UtilityAPI
  • Blog
  • Go to UtilityAPI.com
  • Sign up for UtilityAPI's Newsletter
  • Blog
  • Go to UtilityAPI.com
  • Sign up for UtilityAPI's Newsletter
Search by typing & pressing enter

YOUR CART

3/17/2017

Checking in on Storage: Economics and Current Developments

There is hardly ever a dull moment when working at start up, but I do try to keep my ear to the ground to one of my favorite topics in the energy space: storage. I love it. The space is developing so quickly and addressing renewables’ intermittency. Equally exciting, it can address gaps left by aging “peaker”-plants and decommissioned nuclear facilities. As a California native I lived through the rolling black out days after Enron and most recently the massive methane leak north of Los Angeles, and hold high hopes for what renewables + storage can do to prevent such disasters.

​A recent paper published by AutoGrid took a look at the economics of battery storage, and pointed to the co-benefits both to ratepayers and utilities of the technology. During graduate school in San Diego, I worked with team analyzing the economics of battery storage for one of the large investor owned utilities. Our results aligned well with the Autogrid paper, noting that the economics are already make sense for C&I customers through demand charge reduction. Demand charges can make up 40-60 percent of a C&I customer’s bill, and even modest reductions can lead to significant savings.

Adoption will only increase as the price of storage continues to drop (or as demand charges rise), and with this comes a reduction in utility revenue. I certainly hope that utilities will see the benefits of DERs and embrace them, rather than resort to the rather draconian policy changes that have inhibited renewables in places like Nevada. Southern California utilities are beginning to deploy storage themselves, as a recent Times piece noted, though the acceptance and utilization of behind the meter DERs will likely still take time. While reduced revenues, especially if storage scales, could present a challenge to utilities, the benefits to grid stability, reduced dependence on costly peaker plants, and contributions to the state’s ambitious climate goals truly begin to show the net benefits of encouraging and embracing storage.
           
We are excited to be part of the clean energy revolution, and look forward to what is next for storage!

Comments are closed.

    Archives

    September 2022
    July 2022
    June 2022
    May 2022
    March 2022
    February 2022
    December 2021
    September 2021
    July 2021
    May 2021
    January 2021
    December 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    December 2018
    January 2018
    November 2017
    April 2017
    March 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015

    UtilityAPI

    All blog posts are to help UtilityAPI users connect with their customers and successfully collect their utility data.

    Links
    UtilityAPI.com
    About
    Business Products
    Utility Products
    Support

    Categories

    All Interval Data Lead Qualification Work From Home

    RSS Feed

Proudly powered by Weebly