Full Title: The Value of Distributed Electricity Storage in Texas: Proposed Policy for Enabling Grid-Integrated Storage Investments
Author(s): Judy Chang, Ioanna Karkatsouli, Johannes Pfeifenberger, Lauren Regan, Kathleen Spees, James Mashal, and Matthew Davis
Publisher(s): Oncor Electric Delivery Company
Publication Date: November 1, 2014
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Description (excerpt):
Due to recent development, electricity storage appears to be on the verge of becoming quite economically attractive. In this context of declining battery costs, Oncor Electric Delivery Company, a Transmission and Distribution Service Provider (TDSP) in Texas, has engaged us to explore the economics of grid-integrated storage deployment in Texas. We evaluate this question first by estimating whether storage could be cost-effectively deployed on the distribution systems in the state from the perspectives of retail customers, wholesale electricity market participants, and the combined system or “society as a whole.” We then evaluate whether new public policies supporting electricity storage in Texas would be needed, given the Electric Reliability Council of Texas’s (ERCOT’s) deregulated market structure, and if so, what policies might be necessary for Texas to realize the full economic and reliability benefits of grid-integrated, distributed electrical energy storage.