The Strong Case for Thermal Energy Storage and Utility Incentives

Abstract

With the general increase in electricity rates, commercial and industrial customers have become strongly motivated to seek innovative methods of achieving reductions of their electric bills. At the same time, utilities have been faced with rising construction costs, more stringent regulations, and increasing environmental constraints regarding development of new generating facilities. As the thermal cooling storage technology has matured, more and more utilities are recognizing that widespread use of cool storage will provide an inexpensive alternative to new generating capacity. Every megawatt of load shift from peak to off-peak hours is equivalent to a megawatt of new generating capacity. This paper will review the state-of-the-art of cool storage technology, the economic benefits and utility programs designed to encourage the application of cool storage systems.