Final November, the legislature handed an power invoice that, amongst different issues, requires a large build-out of huge battery power storage methods (BESS). We at the moment are seeing the wheels in movement as the primary necessities of this battery mandate come into play. The Division of Vitality Assets (DOER) is transferring to “facilitate” the speedy deployment of billions of {dollars}’ value of grid battery initiatives. At a time when utility payments are already a high concern for working households, it’s value noting that ratepayers will foot a lot of this invoice, although precisely how stays unclear. The fundamental premise that these batteries help the choice power transition is fake. This bureaucrat-mandated program is a feel-good gesture that might be very costly and regionally harmful.
The deal itself is quite unusual. The legislation says “…each distribution firm shall, in coordination with the division of power assets, collectively and competitively solicit proposals for power storage methods…”
At first look, it feels like utilities are shopping for these large battery power storage methods, however the nice print says in any other case. They don’t seem to be shopping for batteries, and even the electrical energy these batteries may ship on this preliminary spherical. What they, and finally ratepayers, are literally shopping for are the so-called Renewable Vitality Certificates (RECs) these batteries will obtain after they output electrical energy. They could additionally purchase federal tax credit and different so-called “environmental attributes” below the legislation.
In different phrases, a part of the acquisition is just subsidies. The thought is that this monetary help will spur builders to construct an enormous quantity of storage in Massachusetts. Below the brand new legislation, the primary Request for Proposals, protecting as much as 1,500 MW of BESS, was simply issued.
However the idea is essentially nonsensical. Wind and photo voltaic turbines get RECs after they produce electrical energy, however batteries don’t produce energy, they solely retailer power (at a loss) that was generated elsewhere.
There are two doable methods these huge batteries and their RECs might function. Within the first, the saved electrical energy comes from fossil fuels. In that case, battery RECs would basically be awarded for fossil-fueled power. In any case, Massachusetts imports a lot of its electrical energy from fossil fuels. In 2023, Massachusetts generated slightly below 20 million MWh of electrical energy, 63% of it from pure gasoline, whereas consuming greater than 50 million MWh general. Which means many of the battery enter electrical energy will probably be fossil-based.
However, if the batteries do retailer renewable power, these renewables have already acquired RECs. That quantities to double-counting. In neither case ought to battery output qualify for RECs that ratepayers should pay for.
The prices don’t cease there. Shopping for the environmental attributes doesn’t cowl the price of the precise BESS, it’s solely a stimulus cost. These batteries will nonetheless be operated as money-making initiatives, with homeowners anticipating full value restoration plus revenue. All of that can come from ratepayers.
The worth tag is staggering. The preliminary 1,500 MW alone will value many billions of {dollars}. These are 30-year buy contracts, but a typical BESS lasts solely about 10 years, which means full substitute prices, probably a number of instances, are inevitable. And that is solely the start: the brand new legislation mandates an unbelievable 5,000 MW of storage procurement over the subsequent three years.
There’s additionally deep ambiguity that makes prices unpredictable. The legislation specifies MW (megawatts) of discharge capability, not storage capability, which is measured in MWh (megawatt hours). It permits a variety of 4 to 10 MWh of storage per MW of discharge. Which means the 1,500 MW might symbolize wherever from 6,000 to fifteen,000 MWh of storage and value is set by MWh, since that dictates the quantity of chemical substances required. We might not know the true value till bids are in and contracts awarded.
Then comes the query of location. Each mission will need to have a web site. The allowable dimension vary is 40 to 1,000 MW. In layman’s phrases, it ranges from very giant to huge. The largest battery complicated within the nation in the present day is below 800 MW. Even a 40 MW mission would imply about 40 tractor-trailer sized battery containers. On the smaller finish, the state might see greater than three dozen such initiatives scattered throughout communities. And as cities are discovering, the brand new legislation makes it tougher for locals to cease them.
Security is one other main concern. Regardless of enhancements in know-how, container-sized batteries can burn or explode with out warning, with one incident triggering others in a sequence response. This phenomenon, referred to as thermal runaway, is harmful and troublesome to include. The well-known Moss Touchdown fireplace concerned simply 350 MW, but its flames might be seen for miles.
The RFP says little or no about security past generic “be protected” boilerplate. For instance, there are not any restrictions on putting huge battery complexes close to inhabitants facilities or weak infrastructure. This ought to be a critical consideration in mission choice.
Total, this mandated battery program is dear, pointless, and regionally hazardous. It’s time for the legislature to place ratepayers first and cross power coverage with their finest curiosity in thoughts, not feel-good bureaucratic experiments.
Laurie Belsito is Coverage Director at Massachusetts Fiscal Alliance
