Massachusetts energy storage report

Friday, September 23, 2016

A Massachusetts state energy office has issued a report finding that Massachusetts has the potential to develop for 600 MW of energy storage by 2025, which could lower costs, reduce carbon emissions, and improve grid reliability. Legislation earlier this year authorized the creation of an energy storage procurement target; the Department of Energy Resource’s State of Charge report could lead to further policy changes supportive of storage.

While electricity has traditionally been challenging to store efficiently, advanced energy storage technologies – such as batteries, flywheels, thermal and compressed air technologies – now allow utilities and consumers to store and release energy as needed. Last year, the Baker-Polito administration launched an Energy Storage Initiative to advance the energy storage segment of the Massachusetts clean energy industry.

This summer, the Massachusetts legislature enacted a broad energy diversification law, authorizing among other things the creation of an energy storage procurement target, if the Department of Energy Resources deems such a target prudent.  Section 15 of H.4568 requires the Department of Energy Resources to determine, by December 31, 2016, whether to set “appropriate targets for electric companies to procure viable and cost-effective energy storage systems” to be achieved by January 1, 2020. If the Department finds it appropriate to adopt procurement targets, the law requires it to do so by July 1, 2017, with reevaluations of the procurement targets not less than every 3 years.

Meanwhile, on September 16, 2016, the administration released its State of Charge report. The report found that energy storage could yield significant cost savings for Massachusetts ratepayers, reduce the impacts of peak demand on the state’s energy infrastructure, and enable improved integration of renewable resources and reduced carbon emissions.

The report recommends policy changes, ranging from regional coordination on energy storage, broadening the Alternative Portfolio Standard (APS) with respect to advanced energy storage, to using energy storage in existing energy efficiency programs or as a utility grid modernization asset, and seeking “renewables plus storage” contracts in future long-term clean energy procurements.

According to the report, adopting these recommendations could yield 600 MW of advanced energy storage technologies deployed on the Massachusetts grid by 2025, with projected ratepayer cost savings of over $800 million and approximately 350,000 metric tons reduction in greenhouse emissions over a 10 year time span.

The Department of Energy Resources will now hold a stakeholder engagement process relating to energy storage, starting with a meeting scheduled for September 27. DOER is expected to determine whether Massachusetts should establish an energy storage procurement target before the end of 2016.

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