California regulators articulate nine barriers to the adoption of energy storage technologies and offer a framework for analyzing the role of storage and its costs and benefits. Some had feared procurement mandates for Golden State utilities, while others continue to fear "paralysis by analysis." The corollary to finding the power sector's "holy grail" is to figure out how to use it and value it.
Why not begin today's column with a prediction, a rare indulgence for me.
Energy storage technology will become a major factor in the ability of individuals, neighborhoods, companies and campuses to break free of centralized power's current near-hegemony over electricity production and delivery.
The near-term alternatives, costs and uncertainties around investments in energy storage at utility scale will prevent swift adoption by centralized power beyond the well-known role of pumped hydro, except in narrow applications. Utilities are exploring those now and I'd welcome good news.
The disconnect between the two markets—utility applications and non-utility applications—will reflect the general trend towards self-sufficiency and independence now underway across the country for military bases, campuses and individuals, to name a few motivated parties. Distributed generation, energy storage and microgrids of all sizes—in conjunction with radical energy efficiency methods—will become the rage as costs fall and external events such as storms motivate action.
This trend will accelerate in the current climate of mistrust of institutions, for which the investor-owned utility industry has in some well-publicized cases served as a poster boy. Don't take it from me. That's been all over our discussion forums, newspaper forums, blog sites and even the courts, as smart meter opponents and critics of utility practices foment discontent with the status quo. Americans are smart enough to seek out cost-effective alternatives to whatever institutions impose their will upon a strapped and stressed populace. Just my opinion.
Now that I have your attention, however, let's look at the California Public Utilities Commission's summary of the barriers to adopting energy storage at utility scale and the framework that the CPUC's staff has proposed to explore