ENERGY STORAGE
Across the U.S., policy makers, regulators, and utilities are increasingly viewing energy storage as imperative to enable a transition to greater use of renewable energy, electrify buildings and transportation, and enhance grid reliability.
Energy storage is evolving to be an essential part of the energy transition given its ability to provide power on demand and optimize grid performance amid the proliferation of intermittent renewable energy resources.
U.S. President Joe Biden signed the Infrastructure Investment and Jobs Act into law on Nov.15, unlocking $62 billion for U.S. Energy Department initiatives, including revitalizing domestic manufacturing, expanding access to energy efficiency and clean energy, modernizing the power grid, and advancing next-generation technologies. Among the major provisions, the legislation allocates $6 billion for a Civilian…...
Energy storage is becoming an increasingly important part of the power mix to accommodate the exponential growth of intermittent renewables required to accomplish ambitious decarbonization targets set by U.S. states and utilities.
States are exploring ways to utilize the multiple benefits that energy storage provides to the grid, from enabling the increased penetration of renewable resources and reducing dependence on emitting generation, to bolstering reliability.
Energy storage initiatives are moving forward at a swift pace to complement clean energy policies as batteries can facilitate the integration of diverse generation technologies and address grid stability. With improving economics, there is a growing discussion on the role of energy storage as a grid asset to foster reliability and optimize renewables to meet ambitious clean energy goals.
Amid gigawatt-scale goals for energy storage, U.S. state policies are evolving to create more opportunities for the technology. Storage is poised to play an integral role in the changing resource mix as more states pursue zero-carbon goals, driving the need for innovative policy initiatives and programs that optimize renewable energy sources and enhance grid reliability.
In a major victory for the energy storage industry, a federal court affirmed that battery installations connected to the distribution grid must have the opportunity to access wholesale power markets. The move comes as federal regulators are examining the growing interest in hybrid resources, with battery technology seen as an important tool in integrating other resources to the grid. The affirmation bodes well for expanding wholesale market access to distributed energy resources.
A growing number of states across the U.S. are amping up energy storage to complement the drive towards clean energy as batteries can help integrate diverse generation technologies and stabilize the grid. State commitments to procure battery storage capacity now top 11 gigawatts, following targets established by Nevada and Virginia this year.
More U.S. states are exploring programs and policies to leverage the application of battery storage for the benefit of the power grid and to examine how the technology may provide value to consumers. Studies and investigations are intended to help craft initiatives that can tap the resource for multiple applications ranging from offsetting peak loads, supporting renewable integration and stabilizing the distribution system, to providing peaking capacity and replacing fossil generation.
Battery storage has long held the promise of eventually replacing the costliest, most-polluting fossil-fuel fired generators that are used to meet surging electricity demand on the grid. That day may now be upon us as costs of batteries plummet and as state regulators from Massachusetts to Arizona weigh new incentives for the technology.
Battery storage is no longer just paving the way for greater integration of renewables onto the grid. The technology is now ushering in larger utility-scale solar and wind projects with diverse configurations. Utility proposals to develop massive storage projects in tandem with renewables are becoming more common as intermittent wind and solar continue to produce a growing share of power generation. Aggressive state and utility decarbonization goals are also driving the need for cost-effective batteries.