Energy Storage Association Applauds FERC Initiative on Pathways to Accelerate Multiple-Use Storage Deployment
The Energy Storage Association commends the Federal Energy Regulatory Commission decision to host a Technical Conference on methods to compensate energy storage systems for the multiple values they provide in wholesale markets. While FERC has previously ruled that energy storage can participate in competitive generator markets and that storage can receive cost-based recovery as a transmission asset, there is not currently a mechanism for storage to maximize grid flexibility by undertaking both functions simultaneously. On Friday, FERC opened Docket No. AD16-25 on Utilization in the Organized Markets of Electric Storage Resources as Transmission Assets Compensated Through Transmission Rates, for Grid Support Services Compensate in Other Ways, and for Multiple Services. The Technical Conference, scheduled for November 9, is an opportunity to accelerate the adoption of market rules that reward performance and provide remuneration for the multiple values that advanced energy storage systems deliver.
“FERC’s announcement recognizes that energy storage systems in particular are uniquely flexible resources that provide numerous benefits to grid operators and consumers,” said Matt Roberts, Executive Director of the Energy Storage Association. “Regulatory barriers in place today limit our ability to capitalize on improved system reliability and cost-savings. Unlike traditional grid technologies, flexible energy storage systems can provide both generator and transmission services at the same time – but we need regulatory policy to keep up with these advances in technology.”
In addition to advancing the dialogue on the multiple roles that energy storage systems will play on the grid, FERC’s announcement also recognizes the importance of distributed energy storage in wholesale markets. The Commission is seeking input on how distributed and customer-sited storage systems are able to provide local benefits while simultaneously providing competitive wholesale market services, which is currently possible to a limited degree in California. “Enabling energy storage to provide both retail and wholesale services unlocks enormous grid efficiency and savings to consumers,” said Jason Burwen, Policy and Advocacy Director. “Businesses and households are already using storage to manage their electricity use and save money. Were FERC to direct market operators to let those storage units provide larger grid services as well, not only would it increase the value of storage resources, but it would also give consumers a tremendous role in integrating more clean and distributed energy resources onto the grid.”
FERC is demonstrating exemplary leadership in convening industry experts for this Technical Conference in November. The Energy Storage Association and its members look forward to engaging on this important topic and working with FERC so that energy storage systems can open a pathway to a more flexible, efficient, and resilient electric system.