A northeast investor-owned utility sought expert assistance in preparing written comments regarding rate design and compensation for energy storage projects (ESPs), including compensation for avoided transmission and distribution costs and access to wholesale energy markets.
Working with a multi-disciplinary client team, Concentric developed initial and reply comments that provided an analytical framework for Commission Staff to assess the price that storage projects should pay for access to and use of the grid, sources of value provided by energy storage, and compensation for the value provided from the utility or wholesale markets. The framework distinguished among three ESP configurations:
- Co-located with large scale renewable generation (Co-located Storage)
- Behind-the-meter (BTM Storage)
- Front-of-the-meter grid storage (Grid Storage)
The comments also addressed several issues that impact the long-term value of energy storage for utilities, including utility ownership, integration of storage into the utility Intelligent Distribution System Platform, storage as part of a competitive non-wires solution, and alternative rate designs, including the role of time-of-use rates in creating value for energy storage projects.