Energy Storage Policy in the U.S.
The status of energy storage policy in the U.S. is discussed, covering actions taken in 2017, storage studies and investigations in various states, planning and market access, and storage integration in state and utility planning. The content sheds light on regulatory reforms, market incentives, procurement targets, opportunities, benefits, barriers, regulatory options, and more related to energy storage implementation.
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Status of Energy Storage Policy in the U.S. Autumn Proudlove NC Clean Energy Technology Center NC Storage Study Stakeholder Meeting February 15, 2018
2017 Action on Energy Storage By Type of Action Studies & Investigations Policy, Regulation, and Planning At least 32 States took action on energy storage during 2017 Financial Incentives and Rates Deployment 3 or More Types of Action
2017 Action on Energy Storage Studies and Investigations DC Storage-Specific Study Grid Modernization or Other Study with Storage Component No recent action
Storage Studies & Investigations Maryland HB 773 (enacted May 2017) Regulatory reforms and market incentives to increase use of storage; consult with stakeholders Nevada SB 204 (enacted in May 2017) PUCN to determine if a procurement target is in the public interest North Carolina HB 589 (enacted July 2017) Vermont Act 53 (enacted May 2017) Opportunities for, benefits of, & barriers to storage deployment; regulatory options & structures available including cost to ratepayers
2017 Action on Energy Storage Planning and Market Access 2017 action No recent action
Storage in State/Utility Planning Integrated Resource Planning (IRP) Requiring utilities to fully evaluate storage as an alternative to traditional generation resources Arizona (APS), New Mexico, New Orleans, Washington (also moving toward sub-hourly IRP modeling Evaluation of Non-Wires Alternatives Strategic deployment of DERs (frequently storage) to defer, mitigate, or obviate need for certain T&D investments Maine, New Hampshire, New York, Rhode Island
Storage in Planning & Market Access Distribution System Planning Not specific to storage, but helps identify most beneficial locations for storage on the grid Hosting capacity analyses Connecticut, Michigan, Nevada, New York, Rhode Island Wholesale Market Rules Market access and compensation rules for storage CAISO, ISO-NE, MISO, NYISO, PJM
2017 Action on Energy Storage Policies DC 2017 action No recent action
Storage Policies Procurement Targets Massachusetts, New York California, Oregon previously established targets Under consideration in Arizona, Nevada, and others Interconnection Rules updating rules to include clear standards for energy storage Arizona (state s first interconnection rules), Colorado, Florida (TECO), Maryland, Minnesota, Nevada, North Carolina Customer-Sited Storage Compensation net metering eligibility, role of storage in successor tariffs California, Colorado, Hawaii, Massachusetts, New York, Rhode Island
Rate Design for Storage Rate structures drive adoption of behind-the-meter storage Time-of-use rates, demand charges Arizona utilities examined dedicated tariffs for customers with battery storage
2017 Action on Energy Storage Incentives 2017 action No recent action
Energy Storage Incentives Maryland SB 758 (enacted May 2017) created the first state tax credit for energy storage in the country California Self Generation Incentive Program April 2017 decision increased program funding, set aside 85% for energy storage Nevada SB 145 (enacted in May 2017) creates a new energy storage incentive program currently being implemented in a PUCN proceeding
Energy Storage Incentives More action on incentives for solar + storage, or adding storage as an eligible technology to existing incentives Massachusetts SMART program storage adder Florida Property Tax Abatement New York Property Tax Abatement Oregon PACE Financing
2017 State & Utility Storage Deployment Proposals 2017 action No recent action
State & Utility Storage Deployment Many proposals are for pilot projects Eversource (Connecticut), Duke Energy (Florida) Some are non-wires alternative projects AEP (Texas), Consumers Energy (Michigan) Others are part of microgrids Emera (Maine), Rocky Mountain Power (Utah), Duke Energy (Indiana), ComEd (Illinois), Green Mountain Power (Vermont) Fewer are behind-the-meter storage deployment Liberty Utilities (New Hampshire), Green Mountain Power (Vermont)
Takeaways Already a lot of policy and regulatory activity around storage occurring across the country Activity is highly varied, taking place across a number of different topic areas Key areas of activity include information gathering and identification of policy barriers (studies, pilots), incorporating storage into planning, and examining how these resources are compensated Significant policy activity around storage expected in 2018