Two ingredients are needed to make wind-plus-storage succeed: technical capabilities and a predictable revenue stream that values firmed capacity. New utility and regulatory activity taking place in 2018 is a clear signpost that wind paired with energy storage is poised to emerge at scale in three to five years.
Analysis from Wood Mackenzie Power & Renewables’ new report, The Potential Wind-Plus-Storage Roadmap, introduces new policies from select states, like the proposed wind-plus-storage capacity credit from a utility in Montana and Massachusetts’ new clean peak standard. Other markets, such as Texas, have exceptional wind resources but few mechanisms in place to recognize the value that storing this wind would unlock.
“While the first projects are likely a few years away, wind developers who don’t consider wind-paired-storage in their long-term planning are likely to be left behind as markets adjust and storage costs continue to drop,” said Wood Mackenzie