The energy storage industry is governed by a variety of policies aimed at fostering growth, innovation, and integration of energy storage technologies into existing energy systems.
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Approximately 16 states have adopted some form of energy storage policy, which broadly fall into the following categories: procurement targets, regulatory adaption, demonstration programs, financial incentives, and consumer protections. Below we give an overview of each of these energy storage policy categories.
In general, policies are designed to establish boundaries and provide regulatory guidelines. According to the Energy Storage Association (ESA), the policy tools fall under three categories which are value, access and competition .
1. System capacity expansion: industrial and commercial energy storage demand is growing from dozens of kWh to MWh level, large-scale business parks, grid-side energy storage projects, and containerized energy storage systems have become an important solution for the market.
All of the states with a storage policy in place have a renewable portfolio standard or a nonbinding renewable energy goal. Regulatory changes can broaden competitive access to storage such as by updating resource planning requirements or permitting storage through rate proceedings.
There is an extensive range of application scenarios for industrial and commercial energy storage systems, including industrial parks, data centers, communication base stations, government buildings, shopping malls and hospitals.
Product standardization: with the maturing of energy storage technology, industrial and commercial energy storage systems are moving towards standardization and modularization to improve compatibility, reduce installation and maintenance difficulties, and thus enhance the reliability and economy of the system.
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