US Federal Regulators to Examine Barriers to Energy Storage Participation in Markets

Staff of the U.S. Federal Energy Regulatory Commission (FERC) last week said the agency intends to examine whether barriers exist to the participation of energy storage in the capacity, energy and ancillary service markets, and whether those barriers could lead to unjust and unreasonable energy rates.

In a presentation during FERC’s April 21 open meeting, Michael Herbert, Energy Industry Analysit with the Office of Energy Policy and Innovation, said the investigation stems from the increase in electric storage assets in the PJM Interconnection territory and California, as well as developments in technology and an increase in the number of FERC proceedings relating to energy storage.

As part of FERC’s efforts, Herbert said staff will consider whether tariff changes are warranted.

To support the investigation, FERC issued data requests to obtain information from the six U.S. transmission operators (TO) about the rules in each of their markets that affect the participation of energy storage resource. Herbert said: “the information requested includes, but is not limited to, the eligibility of electric storage resources to participate in each [TO] market, the technical qualification and performance requirements for market participation, bid parameters for different types of resources, and treatment of energy storage resources when they are receiving electricity for later injection into the grid.”

Comments from the TOs are due May 2.

Herbert also said it has issued a request for comments to the public seeking information on market rules that affect energy storage participation in the TO markets. Comments from the public are due May 23.

Lead image credit: Federal Energy Regulatory Commission webcast.

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Jennifer Delony, analyst for TransmissionHub, started her career as a B2B news editor in the local and long-distance telecommunications industries in the '90s. Jennifer began covering renewable energy issues at the local level in 2005 and covered U.S. and Canadian utility-scale wind energy as editor of North American Windpower magazine from 2006-2009. She also provides analysis for the oil and natural gas sectors as editor of Oilman Magazine.

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