Analysis of Energy Justice and Equity Impacts from Replacing Peaker Plants with Energy Storage

Transitions to low-carbon energy systems are essential to mitigating and adapting to climate change. Energy storage systems are a key component in achieving a viable decarbonized electric grid. However, decarbonization alone does not guarantee a fairer, more inclusive, or socially just energy system. Energy equity and justice should be integrated in energy system transitions to ensure benefits and burdens are shared equitably. In this paper, we discuss the relationship between energy storage and social equity by assessing the use of energy storage to replace natural gas-fired (NG) peaker plants. Peaker plants are disproportionately located near disadvantaged communities and tend to be older and high emitters of health-affecting fine particulate matter and other pollutants. This paper investigates the equity implications of NG peaker plant replacements with battery energy storage in the context of Washington State’s peaker plants to highlight the human-centered values of retiring the plants. The study performed production cost simulations using the latest Western Electric Coordinating Council Anchor Dataset 2030 case and found that total generation cost, locational marginal price, and total annual emissions were reduced with the replacements. These reductions will have equity benefits on local communities including access to clean air, enhanced health outcomes, and energy burden reductions.