Barriers that Any Integration of New Technology Faces

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The Issue
With the potential rise of grid-scale energy storage there is an issue regarding regulation and policy as is being experienced by companies who are currently implementing this technology. The integration of any new technology faces many barriers and so is it with the deployment of grid-scale energy storage like any other technology. The issue regarding regulatory and policy is that a framework is not in place for the integration of energy storage on the grid.
The structure of the energy industry in any country is not prepared for the implementation of new components in the industry which usually is not easy. One benefit of energy storage is the ability to create new markets or participate in the existing energy industry. As such these markets require regulations and policies so as to; ensure fairness in the market, prevent unnecessary discrimination and prevent cross-subsidization as grid-scale energy storage has the potential to contribute to several energy markets, (Luong, 2011).
The issue of regulatory barriers also hinders the deployment of storage onto the grid. This issue is a deterrent to investors as there is uncertainty as to whether or not they will be able to identify possible returns that they may gain from their investments. This issue can be broken down into four areas according to (Luong, 2011):
• Energy storage does not fit in well to the existing regulatory framework
• Energy storage pricing policy is unclear
• Inconsistent regulations across
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