energy storage By UniEnergy Technologies (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

FERC Issues Proposal to Integrate Storage into Energy Markets

The NOPR also noted that storage can facilitate “more efficient operation of large thermal generators, enhances reliability, provides congestion relief, improves integration of variable energy resources, and reduces the burden on the transmission system.”

In a Nov. 17, 2016, news release, FERC announced the start of a 60-day comment period in response to its Notice of Proposed Rulemaking (NOPR) which would require Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) to revise their tariffs to:

  • “Establish a participation model consisting of market rules that, recognizing the physical and operational characteristics of electric storage resources, accommodates their participation in the organized wholesale electric markets.”
  • “Define distributed energy resource aggregators as a type of market participant that can participate in the organized wholesale electric markets under the participation model that best accommodates the physical and operational characteristics of its distributed energy resource aggregation.”

The full NOPR states, with regard to electric storage resources, that “the barriers to the participation of distributed energy resources through distributed energy resource aggregations in the organized wholesale electric markets may, in some cases, unnecessarily restrict competition, which could lead to unjust and unreasonable rates,” and added that “removing these barriers will enhance the competitiveness, and in turn the efficiency, of organized wholesale electric markets and thereby help to ensure just and reasonable…rates for wholesale electric services.”

The NOPR also noted that storage can facilitate “more efficient operation of large thermal generators, enhances reliability, provides congestion relief, improves integration of variable energy resources, and reduces the burden on the transmission system.”

The original FERC announcement and the full NOPR are available at this link

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