This group brings together the best thinkers on energy and climate. Join us for smart, insightful posts and conversations about where the energy industry is and where it is going.

Post

Is Over-Regulation Holding Back Energy Storage?

OurEnergyPolicy.org's picture
OurEnergyPolicy.org

The mission of OurEnergyPolicy.org is to facilitate substantive, responsible dialogue on energy policy issues, and provide this dialogue as a resource for the American people, policymakers, and...

  • Member since 2018
  • 29 items added with 11,602 views
  • Mar 7, 2017
  • 715 views

CapitolEnergy storage, a potential solution for integrating intermittent renewables and improving grid stability, again saw rapid growth this past year. A “transition year” for U.S. energy storage, 2016 saw a more diverse market emerge “both in terms of the types of systems (market segments) deployed and the business models.” These trends are expected to continue in the U.S. with combined residential, commercial, and industrial energy storage deployments predicted to surpass 2 GW by 2021.

Despite this rapid growth, there are those who claim that the adoption of energy storage has been slowed by a “web” of regulations at all levels. Some argue that regulations, which can vary from state to state, are in need of modernization in order to facilitate easier integration of energy storage into our nation’s infrastructure. While not necessarily advocating national uniformity for these regulations, energy storage developers hope to avoid a framework as disjointed as that of solar, where they must “navigate 50 different markets with 50 different sets of regulations.”

Recently, the Federal Energy Regulatory Commission (FERC) released a policy statement addressing cost recovery for energy storage, stating these facilities are permitted to earn both cost- and market-based revenue streams in light of the multiple services they provide. This decision serves as an example of the type of modernization that energy storage proponents hope for and serves to ease barriers to grid integration. While there is not necessarily opposition to expanding the nation’s energy storage capacity, there will likely be challenges and objections to specific rules in the future. FERC’s recent statement, for example, was met by some with concerns over equity, possible over-recovery at the expense of the rate payer, and negative impacts on competition within the industry.

1. To what extent are regulations preventing the advancement of grid scale energy storage?

2. What issues with energy storage deserve highest priority for modernization?

3. Should federal and state policy be doing more to encourage energy storage technology?

Original Post

OurEnergyPolicy.org's picture
Thank OurEnergyPolicy.org for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »