Category Archives: Storage

DOER Energy Storage Target Misses the Mark

On June 30, 2017, the Massachusetts Department of Energy Resources (“DOER”) announced an “aspirational” target for Massachusetts’ utilities to procure 200 MWh of energy storage by January 1, 2020.  While solar targets are typically expressed in MW, the capabilities of energy storage facilities are often measured both in terms of power (MW) and energy (MWh), reflecting the multiple applications for which energy storage can be used.  … More

Tesla Petitions DPU for Solar + Storage Facility’s Right to Net Metering Credits

For the purposes of qualifying for net metering credits, section 138 of M.G.L. c. 164 defines a “Solar Net Metering Facility” as “a facility for the production of electrical energy that uses sunlight to generate electricity and is interconnected to a Distribution Company.”  The statute and accompanying regulations are silent regarding the co-location of energy storage equipment with such a qualifying Solar Net Metering Facility.

National Grid has interpreted this silence to be a total prohibition on solar + storage for net metering facilities.… More

Climate Change Will Increase Peak Energy Demand By More Than We Thought: More Storage, Perhaps?

In an interesting study just published in the Proceedings of the National Academy of Sciences, the authors predict that climate change will have a more significant impact on peak energy demand than had previously been understood.  They conclude that, in a business as usual case, peak demand will increase 18%, leading to a need to spend $180B (in current dollars) to meet that increased peak demand.… More

Eversource Proposes Rate Increases and $400 Million in Grid Modernization Investments

On January 17, 2017, Eversource Energy filed a petition with the Massachusetts Department of Public Utilities (DPU) that would increase base distribution rates for its 1.4 million electricity customers across the Commonwealth.  The company’s proposal states that it would increase a typical residential customer’s total monthly bill by approximately seven percent in eastern Massachusetts and approximately ten percent in the western part of the state.  According to the petition, the rate increase is necessary to alleviate revenue deficiencies of Eversource’s subsidiaries,… More

Massachusetts DOER to Propose Successor to SREC II Program

In a letter circulated on January 24, 2017, the Massachusetts Department of Energy Resources (DOER) announced it will present a final proposed design of a new solar incentive program at a meeting on January 31, 2017.

DOER has worked with stakeholders over the last several months to develop a successor program to the Solar Carve Out II Program (SREC II). Final details are not yet available,… More

DOER’s Solar Incentive Straw Proposal: Optimism, Anxiety, Uncertainty.

beautiful sunrise and cloudy sky

On September 23, DOER presented a straw proposal for the next phase of Massachusetts solar incentives. DOER’s ambitious proposal for a tariff-based program reflects a thoughtful development process and a laudable goal of crafting a program that is more efficient at promoting sustained solar deployment. There is plenty to like. But, DOER has bitten off quite a mouthful by proposing a structure that departs so dramatically from the SREC approach.  … More

Massachusetts Gears Up for Energy Storage Grant Program

The report on energy storage released by the Massachusetts Department of Energy Resources (DOER) and the Massachusetts Clean Energy Center (MassCEC) on September 16 put forward a bevy of policy proposals that have reinvigorated discussions of energy storage in the Commonwealth.  A key policy initiative that seems certain to be implemented is the Advancing Commonwealth Energy storage (ACES) Program a $10 million, competitive grant program for energy storage projects to be administered by MassCEC and DOER. … More

DOER and MassCEC Release Report on Energy Storage

battery

The Massachusetts Department of Energy Resources (“DOER”) and the Massachusetts Clean Energy Center (“MassCEC”) released their long-awaited report on energy storage, “State of Charge” (the “Storage Study”) on Friday.  The Storage Study is a central component of the Commonwealth’s “Energy Storage Initiative” and is likely to serve as the basis for future policy initiatives.  It recommends a suite of policies designed to promote the development of 600 MW of advanced energy storage (i.e.… More

FERC Signals Interest in Expanding Market Policies to Support Energy Storage

Last week, the Federal Energy storageRegulatory Commission (FERC) initiated a proceeding regarding the applicability of wholesale electricity market rules to energy storage resources. At this point, FERC is only gathering information. The agency requested data from Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs) on “whether barriers exist to the participation of electric storage resources in the capacity, energy, and ancillary service markets in the RTOs and ISOs potentially leading to unjust and unreasonable wholesale rates.” FERC simultaneously requested public comment on these issues.… More

Supreme Court Revives FERC Order No. 745; FERC Maintains its Role in a Distributed Energy World

