Energy storage is a game changer. Ultimately, it could free the electric power system from matching generation and consumption on a minute-by-minute basis, saving electricity until it’s needed. Policymakers, utilities, and customers are beginning to recognize its value. Doug Little, chair of the Arizona Corporation Commission, summed up the potential of behind-the-meter (BTM) storage this way: “Energy storage technology is really the ‘secret sauce’ for the future of residential rooftop solar.” At AEE, we agree, but add that it could be the secret sauce for numerous other applications – on both sides of the meter. That makes energy storage a key technology for modernizing the energy grid and leading to an advanced energy future.
The secret sauce of energy storage is leading states from coast to coast to take action. The map below shows 89 state regulatory and legislative actions taken on energy storage recently. Clearly there is no shortage of interest. (Click the full screen button for a clearer view.)
Here are some highlights: the California Public Utilities Commission adopted an $8.7 million energy storage request for offers for Southern California Edison to address reliability concerns from the Aliso Canyon natural gas leak; the Public Utility Commission of Oregon opened a proceeding to develop energy storage program guidelines, consider project proposals, and implement a procurement program; the Colorado Public Utilities Commission approved a $9.1 million investment for two energy storage projects as part of Xcel Energy’s Innovative Clean Technology Projects Program; and the Massachusetts Department of Energy Resources and the Massachusetts Clean Energy Center partnered on a $10 million energy storage initiative to advance the energy storage industry and accelerate deployment of commercial storage technologies.
Falling prices, advances in system integration, and more sophisticated rate designs are driving growth in the burgeoning energy storage market, which grew more than tenfold in the U.S., from $57 million in 2014 to $734 million in 2015. But even that does not explain why energy storage is the hot topic in energy today.
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