K E Y F A C T S ¡ Electric companies own, procure, or

utilize 98 percent of all energy storage today, most of which is connected directly to the energy grid.

¡ Pumped hydropower storage comprises the lion’s share of operational energy storage today—92 percent—but battery storage is the driving source of growth.

¡ Wood Mackenzie Power & Renewables estimates 311 megawatts (MW) of battery storage capacity was installed in 2018, a 44 percent increase since 2017.

Sources: Wood Mackenzie Power & Renewables/ESA U.S. Energy Storage Year in Review, March 2019; U.S. Department of Energy Global Energy Storage Database; ABB Enterprise Database.

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Energy Storage Trends & Key Issues March 2019

E N E R G Y S T O R A G E D E P L O Y E D T O D AY

Annual Energy Storage Capacity Additions by Segment and Technology 2013–2018

K E Y F A C T S

¡ Battery storage is the main tech-nology driving the energy storage market today. Over the last five years, electric companies were responsible for approximately 70 percent of total battery storage capacity deployed.

¡ Cumulative battery storage capacity increased five-fold over the past five years, from 241 MW in 2013 to 1,274 MW in 2018.

Sources: Wood Mackenzie Power & Renewables/ESA U.S. Energy Storage Year in Review, March 2019; U.S. Department of Energy Global Energy Storage Database; ABB Enterprise Database.

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Cumulative Energy Storage Capacity Additions by Segment and Technology 2013–2018

2 | E E I | E N E R G Y S T O R A G E T R E N D S & K E Y I S S U E S

E N A C T E D S T O R A G E P O L I C I E S

Since 2010 when California enacted the first energy storage legislation, 16 states have added energy storage policies that either set mandates or targets, create financial incentives, explicitly allow electric companies to own energy storage, enable storage use under different applications, or require the technology, to be included in compa-nies Integrated Resource Plans (IRPs). The states and policies are high-lighted in the table below.

E S T A B L I S H E D S T A T E P O L I C Y

State Financial Incentive

Mandate/Target Multi-Use

Electric Co. Ownership

AllowedPermitting Storage in

Planning/IRP

Arizona P

California P P P P P P

Colorado P

Florida P

Hawaii P

Maryland P

Massachusetts P P

Michigan P

Nevada P P

New Jersey P

New Mexico P

New York P P P

Oregon P P P

Rhode Island P

Vermont P

Virginia P

Washington P

Note: In addition to policy-driven inclusion of storage in IRPs, many electric companies are doing so voluntarily. Source: EEI 2019.

E N E R G Y S T O R A G E T R E N D S & K E Y I S S U E S | E E I | 3

S E L E C T E D S T A T E A N D F E D E R A L P O L I C I E S

¡ Maryland—In December 2018, pursuant to HB 773 enacted in 2017, Maryland’s Department of Natural Resources released the Energy Storage in Maryland 2018 report that offers various approaches on storage regulation, policy, and distribution planning. The report concludes that the following issues require further research: the feasibility of a target and/or a Clean Peak Standard; the need for incentives; ownership of behind-the-meter energy storage; and the role of energy storage in distribution planning.

¡ Nevada—In December 2018, under rulemaking 17-07014 to implement SB 204, the Public Utili-ties Commission of Nevada (PUCN) directed that a stakeholder-driven rulemaking should be opened to evaluate where to set the target and how to implement the goal. The PUCN instructed stakeholders to consider how to harmonize energy storage targets with planning processes.

¡ New York—In December 2018, pursuant to Governor Andrew Cuomo’s call for a long-term energy storage target issued earlier in the year, the NYPUC adopted a target of 1,500 MW by 2025 and an aspirational target of 3,000 MW

by 2030. The target was vetted under Docket 18-00516/18-e-0130, in accordance with the Storage Roadmap, released in June 2018. The Commission also launched new research into energy storage as a non-wires alterna-tive and replacement for peaker plants.

