Maryland is About to Unleash Distributed Batteries

And so let's jump into what that report is because we've got a lot to get to today.

The report itself, there's been a product created detailing a model tariff for distribution-connected storage.

Can you say more about that? What exactly is that

product? So there were two phases.

There's a product in the report from the first phase.

which really laid out the different kinds of policy mechanisms that you can do to get deploy storage.

And in those three major types of mechanisms, which were procurement mechanisms where the utility puts out a procurement for energy storage, there's grid services mechanisms like programs where energy storage assets would get paid to provide services and value to the grid.

And then the third type of mechanism was incentive programs.

You'd get rebates and these kinds of subsidies for deploying energy storage.

So you had these three major types of mechanisms, which we defined in phase one of the working group.

We said, these are the three types of things you can do as a commission to go achieve this big target.

And then in phase two, the procurement part about that was taken out of the working group and put into a formal commission proceeding.

And then phase two was focused on...

And that's in part because the state passed a law directing the PSC to procure utility scale battery storage.

Exactly.

And so they said, okay, well, we've got a directive from the legislature.

We're going to take that and just start doing it.

We're going to go put

that into a proceeding, right? And run that forward on that track.

And those procurements are happening, right? Those are actually happening.

And

it's mostly for the large scale stuff on the transmission system, right? Some of it's for what we call front of the meter distribution storage.

So it's not behind, not on customer site, but it's on the distribution system.

And so there are procurements running for those two types of storage already.

And then the working group focused on this grid services tariff, as we're calling it, which, again, is a system by which you can pay energy storage for all the value it's providing to the system.