With all the discussion on storage, I decided to do a little research. I found an interesting article from an online magazine called Renew Grid. According to this source there is a small group of bipartisan Senators that are introducing legistlation that will increase investment in the storage of green energy. The Storage Technology for Renewable and Green Energy Act of 2011 (STORAGE Act) is inscribed to promote the development of energy-storage technology for renewables in order to better manage capacity to meet peak energy needs.
The STORAGE Act provides a 20% investment tax credit (ITC) of up to $40 million for storage systems that are connected to the electric grid, and a 30% ITC of up to $1 million to businesses and homeowners for on-site storage projects.
The legislation also provides tax credits to businesses and homeowners who install energy storage on their own property to help serve their own energy needs efficiently or capture energy from on-site renewable energy generation.
"The missing piece of the renewable energy debate has always been how to make those technologies reliable when the sun doesn't shine or the wind doesn't blow.
The STORAGE Act provides a 20% investment tax credit (ITC) of up to $40 million for storage systems that are connected to the electric grid, and a 30% ITC of up to $1 million to businesses and homeowners for on-site storage projects.
The legislation also provides tax credits to businesses and homeowners who install energy storage on their own property to help serve their own energy needs efficiently or capture energy from on-site renewable energy generation.
"The missing piece of the renewable energy debate has always been how to make those technologies reliable when the sun doesn't shine or the wind doesn't blow.
Energy Storage Gets a Charge from FERC
WASHINGTON, Oct. 20, 2011 /PRNewswire-USNewswire/ -- The Electricity Storage Association (ESA) commends the Federal Energy Regulatory Commission (FERC) for issuing a final rule on October 20, 2011, that will justly compensate energy storage-based resources that provide certain key reliability services on the electric grid. The ruling, which applies to all organized wholesale power market regions under FERC jurisdiction, will begin to set the structure for fast-responding resources to be paid for actual performance.
For resources like energy storage that can adjust their performance quickly and accurately in response to signals from grid system operators, this rule will allow for the true value of their superior frequency regulation performance to be measured and compensated. The ESA Advocacy Council had responded to FERC's Notice of Proposed Rulemaking with extensive comments, noting that paying for performance on the bulk power system will sustain the viability of existing advanced storage regulation plants; encourage investment in future storage facilities; and enable the grid and consumers to experience the economic, reliability and environmental benefits that fast-responding resources bring to the grid
"We applaud FERC for its pro-active approach to ensuring that markets are just and reasonable for new fast-ramping storage resources," said Brad Roberts, Executive Director of ESA. "This rule lays the groundwork for significant revenue enhancement in the electricity markets for these advanced resource technologies.
"We have shovel-ready energy storage projects along with associated potential jobs that have been waiting for financial commitments from investors," said Judith Judson of Beacon Power and Chairperson of the ESA Advocacy Council. "With this final rule, we hope to see a much greater willingness by the private sector to support these new technologies. We urge FERC and the grid system operators to work toward timely implementation of the rule."
Katherine Hamilton, policy director of ESA, goes a step further. "This is, in fact, an appropriate role for government—putting the structures in place that can create a market for U.S. innovation to thrive. FERC has taken bold action to make economically sensible rules to value energy storage; now Congress and the states can take those next steps to moving our electric grid into the 21st century—with energy storage."
The ESA Advocacy Council will continue to work on issues with FERC, the states, and Congress to ensure that this new home-grown industry is fully supported by appropriate policies.
About ESA
Headquartered in Washington, D.C., ESA is the preeminent trade association dedicated to fostering the development and commercialization of energy storage technologies as a means to solving the nation's energy and power challenges.
For resources like energy storage that can adjust their performance quickly and accurately in response to signals from grid system operators, this rule will allow for the true value of their superior frequency regulation performance to be measured and compensated. The ESA Advocacy Council had responded to FERC's Notice of Proposed Rulemaking with extensive comments, noting that paying for performance on the bulk power system will sustain the viability of existing advanced storage regulation plants; encourage investment in future storage facilities; and enable the grid and consumers to experience the economic, reliability and environmental benefits that fast-responding resources bring to the grid
"We applaud FERC for its pro-active approach to ensuring that markets are just and reasonable for new fast-ramping storage resources," said Brad Roberts, Executive Director of ESA. "This rule lays the groundwork for significant revenue enhancement in the electricity markets for these advanced resource technologies.
"We have shovel-ready energy storage projects along with associated potential jobs that have been waiting for financial commitments from investors," said Judith Judson of Beacon Power and Chairperson of the ESA Advocacy Council. "With this final rule, we hope to see a much greater willingness by the private sector to support these new technologies. We urge FERC and the grid system operators to work toward timely implementation of the rule."
Katherine Hamilton, policy director of ESA, goes a step further. "This is, in fact, an appropriate role for government—putting the structures in place that can create a market for U.S. innovation to thrive. FERC has taken bold action to make economically sensible rules to value energy storage; now Congress and the states can take those next steps to moving our electric grid into the 21st century—with energy storage."
The ESA Advocacy Council will continue to work on issues with FERC, the states, and Congress to ensure that this new home-grown industry is fully supported by appropriate policies.
About ESA
Headquartered in Washington, D.C., ESA is the preeminent trade association dedicated to fostering the development and commercialization of energy storage technologies as a means to solving the nation's energy and power challenges.
FERC sets new compensation method for regulation service
The Federal Energy Regulatory Commission (FERC) acted today to remedy undue discrimination and ensure just and reasonable rates for providers of a service that organized wholesale power market operators use to balance supply and demand and ensure the reliability of their systems.
Today’s final rule involves compensation for regulation service, an ancillary transmission service that protects the grid by correcting deviations in grid frequency and balance on transmission lines with neighboring systems. Frequency regulation service is provided by generators and from storage technologies such as flywheels and electric vehicles, demand resources and possibly even residential water heaters. Adjusting the compensation for regulation service providers will recognize the amount of service resources provide, thus correcting the price signal for faster-ramping resources. This will allow market operators to take advantage of the capabilities of faster-ramping resources to improve operational and economic efficiency of the transmission system and reduce costs to consumers in organized wholesale markets.
The final rule requires organized markets to include in their tariffs a two-part market-based compensation method for regulation service. First, all cleared resources would receive a uniform capacity payment, to include opportunity costs, for standing ready to provide frequency regulation service. Second, each resource would receive a market-based performance payment for the service. This payment also would reflect a resource's accuracy of performance.
The final rule will take effect 60 days from publication in the Federal Registry.
Today’s final rule involves compensation for regulation service, an ancillary transmission service that protects the grid by correcting deviations in grid frequency and balance on transmission lines with neighboring systems. Frequency regulation service is provided by generators and from storage technologies such as flywheels and electric vehicles, demand resources and possibly even residential water heaters. Adjusting the compensation for regulation service providers will recognize the amount of service resources provide, thus correcting the price signal for faster-ramping resources. This will allow market operators to take advantage of the capabilities of faster-ramping resources to improve operational and economic efficiency of the transmission system and reduce costs to consumers in organized wholesale markets.
The final rule requires organized markets to include in their tariffs a two-part market-based compensation method for regulation service. First, all cleared resources would receive a uniform capacity payment, to include opportunity costs, for standing ready to provide frequency regulation service. Second, each resource would receive a market-based performance payment for the service. This payment also would reflect a resource's accuracy of performance.
The final rule will take effect 60 days from publication in the Federal Registry.
