Batteries and State Law: A Glimpse of the Future in the Lone Star State

April 9, 2015

The mismatch of localized electricity regulations with interstate electricity generation and transmission creates large inefficiencies. It is possible to solve this problem without overturning the entire existing regime by affording federal, state, and local regulatory bodies more power to implement battery technology without traditional regulatory hindrances. Given the limited number of regulatory bodies responsible for oversight, combined with the uniquely deregulated electricity market, the state of Texas is a prime market for the fledging technology. The Lone Star State should accommodate battery implementation by allowing investors to recoup their invested costs in the technology. Applying lessons learned from Texas to nationwide energy markets will help solve many of the inefficiencies plaguing the nation’s electricity infrastructure and regulatory framework.