US states advance energy storage and grid reforms in Q2
Several states also passed bills to mandate energy storage procurement. New Jersey, for example, passed a bill ordering the Board of Public Utilities to offer incentives for
Renewable portfolio or clean energy standards require a certain amount of energy to come from approved renewable or clean sources (the definition of which can vary by state and may or may not include storage). Storage procurement rules generally require utilities to purchase a specific amount of storage capacity.
As storage technologies mature, codes and standards could be adopted more quickly through proactive engagement between utilities, storage facility owners or operators, and standard-setting organizations. Education and workforce training programs could help people operate energy storage systems more safely.
The adoption of an energy storage technology may be impacted by system need and duration. Technologies such as lithium-ion batteries and flywheels can provide shorter duration capacity—from seconds to approximately 4 hours—that is useful for applications like arbitrage and frequency regulation.
Energy storage can also support resource adequacy by counting toward a system's total installed capacity. Through capacity markets or other resource adequacy constructs, storage providers are compensated for their potential to provide energy in the future, particularly when the expectation is that demand will be high or supply low.
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