Earlier this summer, thanks in large part to the leadership of Senator Dawn Euer and Representative Arthur Handy, Rhode Island took a significant stride towards meeting its clean energy goals by passing the 2024 Energy Storage Systems Act, which Governor Dan McKee signed into law on June 26th. In doing so, Rhode Island joined many of its neighbors in making energy storage a key part of its energy transition strategy.
Two years ago, Rhode Island established a clean energy target of 100% renewable electricity by 2033. The 2024 Energy Storage Systems Act is poised to play a large role in reaching this target. Energy storage is a flexible resource, making clean energy like wind and solar more effective and reliable.
As Rhode Island switches to more clean energy sources, storage becomes more valuable. This legislation comes at a time when industry trends are promising: the U.S. Energy Information Agency predicts that installed battery capacity will nearly double this year and see additional growth in 2025. Advanced innovation and supportive legislation have driven battery storage costs down almost 90% in 15 years, as battery storage growth outpaces almost all other clean energy technologies.
Storage has proven advantageous in accompanying solar and wind expansion, working to store surpluses and dispatch in times of scarcity. Releasing excess energy during peak hours contributes to grid reliability, maintaining steady ratepayer costs, and minimizing pollution from fossil fuel “peaker” plants. Storage system deployment requires construction and maintenance leading to economic expansion and sustainable job growth, and in turn improved opportunities for clean energy development and interconnection. Rhode Island’s energy storage legislation is a critical step forward for storage system deployment in the state, anchoring a clean grid characterized by efficiency, reliability, and affordability.
The new act establishes Rhode Island as the 16th state to set a policy goal for energy storage, and the 12th state to set procurement targets. It joins neighboring states like New York, Massachusetts, Connecticut, and Maine in recognizing that energy storage has a central role to play in building a clean, resilient grid. Its structure is similar to Connecticut’s Act Concerning Energy Storage.
The legislation has four main components:
The bill sets out storage capacity targets of 90 MW by 2026; 195 MW by 2028; 600 MW by 2033. To achieve these targets, Rhode Island must establish energy storage programs that provide incentives to a variety of different types of customers. Additionally, the legislation establishes a process for utilities to procure energy storage resources and charges the Rhode Island Public Utilities Commission with refining utility rules for connecting and compensating energy storage projects on the grid.
Creating the financial framework for deploying and incentivizing energy storage systems, this legislation is a valuable step towards Rhode Island electrification goals, accomplishing storage targets that will deploy flexible resources needed for the interconnection of resource-constrained renewables. The passage of the 2024 Energy Storage Systems Act is beneficial for rate payers, state-wide clean energy interests and Rhode Island citizens. The legislation works to produce more clean energy efficiently, meaning access, affordability and economic development.
United’s team worked hard to support this legislation and our attention will turn to making sure the aspirations of the 2024 Energy Storage Systems Act result in the building of cost-effective energy storage projects in Rhode Island.