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?”Read the full story