July 31, 2020

ESA and NECEC Propose Pay-for-Performance Program to Accelerate Storage Deployment in Connecticut

ESA and the Northeast Clean Energy Council (NECEC) jointly submitted comments to the Connecticut Public Utilities Regulatory Authority (PURA) today in response to PURA’s request for energy storage program design proposals in Docket No. 17-12-03RE03. NECEC and ESA proposed a pay-for-performance energy storage program to reduce peak demand and provide compensation for local grid and system benefits. This proposal is modelled on successful programs in Massachusetts and New Hampshire.

Key program elements include: (1) Eligibility for front-of-the meter (FTM) or behind-the-meter (BTM) resources in either co-located or standalone configurations, with set-asides for projects below 1 MW and for residential customers; (2) Program targets of at least 80 MW in 2020, rising to a cumulative 580 MW in 2030, with interim targets; (3) Compensation based on resource performance and calculated from avoided costs of wholesale service, transmission, and distribution; and (4) Tariff availability for up to twenty years, with the compensation level set over a ten-year term, subject to performance.

In our comments, ESA and NECEC note that the proposed compensation program for energy storage services is complementary to incentive programs that may also help achieve the levels of deployment envisioned in HB 5351, which calls for 1,000 MW of energy storage by 2030. ESA and NECEC emphasize that this a cost-effective program design that will help jumpstart Connecticut’s clean energy economy by accelerating energy storage deployment in the state, while maximizing net benefits to all Connecticut customers.

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