Why is energy storage important?

Like transmission, energy storage can help to manage supply and demand over broad areas of the electric system because it can provide both generation and load by converting excess electric power into another medium to be stored for later use.

Will energy storage save the energy industry?

It’s generation . . . it’s transmission . . . it’s energy storage! The renewable energy industry continues to view energy storage as the superhero that will save it from its greatest problem—intermittent energy production and the resulting grid reliability issues that such intermittent generation engenders.

What are the safety requirements for energy storage technologies?

Safety: Minimum safety and operating requirements are common considerations for energy projects. Energy storage resources present additional safety concerns given their unique technological profiles. For battery storage technologies in particular, safety requirements should adequately address fire risks.

How do energy storage contracts work?

For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.

How does energy storage work?

Energy storage also converts energy from one medium to another—whether it be mechanical energy in a pumped hydro facility or chemical energy in a battery—so that energy can be provided when it is needed by the grid.

Can energy storage resources be financed on a nonrecourse basis?

Key Finance-ability Provisions: Energy storage resources may also be financed on a nonrecourse basis and, like any other project financed in such manner, will need to address issues upon which nonrecourse lenders will focus, including assignment, events of default, performance requirements, key dates, and collateral.