Status of Energy Storage Policy in the U.S.

Autumn ProudloveNC Clean Energy Technology Center

NC Storage Study Stakeholder MeetingFebruary 15, 2017

2017 Action on Energy Storage By Type of Action

Studies & InvestigationsPolicy, Regulation, and Planning

3 or More Types of Action

Financial Incentives and Rates

Deployment

At least 32 States took action on energy storage during 2017

2017 Action on Energy Storage Studies and Investigations

Storage-Specific Study

No recent action

DC

Grid Modernization or Other Study with Storage Component

Storage Studies & Investigations• Maryland – HB 773 (enacted May 2017)

– Regulatory reforms and market incentives to increase use of storage; consult with stakeholders

• Nevada – SB 204 (enacted in May 2017)– PUCN to determine if a procurement target is in the public

interest• North Carolina – HB 589 (enacted July 2017)• Vermont – Act 53 (enacted May 2017)

– Opportunities for, benefits of, & barriers to storage deployment; regulatory options & structures available including cost to ratepayers

2017 Action on Energy Storage Planning and Market Access

2017 action

No recent action

Storage in State/Utility Planning• Integrated Resource Planning (IRP)

– Requiring utilities to fully evaluate storage as an alternative to traditional generation resources

– Arizona (APS), New Mexico, New Orleans, Washington (also moving toward sub-hourly IRP modeling

• Evaluation of Non-Wires Alternatives– Strategic deployment of DERs (frequently storage) to defer,

mitigate, or obviate need for certain T&D investments– Maine, New Hampshire, New York, Rhode Island

Storage in Planning & Market Access• Distribution System Planning

– Not specific to storage, but helps identify most beneficial locations for storage on the grid

– Hosting capacity analyses– Connecticut, Michigan, Nevada, New York, Rhode Island

• Wholesale Market Rules– Market access and compensation rules for storage– CAISO, ISO-NE, MISO, NYISO, PJM

2017 Action on Energy Storage Policies

2017 action

No recent action

DC

Storage Policies• Procurement Targets

– Massachusetts, New York– California, Oregon previously established targets– Under consideration in Arizona, Nevada, and others

• Interconnection Rules – updating rules to include clear standards for energy storage– Arizona (state’s first interconnection rules), Colorado, Florida

(TECO), Maryland, Minnesota, Nevada, North Carolina• Customer-Sited Storage Compensation – net

metering eligibility, role of storage in successor tariffs– California, Colorado, Hawaii, Massachusetts, New York, Rhode

Island

Rate Design for Storage• Rate structures drive adoption of behind-the-meter

storage• Time-of-use rates, demand charges• Arizona utilities examined dedicated tariffs for customers

with battery storage

2017 action

No recent action

2017 Action on Energy Storage Incentives

Energy Storage Incentives• Maryland – SB 758 (enacted May 2017) created the first

state tax credit for energy storage in the country• California – Self Generation Incentive Program – April

2017 decision increased program funding, set aside 85% for energy storage

• Nevada – SB 145 (enacted in May 2017) creates a new energy storage incentive program – currently being implemented in a PUCN proceeding

Energy Storage Incentives• More action on incentives for solar + storage, or adding

storage as an eligible technology to existing incentives– Massachusetts – SMART program storage adder– Florida – Property Tax Abatement– New York – Property Tax Abatement– Oregon – PACE Financing

2017 State & Utility Storage Deployment Proposals

2017 action

No recent action

State & Utility Storage Deployment• Many proposals are for pilot projects

– Eversource (Connecticut), Duke Energy (Florida)• Some are non-wires alternative projects

– AEP (Texas), Consumers Energy (Michigan)• Others are part of microgrids

– Emera (Maine), Rocky Mountain Power (Utah), Duke Energy (Indiana), ComEd (Illinois), Green Mountain Power (Vermont)

• Fewer are behind-the-meter storage deployment– Liberty Utilities (New Hampshire), Green Mountain Power

(Vermont)

Takeaways• Already a lot of policy and regulatory activity around

storage occurring across the country• Activity is highly varied, taking place across a number of

different topic areas• Key areas of activity include information gathering and

identification of policy barriers (studies, pilots), incorporating storage into planning, and examining how these resources are compensated

• Significant policy activity around storage expected in 2018