WHEREAS, an
Energy
Storage
System
is
a technological
device or group of devices
that
store
energy
generated
from
various
sources,
like solar or
wind power, so
it can be
used later when
needed, essentially acting
as
a buffer
to balance
electricity
supply
and
demand by
storing excess
energy during
peak production
periods
and
releasing it
during high
demand
times;
and
WHEREAS,
Energy
Storage
Systems
provide
several
benefits
for
electric
grids,
including:
grid
stabilization
by
managing
peak
demand, providing
backup power
during
outages, reducing
electricity costs
by
storing energy
during
low
demand
periods, and
overall enhancing
grid resilience, allowing
for more
efficient and
reliable power
delivery
by
adjusting
supply to
meet
demand fluctuations,
and
enabling the
grid
to withstand
periodic
shocks
and
stressors;
and
WHEREAS,
Energy
Storage
Systems
can
provide
substantial
cost-savings
to
commercial
and
industrial
electricity
customers
who
can
deploy
on-site
energy storage
to
reduce
their
electricity demand
and
associated
demand
charges,
which
are
generally based
on their
highest observed
levels
of
electricity consumption
during peak
demand
periods;
and
WHEREAS,
Energy
Storage
Systems
result
in
savings
to
residential
electricity
customers
by
flattening
electricity
demand
and thereby
reducing peak electricity
demand charges, in addition to benefitting the supply of electricity in the PJM transmission region, to which Delaware belongs;
and
WHEREAS,
localized
pockets
of
increasing
electricity
demand
sometimes
require
electric
utilities
to
upgrade
existing
or
build
new,
expensive
substations, and
power
transmission
and
distribution lines.
Energy Storage Systems
at
strategic
locations
on
the
grid
can help
utilities
to manage
growing electricity
demand
at lower
cost than
upgrading
or expanding
electric
grid
infrastructure,
r
esulting
in
savings
to
electricity
customers;
and
WHEREAS,
Energy Storage
Systems
provide greater
and more
effective use of
intermittent solar
and wind
energy
resources.
Pairing
or
co-locating
an
on-grid
Energy Storage System
with
solar
and
wind
energy
power
generators
allow
them
to
respond
to s
upply
requests
from
electric
grid
operators
when
direct
generation
from
solar
and
wind
resources
is
not
available
or
limited.
A
lternatively,
an Energy Storage System
can
help solar
and
wind power
plants
avoid reducing
or
curtailing generation
when
the
availability
of
those
resources
exceeds
electricity
demand
or
power
transmission
line
capacity
or
as
required
by
grid
operators;
and
WHEREAS, Energy Storage Systems commonly involve the use of batteries, and, more recently, hydrogen, but can also involve technologies like compressed air or pumped hydro storage; and
WHEREAS, utility-scale battery energy storage systems have been growing quickly as a source of electric power capacity in the United States in recent years. In the first seven months of 2024, operators added 5 gigawatts (GW) of capacity to the U.S. electric power grid. In 2010, only 4 megawatts (MW) of utility scale battery energy storage were added in the United States. In July 2024, more than 20.7 GW of battery storage capacity was available in the United States; and
WHEREAS, the construction of Energy Storage Systems in Delaware will promote economic development by providing a safer and more reliable electricity supply to Delaware businesses and residents, thereby increasing economic growth and spurring job creation
.
NOW, THEREFORE:
BE IT RESOLVED by the Senate and the House of Representatives of the 153rd General Assembly of the State of Delaware, with the approval of the Governor, that the Delaware Sustainable Energy Utility (“DESEU”) is directed to initiate and undertake a study to assess and analyze the costs and benefits of the adoption of Energy Storage Systems, both in front of and behind the meter. All electric public utilities in Delaware shall participate in and cooperate with the DESEU study.
BE IT FURTHER RESOLVED that in the design and execution of the Energy Storage System study, the DESEU will work with the State Energy Office, the Delaware Public Service Commission, the Division of the Public Advocate, experts at the University of Delaware, the electric public utilities in Delaware, including the Delaware Municipal Electric Corporation and the Delaware Electric Cooperative, and other interested stakeholders.
BE
IT
FURTHER
RESOLVED
that
the feasibility study shall include, but is not limited to: regulatory issues, the potential value of battery storage for demand reduction, the use of battery storage to avoid or defer investments in distribution and transmission infrastructure, and the incremental benefits of storage when paired with renewable energy systems. The study shall also identify grid service value streams provided by battery storage systems, including local peak demand reduction, resilience, and voltage stabilization, with transparent methodologies for quantification. The
DESEU
study
shall
also
explore,
among
other
related
topics,
the
following:
a)
the
use
of energy storage,
both in front
of and behind
the meter, b) the
value of storage
to the electric
grid, c) where
storage
may
best be
placed, for
example at
transmission or
distribution points, d) any land use, environmental, and community impact considerations associated with Energy Storage Systems, e) the
legal
issues
that may
need to
be
addressed
in accommodating Energy Storage Systems in communities, f) making the
best use of
energy storage, g)
competitive procurement
under different ownership frameworks, h)
energy
storage credits,
i) market-
based
incentives
and
mechanisms to assure broad participation of all demographic and income groups, and
j)
any
other
mechanism
that
the
DESEU
determines
is
appropriate
to
study
the
adoption
of
beneficial,
cost-
effective
Energy Storage
S
ystems in
the State
.
BE IT FURTHER RESOLVED that each of the electric utilities engaged in the DESEU study are encouraged to develop and implement a customer outreach program to raise awareness of battery storage benefits and incentives.
BE IT FURTHER RESOLVED that the DESEU shall work with Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, the Delaware Electric Cooperative, and one independent power producer to conduct a pilot program whereby each of these entities develop and deploy at least one pilot project involving battery storage systems.
BE IT FURTHER RESOLVED that the DESEU will provide guidance and a level of funding, in an amount to be determined by the DESEU in its discretion, to Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, and the Delaware Electric Cooperative, to develop and deploy each of the projects involving battery storage systems. Pilot projects should prioritize addressing specific grid challenges, such as peak load reduction, resilience, and hosting capacity improvements. Delmarva Power & Light Company will develop its battery storage pilot project within the scope of the funding received from the DESEU and any available grant funding. Reporting timelines shall allow sufficient time for meaningful data collection to inform future program designs. The battery storage pilot projects may include those already under design, construction, or operation, provided that the funding may only be applied to costs yet to be incurred by the utility.
BE IT FURTHER RESOLVED that, in the study, the DESEU shall evaluate and report on the feasibility of constructing additional energy storage projects in Delaware and the projected amount of megawatts of energy storage that might be constructed by December 31, 2030, or the end of some other delivery year that can reasonably be projected
to allow for adequate analysis of pilot project outcomes and stakeholder engagement. The study shall focus on foundational issues, including the identification and quantification of value streams and a cost-benefit analysis of storage deployment.
BE IT FURTHER RESOLVED that, on or before December 31, 2025, the DESEU shall submit a preliminary status report about the progress of the study and pilot program to the Governor and all members of the General Assembly, with copies to the Director and the Librarian of the Division of Research of Legislative Council, and the Delaware Public Archives.
BE IT FURTHER RESOLVED that, on or before June 1, 2026, the DESEU shall submit a comprehensive report detailing the findings from the battery storage pilot program and the cost-benefit study and analysis of Energy Storage Systems in Delaware to the Governor and all members of the General Assembly, with copies to the Director and the Librarian of the Division of Research of Legislative Council, and the Delaware Public Archives.
