Energy Efficiency, Grid Scale, Storage

Energy Storage Tariff Approved in New York

Beacon Power Corporation announced that on May 15, the Federal Energy Regulatory Commission (FERC) approved energy storage-based market rules for the New York Independent System Operator (NYISO) power grid. The favorable ruling by FERC is the second such decision in the last five months, following its December 2008 approval of an energy storage-specific tariff for the Midwest ISO.

NYISO is now the first grid operator in the country both to establish FERC-approved energy-storage based market rules and to complete the related technical implementation of software and control systems.

The market rule changes are in response to FERC Order No. 890, which is intended to promote greater competition in electricity markets, strengthen the reliability of the grid, and allow so-called “non-generation” resources (which include Beacon’s flywheel technology), to participate in regulation markets on a non-discriminatory basis.

In its decision to approve NYISO’s tariff, FERC found, “that the proposed tariff revisions to incorporate limited energy storage resources will benefit New York ISO’s markets by providing them with a new source of regulation service with unique operational characteristics that enable very fast responses to regulation needs.”

“This decision again shows that FERC recognizes the value of energy storage on the grid, and that grid operators are serious in their efforts to apply its benefits,” said Bill Capp, Beacon president and CEO. “NYISO’s regulation tariff conditions are closely aligned with the unique capabilities of energy storage, which underscores the importance the ISO places on the deployment of our technology. For example, the fast-response capability of our flywheel systems aligns well with the variability of New York’s expanding fleet of wind generation resources. We look forward to working with NYISO as we move ahead with plans to begin construction of a 20-megawatt frequency regulation plant in the state later this year.”

Click here to read FERC’s Order Accepting Tariff Revisions.