Long-duration energy storage in a decarbonized future: Policy gaps, needs, and opportunities

Abstract

The future U.S. electric grid is being transformed with deep decarbonization of generation (i.e., removing or reducing reliance on fossil fuels and replacing them with renewable and clean energy resources), which in practice is not achievable without a dramatic increase in the reliance on long-duration energy storage (LDES) technologies. Regulators at both the state and federal level are well advised to take steps to address current policy gaps, build frameworks that will enable a greater role for LDES to contribute to grid reliability and be fairly compensated for its grid services..Decarbonization by definition is dependent on an increasing reliance on variable renewable energy, primarily wind and solar resources, that needs to be stored for longer durations to maintain electric grid reliability and provide operational flexibility to grid operators. However, despite the growing realization of the need for long-duration energy storage (LDES) technologies, a persistent gap of policy levers at the federal and state level creates a vacuum in terms of defining how and where LDES technologies can be utilized to support the electric grid, along with an inadequate regulatory framework wherein these resources will need to be valued and compensated for the services they can provide. This paper—which is primarily intended for US decision makers, but should be of value for all energy professionals and the general public—addresses policy gaps, needs, and opportunities for LDES that require urgent attention from US-based policymakers at the federal and state level. This paper also provides background information on how the US E&U industry is structured and regulated, along with perspectives on LDES technologies and applications, all of which have direct relevance to the paper’s primary focus on the need for LDES policymaking.DiscussionDespite a generally accepted future need for long-duration energy storage (LDES) technologies that is directly tied to the rapid of renewable resources on the U.S. electric grid, there is a lack of policymaking, market designs, and compensation mechanisms for LDES technologies. Decarbonization (i.e., the goal of removing or reducing reliance on fossil fuels) cannot be achieved at the aggressive levels envisioned without utilizing LDES. Policymakers must take steps now to build frameworks that recognize the unique ways in which LDES will increasingly contribute to grid reliability and resilience, and receive appropriate compensation for the services it provides.Graphical abstract