DES systems consist of small, stationary batteries installed in neighborhoods, buildings, homes and electricity substations, which can be networked together using smart grid communications technology. DES systems reduce blackouts and brownouts, permit greater use of variable, renewable energy resources such as wind and solar, and help reduce dependence upon imported petroleum. The coalition was assembled by the National Alliance for Advanced Technology Batteries (NAATBatt).

Although DES technology exists today, few such systems have been deployed and electric utilities have little experience dealing with complex DES systems on the grid. The white paper points out that the way that DES systems are paid for discourages their deployment.

Because DES systems are installed on the distribution portion of the electricity grid—in homes, communities and buildings—local utility ratepayers must pay for all of the costs of DES deployment. But those same ratepayers receive only a portion of the benefits of local DES systems, since many of the benefits accrue to persons outside the local service territory.

The white paper identifies three national, non-local benefits of DES systems:

• greater security of the national power grid;
• helping states achieve their renewable energy mandates; and
• reducing dependence on imported petroleum by making electric vehicles more affordable to consumers.

The white paper makes six recommendations for speeding deployment of DES systems:

1. Establish a coordinated program of geographically diverse, small, and fast-to-implement demonstration projects that will help electric utilities to gain experience with DES systems, standardize their design and applications, and demonstrate their value proposition.

2. Create a policy mechanism that will enable local electricity ratepayers to recover the “national interest value” of DES systems in which local ratepayers invest.

3. Establish a coordinated nationwide approach to DES regulatory treatment that will permit DES system operators to be compensated for the full range of grid benefits they provide and include standardized interconnection.

4. Continue to coordinate with existing energy storage standards development process and help inform standardization of battery testing for grid applications.

5. Continue to fund research, development and deployment (RD&D) to reduce DES costs, including cell chemistry, materials and manufacturing, packaging, thermal components, and balance of plant-related costs such as power conversion, interconnection, communication, controls, and protection.

6. Implement a national outreach campaign to educate stakeholders about the benefits of DES systems.

NAATBatt is a trade association of advanced battery and materials manufacturers dedicated to making sure that the United States remains a leader in advanced battery, electric vehicle and smart grid technologies.