Utilities see benefits in energy storage, even without mandates

on September 14, 2017

energy storage utility diveThe fact that California’s three investor-owned utilities were at the top of the Smart Electric Power Alliance’s recent rankings is not surprising, but the presence of utilities in Indiana and Ohio is notable.

California has been a leader in energy storage, with a 2010 law that requires the state’s IOUs to procure 1.3 GW of storage capacity by 2020 and then a 2016 law requiring each IOU to procure another 166 MW of storage.

There has been no similar legislative push in either Indiana or Ohio and yet Indianapolis Power & Light and Duke Energy Ohio were third and fifth, respectively, in SEPA’s rankings of utilities that connected the most energy storage to their systems in 2016. IPL installed 20 MW in 2016, and 16 MW were connected to Duke Energy Ohio last year.

The rankings do not tally how much energy storage a utility built or owns, but how much was connected to their system. So while IPL built and owns the storage facility in its territory, Duke does not own the 16 MW of storage that connected to its system in 2016. Similarly, while California’s utilities are permitted to own some energy storage assets, they do not necessarily own all the storage facilities connected to their systems.

Measured by energy (MWh), IPL ranked fourth with 20 MWh, and Duke Energy Ohio ranked eighth with 6.1 MWh.

Ranked by energy storage watts per customer, IPL and Duke actually beat the California utilities, ranking fifth and sixth with 42 W/customer and 23 W/customer, respectively.

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Utility DiveUtilities see benefits in energy storage, even without mandates