Monday, September 26, 2016

State of Charge - Massachusetts Energy Storage Intiative - Details Energy Storage Technology’s Potential to Reduce Energy Costs and Meet Regional Energy Challenges

The Baker-Polito Administration today released a comprehensive report, State of Charge, detailing the value of deploying energy storage in Massachusetts and a roadmap of policy recommendations for growing the energy storage market and industry in the Commonwealth. The report found that the addition of energy storage to the state’s diverse energy portfolio could realize hundreds of millions of dollars in cost savings for Massachusetts ratepayers, shave the impacts of peak demand on the state’s energy infrastructure, and reduce carbon emissions by better integrating renewable resources into Massachusetts’ energy infrastructure. State of Charge was commissioned as part of the Administration’s $10 million Energy Storage Initiative, aimed at making Massachusetts a national leader in energy storage.
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The comprehensive energy diversification legislation recently enacted by Governor Baker makes Massachusetts only the third state in the nation to authorize an energy storage procurement target, if the Department of Energy Resources deems such a target prudent.
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Advanced energy storage technologies include batteries, flywheels, thermal and compressed air technologies that allow utilities and electricity customers to store and discharge energy as needed instead of purchasing or generating more expensive energy during times of high  demand. The study found that on average from 2013-2015, Massachusetts electricity customers annually spent over $3 billion, 40% of the total annual electricity spending by consumers in Massachusetts, on the top 10% most expensive hours. In addition to managing energy costs, energy storage can provide power during storm-related power outages or when renewable generation is low, such as at night, when solar energy isn’t being produced. Energy storage can also help the electric grid operate more efficiently because it is a fast and flexible resource that can respond quickly to changes in renewable resources’ variable output, thereby reducing wear and tear on traditional generation infrastructure resulting in less fossil fuel consumption and the associated greenhouse gas emissions....
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In order to increase storage deployment and maximize ratepayer benefits, State of Charge recommends policy changes for Commonwealth to adopt. The recommendations include encouraging regional coordination around energy storage, amending the Alternative Portfolio Standard (APS) to include all types of advanced energy storage, encouraging expanded use of energy storage in existing energy efficiency programs, considering energy storage as a utility grid modernization asset, and pairing storage with renewables in future long-term clean energy procurements, and considering standards and code development for energy storage.  The report also highlighted programmatic opportunities including rebate programs for customer-sited energy storage, solar plus storage initiatives, the continued funding of clean energy resiliency initiatives focused on energy storage for critical facilities, and continuing the MassCEC investment and technology development programs to support energy storage companies in Massachusetts.

These recommendations, if adopted, have the potential to yield 600 MW of advanced energy storage technologies on the Massachusetts grid by 2025. These recommendations are anticipated to provide over $800 million in cost savings to ratepayers and approximately 350,000 metric tons reduction in GHG emissions over a 10 year time span which is equal to taking over 73,000 cars off the road.
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Following the release of the study, DOER and MassCEC will utilize the findings to implement a grant program for energy storage demonstration projects over a range of application scales. This grant program, to be launched later this year, will utilize the remaining funds available from the $10 million Governor Baker initially budgeted for the Energy Storage Initiative.
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DOER is also beginning a robust stakeholder engagement process to solicit feedback on the study, as well as to inform the decision making process in determining whether Massachusetts should establish an energy storage procurement target ahead of the December 30, 2016 deadline set forth in the legislation. Further details on the public engagement process, including information on public listening sessions and comment periods, can be found here.

The full report is available free of charge at http://www.mass.gov/eea/docs/doer/state-of-charge-report.pdf. ...