[ridgeguy]

The growth of distributed solar + storage (i.e., zillions of residences having 10kW arrays and 25kWhr storage) is accelerating. Projections I've seen suggest that this distributed storage (which doesn't belong to the power companies) will be far larger than utility-scale storage such as discussed in the article. This presents real challenges in how to control that distributed storage and pay its owners for storage-related grid services.

[bjelkeman-again]

Why can't it just be a feed-in tariff? And if the consumer can consume using the network they can produce, in the other direction. The cable runs both ways, no?

[ridgeguy]

It can be, but that doesn't capture the value a consumer with fast response, controllable generation/storage supplies to the grid. Compensating the consumer for power or storage they supply at a particular time is complicated.

Existing net metering pays a fixed rate for power supplied to the grid by, say, a solar-equipped residential grid customer.

But in fact, fast response power delivered to the grid when the grid managers call for it commands much higher prices in the dynamic electric power market. So does the ability to store power on demand (absorb power from the grid), when generation briefly exceeds supply.

So imagine a residential grid customer with local solar + storage that's controllable by the ISO (grid managers). Rather than net metering (a fixed feed-in tariff), the ISO should pay instantaneous market rate for power delivered, or absorbed by, the residential grid customer.

I think we'll soon converge on bidirectional power delivery/sink services that are controlled by either the ISO or perhaps by local smarts on the resident's grid-tie interface. That would engage the resident's system as a grid stability enhancement tool, and would bring more revenue to the resident than simple feed-in tariff schedules. One assumes the resident would participate by an opt-in choice in exchange for enhanced revenue.

[bjelkeman-again]

Thanks, very informative. The biggest challenge seem to be that the current people running both te grid and power companies are so conservative that they seem to be the biggest blocker against something line this being created.

[aharonovich]

IMO It only seems that way. They do their best to stay on top of all new technology, but as consumers are used to very high level of service (>99.99%) they can afford few risks if any.