Recently, the Electricity Storage Association (ESA) released a study that projects the size of the rapidly growing energy-storage market in the U.S. electricity grid. The report shows the effect on job growth possible with the federal investment tax credit (ITC) incentives from the Storage Act of 2009.
The report analyzes the effects of a 20 percent ITC for grid-connected energy storage and a 30 percent credit for on-site energy storage through 2020.
Currently, pumped hydro storage plants account for just more than 2 percent of the total generating capacity in the United States. The current Department of Energy Storage Stimulus Plan is investing $185 million to add 535 megawatts of additional storage in the grid from all sources, ranging from compressed-air energy storage to flywheels and batteries.
This new report shows how total storage in the U.S. grid could double in the next decade. It analyzes aspects of storage applications, such as regulation/ancillary services, renewable-energy integration (wind and solar), on-site storage for end-users and the rapidly emerging community energy-storage approach.
“There is a growing realization among legislators and regulators that energy storage will be a vital element, optimizing large amounts of renewable energy in the U.S. grid,” said Brad Roberts, ESA executive director.
The report’s executive summary is available at www.electricitystorage.org.