Keeping current: How advancements in electricity storage can save money for consumers

Abstract

ABSTRACTAdvances in storage and battery technology offer value to the electric grid and individual budgets, with the potential for electric vehicles (EVs) to significantly lower household transportation spending as the best current example.Cost-effective storage is a holy grail for the electrical grid and for consumer advocates. Storage potentially provides opportunities to help lower overall electric system costs, such as by time-shifting, frequency regulation, reducing the cost of renewables integration, and helping to more cheaply balance supply and demand. It also provides opportunities to help individual budgets, with the potential for electric vehicles (EVs) to significantly lower household transportation spending as the best current example. While there are thus many good reasons for advocates to be bullish on electricity storage, maximizing the full consumer value depends on continuing the impressive cost declines of batteries and other storage technologies we have seen over the last decade. It is important for states, regional power markets, and public utility commissions to get policy right. Keeping up with the evolving storage market and maximizing consumer and environmental value will require proactive policies aimed at facilitating integration, aligning incentives, and promoting innovation. Given the great potential, now would be a good time for stakeholders and policymakers to start moving forward.