SummaryThe demand for electricity is expected to continue its historical growth trend far into the future and particularly over the 20-year projection period discussed in this report. To meet this growth with traditional approaches will require added generation, transmission, and distribution, costing up to $1.4 billion/GW ($1,400/kW in year 2000 dollars) on the utility side of the meter. The amount of capacity needed in each of these categories must supply peak demand and provide a reserve margin to protect against outages and other contingencies. The "nameplate" capacity of many power system components is typically utilized for only a few hundred hours per year. Thus, traditional approaches to maintaining the adequacy of the Nation's power generation and delivery system are characterized by lower than desirable asset utilization, particularly for assets located near the end-user.Other issues are beginning to affect the utility industry's ability to supply future load growth. The disparity between current levels of investment in generation and transmission suggests a looming crisis that creates a strong element of urgency for finding alternative solutions. In addition, any solution needs to address the cycle of boom and bust that is typical of certain sectors of the electric industry and is likely to become more pronounced as deregulation takes hold across the Nation.The increased availability of energy information technologies can play an important role in addressing these issues. Historically, power supply infrastructure has been created to serve load as a passive element of the system. Today, information technology is at the point of allowing larger portions of the demand-side infrastructure to function as an integrated system element that participates in control and protection functions as well as real-time economic interaction with the grid. The collective application of these information-based technologies to the U. S. power grid is becoming known as the GridWise™ vision or concept.

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ihe report summarizes the activities and notable progress toward program objectives in both Seasonal Thermal Energy Storage (STES) and Compressed Air Energy Storage (CAES). It also presents the amplified technical summaries of individual tasks and projects conducted during this reporting period. The activities of the authors reporting herein were actually broader in scope than may be reflected by the mini-reports. Readers wishing additional information on specific topics are invited to contact individual authors. The work described in this report represents one segment of a continuing effort to encourage development and implementation of advanced energy storage technology. The results and progress reported here rely on earlier studies and will, in turn, provide a basis for continued efforts to develop the STES and CAES technologies.