The Supreme Court handed down a decision on Monday in Federal Energy Regulatory Commission v. Electric Power Supply Association affirming FERC’s Order No. 745.  Order No. 745 generally requires market operators to pay the locational marginal price (LMP) for demand response (offers to voluntarily curtail electricity use)—the same price paid to generators for producing electricity.  (Seth Jaffe previously posted on the decision.)  The Supreme Court’s decision reverses a May 2014 decision from the D.C.… More

San Diego Gas & Electric Company Proposes Paying Customers to Install Customer-Owned Energy Storage Resources

Changes Ahead , Road Warning Sign , 3d renderOne key challenge to tapping the full potential of energy storage systems to improve the function of the electric grid is the absence of obvious paths for the owner of storage resources to realize the revenue opportunities associated with all of the various services that such a resource could provide.  Energy storage resources can frequently provide multiple services – often crossing lines between categories of traditional resources that are compensated under different regulatory schemes. … More

Massachusetts DPU Extends Time for Electric Distribution Companies to File Grid Modernization Plans

Readers expecting the Massachusetts electric distribution companies to file their Grid Modernization Plans yesterday will have to wait another two weeks.  On Tuesday, the Massachusetts Department of Public Utilities granted a last minute extension, making the GMP filings due on August 19th.  In their request for the extension, the electric distribution companies noted that the “requirement to develop comprehensive, forward-looking GMPs was the first of its kind” and that the GMPs “encompass sophisticated and complex technological investment portfolios,… More

Massachusetts’ Summer of Storage

HiResCalifornia has been a national leader in promoting policies to support the deployment of energy storage resources.  The California Public Utility Commission’s directive that California utilities procure 1,325 MW of energy storage through biennial procurements has spurred significant excitement and economic activity as have capacity procurements that required a portion of need to be met with energy storage.  (The California Roadmap, … More

Will Time Varying Rates Shift Demand and Reduce Costs in Massachusetts?  We Will Find Out (Eventually)

digtalclock_imageIn June, I wrote about the Massachusetts Department of Public Utilities’ proposal to shift “Basic Service”—the default electricity service provided by electric distribution companies and used by most residential customers—from a flat rate structure to a time varying rate.  On November 5th, the DPU adopted that proposal without modification.

That means that, in the future, the default service for retail customers in Massachusetts will have a time-of-use pricing structure. … More

The Massachusetts DPU Sets Requirements for Utility Grid Modernization Plans, Starting a Nine Month Period for Utilities to Identify Investments

stopwatch_ZG_blog postMassachusetts has taken the next step towards requiring substantial investments to increase the capabilities of its electrical system and create opportunities for new technologies and innovations.  On November 5th, the Massachusetts Department of Public Utilities issued an Order, D.P.U. 12-76-C, along with itemized filing requirements and a summary template, laying out what Massachusetts utilities must file in their “Grid Modernization Plans” (“GMPs”)—the ten-year proposals for investments promoting “grid modernization objectives” (such as reducing the effects of outages,… More

Massachusetts DPU Proposes Time Varying Rates for Basic Service

Many in the clean energy community in Massachusetts are focused on the state legislature: the end of the legislative session is approaching and significant clean energy legislation (relating to clean energy procurement and net metering) is still in process. But the Department of Public Utilities (the DPU) has been busy, and two Orders issued earlier this month could dramatically change the way end consumers in Massachusetts use and pay for electricity – without any legislative changes.… More

Massachusetts DPU Issues a Strong Order on Grid Modernization

You don’t have to read far in the Massachusetts Department of Public Utilities’ recent Order on Grid Modernization, D.P.U. 12-76-B , to get a sense of what a significant step the DPU believes it is taking:

With this Order, the Department launches a new energy future for Massachusetts. The modern electric system that we envision will be cleaner, more efficient and reliable, and will empower customers to manage and reduce their energy costs.… More

California Takes Pioneering Role on Energy Storage Policy

I noted in July that emerging energy storage technologies have received increasing attention from policymakers as an essential element for improving the efficiency and reliability of the electric grid. Adequate storage is also seen as important for facilitating the integration of larger quantities of renewable generation. At that time I posited that the states would likely precede the federal government in advancing policies to encourage the development and adoption of storage technologies.… More

Technically, We Could Green The Grid and Keep The Lights On; Do We Have The Policies to Get Us There?

One concern with adding large amounts of renewable generation to the electric grid is that the variability of renewable resources such as solar and wind might render the electric grid unreliable.  According to a recent report from Synapse Energy Economics, that concern is misplaced and we already have the technological capacity to replace 100% of U.S. coal generation and 25% of U.S. nuclear generation with renewables by 2050 while maintaining grid reliability.… More