify microgrid sites as part of a statewide program, according to the report. The New England state is funding the microgrid effort with a grant from the U.S. Department of Housing and Urban Development and proceeds from the Regional Greenhouse Gas Initiative (RGGI).

The report also noted that as a result of Sandy, NJ Transit is developing a microgrid to power the transit system during outages, NJ Transit, the nation’s third largest provider of bus, rail and light rail transit, is partnering on the project with New Jersey Board of Public Utilities (BPU), the U.S. Department of Energy and the Federal Transit Administration.

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Rival energy storage companies sonnen and Tesla each started the week angling for the emerging smart battery market, with news of financing and partnerships.

Sonnen is positioning to grow its virtual energy business sonnenCommunity, a move it sees boosted by $85 million in new equity investments. The German-based company is expanding on its native turf as well as in the United States, Australia, UK and Italy.

Sonnen wants to become an “energy supplier of the future,” said Christoph Ostermann, CEO of sonnen Group, in announcing two new minority equity partners, including international energy technology company Envision Energy.

“Fast growth and leadership in innovation are the keys to reaching this goal,” he said. “With Envision Energy, we have gained a strategic investor who shares our vision, supplements our technology and has a strong presence in both the U.S. and Asian markets.”

Sonnen’s energy sharing platform, sonnenCommunity, allows customers with solar-plus-storage to feed excess energy into a software-linked pool. Others in the network then tap into the supply rather than purchase power from a utility.

More recently, the company began offering sonnenFlat, a virtual power plant product that allows aggregation of sonnenBatteries into a storage pool that provides balancing energy for Germany’s grid.

Thomas Putter, former CEO and ex-chairman of Allianz Capital Partners, also took a new minority stake in sonnen. Earlier investors include CAPITAL, MVP, SET Ventures, Inven Capital and GE Ventures.

Meanwhile, Tesla and Panasonic have formed a partnership to manufacture solar photovoltaic cells and modules in Buffalo, New York.

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Massachusetts plans to offer $10-$20 million in energy storage grants this fall, as it positions for a paradigm shift in the economics of electricity.

State officials described the upcoming solicitation in a call Friday with the media, with release of a new report, “State of Charge,” which calls for Massachusetts to add 600 MW of energy storage by 2025.

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Most of the time when people talk about microgrids, they talk about reliability (e.g., for a hospital or other critical load) and renewables. When people talk about renewables, they often talk about storage (e.g., to maximize the output of a rooftop solar array). And when people talk about storage, they often refer to enhancing reliability.

Of course there’s more to microgrids, storage and renewables than this circular conversation, and the key is economics (aka, a business case).

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