By Greg Gorman • ggorman@embargmail.com
Climate crisis–induced heat waves and cold snaps stress our energy systems. The strategy to address the climate crisis is to replace fossil fuels with clean energy and to electrify everything. The combination of weather extremes, electrification, and an aging power grid will require significant infrastructure investments. The challenge is to achieve integration of clean power while providing reliable electricity.
Energy storage (ES) systems play an instrumental role in improving grid resiliency, reliability, and efficiency. Grid applications for ES systems include backup power, demand reduction, frequency regulation, peak shaving, pre-heating, or cooling of air and fluids, uninterrupted power supply, and voltage regulation. Some of these terms are self-explanatory, but frequency regulation is the balancing of energy supply and demand, peak shaving is the moderation of short-term demand spikes; pre-heating and cooling strategies help to moderate system demand; and voltage regulation ensures consistent levels of energy transmission. The beneficiary of these applications is ultimately the ratepayer.
The NJ Clean Energy Act required the NJ Board of Public Utilities (BPU), in consultation with PJM, an independent energy transmission group, to conduct an ES analysis. The NJ Energy Storage Analysis (ESA) was completed and published in 2019 by Rutgers School of Engineering and the Edward J. Bloustein School of Planning and Public Policy and serves as a basis for the NJ Energy Master Plan. The analysis findings contained in the executive summary provide a top-level description of benefits of energy storage systems and a discussion of various energy storage technologies. (The ESA noted that technology is rapidly changing. For a more current discussion of ES technology see Worku 2022). The services provided by ES systems are applicable whether or not electricity is derived from fossil fuel, nuclear, or renewables.
ES provides critical value in times of extreme temperatures. The grid operated by the Electric Reliability Council of Texas is not connected to the national grid. During the cold snap of 2021, natural gas pipelines froze and equipment at thermal power plants broke. During a Texas heat wave in June, 11,000 megawatts (MW) of thermal generation was offline for repairs, cloud cover reduced solar output, and slower wind speeds reduced wind power output. However, ES contributed backup power for the grid to help compensate for needed power.
Grid scale ES systems provide short-term service when demand is greatest and are recharged at night when rates are lowest. Yards Creek Generating Station in Blairstown, NJ, is a pumped-storage hydroelectric facility that provides voltage regulation services to allow thermal generation plants to go offline for routine service. As more clean energy sources are integrated into the grid, ES demand will increase to provide similar voltage regulation service.
Use of “behind-the-meter” energy storage reduces demand for grid power. Behind-the-meter systems supply energy stored from solar panels, etc., that customers do not have to pay their utilities for. In the event of rolling blackouts or short-term outages, behind-the-meter ES allows for continuity of service for the business or homeowner.
Electrochemical, electromechanical, and thermal ES devices save the user money. Commercial and industrial businesses recharge their batteries, compress air, or wind-up flywheels when electricity is cheap. They release the energy when power is expensive. The same principle is used for preheating or precooling of buildings, water, and air.
Why am I discussing this? The NJ Clean Energy Act codifies a goal of achieving 600 MW of ES by 2021 and 2,000 MW by 2030. At the time of the NJ Energy Master Plan’s publication (2019), New Jersey had 475 MW of energy storage including Yards Creek. The administration has been criticized for making minimal progress toward this goal. In testimony presented to the Senate Environment and Energy Committee on June 9, 2022, the BPU reported the state currently has over 500 MW of energy storage installed—100 MW short of the 2021 goal. To meet the 2030 ES goal, the BPU needs help.
S2185, which requires the BPU to develop programs to incentivize installation of new ES systems, is essential (the main sponsors are Sen. Bob Smith and Sen. Linda Greenstein; co-sponsor, Sen. Patrick Diegan). It passed the Senate on June 29 and was referred to the Assembly Telecommunications and Utilities Committee. S2185 needs our support.
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