The year 2013 saw many new technologies taking shape in terms of the grid storage of energy for both the utility and consumer side. For instance, some states managed to achieve as much as 1.3 Giga Watts of storage, whereas the customers also started using residential and commercial systems capable of storing energy.
Though grid storage is rapidly gaining popularity, it has yet to be seen if it can compete in terms of the economy. All these technologies incur costs, and decreasing them is actually an important goal. The Department of Energy has made it their aim to save energy at a rate of $250 per kilowatt, but even today, there exists only a limited number of systems which can achieve this. While this is just one aspect, the other side of the picture also indicates that energy storage systems can actually be a source of savings in the long run. In this regard, here is what 2014 is probably going to hold for the grid storage industry.
The ‘behind the meter’ storage is an attractive arena from an economic point of view. The demand charges are evaluated by considering the maximum power that is drawn from the grid at a single time instead of the total amount consumed. Demand charges play a role in allowing the utilities to cover cost for their fixed power delivery, which is represented by the peak power need at any instant. At times, the same concept is just used to earn greater revenues.
Analyzing the US market, it can easily be seen that demand charges are increasing whereas energy rates are going down.
At both a residential and commercial level, there are many customers that have installed a PV system so as to reduce their electric bills. Though these systems can be used at any time of the day, they are more commonly utilized when power rates are high or power consumption is more. The year 2014 will see more of these systems being utilized.
Frequency regulation is fairly important if efficient grid storage is to be achieved. Grid stability can be controlled by quick reacting power sources. Their importance can be emphasized with the fact that any consumer that utilizes these will actually be rewarded by the federal government. In 2014, many consumers will be using these so as to gain these incentives.