ESS are critical, and the ESS industry has many supportive synergies with other M-WERC technology focus areas. ESS are critical components of many projects in the EE-TSS industry. The Energy Savings and Industrial Competitiveness (ESIC) Act (Shaheen-Portman) approved by Congress in May 2015 will spur the use of energy efficiency technologies in the residential, commercial, and industrial sectors of our economy, while also fostering job creation.
...energy storage is an enabling and critical subsystem of both of the EE-TSS and DERS industries. Therefore, investment in research and development (R&D) for the ESS industry benefits all three industries.
The DERS, often referred to as a microgrid, technology is a system that includes distributed energy sources in an electric power system that can operate independently or in conjunction with the area’s main electrical grid. The primary market drivers for DERS are energy efficiency, green/low emissions, and high reliability. For DERS, ESS play a product subsystem role in all three of these categories. The primary function of ESS is to provide improved power quality to critical loads during transition and, for portions of the distribution network, a buffer against transients; both improved power quality and transient buffering are critical to the stability of interconnection points.
All power systems also require the capability to balance, in real time, differences between load demand and generator output. This balancing capability through ESS – which keeps system frequency at the level where it is designed to operate – is critical to ensuring the stability and reliability of the overall power system, for both centralized power grids as well as DERS.
Based on the above discussion, energy storage is an enabling and critical subsystem of both of the EE-TSS and DERS industries. Therefore, investment in research and development (R&D) for the ESS industry benefits all three industries. This report will discuss in more detail the synergies between ESS and the other M-WERC focus areas.
M-WERC should develop a combined ESS/DERS Working Group, like the IEEE Working Group, to actively sustain the implementation of the strategically related ESS and DERS industry roadmaps, its databases, and promotional collaboration.
This report also points out that a number of organizations outside the M-WERC region require attention from M-WERC and its members.
- A significant community of organizations are promoting ESS technology and industry development outside the Midwest, such as DOE’s Office of Energy Efficiency and Renewable Energy, the Electric Power Research Institute’s (EPRI) Energy Storage Integration Council (ESIC), and several other state and provincial organizations. Even though these organizations are outside the Midwest, they appear to be open to partnerships that will strengthen M-WERC and member company positions and allow more visibility to our capability nationwide.
- Some large-scale ESS programs approved by various state regulatory agencies outside the Midwest incentivize and promote the use of storage. These programs have been effective in improving the market; as a result, the costs of the total ESS community have been falling. M-WERC should create awareness of these programs within the Midwest.
- Some regional technology gaps have been identified that could lead to opportunities for M-WERC to gain more influence in all ESS sectors. M-WERC should explore developing or attracting these technologies to the region.
- The benefits of energy storage are not well understood by regulators and developers. Historically, ESS suppliers and analysts have not used common terminology for describing applications or technologies. Market development has been subordinated to the technology companies participating in the market and delivering solutions.
- The M-WERC Energy Storage Database provides critical information on global ESS projects, in order to (1) identify developments by market segment and (2) provide a basis for further market analysis and project tracking. The database identifies key trends in the global ESS market by tracking the primary characteristics of the world’s energy storage projects on a quarterly basis.