State Democratic lawmakers have introduced legislation to codify energy storage goals outlined in Gov. Gretchen Whitmer’s climate action plan that bill supporters say is crucial to accompany more renewable energy generation coming online.
House Bill 4256, sponsored by state Rep. Jenn Hill, D-Marquette, would require state-regulated utilities to have a combined 2,500 megawatts (MW) of battery storage capacity in operation statewide by 2030. The bill is co-sponsored by 19 other Democrats.
Experts say energy storage is increasingly important for the power grid as utilities grow the amount of renewable energy in their portfolios to store electricity when wind turbines or solar panels aren’t producing. As well, clean energy advocates say long-duration battery storage can reduce the state’s reliance on natural gas peaker plants that operate during periods of peak demand.
“The future of the grid is going to require a lot of energy storage,” said Justin Carpenter, director of policy for the Michigan Energy Innovation Business Council (MEIBC). “As we build out renewable energy generation across the state, the more storage we have gives us some backup in cases when the renewable generation won’t be producing at its peak capacity.”
Carpenter added that energy storage, which can take several forms and duration depending on the technology, can help with load stability and efficiency during demand shifts.
“As we have more electric vehicles coming, it’s important to have a lot of excess storage if demand gets a little more volatile throughout the day,” he said.
Whitmer and the state’s largest utilities each have outlined goals to grow Michigan’s energy storage capacity. H.B 4256 mirrors Whitmer’s MI Healthy Climate Plan goal of 2,500 MW of storage capacity statewide by 2030, a target suggested in an energy storage roadmap that the MEIBC helped to produce for the state.
Jackson-based Consumers Energy and Detroit-based DTE Energy have outlined energy storage goals in their long-term plans, known as integrated resource plans (IRP). Consumers plans 75 MW of storage by 2027 and 550 MW by 2040. DTE’s latest plan proposes building more than 1,800 MW of energy storage by 2042.
However, neither Whitmer’s climate plan nor the utility IRPs would mandate such energy storage goals, similar to a renewable energy portfolio standard, as H.B. 4256 aims to do.
Consumers spokesperson Brian Wheeler said in an emailed statement that the utility is “still reviewing the specifics of this legislation and its implications for Michigan.”
“We at Consumers Energy believe storage will be an important part of Michigan’s energy future,” Wheeler said. “Our state has a strong integrated resource planning process that requires energy providers to evaluate all forms of energy, including storage. … We are currently evaluating where storage makes the most sense for Michigan and will work with the Michigan Public Service Commission to ensure these resources benefit all Michigan customers.”
A DTE spokesperson declined to comment on the pending legislation.
H.B. 4256 defines an energy storage system as “any technology that is capable of absorbing energy, storing that energy for a period of time, and then redelivering that energy.”
Carpenter notes that this makes the bill “technology neutral” and supportive of the various types of storage options, such as iron-oxide batteries, lead-acid, flywheel storage, and even underground pumped storage via abandoned mines.
“There are a lot of opportunities going forward,” Carpenter said. “It will really help with grid stability and cost savings.”
The bill also would require state-regulated utilities to contract for at least half of their energy storage capacity rather than allowing them to own all of it, opening potential business opportunities for third-party developers.
“That really helps encourage a better economic environment for innovation,” Carpenter said. “It will help keep up with what’s been happening with the dramatic drop in energy storage prices.”
Clare-based Advanced Battery Concepts LLC is among Michigan manufacturers aiming to capitalize in the space as utilities turn to more renewable energy. The company is in the process of raising $50 million to scale up production of its lead-acid battery technology, MiBiz previously reported.
