The purpose of this research is to encourage policy makers to craft policies that support environmentally sound design practices while integrating bulk energy storage into the electricity grid. Bulk energy storage technology can regulate electricity coming into the grid from different energy sources. Grid flexibility is a powerful tool to empower the clean energy movement because it enables the integration of renewable energy into the electrical grid. However, storage technology has the potential to become another one of the many “tragedy of commons”, considering that there are no regulations forcing storage companies to pursue environmental-friendly operation. Bulk energy storage devices which earn income through arbitrage, have the potential to increase grid emissions. Both energy losses and the variety of energy grid resources, largely damper the environmental advantages of bulk energy storage devices. By using a linear programming formulation that considers both revenue and emissions, this thesis proposes operational solutions where bulk energy storage technologies can retain a high revenue while simultaneously reducing their emissions from the current eGRID sub-regions. These results can be achieved by explicitly demanding small inexpensive changes in the operation of the system. Usually, only a few companies will follow sustainable practices by themselves. Therefore, a variety of policy implementations are suggested to support environmentally sound design principals for bulk energy storage technology
