Fwd: California passes first energy storage mandate in U.S. - Pennenergy

Monty Bannerman
ArcStar Energy
+1 646-402-5076
---------- Forwarded message ----------
From: "Rebecca Van Nichols" <rvan@tnag.net>
Date: Dec 12, 2013 4:19 PM
Subject: California passes first energy storage mandate in U.S. - Pennenergy
To: "M" <mbannerman@arcstarenergy.com>
Cc:

> http://www.pennenergy.com/articles/pennenergy/2013/10/california-passes-first-energy-storage-mandate-in-u-s.html?cmpid=EnlWeeklyPowerOctober252013
>
> California passes first energy storage mandate in U.S.
> October 17, 2013
> By Dorothy Davis 
> Content Director
>
> In a unanimous vote, the California Public Utilities Commission (PUC) has enacted the first energy storage mandate in the United States. Under the new mandate investor-owned utilities will be required to purchase at least 200 megawatts (MW) of energy storage by 2014 and 1,325 MW by 2020.
>
> Within a traditional system, utilities simply shed excess energy during off-peak production times, and must utilize back-up power stations during peak demand. Energy storage has long been held as an industry ideal, but the development of cost-effective technologies has not progressed very quickly overall.
>
> According to the U.S. Energy Information Administration (EIA), costs can be significant when it comes to energy storage, particularly with emerging technologies. On the other hand, electricity storage technologies offer price arbitrage opportunities and fast-response services that conventional technologies cannot match.
>
> The EIA further asserts the future utilization of energy storage will depend on how rapidly the technologies improve and costs drop, the implementation of new pricing and valuation schemes for the services storage can provide, and the cost and efficiency of alternatives.
>
> California's decision on energy storage therefore sets a precedent for the U.S. energy industry. The mandate is meant to spur advancement in the development and use of energy storage technologies, and if successful could serve to significantly address issues such as grid stability during extreme weather and managing intermittency due to renewables.
>
> Once again California has set itself ahead of the curve on energy policy and will continue to be watched closely as its innovative and aggressive renewable power and energy storage mandates take shape in the broader market