ORIGINAL REPORTING: The Energy Storage Solution
How storage can help solve the distributed energy 'death spiral'; A new Navigant paper lays out three examples of how storage can facilitate the transition to a more distributed grid
Herman K. Trabish, June 21, 2016 (Utility Dive)
Editor’s note: Microgrid builders continue to struggle to find ways into the marketplace.
Cost effective distributed energy resources (DERs) are expected to displace 320 GW of centralized generation from 2014-2023, according to Navigant Research. As early as 2018, Navigant expects DERs to outpace centralized generation in annual capacity additions. Those predictions have stoked worries that DER proliferation would combine with stagnant load growth to undermine utility finances across the nation, especially for municipal electricity providers. But a new report says the distributed energy trend can also help munis “reinvent” themselves with digital economy business strategies.
Software-managed energy storage can do that and create “win-win scenarios” that deliver benefits to consumers, the utility, and the grid at large, according to Making Sense of New Public Power DER Business Models; The Business Case for Energy Storage. These benefits can impose order on the potential “chaos” of the emerging DER-dominated bi-directional electron flow, Navigant argues, and can be applied to munis, cooperative utilities, and investor-owned power providers alike. The paper describes storage applications in nanogrid, microgrid, and virtual power plant deployments that can help public power providers take advantage of the DER transition… click here for more
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