Obama's latest energy policy announcement is good news for storage
September 11, 2015
Speaking at last month's National Clean Energy Summit in Las Vegas, President Barack Obama outlined his new vision for the future of energy policy in the United States. The plan he unveiled included $24 million in new grants for solar research and plans to make solar installations more widely available and accessible. According to a White House fact sheet that was released along with Obama's address, resources will also be made available for applicants interested in sustainable development, including energy storage projects.
The White House authorizes $1 billion for energy projects
Leading Obama's list of energy policy updates announced at the National Clean Energy Summit is the approval of $1 billion in new loan guarantees authorized by the Department of Energy, reported Utility Dive. These resources are expected to help promote innovation in energy projects like energy storage deployments and smart-grid retrofits.
In a conference call with reporters, Secretary of Energy Ernest Moniz said this federal support is intended to encourage commercial clients and their investors to look past upfront costs and focus on long-term advantages, according to Bloomberg Business.
"The playing field is not always level, and that's where investors and developers can have risks," said Moniz. "That's where things like our loan program come in."
Investments in proven technologies promise substantial ROI
One of the most important byproducts of the president's announcement is that businesses without knowledge of innovative technologies like energy storage may now be inspired to research and recognize new potential solutions. Professional services firm Ernst and Young Global Limited emphasized such an outlook for businesses in its most recent Renewable Energy Country Attractiveness Index.
In the market report, Ernst and Young suggested that "game-changing" energy storage technologies should be recognized for their potential impacts on organizations' long-term budgets. For example, the University of Arizona, a 216-building, 378-acre campus in Tucson, is able to save up to $38,000 a month thanks to installing CALMAC's IceBank thermal storage tank solution.
Thermal energy storage takes advantage of less expensive off-peak electricity pricing by storing energy in the form of ice during off-peak hours. A substantial difference between daytime and nighttime energy rates means that the businesses save considerably on large cooling bills by reducing the need to run the school's chillers during the day.
More steps the government can take to support storage
Freeing up $1 billion for energy projects will certainly be a boon for several storage industries, but there's still more that the federal government can do to support energy storage. A 2013 report by the Department of Energy identified critical barriers currently obstructing the growth of expanding energy storage markets.
While Obama's latest round of reforms was a step in the right direction, there is more ground for the White House to cover in terms of a comprehensive energy storage strategy. According to the report, remaining steps ahead of the federal government include creating new revenue streams for storage, incorporating storage into power grid renovations and establishing nationwide performance standards.
