Yes, there are performance-based incentives for energy storage projects. These incentives often focus on the contributions that energy storage systems make to grid stability and resilience, typically through participation in demand response programs or as part of virtual power plants (VPPs). Here are some examples of performance-based incentives:
- Demand Response Programs: These programs allow battery storage systems to provide utility services during peak demand periods, earning compensation based on their contribution to reducing strain on the grid.
- Virtual Power Plant (VPP) Participation: VPPs integrate multiple energy storage systems to offer aggregated energy services to utilities. Participants receive financial compensation based on the collective performance of the VPP in supporting grid stability.
- State-Level Incentives: Certain states offer performance-based incentives as part of broader energy storage programs. For instance:
- Connecticut’s Energy Storage Solutions provides businesses with performance-based incentives twice a year for ten years, based on how much power the battery adds to the grid during peak periods.
- California’s Self-Generation Incentive Program (SGIP) includes performance-based payments, particularly for businesses participating in demand response programs.
These performance-based incentives are designed to encourage active participation of energy storage systems in supporting grid operations and resilience.
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