States have begun implementing policies to promote long-duration energy storage (LDES), which is critical for meeting the demands of renewable energy integration. Here are some effective state-level policies:
Key Policies for Promoting LDES
- Procurement Targets with LDES Specifications:
- California and New York have set clear targets for LDES. This approach encourages utilities to invest in technologies that can store energy for ten or more hours, aligning with the U.S. Department of Energy’s definition of LDES.
- Such specific targets provide market certainty, encouraging public and private sector investments in LDES technologies.
- Incentivizing Various LDES Technologies:
- Policies that support a range of LDES forms (e.g., electrochemical, mechanical, chemical, and thermal) allow utilities and developers to choose the best technology for their specific region and needs.
- Financial Incentives and Regulations:
- Approximately 17 states have adopted some form of energy storage policies, including financial incentives and regulatory adaptations that facilitate the development of LDES.
- Favorable regulations and utility procurements can significantly boost LDES adoption by making it more economically viable.
- Demonstration Projects and Programs:
- States can benefit from initiating demonstration projects to test and refine LDES technologies. These projects help in understanding the feasibility and scalability of different LDES solutions.
- Consumer Protections:
- Including consumer protections within LDES policies can safeguard investments and ensure that consumers benefit from reduced energy costs and increased grid reliability.
Challenges and Opportunities
- Cost Reduction: One major challenge for LDES is the high cost compared to shorter-duration storage. To be competitive, LDES technology costs need to decrease by 45–55% by 2028-2030.
- Policy Alignment with National Goals: State policies should align with national objectives, such as the U.S. Department of Energy’s goals, to ensure coordination and maximize impact.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-specific-policies-at-the-state-level-are-most-effective-in-promoting-long-duration-energy-storage/
