High-tech grid resources that have become commonplace in some utility territories aren’t even considered in others. California utilities are already deploying energy storage in place of new gas plants. Regulated utilities in places like Arizona, Florida and North Carolina have begun factoring substantial amounts of storage into their grid planning, to tackle peak demand and make the grid more flexible.
Meanwhile, Dominion Energy’s new long-term plan for Virginia and North Carolina barely mentions storage and instead calls for intensive deployment of new gas peakers.
The disparity in adoption of tools like battery storage means that ratepayers in some places get a fuller consideration of alternatives for utility investment. That analytical process impacts the kind of investments utilities end up making and the rates their customers have to pay.
From Dominion’s perspective, the price point of battery storage wasn’t ready for full consideration. For the storage industry, the time has already come.
“There’s really no excuse for any utility today to ignore storage as an investment option,” said Kelly Speakes-Backman, CEO of the Energy Storage Association.
GTM is hosting the first ever Energy Storage vs. Gas Forum in New York City May 21. The daylong event will examine the growing competition between energy storage and natural gas to provide peak power. Can storage really compete with gas peakers? Do gas investors need to be worried? Find out more here.
Flexibility, traditionally
Dominion Energy’s integrated resource plan studies the regulated utility’s expected needs through the next five, 15 and 25 years. The document embraces new solar energy and even maps out scenarios for possible carbon regulation, while affirming the need for a more modern, flexible electricity system.
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