| | APRIL 20248IN MY OPINIONBy Todd Hranicka, Director Solar Energy, EV & ES, Public Service Electric & Gas Company [NYSE: PEG]WITH THE RIGHT RULES, ENERGY STORAGE CAN TAKE THE POWER GRID TO THE NEXT LEVELThe ability to store energy from renewable resources like solar and wind, and use it when it's most needed, is considered a game changer for lowering greenhouse gas emissions, improving the reliability of the electric grid and ultimately addressing climate change. Energy storage can help modernize the electric grid, improve reliability, and facilitate the integration of renewable energy onto the electric grid. Storage technologies provide backup power, store and dispatch energy at more favorable times, and offer other beneficial grid level energy management services. However, there remain regulatory hurdles and technical challenges before battery energy storage can become a major component of the U.S. electricity grid.New Jersey has recognized the vital role of the emerging technology of energy storage and has set an aggressive target of 2,000 megawatts (MW) of energy storage in the state by 2030. PSE&G, New Jersey's largest utility, has already installed 4.6 megawatt-hours of battery storage over five projects as a part of our Solar 4 All® Program over the past five years. The solar plus storage projects provide clean, renewable power directly to the grid during blue sky days, while the energy storage systems (ESS) are also used for ancillary grid management services, such as solar smoothing which stabilizes voltages and frequency on the circuit. Additionally, energy storage provides resiliency and backup power to critical facilities in the event of unplanned outages like those experienced as a result of Superstorm Sandy that devastated New Jersey in 2012.Just as the cost of energy from solar and wind has dropped in recent years, the price of battery energy storage is declining as well. Still, before energy storage fulfills its potential, grid operators must gain confidence that storage systems will perform as intended. Energy storage investments require broad cooperation among utilities, facility owners, project developers and insurers. Meanwhile, the regulatory landscape for energy storage is evolving, and overall storage project cost competitiveness remains an issue.Cost-effective energy storage will play a key role in that transformation
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