• Energy storage can provide significant benefits for the energy grid, renewable energy generators, ratepayers and the Massachusetts economy. Energy storage technologies have massive market potential in the Commonwealth, U.S. and global markets and the Energy Storage Initiative aims to make Massachusetts a national leader in the deployment and effective use of these innovative energy technology solutions.

    Program Goals

    The goal for the Energy Storage Initiative is to advance the energy storage segment of the Massachusetts clean energy industry by:

    • Attracting, supporting and promoting storage companies in Massachusetts
    • Accelerating the development of early commercial storage technologies
    • Expanding markets for storage technologies, and valuing storage benefits to clean energy integration, grid reliability, system wide efficiency, and peak demand reduction
    • Recommending and developing policies, regulations and programs that help achieve those objectives.

    The ESI aims to find the most cost efficient and effective way to help transform the market. The Department of Energy Resources (DOER) will utilize the $10 million allocation from the 2014 Alternative Compliance Payment (ACP) Spending Plan for energy storage to pursue a multi-pronged approach to establish an energy storage market structure as well as build strategic partnerships and support storage projects at the utility, distribution system, and customer side scale.

    The ESI will include a two-part study, a market signals assessment and demonstration projects.

    Energy Storage Study

    DOER is partnering with the Massachusetts Clean Energy Center (MassCEC) on a two-part study that will analyze the storage industry landscape, review economic development and market opportunities for energy storage, and examine potential policies and programs that could be implemented to better support energy storage deployment in Massachusetts. The study will also provide policy and regulatory recommendations along with cost-benefit analysis for state policy makers. 

    By integrating with and building upon the Energy Storage Study, DOER can identify target areas for further analysis, particularly in-depth cost benefit analysis, and more thoroughly assess different market mechanisms. This process will include:

    • Engaging stakeholders such as ISO-NE, utilities, the Massachusetts Department of Public Utilities (DPU), DOER, industry, U.S. Department of Energy (DOE) labs, and other interested parties
    • Assessing specific and targeted policy options identified in the Energy Storage Study and conducting further cost-benefit analysis
    • Evaluating impacts on ratepayers, the grid and emissions
    • Incorporating concepts from the utility grid modernization plans, in order to establish how grid constraints and the plans can inform DOER’s strategy. This can be a two-way process where DOER can also help improve utility understanding of the potential of energy storage

    Energy Storage Stakeholder Input Process  

    On October 30, 2015, the energy consultant team conducting the Energy Storage Study held an energy storage stakeholders meeting to identify and evaluate the appropriate value of the services energy storage can provide to ratepayers and the grid. 

    Presentations from the October 30 Stakeholder Workshop can be downloaded here: 

    Notes for each of the four breakout groups are available here:

    • Wholesale Markets/Transmission - Link
    • Utility Applications – Distribution - Link
    • Behind-the-Meter/DER - Link
    • Energy Storage Technology Developers - Link

    On December 15, 2015, the energy consultant team held an Energy Stakeholder Update Webinar to provide an update on the progress of the Energy Storage Study.  The presentation from the webinar can be downloaded here: ESI Webinar pdf format of MassCEC DOER Webinar 2015-12-15 Presentation
file size 1MB

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    Market Signals Assessment

    DOER will conduct a Market Signals Assessment, convening stakeholders to identify and evaluate the appropriate value of the services energy storage can provide to ratepayers and the grid. By integrating with and building upon the Energy Storage Study, DOER can identify target areas for further analysis, particularly in-depth cost benefit analysis, and more thoroughly assess different market mechanisms. This process will include:

    • Engaging stakeholders such as ISO-NE, utilities, the Massachusetts Department of Public Utilities (DPU), DOER, industry, U.S. Department of Energy (DOE) labs, and other interested parties
    • Assessing specific and targeted policy options identified in the Energy Storage Study and conducting further cost-benefit analysis
    • Evaluating impacts on ratepayers, the grid and emissions
    • Incorporating concepts from the utility grid modernization plans, in order to establish how grid constraints and the plans can inform DOER’s strategy. This can be a two-way process where DOER can also help improve utility understanding of the potential of energy storage

    Demonstration Projects

    The third area of focus is support for demonstration projects over a range of application scales – utility, distribution system and behind the meter (BTM) – in Massachusetts. To do this most effectively, DOER proposes to establish strategic partnerships with key market players, like Massachusetts-based storage and clean energy industry, DOE national laboratories, ISO-NE, Massachusetts distribution utilities and municipal light plants, as well as within existing DOER and MassCEC programs, and with other state agencies engaged in storage.

    Future Opportunities

    The program approach outlined above identifies Massachusetts’ initial steps in creating what participants hope will be a robust energy storage market that will serve ratepayers and grid resiliency going forward. DOER plans to continue to work with all of its stakeholders to develop future opportunities.

    Resources and Related Projects

    • Energy Storage Study Request for Proposals – Open solicitation for consulting services to support MassCEC and DOER’s Energy Storage Study
    • Grid Modernization – Information on the ongoing grid modernization process and plans
    • Distributed Generation – Working group information providing updates on relevant distributed generation issues in Massachusetts.
    • Community Clean Energy Resiliency Initiative – This $40 million initiative was part of the Commonwealth’s broader climate adaptation and mitigation efforts. It is a grant program focused on municipal resilience that uses clean energy technology solutions to protect communities from interruptions in energy services due to severe climate events made worse by the effects of climate change.