¡ North Carolina—Pursuant to HB 589, the North Carolina State University released its Energy Storage Options for North Carolina study in December 2018. The study found that 1 gigawatt of new storage by 2030 is possible, assuming storage becomes cost-effective. The study found that water heater thermal storage is currently the sole cost-effective storage tech-nology in the state, but that, as the costs drop by 2030, lithium-ion storage batteries would become economical throughout the state, espe-cially for time-shifting and peak shaving.

¡ FERC Order 841—The RTOs/ISOs filed their compliance filings to Order 841 on December 3, 2018. Most of the RTOs/ISOs indicated that substantial work would need to be done, but that they would be able to meet the December 3, 2019, implementation date established in Order 841.  

P O L I C Y U P D AT E

The following demonstration projects highlight the variety of solutions energy storage provides to customers and to the energy grid.

A R I Z O N A P U B L I C S E R V I C E

In February 2019, Arizona Public Service’s (APS’) announcement to build an additional 850 MW of storage by 2025 marked a meaningful mile-stone in member company battery storage buildout plans. This is almost three times more than the 311 MW of battery storage that was installed in 2018. The company will add 200 MW of battery storage to existing Mari-copa County and Yuma solar power plants by 2021. Also, APS will use 150 MW of storage coupled with solar to meet evening peak demand. Lastly, APS will build an additional 500 MW of solar storage and stand-alone storage by 2025. APS’ plans indicate that storage costs are declining and are making it economical for the electric company to use energy storage to manage peak demand and help alleviate the duck curve.

M E M B E R T E C H N O L O G Y S P O T L I G H T

B A LT I M O R E G A S A N D E L E C T R I C —C O L D S P R I N G S U B S T A T I O N

Baltimore Gas and Electric evaluated the construction of a new transmission-supplied distribution substation to offload the Coldspring distribution substa-tion, which tends to be subject to summer overload. The company determined that a 5 MW/20 MWh lithium-ion battery storage system would be a more economical solution. The battery storage project is helping Baltimore Gas and Electric defer construction of a new substation for at least five years, providing peak shaving and VAR injection services. The system is designed to be installed in four phases. The initial 1 MW/1 MWh phase was installed in 2018. The installation timing of phases II to IV will be based on future load forecasts.

D U K E E N E R G Y — M O U N T S T E R L I N G M I C R O G R I D P R O J E C T

Mt. Sterling is a remote solar-plus-storage microgrid located in the Great Smoky Mountains. It replaced a 5-mile, 12.47 kilovolt distribution feeder that served one customer—the Mt. Sterling radio tower, which experienced three or more major outages per year and has high operational and maintenance costs due to vegetation management and restoration costs. The microgrid was built as a non-wires alternative, allowing Duke Energy to give back the right-of-way to park services and to remove the distribution feeder, associ-ated equipment, and more than 40 poles. The microgrid enhances reliability, integrates renewables, and reduces operational and maintenance costs.

E N T E R G Y — 5 0 0 K W B A T T E R Y S T O R A G E

Entergy’s 500 kilowatt (KW) battery storage project in Louisiana is enabling the company to integrate renewables and to provide an energy time shift as well as a load shift to the energy grid. The 500 kW lithium-ion battery storage system is used to help integrate electricity gener-ated from more than 4,200 solar panels. The panels can generate enough electricity to power approximately 160 homes. This system is the city’s first large-scale effort to produce solar power. The attached battery system helps with solar integration through ramping and load shift.

F L O R I D A P O W E R & L I G H T — M O B I L E U N I N T E R R U P T I B L E P O W E R S U P P LY

Florida Power & Light’s Mobile Uninterruptible Power Supply (UPS) is a mobile lithium-ion battery that is designed to provide emergency back-up power for a short duration during a momentary power outage and/or flicker, which benefits all customers. The ability to mobilize the unit allows the company to position and connect the system wherever it is needed to support the energy grid.

Edison Electric Institute701 Pennsylvania Avenue, NWWashington, DC 20004-2696202-508-5000 | www.eei.org March 2019

M E M B E R T E C H N O L O G Y S P O T L I G H T ( C O N T I N U E D )

For additional information, contact Olga Chistyakova (ochistyakova@eei.org).