Regulatory frameworks in different countries significantly impact the incentives for energy storage investments by shaping the economic environment, technical standards, and market opportunities. Here’s how various countries approach energy storage through their regulatory frameworks:
United States
- Inflation Reduction Act (IRA) of 2022: Offers significant incentives, including tax credits, to support energy storage development.
- FERC Orders: Notably, FERC Order 841 and FERC Order 755 facilitate participation of energy storage in open electricity markets, ensuring fair compensation. FERC Order 2222 further supports this integration by permitting distributed energy resources, including storage, to participate in power markets.
United Kingdom
- Long Duration Electricity Storage (LDES) Investment Scheme: The UK government announced a new support scheme for energy storage, which includes a “cap and floor” regime to guarantee minimum income for developers while capping revenues. This aims to boost investment in long-duration storage technologies.
- Regulation by Ofgem: Great Britain’s energy regulator oversees the LDES scheme, ensuring it is implemented effectively to support new and mature technologies.
Germany
- Energiewende Policy Framework: This policy supports ambitious targets for renewable energy and energy storage through regulatory measures. It emphasizes creating a favorable environment for the integration of renewable energy sources (RES) and battery energy storage systems (BESS).
Japan
- Stationary Battery Roadmap: This framework includes subsidy programs for specific energy storage technologies and simplifies application and permitting processes for projects.
India
- National Mission on Transformative Mobility and Battery Storage: Fosters the establishment of a local lithium-ion battery manufacturing supply chain to promote domestic energy storage industries.
California, USA
- Regulatory Framework for Energy Storage: Initiatives like procurement mandates by the California Public Utilities Commission (CPUC) encourage energy storage adoption and integration with renewable energy sources.
In summary, regulatory frameworks globally provide incentives through tax credits, market participation opportunities, simplified permitting, and procurement mandates, which are crucial for attracting investments in energy storage and promoting a sustainable energy future. However, challenges such as policy uncertainty and the need for more effective regulatory support remain.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-regulatory-frameworks-in-different-countries-affect-the-incentives-for-energy-storage-investments/
