The use of low-cost energy resources, such as wind, to store electricity can help in balancing the demand and power supply instantaneously.
The U.S. Representative Mike Doyle (D-PA) has presented a bill to start a federal investment tax credit for residential, business and utility-scale use of batteries and other energy storage technologies. The legislation has also been seeking to establish a tax credit of 30 percent for both residential and commercial energy storage by the year 2021.
According to the press release by American Wind Energy Association (AWEA), batteries, pumped hydro, flywheels, thermal storage, compressed air, and other energy storage technologies are reliable and flexible sources for the power grid. The use of low-cost energy resources, such as wind, to store electricity can help in balancing the demand and power supply instantaneously. The stored power can be released during high demand periods.
Tom Kiernan, Chief Executive Officer, American Wind Energy Association (AWEA), reportedly stated that efforts of Doyle to upgrade the U.S. electricity supply by the Energy Storage Tax Incentive and Deployment Act has been appreciated by the association. Including all energy storage technologies in expansion of investment tax credit eligibility will create new clean energy infrastructure investment, increase employment and ensure that electricity supply will be able to cope up with future challenges, he further added.
The benefits of the storage systems will be delivered whether the storage is connected to any energy source or to the grid as an autonomous resource. Although present law only qualifies energy storage for ITC when it is connected to a solar project under certain circumstances. The acceleration in energy storage investment results in flexibilities and market efficiency. This will help in development of new wind farm and create jobs.
For the record, the American Wind Energy Association (AWEA) is a national trade association which represents 1,000 member firms and more than 100,000 jobs in the U.S. economy. The members are global leaders in turbine manufacturing, wind power and energy development, and component and service suppliers.