Storage is an essential part of the grid equation. Smartgridnews states that energy storage is generally considered a critical tool for integrating intermittent renewables into the electric grid and maximizing their value. The Economist points out that time-shifting would compensate for the intermittent nature of wind and solar power. Everyone agrees that the Smart Grid will require storage as a large piece of the generation mix moves away from fossil fuels in order reduce demand and to capture intermittent renewable energy when it is available for use when it is needed.
The debate is around how exactly that storage will be implemented and utilized on the grid side. One area where the discussion is most active is in California because of the proposed mandate, Assembly Bill 2514, which, if passed, could mandate the use of energy storage technologies throughout the state. (For more about California’s energy storage discussion, take a look at the California Energy Commission’s report, “2020 Strategic Analysis of Energy Storage in California.”)
Also worth noting are the potential incentives for energy storage, some of which have been proposed by the federal government. According to a recent article about the future of energy storage, it was noted that “the Electricity Storage Association is advocating for tax and financial incentives like the investment or production tax credits given to wind and solar, which may not get renewed after this year. It also wants to see energy storage included in the Obama administration’s clean energy standards as well as renewable portfolio standards that are now set at the state level. Click here to continue
