The program pays customers with solar who opt to install battery storage systems for the ability to use that stored electricity to help balance flows on the electric grid.
For customers, the benefits come in the form of lower electric bills and backup power in case of an outage. For Rocky Mountain Power, which has 1.2 million customers in Utah, Wyoming and Idaho, the program allows the company to harness the collective power stored in those distributed batteries to shave electric demand when it spikes rather than calling for more generation from a traditional power plant, among other uses.
“We’re using every battery every day to reduce demand on the grid,” Grant said.
The concept is known as a virtual power plant, and grid operators, utilities, state regulators and lawmakers across the country are increasingly exploring the possibilities. They are seen as a cost-effective way to aid an electric grid that in many parts of the country is increasingly embattled by power plant retirements as well as difficulties building new, cleaner generation and the transmission lines they need — all at a time when huge projected electric demand increases loom.
“We’re now in this load-growth era,” said Robin Dutta, acting executive director at the Chesapeake Solar and Storage Association, a solar and storage industry group focused on Maryland, Virginia and Washington, D.C. “When you’re mitigating peak demand growth at the source, that’s perhaps the most cost effective way to modernize the grid.”