The Department of Energy issued a draft circular on the adoption of energy storage system in the electric power industry.
The department in the circular cited different forms of energy storage system, adding there was a need to recognize ESS and its corresponding applications and benefits to the power industry.
It said the ESS technologies included battery energy storage, compressed air energy storage, flywheel energy storage and pumped storage hydro.
It said distribution utilities might consider owning ESS that would conform to the cross ownership rule of the Electric Power Industry Reform Act of 2001 and its implementing rules and regulations.
Distribution utilities can also procure ESS through a competitive selection process.
Generation companies, meanwhile, can introduce ESS as a means of provision for ancillary services, subject to accreditation process and standard of the system operator.