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This Act adds a definition of “utility battery energy storage system” to Chapter 10 of Title 26 of the Delaware Code. Under the definition of “utility battery energy storage system,” battery storage systems that store electricity from the electric grid and discharge the electricity at a later time are not considered generation or a generation unit for electricity when owned and operated by a public electric utility. This Act also authorizes Delmarva Power to own and operate battery energy storage systems after appropriate review and approval by the Delaware Public Service Commission. To mitigate any cost shifts or negative impacts on ratepayers, the Act requires Delmarva Power to make best efforts to maximize all applicable value streams from any battery energy storage systems, including participating in applicable PJM markets and utilizing its battery energy storage systems to realize potential savings through distribution-level services.
Energy Storage Systems provide benefits to the electric grid, including grid stabilization, managing peak energy demand, and providing backup power during outages. Energy Storage Systems can provide substantial cost savings to residential, commercial, and industrial electricity customers. The construction of Energy Storage Systems will promote economic growth and job creation in Delaware. This resolution directs the Delaware Sustainable Energy Utility (DESEU) to initiate and undertake a study to assess and analyze the costs and benefits of the adoption of Energy Storage Systems, both in front of and behind the meter, by all electric public utilities in Delaware. The resolution also directs the DESEU to conduct a pilot program and provide guidance and a level of funding, to be determined by the DESEU, to support Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, the Delaware Electric Cooperative, and one independent power producer to deploy at least one battery storage pilot project in Delaware to serve their Delaware service territory. The DESEU is to submit a comprehensive report detailing the findings from the battery storage pilot program and the cost-benefit study and analysis of Energy Storage Systems in Delaware on or before June 1, 2026.
