Energy storage policies in the United States vary significantly between states, reflecting different approaches to promoting energy storage development. These policies can be categorized into several key areas: procurement targets, regulatory adaptation, demonstration programs, financial incentives, and consumer protections.
Key Categories of Energy Storage Policies
- Procurement Targets:
- These require utilities to acquire a specified quantity of energy storage by a set deadline.
- States with procurement targets include California, Oregon, Nevada, Illinois, Virginia, New Jersey, New York, Connecticut, Massachusetts, Maine, Maryland, and Rhode Island.
- For instance, California initially mandated 1,325 MW of energy storage by 2020, later adding 500 MW of distributed storage.
- Regulatory Adaptation:
- This involves changes in state energy regulations to enhance opportunities for energy storage.
- All states with a storage policy have a Renewable Portfolio Standard (RPS) or a non-binding renewable energy goal.
- Many states require utilities to include energy storage in Integrated Resource Plans (IRPs), which outline strategies for meeting future demand.
- Demonstration Programs:
- These involve grants or pilot projects to test energy storage technologies.
- States like Massachusetts use such programs to encourage innovation and build experience in energy storage.
- Financial Incentives:
- These can include tax credits, subsidies, or special rates to encourage investment in energy storage.
- For example, Maryland provides incentives through its Energy Storage Program established in 2023.
- Consumer Protections:
- These policies protect consumers by preventing discriminatory rate practices for those with energy storage.
- Nevada prohibits placing customers with energy storage in separate rate classes solely due to their storage ownership.
Examples of State-Specific Policies
- California: Implemented the first procurement target and continues to lead in energy storage development with supportive policies.
- Texas: Although without a procurement target, Texas has significant utility-scale storage due to favorable market conditions and renewable energy capacity.
- New York: Has a goal to double its original target to 6 GW of energy storage by 2030.
- Virginia: Sets aside a portion of its procurement target for behind-the-meter (BTM) storage.
Overall, state policies on energy storage reflect local priorities, available renewable resources, and regulatory frameworks, creating a diverse landscape across the U.S.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-energy-storage-policies-differ-between-states/
