Energy Storage: A Global Opportunity And Regulatory Roadmap For 2023

March 2023

The renewable energy industry continues to view energy storage as the answer to its problem of how to maintain grid reliability with only sporadic energy production. Energy storage can transform intermittent clean energy—primarily derived from wind and solar—into a reliable source of 24/7 generation. As a result, energy storage has seen tremendous policy support from the public sector, including through federal investment tax credits in the United States, as well as a large influx of capital from private investors seeking environmental, social, and governance (ESG) focused investments.

The market for energy storage has grown on the coattails of the growth of renewable energy. But increasing costs, supply chain strain, competition with the EV market, and production delays may cause complications for the growing market. In this high-level report Morgan Lewis lawyers discuss the growth of the energy storage market, near-term issues and concerns, and global opportunities for 2023.

Read our summary report, The Rise of Energy Storage >>

Key Considerations for Utility-Scale Energy Storage Procurements

It’s generation . . . it’s transmission . . . it’s energy storage! The renewable energy industry continues to view energy storage as the superhero that will save it from its greatest problem—intermittent energy production and the resulting grid reliability issues that such intermittent generation engenders.

Project Financing and Energy Storage: Risks and Revenue

The United States and global energy storage markets have experienced rapid growth that is expected to continue. The rapid growth in the energy storage market is similarly driving demand for project financing.

Global Energy Storage Trends in the EU, Türkiye, and the UK

Trends in energy storage around the globe include regulations and initiatives in the European Union, incentives in Türkiye, and the UK government’s push for new energy storage projects.

Storage Strategies: An Overview of State Energy Storage Policy

In recent years, the United States has enacted significant legislation that will spur greater development of domestic renewable energy resources. In addition, President Joseph Biden has also set a number of goals relating to renewable energy development.

Storage Participation in Wholesale Markets

Regulatory developments include FERC’s orders on electric storage resources participating in the wholesale markets, qualifying facility eligibility, and reliability rules for inverter-based resources.

New Tax Credits and Monetization Opportunities for Energy Storage Have the Chance to Revolutionize the Industry

The Inflation Reduction Act of 2022 enacted a wide range of legislation. Specific to energy storage, the act’s changes to the Internal Revenue Code of 1986, as amended, have the potential to be a game-changer for the energy storage industry in the United States.

Intersection of Electric Vehicles and Energy Storage

Efforts to electrify the US transportation sector are strong—and growing. This growth over prior years affirms that policy efforts to encourage EV deployment are taking root and that consumer appetite for electrified transportation is growing.