Regulatory frameworks can better support energy storage adoption by addressing several key areas:
1. Remove Barriers to Market Participation
Regulatory bodies should ensure that energy storage systems (ESS) can fully participate in electricity markets. For example, the U.S. Federal Energy Regulatory Commission (FERC) issued Order 841, allowing ESS to be treated as both generation and load, thereby enabling them to participate in energy, capacity, and ancillary services markets.
2. Establish Clear Targets and Strategies
Governments should set clear national or regional targets for energy storage as part of broader energy and climate plans. The European Union’s Clean Energy for All Europeans package mandates member states to develop such targets and strategies, which helps in integrating ESS effectively.
3. Offer Financial Incentives
Providing financial support through grants or tax credits can encourage investment in energy storage technologies. Programs like the EU’s Horizon 2020 have funded numerous projects, driving innovation and collaboration.
4. Develop Market Structures and Pricing Signals
Establishing market structures that reward flexibility and grid services provided by battery energy storage systems (BESS) is crucial. Effective pricing signals are needed to ensure economic viability and to incentivize investment in ESS.
5. Set Standards for Grid Interconnection and Operation
Clear standards should be set for how ESS connect to the grid and operate within it. This ensures safety, efficiency, and reliability, facilitating the integration of renewable energy sources (RES) and enhancing grid stability.
6. Promote Innovation and Research
Encouraging research and development through funding and collaborations can lead to more efficient and cost-effective energy storage solutions. This supports the transition to a more sustainable energy future.
By implementing these measures, regulatory frameworks can create a favorable environment for energy storage adoption, ultimately contributing to global energy transition goals.
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