Sergio Dueñas, Policy Manager
Grace Pratt, Policy Analyst
As the threats of climate change materialize with increased magnitude and frequency, load-serving entities and regulatory authorities have issued decarbonization goals and, in some cases, analyzed a myriad of potential strategies to attain their targets. This is the context in which most discussions regarding the benefits of energy storage systems (ESS) historically have taken place, with industry experts, academics, and regulators gathering to discuss how different models and methodologies capture what storage assets can provide to the grid and ratepayers at large. These discussions often are centered on how storage can enable increased integration of renewable energy onto the grid and how doing so can accelerate decarbonization in certain areas. Yet, as wildfires and other extreme weather events become more prevalent, additional focus has been directed to the resilience value that ESS can deliver to customers and critical facilities. Now, in light of recent attempts against the integrity of the US’s electric grid, storage’s added resiliency should be seen as a matter of national security.
Since December 2022, there have been at least nine attacks to substations across the U.S., from North Carolina to Washington State and Oregon. The attacks resulted in tens of thousands of people losing power for several hours and, in some cases, days. The effects of these attacks illustrate a key vulnerability of the U.S.’s fragmented electric system. While these attacks do not seem to be coordinated in any centralized fashion and so far appear to be motivated by domestic extremist ideologies, the grid’s vulnerability exposed by these attempts could also be exploited by other bad-faith actors, both foreign and domestic.
Attacks on electric infrastructure have the potential to cause material disruption to the country’s economic system, its telecommunications, and, as electrification expands, its transportation network. While the potential economic consequences of widespread outages are difficult to calculate, the population impact is more quantifiable: For example, as of 2018, at least 2.5 million people in the U.S. rely on medical equipment that requires electrical supply. During outages, they may face life-threatening conditions.
Given our society’s reliance on electricity and the increased likelihood of grid outages for a variety of factors, investing in the deployment of local energy storage is a matter of national security, just as much as it is a matter of sustainability and energy justice. Local energy storage deployments can bring several resilience and reliability benefits to ratepayers and the electric system as a whole, such as:
Blackout protection: ESS can provide backup power during a blackout or other power outages, ensuring that critical infrastructure like hospitals, police and fire departments, and communication networks remain operational.
Grid stability: ESS can help maintain the stability of the electric grid by providing quick-response voltage and frequency support during critical times. These systems can also help integrate variable renewable energy sources like solar and wind power.
Increased reliability: ESS can increase the reliability of the electric grid by reducing the likelihood of equipment failures and other technical issues. By providing a buffer between the grid and customers, ESS can reduce the strain on the grid and help prevent outages and other disruptions.
Cost savings: ESS can help lower customer costs by providing energy during times of peak demand when electricity prices are typically highest. They can also help reduce the need for expensive infrastructure upgrades by providing a flexible and scalable solution to meet energy demand.
Energy storage should be one of the tools regulators and utilities consider as they seek to bolster the resilience of the U.S. electric sector. For these reasons, supporting the deployment of local energy storage is crucial to the modernization of an increasingly decarbonized energy grid. The California Energy Storage Alliance (CESA) supports the deployment of customer-sited storage through the Self-Generation Incentive Program (SGIP) and advocated for $108 million in funding to be released where it is most needed to help disadvantaged communities. Local utility-scale storage, which is crucial to increasing local reliability and resilience, has worked to help expand the market for local energy storage, especially within microgrids. This includes grids serving California’s remote communities and those suffering from wildfire-related outages, as well as novel business models to deploy microgrids at newly constructed communities, increasing community resilience.
As we deploy these assets, storage with longer durations will be increasingly needed to ensure sufficient power during an extended substation outage. CESA has worked to demonstrate the importance of long-duration energy storage (LDES), which led to the creation of the $140 million LDES program at the California Energy Commission (CEC). By supporting local energy storage deployments, we are not only creating a cleaner and more reliable energy future, but we are also protecting customers from security threats by strengthening the resilience of our state's grid. Join us for the continued growth and funding of energy storage programs and deployments, so that we may build a more sustainable and secure energy system for generations to come.