Key policy changes needed to support long-duration energy storage (LDES) focus on accelerating research, development, deployment, and market integration to enable the transition to a decarbonized and resilient power grid:
1. Establish Clear National Targets and Accountability
- Set country-specific LDES deployment targets to provide clarity and accountability for policymakers, industry, investors, and stakeholders. Such targets help signal commitment and scale needed for investment.
2. Increase Federal and State Incentives
- Expand financial incentives (e.g., tax credits, grants) specifically for LDES technologies, akin to those that have supported shorter-duration battery storage and renewable energy deployment.
- Incentives should encourage cost reductions of 45–55% by 2028-2030 for LDES technologies to become competitive.
3. Promote Research, Development, and Demonstration (RD&D)
- Policy should boost RD&D funding to improve LDES technology performance, reduce costs, and explore diverse system types (electrochemical, mechanical, chemical, thermal).
- Supporting demonstration projects will help validate technologies and accelerate commercialization.
4. Adapt Regulatory Frameworks
- Update and harmonize state and federal regulations to accommodate LDES in electricity markets, transmission planning, and grid operations.
- Regulatory adaptations include valuing the unique services LDES provides, such as grid stability over extended durations, and allowing fair participation in ancillary service markets.
5. Facilitate Market Integration and Grid Planning
- Incorporate LDES capabilities explicitly into grid planning to ensure sufficient long-duration capacity is deployed to support renewable integration and grid resilience.
- Reform electricity market rules to recognize and reward LDES’s ability to discharge over 10+ hours, distinct from shorter-duration storage.
6. Support Domestic Manufacturing and Supply Chains
- Leverage policy to promote domestic manufacturing of LDES components to enhance energy security and create jobs, building on precedents in clean energy manufacturing incentives.
In summary, policies must move beyond supporting short-duration storage to explicitly target and enable LDES through clear targets, financial incentives, regulatory reforms, RD&D support, market integration, and domestic manufacturing to unlock the full value of LDES for a net-zero, resilient grid by mid-century.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-key-policy-changes-needed-to-support-long-duration-energy-storage/
