The Oregon Department of Energy is currently developing an energy storage funding opportunity – becoming one of a growing number of states in the US that are looking to accelerate the introduction of this technology into the grid.
Following a workshop in March an opportunity was released in July seeking comments on the design of funding opportunities, and these are now under consideration.
Demonstrating energy storage
The Department is proposing that projects must demonstrate the use of electrical storage technology, specifically batteries, to provide benefits including resiliency and regulation. Four areas of interest have been preliminarily identified:
1. Support to transmission system devices such as static VAR compensators
2. Co-location with renewable energy generation where transmission is constrained
3. Provision of stabilization to industrial facilities during outage events
4. Co-location of distributed storage with renewable energy generation.
Projects, which would be funded on a cost-share basis, should also demonstrate the commercial viability of the chosen technology and approach.
Storage in Oregon
Storage options including battery-based and pumped energy storage were identified as opportunities for Oregon in the Governor’s 10-Year Energy Action Plan in 2012.
Currently, there are no pumped storage facilities in Oregon but Swan Lake near Klamath Falls is the most advanced plan in the Northwest. The project’s location can take advantage of the Northwest and California markets. Swan Lake would be a closed-loop facility with a capacity of up to 1,000MW.
Portland General Electric’s Salem Smart Power Center includes a 5MW bank of lithium-ion batteries. The batteries can be used for small-scale ancillary services in firming and shaping intermittent resources. The system can also be used to run the Center’s microgrid for up to 30 minutes. In addition, the Center takes advantage of back-up generators within its operational territory, including a solar array at Kettle Foods.
Advancing energy storage in US
Other storage opportunities in the US include:
● California – an energy storage mandate has been adopted with a 1,325MW procurement target by the three investor-owned utilities by 2020. [Engerati-California's Energy Storage Mandate-Will Others Follow?]
● New York – the state has provided $25 million to fund the New York Battery and Energy Storage Technology Consortium (NY-BEST) to advance the storage industry in that state, and more than $2 million has been awarded for storage development by the New York State Energy Research and Development Authority. Storage is also likely to get further support in the Reforming the Energy Vision initiative. [Engerati-Reforming New York's Energy Vision]
● New Mexico – a Renewable Energy Storage Task Force was established, which presented a report with recommendations, including support of a large-scale demonstration, in November 2013.
● New Jersey – an energy storage working group has been convened and an incentive program for energy storage technology is currently being developed for implementation in the 2015 financial year. The state is also in the process of creating an Energy Resilience Bank which will support energy storage projects at public and critical facilities among other infrastructure.