California Proposes First Renewable Energy Storage Requirements
By Susan Kraemer in CleanTechnica, March 2 2010
In a sense, the storage industry will the equivalent of the 19th century railroad industry. Railroads had to be built in order to cheaply bring coal to coal-fired 19th century power plants that were near the cities of those times, and even to stoke homeowners individual fireplaces. Like the railroad, the storage industry will be a trillion dollar industry.
AB 2514 would require utilities to incorporate energy storage in their distribution networks. The rules will mandate storage equal to 2.25% of daytime peak power by 2014 and 5% of daytime peak power by 2020.
This bill will provide the first real boost to the renewable energy storage industry, as it secures a clean energy future for California. To bring 2.25% of peak demand in storage online, Jon Petersen estimates that (with 135 MW a year of storage needed) $200 million each year will need to be invested, along with the new jobs that all that new investment brings.
The legislation dovetails nicely not only with California’s needs (and the world’s) but it immediately amortizes the $620 million from the Obama Administration’s advanced grid awards from the American Recovery and Reinvestment Act (ARRA) invested by the newly energized Department of Energy in a variety of innovative new storage technologies.