The economic benefits of utility-owned storage for local communities are multifaceted and can contribute to more efficient and reliable energy systems. Here are some key benefits:
Economic Benefits of Utility-Owned Storage
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Cost Savings and Reduced Costs for Consumers
- Utility-owned storage allows utilities to manage energy costs more effectively by storing energy when it is cheap and deploying it during peak demand periods. This strategy can reduce wholesale energy costs, which can lower consumer bills.
- By optimizing energy supply and demand, utility-owned storage helps in reducing the need for expensive peaking power plants, further lowering costs for consumers.
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Grid Reliability and Stability
- Energy storage can improve grid stability by providing backup power and stabilizing the grid during outages or when there are sudden changes in supply and demand.
- This reliability can indirectly support local businesses by ensuring continuous power supply, aiding economic activities and reducing potential losses due to power outages.
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Renewable Integration and Curtailment Reduction
- Utility-owned storage can facilitate the integration of renewable energy sources like solar and wind into the grid by storing excess energy generated during sunny or windy periods.
- This reduces curtailment, which occurs when renewable energy generation exceeds immediate demand and must be discarded, thereby maximizing the use of clean energy resources.
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Deferral of Infrastructure Upgrades
- Utility-owned storage can act as a non-wires alternative to traditional transmission upgrades. By alleviating grid congestion, it can defer the need for costly transmission infrastructure projects, saving communities money on capital expenditures.
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Community Resilience Programs
- Some utilities offer community resilience programs that include solar-plus-storage systems hosted at community centers or schools. These programs provide economic benefits and increase resilience for the community during outages or emergencies.
Limitations and Challenges
While utility-owned storage offers several benefits, community ownership models can face challenges such as disparate revenue streams and limited opportunities for local wealth creation without direct ownership or control. Community energy storage projects often require multiple revenue streams to be viable, which can be difficult for non-utility entities to manage. To fully realize the economic benefits of energy storage at a community level, more support in terms of policy and financial incentives may be needed.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-economic-benefits-of-utility-owned-storage-for-local-communities/
