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Grid-Scale Electricity Storage

Grid-scale electricity storage policies require minimum levels of energy storage such as batteries, pumped hydro, or compressed air, to store electrical energy. Typically, storage policies set a minimum level of storage capacity that must be achieved in a target year with clear, annual targets ramping up to the final year value. This additional storage increases the flexibility of the electric grid, enabling a more dynamic balance between variable generation and variable demand.

Because energy storage represents a rapidly developing set of technologies, policies should be technology neutral and focus on acquiring storage capacity at least-cost. Reverse auctions, in which developers submit bids to the body choosing projects, are an effective mechanism for minimizing costs and remaining technology neutral.