Storage and the Smart Grid
What first comes to mind when you think of energy storage? Do you envision the high-tech lithium batteries that sit inside your laptop? Or perhaps hybrid vehicles come to mind—with their ability to switch back and forth between gasoline and stored energy. Perhaps you associate energy storage with the ability to manage peak shaving and balancing costs based on supply and demand. For those of us well-versed in distributed energy and onsite power systems, energy storage probably brings to mind mission critical systems and emergency power backups. Reliable and efficient, energy storage has been quietly supplying the background support for a variety of power systems large and small, but energy storage is about to have its moment in the spotlight—thanks to renewable energy and the smart grid.
By now we’re all familiar with the benefits promised by the smart grid: clean, efficient, and low-cost energy delivered to users through a modern electricity network that would reduce greenhouse gasses, promote energy independence, and create new markets for alternative energy production. When paired with renewable energy—resources that are only available intermittently and not always when demand is high—the smart grid would enable us to reach new levels of efficiency—but only if energy storage is part of the mix.
Energy storage adds flexibility to any power system by synchronizing supply with demand. This balancing act is the essence of efficiency—providing only what is specifically needed, and saving the rest for use when supplies are low and demand is high. Wind and solar power provide clean energy, but their delivery is inconsistent—at times too high for what’s needed, and then almost nonexistent at critical moments in the demand cycle. By storing that excess power—preferably in a distributed system—we can transform renewable energy from a marginal player to a consistent and reliable power source.
An example of how storage and the smart grid can work in concert is already playing out in southern California. Last year, San Diego Gas and Electric introduced the Beach Cities Microgrid project: a pilot designed to test how the smart grid might work in the real world http://der.lbl.gov/new_site/2009microgrids_files/bialek.pdf. An important part of that pilot involves the incorporation of solar power and electrical energy storage devices in an attempt to prove the effectiveness of integrating distributed generation and renewable energy through smart metering and demand control. By implementing renewable energy, advanced demand controls, and energy storage, the Microgrid project is expected to “Achieve greater than 15% reduction in feeder peak load through the integration of multiple, integrated DER–generation, energy storage, and price-driven load management.”
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It’s clear that energy storage has a larger role to play on the national energy stage, and a new bill introduced by US Representative Mike Thompson (D-Yolo County) puts storage front and center http://thomas.loc.gov. The bill provides for a 30% tax credit for the purchase of thermal energy storage systems for both homes and commercial facilities, and anyone who purchases an energy storage system is eligible for incentives and tax credits. The hope is that encouraging energy storage will inspire customers (both residential and commercial) to increase their use of renewable energy, especially with solar, allowing consumers to store energy during off-peak hours for use at times when grid-supplied power is more expensive.
Incentives like the ones proposed in Thompson’s bill are an important first step, because they can help remove some of the barriers that prevent the widespread adoption of new energy technologies, like wind and solar. Something as simple as a tax rebate can inspire an individual, a business, or a community to strive for greater energy reliability. According to a study by the US Department of Energy, a fully operational smart grid could save the US “between 46 and 117 billion dollars over the next 20 years,” but the smart grid is no panacea. Many issues will have to resolved before the dream of an interconnected, free-flowing intelligent energy grid can be realized—including how to incorporate, and capitalize on, energy storage. We all know energy storage is an integral part of any efficient power; it effectively combines reliability, efficiency, and responsible power generation—and, in the end, isn’t that what we’re all striving for?
Author's Bio: Elizabeth Cutright is the Editor of Distributed Energy Magazine
January-February 2010
Storage and the Smart Grid
What first comes to mind when you think of energy storage? Do you envision the high-tech lithium batteries that sit inside your laptop? Or perhaps hybrid vehicles come to mind—with their ability to switch back and forth between gasoline and stored energy. Perhaps you associate energy storage with the ability to manage peak shaving and balancing costs based on supply and demand. For those of us well-versed in distributed energy and onsite power systems, energy storage probably brings to mind mission critical systems and emergency power backups. Reliable and efficient, energy storage has been quietly supplying the background support for a variety of power systems large and small, but energy storage is about to have its moment in the spotlight—thanks to renewable energy and the smart grid.
By now we’re all familiar with the benefits promised by the smart grid: clean, efficient, and low-cost energy delivered to users through a modern electricity network that would reduce greenhouse gasses, promote energy independence, and create new markets for alternative energy production. When paired with renewable energy—resources that are only available intermittently and not always when demand is high—the smart grid would enable us to reach new levels of efficiency—but only if energy storage is part of the mix.
Energy storage adds flexibility to any power system by synchronizing supply with demand. This balancing act is the essence of efficiency—providing only what is specifically needed, and saving the rest for use when supplies are low and demand is high. Wind and solar power provide clean energy, but their delivery is inconsistent—at times too high for what’s needed, and then almost nonexistent at critical moments in the demand cycle. By storing that excess power—preferably in a distributed system—we can transform renewable energy from a marginal player to a consistent and reliable power source.
An example of how storage and the smart grid can work in concert is already playing out in southern California. Last year, San Diego Gas and Electric introduced the Beach Cities Microgrid project: a pilot designed to test how the smart grid might work in the real world http://der.lbl.gov/new_site/2009microgrids_files/bialek.pdf. An important part of that pilot involves the incorporation of solar power and electrical energy storage devices in an attempt to prove the effectiveness of integrating distributed generation and renewable energy through smart metering and demand control. By implementing renewable energy, advanced demand controls, and energy storage, the Microgrid project is expected to “Achieve greater than 15% reduction in feeder peak load through the integration of multiple, integrated DER–generation, energy storage, and price-driven load management.”
It’s clear that energy storage has a larger role to play on the national energy stage, and a new bill introduced by US Representative Mike Thompson (D-Yolo County) puts storage front and center http://thomas.loc.gov. The bill provides for a 30% tax credit for the purchase of thermal energy storage systems for both homes and commercial facilities, and anyone who purchases an energy storage system is eligible for incentives and tax credits. The hope is that encouraging energy storage will inspire customers (both residential and commercial) to increase their use of renewable energy, especially with solar, allowing consumers to store energy during off-peak hours for use at times when grid-supplied power is more expensive.
Incentives like the ones proposed in Thompson’s bill are an important first step, because they can help remove some of the barriers that prevent the widespread adoption of new energy technologies, like wind and solar. Something as simple as a tax rebate can inspire an individual, a business, or a community to strive for greater energy reliability. According to a study by the US Department of Energy, a fully operational smart grid could save the US “between 46 and 117 billion dollars over the next 20 years,” but the smart grid is no panacea. Many issues will have to resolved before the dream of an interconnected, free-flowing intelligent energy grid can be realized—including how to incorporate, and capitalize on, energy storage. We all know energy storage is an integral part of any efficient power; it effectively combines reliability, efficiency, and responsible power generation—and, in the end, isn’t that what we’re all striving for?