Energy Storage, Regulation, Utilities  -  February 19, 2018

Revenue stacking for energy storage comes to California

The California Public Utilities Commission has become the first state regulator to issue revenue stacking rules for energy storage projects.

According to a report in Utility Dive, revenue stacking, the layering of uses for a storage system to allow for more than one revenue stream” is "the Holy Grail for energy storage projects." They explain, "The idea is that the economics of energy storage can be optimized by using its unique characteristics to act as both load and supply, which gives it the flexibility to provide multiple uses or applications, sometimes simultaneously, and therefore layer on more than one revenue stream."

"The new rules will provide a framework for authorizing multi-use applications for energy storage projects that should guide both utilities and developers alike," Alex Morris, vice president of policy for the California Energy Storage Alliance.

The PUC created a list of 11 rules on revenue stacking and established a working group to develop "clear, actionable recommendations" on a number of issues, including the appropriate metering and measurement of multi-use applications as well as PUC enforcement of these rules.

Utility Dive notes, "there will be ample opportunity to work out these new revenue stacking rules in practice as there are several energy storage solicitations in various states of progress."

 

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