Utlizing Solar Energy

Clean energy for electricity has been utilized for quite some time; mostly at a pilot or limited scale. Markets must evolve so clean energy can give their full potential for customers. Issues of how to fully utilize clean energy is still under discussion. The growing pains are discussed below.

Peak Capacity

The network’s need to ensure sufficient peak capacity is good for batteries since peak periods are rare but need rapid response from flexible resources. A battery mitigates peak generation needs while being more regularly cycled to serve another value stream. This value-stacking reduces the cost to consumers of fulfilling peak requirements.

For example, in California, state officials canceled plans for a 262-megawatt gas peaker after finding that a renewable energy storage, mixed with some solar and demand response provides the same technical capabilities and is cheaper. Both California and Washington have issued orders mandating utilities to integrate renewable energy storage to fulfill peak demand.

Clean energy storage has yet to gain popularity for wholesale capacity markets in which network operators procure resources to ensure adequate future power supply. The capacity markets are enormous. If renewable energy storage were to gain 10 percent share, this would open up an estimate of 30 gigawatts of demand for batteries. This is about 50 times total capacity.

Energy Storage

Energy storage can participate in capacity markets but is barred due to market rules. FERC regulates the wholesale market operators, took steps toward fixing this problem by issuing a notice of proposed rulemaking (NOPR) that mandates system operators to redesign their rules to account for new resources.

Energy storage need eligibility to compete. U.S. utilities spend over $40 billion yearly to upgrade transmission and distribution systems. Some upgrades are necessary while others could be cost-effectively avoided with non-wires alternatives (NWAs). These are non-traditional utility investments to substitute a typical upgrade in combination of demand flexibility, distributed generation and renewable energy storage.

If a non-wires alternative give the same service to the grid at a lower cost than a traditional T&D investment, it should be adopted.The NWA market is held back by regulators and utilities. Also, distributed energy is restricted from showcasing its true value.

Electric vehicles is helpful for the electric network depending how the vehicle batteries are charged and discharged. Without proper incentives, it’ll increase system peak demand, which brings an expensive new infrastructure and increase emissions. With smart time-of-use EV electricity rates, customers can be incentivized to charge their vehicles when power is economical and abundant.

This avoids overgeneration and curtailment when renewables grow, and to mitigate the ramp requirement to fulfill evening peak. If you’d like more information, click here.

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