POWER September 2010 - 70

ENERGY STORAGE
Policy Frameworks Adapt to Include Bulk Storage
State, regional, and federal policies that
would allow energy storage to " play " are
advancing at a rapid pace. The following
are only some of the higher-profile
initiatives:
■ A technology-neutral investment tax
credit is being considered for the federal
energy bill now before Congress.
Congress is also considering a Clean Renewable
Energy Corridors bill and formation
of a Clean Energy Deployment
Administration (a " green " bank).
■ The California legislature has been advancing
legislation that could support
procurement of a set level of storage
resources by the state's utilities. Legislation
conducive to bulk storage has
bulk energy storage. In the spring, the Federal
Energy Regulatory Commission issued
a Notice of Inquiry regarding the integration
of variable energy resources into the grid
and followed that up with a " Request for
also passed or is being considered in
Utah, Kansas, and Ohio.
■ New York State instituted its " Limited
Energy Storage Resource " policy, which
allows distributed storage devices to
provide regulation service in the state.
■ PJM, MISO, and ERCOT have grid policies
in place that allow storage to provide
ancillary services, and California
(CAISO) is considering the same. MISO
is also considering the adoption of a
" ramping product " that would support
storage applications.
■ Several bulk storage projects were selected
for funding through the federal
stimulus program, specifically through
the DOE Smart Grid and Electricity Infrastructure
development programs.
Comments Regarding Rates, Accounting,
and Financial Reporting for New Electric
Storage Technologies. " In April, PJM and
EPRI jointly sponsored the Energy Storage
Summit, held in Valley Forge, Pa. Lawmakers
have also been active in developing the
proper regulatory frameworks and incentives
and subsidies (see sidebar). Most recently,
the California ISO released a study
of energy storage system requirements for
the state to achieve its stated goal of 33%
renewable energy.
Up to 40 new PSH facilities either have
obtained a preliminary FERC permit or
have applied for one, according to data
from HDR/DTA Inc. The majority are concentrated
in the western U.S. CAES projects
are known to be under development
in California, Kansas, Iowa, Texas, New
York, Ohio, North Dakota, and Vermont.
Equipment suppliers report that between a
dozen and two dozen CAES projects are
seeking technical and budgetary proposals
from equipment suppliers. Expect new
CAES plants to break ground in the very
near future. ■
-Jason Makansi (jmakansi@
pearlstreetinc.com) is executive director
of the Coalition to Advance Renewable
Energy through Bulk Storage (CAREBS,
www.carebs.org), president of Pearl
Street Inc. (www.pearlstreetinc.com), and
principal of Pearl Street Liquidity Advisors
LLC (www.psliquidityadvisors.com).
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POWER September 2010

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