Energy Storage: Will the DOE Release Funding Before Turkey Day?
The Department of Energy is expected to announce $600 million in funding to support smart grid initiatives, including energy storage solutions, sometime this month.
On energy storage, investors want to know two things: Does the technology work and can it be profitable? So far the answer seems to be “no” on both questions.
Jay Goldman, a director at Exelon, told a recent gathering of VC investors that he had met a lot of energy storage developers over the past months, but none with a technology able to go commercial anytime soon.
Goldman said:
We’re a long ways away from having large-scale energy storage projects in the regulated markets. It’s too expensive.
Theoretically, energy storage would store green power, generated by wind and solar farms, and then pipe it into the grid at peak times.
There are a couple of energy storage test programs in the U.S., including one led by Pacific Gas and Electric in Alabama and a project jointly led by New Jersey’s PSEG Global and Energy Storage and Power. Both are turning to the government for financing.
For the foreseeable future, when it comes to large-scale energy storage projects, the DOE will continue to be the VC of first resort.
There is one energy storage project you are not aware of as only a few are but ther is much excitement. A company in Upper Michigan has developed a energy storage system that works but the payback to the purchaser is short even without government support. But another huge benefit is there system makes all renewables more attractive financially. Check out there website at elcalresearch.com