U.S. State Energy Storage Procurement Targets and Regulatory Adaptations Contact online >>
U.S. State Energy Storage Procurement Targets and Regulatory Adaptations
Demonstration Programs and Financial Incentives for Energy Storage
State demonstration programs play a crucial role in exploring and gathering data on energy storage operation. These programs, where states authorize and sometimes fund energy storage initiatives, allow for an incremental study of benefits and logistics associated with deploying energy storage solutions. Five notable examples include:
- **Washington State** has allocated $14.3 million from its Clean Energy Fund to support four utility-scale energy storage projects, aiming to evaluate different technologies and use cases.
- **Massachusetts** has granted $20 million to storage projects through the Advancing Commonwealth Energy Storage program to demonstrate various applications.
- **Utah** has enabled utilities to invest in storage resources through legislative permission.
- **New York** facilitates collaboration between developers and utilities under the Reforming Energy Vision program, which includes a request for project proposals and matching them with utilities after independent evaluation.
- **Maryland** has initiated a pilot program allowing utilities to develop projects across different ownership structures.
Consumer Protections and Energy Storage Policies in the U.S.
As the adoption of energy storage systems increases, consumer protection policies have been established to safeguard the rights of those installing such systems. A few states have taken legislative measures to ensure these protections:
- **Nevada (2017)**: Enacted legislation that prevents customers with energy storage from being placed in separate rate classes solely due to their storage ownership. Additionally, utilities are required to offer optional Time-of-Use (TOU) rates, enhancing customer choice and potentially reducing energy costs.
- **Colorado (2018)**: Passed a law granting utility customers the right to install storage and directed the Colorado Public Utility Commission to create rules that streamline the interconnection process for storage installation, ensuring efficiency and customer benefits.
The growth of energy storage procurement is evident in certain regions of the United States and is largely driven by state laws and policy tools. These include setting procurement targets, running demonstration programs for better technological understanding, and providing financial support for project implementation. Such mechanisms serve as signals to both the market and other states, encouraging the continued expansion of the energy storage industry.
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