Rhode Island Passes Energy Storage Bill – pv magazine USA

July 3, 2024 Ryan Kennedy

Rhode Island has passed the Energy Storage Systems Act, which sets procurement goals for energy storage services and requires utilities to create a tariff to price energy storage services.

The bill signed by Governor McKee sets goals of 90 MW of installed energy storage capacity by December 31, 2026; 195 MW by the end of 2028; and 600 MW by the end of 2033. Rhode Island becomes the 11tht state to set policy goal for energy storage development

The Act describes an energy storage system connected to the power system as having the potential to “alleviate time and location constraints on distribution and bulk power systems, including physical, economic, and environmental constraints, and result in lower costs to all energy customers if located in the right place and operated at the right time.”

The Act imposes on energy companies serving at least 100,000 customers the obligation to create a tariff for interconnections, establishing the market value of energy storage, which takes into account the flexibility and availability of storage.

The bill states that in order to ensure a long-term, stable, and affordable electricity supply, “it is imperative that Rhode Island begin acquiring and implementing energy storage systems as an alternative to costly and redundant distribution infrastructure.”

The state’s Public Utility Commission will be required to begin developing a pricing framework by September. The process will include stakeholder engagement. A model pricing framework must be submitted by May 1, 2025.

The Act requires that in assessing the value of storage, the commission take into account time and location constraints in distribution and bulk power systems, including physical, economic, and environmental constraints that increase costs to general taxpayers.

Popular content

If energy storage is found to meet the needs of the distribution system or main power system or to provide net value to customers, utilities will be required to purchase the energy storage through a competitive tender.

The bill also directs the Rhode Island Infrastructure Bank to develop programs to distribute funds to achieve energy storage capacity goals. The Infrastructure Bank program will provide grants, no-interest loans, and low-interest loans to support the colocation of energy storage systems with distributed energy resources or energy storage systems that would enable the interconnection of distributed energy resources without the cost of upgrading the distribution system. These funds will be made available to local distribution companies that serve fewer than one hundred thousand customers.

“The transition to renewable electricity means we will need structures — both physical and regulatory — to store energy. This bill sets out specific goals and roadmaps to build a resilient grid that can accommodate the green energy transition that is happening now,” said Rhode Island Senator Dawn Euer.