5 top states in distributed energy

October 15, 2014

A report by Lux Research predicts that the energy storage industry will hit $50 billion in revenue by 2020. Surging public concern over global warming has contributed to this trend, and much of the industry's growth is bound to be driven by federal and state level governments responding to voter concerns. These five pioneers of renewable energy and energy storage demonstrate how states across the United States are turning to the many types of distributed energy storage such as battery, flywheel and thermal (both ice storage and water).

California
The Golden State is the nation's leader when it comes to total solar PV applications and electric vehicle plug-ins. California is also ahead of other states when it comes to utilizing grid-scale energy storage and implementing home automation tech, says Greentech Media. The state's reformation of its power grid regulation in particular has received national attention. The most recent step in this process occurred in August, when the California Public Utilities Commission announced a long-term plan to transform grid-planning efforts. State officials aim to rethink the future of electricity in California by accounting for greater reliance on renewable energy, energy storage and demand response. They will also seek to manage the duck curve.

Hawaii
In many ways, Hawaii has taken California's lead in reshaping its energy infrastructure. In fact, Pacific Business Journal reports that one of the state's latest grid-stabilizing initiatives, a 1 MW energy storage project, is even based on technology developed by a California-based startup company. Hawaii's move toward renewable energy also benefited from a surging rooftop solar market. The state's success with utilizing solar energy has freed Hawaii from dependence on oil-burning generators. Solar has been so successful in Hawaii that the Public Utilities Commission is requiring utility companies to develop future plans with solar power as a major component. Hawaii is planning ahead for its inevitable upsurge of renewable energy by investing in a 200 MW energy storage project that includes line-items for both grid-scale and distributed energy storage.

Minnesota
The Gopher State recently made waves by introducing a statewide value-of-solar tariff. The VOST was introduced in 2013 as a means of evaluating a fair price of utilities for rate payers and utility companies alike, according to the Minnesota Department of Commerce. Specifically, the tariff accounts for the complex impacts that the state's solar infrastructure has on the pricing of available energy and determines how much building owners and residents should be compensated for electricity generated by their rooftops. Similar strategies have been employed in cities across the country, but Minnesota is the first to introduce such a tariff at the state level.

Massachusetts
Massachusetts has tackled the problem of increasingly unstable energy grids with a plethora of initiatives, reforms and investments. Greentech Media reports that the state has pushed utility companies to take distributed energy and smart grid technology under heavy consideration as they move forward. In fact, the state's Department of Public Utilities ordered companies to adopt smart meters and time-of-use pricing in June. Incorporating these tools into the state's grid infrastructure, especially tools for tracking when peak energy demand is at its highest, will make it easier for the state to take advantage of distributed energy storage. In addition, the state has donated several generous grants to cities investing in sustainable technology. News 10 ABC reports that the state is otal of $7.4 million.

New York
Greentech Media reports that New York's aggressive pursuit of a distributed energy-friendly grid has led to the passing of its Reforming the Energy Vision initiative. The Empire State hopes to put itself on track toward being one of the largest distribution system platform providers in the country. New York has also promised to donate hundreds of millions of dollars toward traditional and distributed energy resources.

New York's commitment to energy efficiency may set a far-reaching precedent beyond increasing the demand for smart power grids. Greater utilization of renewable energy and energy storage solutions will provide enough power to the state to warrant the closing of the Indian Point nuclear power plant. Likewise, the state is developing reserve microgrids that could ease rescue efforts and save lives in times of crisis like during Hurricane Sandy.