California battery intiaitive
- 1.3 GW of grid storage: by 2020
- DOE target: $250/kWh for advanced energy storage
- Stem: has signed up customers for a collective 6 MW of installed storage systems in CA
- Short duration requirements: (by preventing power spikes in fifteen-minute intervals) is something that a lithium-ion battery can do without having to deplete itself and thus shorten its lifespan.
- Consumer economic drivers for pairing storage with solar: 1) emergency backup power, 2) TOU price arbitrage, 3) playing into ancillary services markets as revenue streams
- Grid economics: ancillary services -- namely, frequency regulation -- remain the primary economic driver for grid-scale storage today
- Texas grid operator ERCOT is looking at creating a new ancillary services program, known as Fast Responding Regulation Service
- California’s Self Generation Incentive Program: which offers incentives for a wide array of customer-sited energy technology CA RPS of 33% with possible raise to 50% storage connected at the transmission level has the highest procurement target (700 MW), followed by storage at the distribution level (425 MW), and then customer-sited storage (200 MW). There is significant flexibility to shift procurement targets by as much as 80 percent between transmission and distribution grid domains, yet the initial breakdown remains perplexing in light of recent market trends with storage.