Hostname: page-component-7c8c6479df-5xszh Total loading time: 0 Render date: 2024-03-28T10:04:58.880Z Has data issue: false hasContentIssue false

FERC Order 841 levels the playing field for energy storage

Published online by Cambridge University Press:  23 May 2019

Rao Konidena*
Affiliation:
Rakon Energy LLC, Roseville, Minnesota 55113, USA
*
a)Address all correspondence to Rao Konidena at rkonidena76@gmail.com
Get access

Abstract

FERC Order 841 focused on standardizing electric storage resource (ESR) participation in wholesale energy, ancillary services, and capacity market ruleset, by treating storage as a generation resource. Treatment of storage as a transmission asset (SATA) is up in the air. Expect to see FERC action on ISO/RTO compliance plans in 2019.

Energy storage is finally getting its due at the wholesale grid level, thanks to FERC Order 841. All the grid operators within FERC jurisdiction must comply with FERC order to allow “electric storage resource” to participate in their markets. Storage increases capacity value of renewables and decreases variability as the grid makes way for more renewables such as wind and solar. Market Monitors must understand that storage could “withhold” its capacity in early morning ramp hours for evening peak ramp hours, or participate in ancillary services regulation market without bidding into the energy market. At the same time, this resource could be a transmission asset, adding an additional level of complexity. This FERC Order 841 has its own challenges: (i) it treats storage as a generation asset, (ii) some (such as National Association for Utility Regulators) think FERC stepped on their toes, (iii) it does not address all the value stack benefits for storage-like transmission for example, and (iv) aggregation of distribution connected storage is side stepped. So the industry is watching for clear direction from their Federal regulator on this important technology, which is finally getting its due.

Type
Commentary
Copyright
Copyright © Materials Research Society 2019 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Anderson, E.: Energy transformation and energy storage in the Midwest and Beyond. MRS Energy & Sustainability 6, (2019). Ellen Anderson chaired the Minnesota Energy Storage Alliance (MESA) of which I was a steering committee member, until MESA went from being housed at Energy Transitions Lab at University of Minnesota’s Institute on the Environment (IonE) to Clean Grid Alliance (previously Wind On the Wires).Google Scholar
Federal Energy Regulatory Commission: FERC Issues Final Rule on Electric Storage Participation in Regional Markets (2018). Available at: https://www.ferc.gov/media/news-releases/2018/2018-1/02-15-18-E-1.asp#.XG0zxrh7lPY (accessed March 18, 2019).Google Scholar
California Public Utilities Commission: Energy Storage (2015). Available at: http://www.cpuc.ca.gov/general.aspx?id=3462 (accessed March 18, 2019).Google Scholar
Roberts, D.: Elon Musk bet that Tesla could build the world’s biggest battery in 100 days. He won. Vox Media (2017). Available at: https://www.vox.com/energy-and-environment/2017/11/28/16709036/elon-musk-biggest-battery-100-days (accessed March 18, 2019).Google Scholar
Lazard: Lazard’s Levelized Cost of Storage (2018). Available at: https://www.lazard.com/media/450774/lazards-levelized-cost-of-storage-version-40-vfinal.pdf (accessed March 18, 2019).Google Scholar
Wagman, D.: Energy storage rose from California crisis. IEEE Spectrum (2017). Available at: https://spectrum.ieee.org/energywise/energy/the-smarter-grid/california-crisis-tests-energy-storage-supply-chain (accessed March 18, 2019).Google Scholar
MISO: Generator Interconnection Queue (2019). Available at: https://www.misoenergy.org/planning/generator-interconnection/GI_Queue/ (accessed March 18, 2019).Google Scholar
PJM: New Services Queue (2019). Available at: https://www.pjm.com/planning/services-requests/interconnection-queues.aspx (accessed March 18, 2019).Google Scholar
NYISO: Interconnection process (2019). Available at: https://www.nyiso.com/interconnections (accessed March 18, 2019).Google Scholar
Southwest Power Pool, Inc.: GI Active Requests (2019). Available at: http://opsportal.spp.org/Studies/GIActive (accessed March 18, 2019).Google Scholar
MISO: Electric Storage as a Transmission-Only Asset (SATOA) (2019). Available at: https://cdn.misoenergy.org/20190213%20PAC%20Item%2003d%20Energy%20Storage%20as%20Transmission%20Reliability%20Asset%20(PAC003)317818.pdf (accessed March 18, 2019).Google Scholar
Meeusen, K.: California ISO. Storage as a Transmission Asset [webinar] (2019). Available at: http://www.caiso.com/Documents/Presentation-Storage-TransmissionAsset-Jan142019.pdf (accessed March 18, 2019).Google Scholar
Cusick, K., Wellinghoff, J., and Kristov, L.: Storage as a Transmission Asset: 2018 Progress and Report Card. Center for Renewables Integration (CRI) (2019). Available at: https://www.center4ri.org/publications/ (accessed March 18, 2019).Google Scholar
LaFleur, C.A.: Regarding Policy Statement on Cost Recovery by Electric Storage Resources. Federal Energy Regulatory Commission (2017). Available at: https://www.ferc.gov/media/statements-speeches/lafleur/2017/01-19-17-lafleur-E-2.asp?csrt=8661101597322250338#.XGcDqbh7lPY (accessed March 18, 2019).Google Scholar
Federal Energy Regulatory Commission (2018). Available at: https://pubs.naruc.org/pub/AD1AE8A3-E37E-1E45-8DD4-2FB1351DB43E (accessed March 18, 2019).Google Scholar
The reduced qualified capacity within grid operator market.Google Scholar
These are deviations from grid operator given dispatch instructions.Google Scholar
Gheorghiu, I.: Tesla, others question storage hourly requirements, charges in FERC Order 841 compliance plans. Utility Dive (2019). Available at: https://www.utilitydive.com/news/tesla-others-question-storage-hourly-requirements-charges-in-ferc-order-8/548315/ (accessed March 18, 2019).Google Scholar
Vionx Energy: Unmatched Levelized Cost of Storage (2018). https://www.vionxenergy.com/#cost (accessed March 18, 2019).Google Scholar
PJM: 2021/2022 RPM Base Residual Auction Results (2018). Available at: https://www.pjm.com/-/media/markets-ops/rpm/rpm-auction-info/2021-2022/2021-2022-base-residual-auction-report.ashx?la=en (accessed March 18, 2019).Google Scholar
Department of Market Monitoring-California ISO. 2017 Annual report on market issues & performance (2017). Available at: http://www.caiso.com/Documents/2017AnnualReportonMarketIssuesandPerformance.pdf (accessed March 18, 2019).Google Scholar
Patton, D.B., LeeVanSchaick, P., and Chen, J.: 2017 Assessment of the ISO New England Electricity Markets (2018). Available at: https://www.iso-ne.com/static-assets/documents/2018/06/iso-ne-2017-som-report-6-15-2018_final.pdf (accessed March 18, 2019).Google Scholar