Battery Storage: The Fast Solution to Midwest Grid Capacity Crisis

Battery energy storage has become a key component of the energy transition, said Bobby Butler, director of sales at ELM Microgrid.

Butler recently sat down with Rod Walton, managing editor of Microgrid Knowledge and EnergyTech, to explore why the technology is now an essential capacity-adding asset for the grid, especially in the Midwest.

“The grid really is changing dramatically and quickly,” Butler told Walton. He said many credible sources are concerned that MISO and PJM are at risk of brownouts and blackouts in the coming years, fueled by retiring assets, long interconnection queues and surging demand. “And then when you stack extreme weather patterns on top of that, it is a recipe for problems,” he added.

To combat these challenges, utilities, regulators and other stakeholders are increasingly advocating for the rapid integration of battery energy storage into the core grid infrastructure.

Butler pointed to Illinois, where the state’s Clean and Reliable Grid Act mandates that three GWh of battery storage must be installed statewide by the end of 2030.

The technology is very attractive to utilities because it delivers a quick return on investment. “The ROI for these is incredible…one year, two years, very dramatic for relatively large deployments,” he said.

Fast-to-deploy, flexible capacity

Beyond ROI, battery storage is also a fast-to-deploy capacity resource that can stabilize the grid and bridge the time gap between legacy generation retirements and new builds.

“We need energy as fast as we can from all sources, and storage is a key component,” Butler said, noting that systems can be deployed in a year or two, which is considerably faster than the time it takes to build and commission a traditional power plant.

No longer just an add-on to renewables, battery storage can be paired with any generation source to strengthen and improve efficiency — even nuclear or gas-fired power plants.

Batteries also provide flexibility to the grid, which is becoming increasingly dynamic. By charging or discharging based on demand, batteries provide both firm and flexible power, enhancing the grid’s reliability.

Because storage is a pure capacity play, it is attractive to electric cooperatives, which often cannot generate electricity. While they may not be allowed to install a generator or even solar, they can add storage capacity to reduce costs and help keep the lights on in the communities they serve. 

“They add a safety net that’s needed,” Butler said.

Policy and regulatory changes are needed

Butler and Walton also discussed necessary policy and regulatory changes to ensure battery storage can address looming capacity shortfalls.

Butler stressed the need for a faster interconnection process and a clearer definition of the value of energy storage and of long-term national goals.

“A long roadmap of what we need to do and how we can accomplish it is very key,” he said.

You can watch the full video here.

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