Perhaps the great “missing piece of the energy puzzle” is energy storage. While renewable power has come down in price and is now competitive cost-wise compared to fossil fuel-fired plants, renewable power is still not a consistent source of power. The sun has its limits; wind has its limits. As people and businesses need power, at least one can combust fossil fuels all day or all year long to consistently supply power. If energy storage of excess power developed from renewable power plants can be made feasible and affordable, utility-sized renewable power projects will become commonplace; the market will demand this. Much research is being conducted into achieving this for energy storage and some progress has been made.

How should energy storage units be regulated? A recent petition at the Massachusetts Energy Facilities Siting Board (EFSB) may be a harbinger of such issues. The EFSB oversees transmission lines, gas pipelines, and certain generating facilities; in other words, the management and approval of, cost of, and environmental impacts associated with most significant energy infrastructure in Massachusetts.
In January 2019, Cranberry Point Energy Storage, LLC submitted a request that the EFSB not have jurisdiction over a proposed 150-megawatt, lithium-ion energy storage system in the state because the proposed system is not a “generating facility.” The proposed energy storage unit does not transform one type of energy into electric energy; it merely takes electric energy generated elsewhere, stores it, and then transmits it. Therefore, Cranberry Point does not need EFSB approval to construct and operate the proposed facility, nor can the EFSB regulate its use.

This is a potential double-edged sword for a developer. EFSB’s approval process for energy projects in Massachusetts is often rigorous and adds on to other state permitting processes. One would understand Cranberry Point’s desire to avoid EFSB review. However, EFSB approval of a project has also been used by applicants to counter local opposition to projects (if the project meets EFSB’s tough standards, it must be beneficial). Another concern is if an agency, such as EFSB (or equivalent ones in other states), no longer has jurisdiction to approve or manage an energy storage project, who does? If other aspects of energy infrastructure are subject to public oversight, why should energy storage be exempted? And if not, who is appropriate to decide if such a project is in the public interest and regulate it so it is run reliably and safely?

A decision on jurisdiction is likely within later this year. The debate, as the technology becomes more established, will spread throughout the country undoubtedly.

CCES has the experts to help your company manage your energy usage and sources to provide reliable, affordable power for electricity, heat, and steam. We understand the technologies for you to more efficiently and cost-effectively use power and from reliable, diversified sources. Contact us today at karell@CCESworld.com or at 914-584-6720.