FERC Announces Significant Opportunities for Energy Storage Providers

Energy Storage Participation in the Energy, Capacity, and Ancillary Services Markets

On April 11, 2016, the Federal Energy Regulatory Commission (FERC) announced that it will expand its evaluation of ISOs/RTOs policies that could lead to revolutionary changes in the energy storage industry.  Specifically, FERC is evaluating those changes to market rules and tariffs that may be required for energy storage resources to participate fully in an ISO’s/RTO’s capacity, energy, and ancillary service markets. 

As an initial step, FERC has directed each ISO/RTO to document, among other things: (1) the eligibility of electric storage resources to be market participants; (2) the qualification criteria and performance requirements for storage to sell capacity, energy, or ancillary services; (3) bidding parameters; (4) opportunities for distribution-connected and aggregated electric storage resources; and (5) the procedures followed when electric storage resources are receiving electricity. 

The ISO/RTO reports are due to FERC on May 2, 2016.  

Action Items

If you are an energy storage provider that does business in a particular region or anticipates expanding your business to an ISO/RTO region, FERC has invited you to submit comments that directly address the issues that are discussed in the ISO/RTO reports. These comments are due to by May 23, 2016.

Our Energy Practice Group has the expertise in energy storage matters before each of the ISOs/RTOs and in proceedings before FERC. We are available to assist you in determining what tariffs or rules might need amendments for you to participate in additional markets in one or more of the regional grid operators.  Kindly contact Andrew O. Kaplan, who can help you to strategize a path forward to full participation on the nation’s grids.  Andrew can be reached at 617.488.8104 or akaplan@pierceatwood.com.