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How Big Is the Peak Capacity Market for Batteries?

two years ago

The age of storage serving peak power has only just begun, so the size of that market is very much up for debate.

California has already halted a new gas plant in favor of deploying energy storage in its place. Elsewhere, regulators called on PG&E to acquire storage instead of paying to maintain two existing gas peaker plants. An Arizona utility recently procured a solar and battery project specifically to serve capacity for system peak hours.

These are early signs of a dramatic shift in how the grid gets electricity when demand is highest. “The amount of press written on storage as a peaker replacement has grown tremendously over the last several years,” said Paul Denholm, a researcher at the National Renewable Energy Laboratory. “My concern was, this might be exciting, but is there a real market there?”

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