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Energy Storage Needs These Boosts From Regulators and Legislators

energy storage

Energy Storage Regulations needed, says Zolaikha Strong of CDA

Energy storage use is growing quickly: About $240 billion will be invested in storage grid applications in the U.S. over the next 10 years, says the Copper Development Association, whose members provide copper for energy storage units.

Investment from the government and venture capitalists, plus successful demonstration projects have helped advance energy storage, CDA says. For example, the DOE’s Smart Grid Demonstration Grants project has invested $772 million into energy storage, providing a capacity of 537.3 MW, says CDA.

But energy storage could still use a boost, in the form of investment tax credits and policies to incorporate energy storage into grid modernization, says Zolaikha Strong, director of sustainable energy for the CDA.

Energy storage helps energy producers yield less carbon. “But the cost of it can be difficult to swallow,” says Strong. “An investment tax credit allows it to be more affordable. Congress has looked at this from the lens of renewables.”

But Congress needs to introduce an investment tax credit specifically for energy storage, she says. CDA wants an investment tax credit that would be available to anyone looking at storage system, including energy users, developers or utilities.

In addition to an investment tax credit, the industry would get a boost from policies that ensure energy storage is considered as an ancillary service as the grid gets modernized, she said.

“With grid modernization, you need ancillary services.  It would be beneficial to have storage as a real consideration for ancillary services,” Strong said. Traditional generating units generally need to ramp up before coming online, she said. But batteries don’t need to take that time to ramp up; they kick in immediately. “Battery storage is an important part of modernizing the grid,” she said.

The CDA has an interest in boosting energy storage use because three to four tons of copper are used for each megawatt of energy storage. Copper is integrated into storage units because it’s a powerful conductor.

Growth in the energy storage market over the next 5 years is estimated at between 2 to 4 GW, with an estimated copper demand of 900 to 3,000 tons, according to the CDA.

The copper industry has a big stake in the growth of the energy storage market. But the truth is, we all do. Energy storage boosts the benefits of renewable energy, cuts greenhouse gas emissions, and allows energy users to go off grid.

 

Lisa Cohn About Lisa Cohn

Lisa Cohn has covered energy for more than 20 years. She is the host of Energy Energy Efficiency Markets Podcast, which has hundreds of thousands of subscribers. Her energy articles have appeared in EnergyBiz, Horizon Air Magazine, Natural Home, Windpower Monthly, Mother Earth News, The Oregonian, and other regional and national publications. She has received numerous awards for her work.

Comments

  1. Frank Lam says:

    Here a quick update about energy storage legislation in Germany:
    in may 2013 “program 275” was launched, a new incentive to stimulate the use of energy storage in small scale PV systems (<30kW). The government awards tax deductions up to 30% of the cost of a storage system, for reasons listed in a report from the respected Fraunhofer-Institut:
    • Solar power accumulator reliefs the power grid because it smoothes power peaks
    • Solar power storage increases the capacity of existing power networks by up to 66%
    • the effect of the grid relief is greater when more storage capacity is available
    • the feed-in surcharge aid will be lower, since solar power for own use must not be reimbursed
    • Solar power storage decouples the generation from sale, which increases the revenues for solar power
    • the high investment costs for solar power storage is so far the biggest obstacle

    The tax deduction is awarded when a storage-battery is large enough to lower the connection capacity of the Solar system to the grid to 60% of its peak capacity.

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  1. […] many environmentalists have begun advocating for energy storage to receive the same investment tax credits that renewable energy has received over the years. These tax credits could help energy storage […]

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