What is the new energy storage policy

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About What is the new energy storage policy

As of mid-2024, twelve U.S. states have set intentions to procure a set amount of energy storage (usually measured in MW) by a certain date. Some of these intentions are legally mandated, while others are aspirational goals. Usually, regulated utilities are tasked with carrying out the procurement.

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6 FAQs about [What is the new energy storage policy ]

Does state energy storage policy matter?

While decisions carried out by federal regulators and regional market operators have an impact on state energy storage policy, state policymakers—and state legislators in particular—are instrumental in enacting policies that remove barriers to adoption and encourage investment in storage technologies.

What are the different types of energy storage policies?

Approximately 17 states have adopted some form of energy storage policies, which broadly fall into the following categories: procurement targets, regulatory adaption, demonstration programs, financial incentives, and consumer protections. Below we give an overview of each of these energy storage policy categories.

What is a storage policy?

All of the states with a storage policy in place have a renewable portfolio standard or a nonbinding renewable energy goal. Regulatory changes can broaden competitive access to storage such as by updating resource planning requirements or permitting storage through rate proceedings.

What are States doing about energy storage?

States are also developing expert task forces and committees to evaluate storage technologies and opportunities for growth. Maine, for example, enacted HB 1166 (2019) creating a commission to study the benefits of energy storage in the state’s electric industry.

How can a state increase energy storage deployment?

One major tool for increasing the deployment of energy storage technologies is setting a storage target that requires the state to procure a certain amount of energy storage, measured in megawatts (MW) or megawatt-hours (MWh), by a specific date.

What makes energy storage unique?

One attribute that makes energy storage unique is its scalability. It can be implemented as a large utility-scale project to help meet peak energy demand and stabilize the grid, or as a small system sited in a residence or commercial facility to manage electricity costs and provide backup power.