FERC Seeks Input on Energy Storage Participation in Regional Markets

It is widely believed that energy storage will be needed in order to increase the penetration of zero-carbon generation into the nation’s energy portfolio.  FERC is seeking information on changes that might be needed to support the integration of storage into organized energy markets.  In November 2015, FERC sponsored an energy storage panel at its monthly Commission meeting (see Item A-4), and at its last Commission meeting in April 2016, FERC staff announced that docket AD16-20-000 has been opened to collect information on existing barriers, if any, to the participation of electric storage resources in organized wholesale markets (i.e. the RTOs/ISOs) and to assess potential tariff changes to address such barriers.

Each of the existing RTOs/ISOs (i.e. California ISO, ISO New England, Midcontinent ISO, New York ISO, Southwest Power Pool, and PJM Interconnection) have been requested to respond by May 16, 2016 to data requests on these issues.  Specifically, the data requests:

 seek[] information on rules that affect the participation of electric storage resources in the . . . markets, including, but not limited to, the eligibility of electric storage resources to participate in the . . . markets, the qualification and performance requirements for market participants, required bid parameters, and the treatment of electric storage resources when they are receiving electricity for later injection to the grid.

FERC has also invited stakeholders to comment on storage-related market issues, including whether market tariffs are sufficiently clear to facilitate the participation of electric storage resources, whether ISO/RTO technical requirements erect barriers to participation, and whether existing bid parameters allow storage to efficiently participate in the markets.  Stakeholder comments are due by June 6, 2016.