Summary of ESI target
On August 8, 2016, An Act Relative to Energy Diversity, Chapter 188 of the Acts of 2016 (“Act”), was signed into law by Governor Baker. Section 15(b) of the Act states that, “The department shall adopt the procurement targets, if determined to be appropriate 736 under subsection (a), by July 1, 2017.”
As part of this determination process, the Department of Energy Resources (DOER) solicited written stakeholder input addressing whether Massachusetts should adopt targets for energy storage systems. After careful review and consideration of the comments received, as well as research and analysis in line with the department’s State of Charge energy storage study, DOER has determined that the appropriate next step for the Commonwealth is the adoption of an aspirational 200 Megawatt hour (MWh) energy storage target for electric distribution companies to procure viable and cost-effective energy storage systems to be achieved by January 1, 2020.
The Act further requires that each electric distribution company submit a report to DOER no later than January 1, 2020 detailing how they have complied with the energy storage target set by the department. To better understand the achievement of the target, DOER has asked that the electric distribution companies submit annual reports beginning on January 1, 2018. DOER has requested that the reports include information on the amount of energy storage procured by each company, the cost-effectiveness of the energy storage projects undertaken, how wholesale market opportunities were identified and monetized, and for any recommendations for programs and policies to ensure the continued cost-effective deployment of energy storage. Based on lessons learned from this initial target, DOER will determine whether to set additional procurement targets beyond January 1, 2020.