Connecticut Adopts Energy Storage Targets
Connecticut is the eighth state to implement a law around the adoption of energy storage targets. The other states are California, Massachusetts, New Jersey, Nevada, New York, Oregon, and Virginia. In Connecticut, the ultimate goal is to secure 1 GW of energy storage by the end of 2030.
Details on Connecticut’s New Energy Storage Targets
The newly-enacted law, Public Act No. 21-53, requires the Connecticut Public Utilities Regulatory Authority (PURA) to develop programs and technologies designed increase energy storage capacity. These initiatives would cover the gamut from residential to commercial to utility applications.
It may also result in the issuance of one or more RFPs for standalone storage projects, or projects that connect storage technology to transmission and distribution infrastructure, including renewable energy and hydropower facilities with less than 100 MW of capacity.
There are two key reasons why the state is mandating the new energy storage targets. One is in response to Tropical Storm Isaias. PURA was not happy with the public utilities’ restoration performance following the storm, and in fact levied heavy fines, mainly on Eversource. Energy storage is viewed as a way to help mitigate the duration and frequency of outages going forward, especially for low income and other vulnerable residents.
The second reason is that energy storage is viewed as a necessary component of meeting the goal outlined in the state’s 2019 executive order, which targets 100% zero-carbon electric supply by 2040.
The fact that 8 states have already adopted storage targets is indicative of an emerging trend. Overall, the energy storage market is expanding rapidly. According to the Energy Storage Association, 910 MWh of energy storage rolled out in the first quarter of 2021, an eye-popping 252% increase compared to the first quarter of 2020.
In the final analysis, I expect more and more states to adopt their own energy storage targets over the next couple of years, as this will be a critical element of improving resiliency while at the same time addressing renewable mandates.
