Potential policy changes that could impact the cost of thermal energy storage (TES) mainly revolve around utility regulations, rate design reforms, and updated industry standards:
Key Potential Policy Changes
1. Incorporating TES in Utility and Public Utility Commission (PUC) Planning and Programs
– Utilities and PUCs can explicitly consider thermal energy storage in their energy resource planning and outreach programs. For example, approving integrated resource plans that include TES pilot projects supports market growth and can reduce costs through scale and learning effects.
– Explicitly recognizing TES as a valued resource in long-duration energy storage (LDES) strategies can drive investments and innovation, ultimately lowering costs.
2. Rate Design Reforms
– Reforming tariffs to reflect wholesale or marginal energy pricing and to include rate components that capture the grid benefits TES provides (such as reduced infrastructure needs and enhanced reliability) can make TES more economically competitive.
– Designing rates and incentives that reward TES for providing grid services can improve the financial returns, encouraging broader adoption and potentially reducing costs through increased deployment.
3. Updated Industry Standards and Guidelines
– Revising design guides and standards, such as ASHRAE’s updated Thermal Storage Design Guide, to integrate considerations of modern TES technologies and utility tariffs can help lower barriers to adoption and improve cost-effectiveness for building applications.
– Enhanced modeling and design tools supporting energy-efficient TES solutions can foster innovation and cost reductions.
4. Support for Technological Innovation
– Policies encouraging research and demonstration of advanced TES technologies (e.g., phase change materials, new thermal storage tank designs) can spur breakthroughs that reduce capital and operational costs over time.
5. Integration with Renewable Energy Policies
– Aligning TES incentives with renewable energy goals, such as by supporting TES systems that store excess solar or wind energy as heat, could expand TES markets and economies of scale, helping to lower costs.
In summary, policy changes that recognize TES as a valuable grid resource, reform energy rates to better reflect TES benefits, update technical standards, and support technology innovation could significantly impact and potentially reduce the cost of thermal energy storage systems.
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