DOE gives $17.1 million energy storage grant


NFPA 70B Training - 2026 Edition - Electrical Maintenance Program Compliance

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today

Grid Energy Storage integrates intermittent wind and solar into the smart grid using lithium-ion batteries, pumped hydro, and compressed air, enabling frequency regulation, DOE-backed projects, and lower carbon emissions while improving reliability and flexibility.

 

Essential Takeaways

Technologies and systems that store electricity to balance supply and demand on the smart grid and integrate renewables.

  • DOE funds AES 20 MW lithium-ion grid battery in New York
  • Cuts frequency regulation emissions by up to 70 percent
  • California mandates utility energy storage targets
  • PG&E pilots CAES and pumped hydro for peak shifting
  • Tesla and SolarCity test home solar battery storage

 

Energy storage isn’t as sexy as solar projects that offer opportunities to cut ribbons on shiny futuristic technology. Nor does it attract the billions in federal loan guarantees and incentives awarded to wind farms and photovoltaic power plants.

 

But utilities and the government are increasingly recognizing that energy storage systems are crucial to integrating intermittent renewable energy projects into the smart grid.

Hence the United States Department of Energy’s finalization of a $17.1 million grant to utility AES to build a 20 megawatt lithium ion battery storage system using A123 Systems’ technology.

The battery packs will be installed at an AES facility in Johnson City, N.Y., and used to smooth out fluctuations in the power grid. Rather than burn fossil fuels to balance supply and demand, renewable energy from wind, solar or other renewable sources can be stored in the battery systems and released when needed.

That could reduce carbon emissions from so-called frequency regulation by 70 percent, according to the Energy Department.

“The AES project helps reduce carbon emissions and strengthens our energy infrastructure by allowing for more renewable energy sources like solar and wind to contribute to the electrical grid,” Energy Secretary Steven Chu said in a statement. “Bringing more efficiency and reliability to the grid will help cut costs for consumers and power a cleaner energy future.”

California enacted a law this year mandating that regulators determine the amount of energy storage the state’s three big investor-owned utilities should be required to maintain.

Utility PG&E, for example, is planning a pilot project to tap electricity generated during peak wind farm production to pump compressed air into an underground reservoir. When demand spikes, the reservoir would release the air to run electricity-generating turbines, which are capable of producing 300 megawatts of power.

The utility has also proposed building a “pumped hydro” storage system, which would transfer water from one reservoir to another reservoir at a higher elevation during times of peak renewable energy production. Water in the upper reservoir would then be sent back downhill to power a turbine when electricity demand begins to rise.

In September, the California Energy Commission funded a pilot project proposed by Tesla Motors and SolarCity, a Silicon Valley photovoltaic panel installer, to store electricity generated by residential rooftop solar systems in lithium ion car batteries for use during peak demand. The Sacramento Utility District is undertaking a similar project.

 

Related News

Related News

Electricity bills on the rise in Calgary after

Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility,…
View more

TC Energy confirms Ontario pumped storage project is advancing

Ontario Pumped Storage advances as Ontario's largest energy storage project, delivering clean electricity, long-duration capacity,…
View more

Manitoba Hydro scales back rate increase next year

Manitoba Hydro 3.5 Percent Rate Increase proposes a smaller electricity rate hike under Public Utilities…
View more

Improve US national security, step away from fossil fuels

American Green Energy Independence accelerates electrification and renewable energy, leveraging solar, wind, and EVs to…
View more

Hydro-Quebec won't ask for rate hike next year

Hydro-Quebec Rate Freeze maintains current electricity rates, aligned with Bill 34, inflation indexing, and energy…
View more

City of Vancouver named Clean Energy Champion for Bloedel upgrades

BC Hydro Clean Energy Champions highlights Vancouver's Bloedel Conservatory electrification with a massive heat pump,…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2026 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified