Massachusetts clean energy update

The growth for the Massachusetts energy storage market is coming together thanks to a compromise made. The planned solar incentive program state’s distribution utilities, clean energy companies, ratepayer advocate and the Department of Energy Resources could support.The compromise stipulates that storage developers will retain the rights to bid their facilities into the forward capacity market. They also have the option to buy out the capacity rights for connected solar facilities. This compromise gives the storage industry confidence to control and finance its assets, while solidifying a revenue stream from solar capacity buy-outs that lessen the cost to ratepayers. “We believe that this compromise will allow us to fully develop and operate energy storage in Massachusetts,” said Juliana Mandell, who participated in the negotiations as director of market development at Engie Storage. If the compromise wins approval from regulators, it will bring benefits for pairing solar power with energy storage. 
 

SMART gives incentives

The Solar Massachusetts Renewable Target (SMART) gives incentives for solar power deployment, with the aim of 1,600 megawatts over the next few years. The regional grid has shown signs of the duck curve, which dramatically reduces midday demand and steepens evening peaks. Storage development would alleviate these issues.The conflict took place when the distribution utilities wanted to own the capacity rights to energy storage installed as part of this program. 
 

The solution  

Residential customers will keep the capacity rights to solar and storage. For larger systems, the owner retains the storage capacity rights, and has the choice to purchase solar capacity rights for a one-time payment before the system receives an authorization to interconnect. The attention is now on the regulators at the Department of Public Utilities to finalize the SMART order. If it into effect, it could make Massachusetts the first major East Coast bastion of the behind-the-meter storage industry. This prevents additional confusion if the utility bid solar capacity connected to a battery that participated in further markets. If those assets deployed simultaneously, recording what performance came from which asset would be a headache. The  burden of having to negotiate with a utility could jeopardize financing for an asset that's already considered new and risky for many lenders. The risk has been averted, because the developers can buy the rights upfront instead of handling complex accounting deals.

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