The American Clean Power Association (ACP) has released an Energy Storage Market Reform Roadmap and analysis produced by the Brattle Group highlighting several reforms for regional grid operators to enact to leverage the capabilities of energy storage technologies.
“In Texas, the state added 5 GW of energy storage in one year, eliminating calls for customers to reduce electricity use during historic summer heat, stabilizing the grid through volatile winter storms, all the while delivering more than a billion dollars in energy cost savings,” said ACP VP of Energy Storage Noah Roberts. “This roadmap outlines actionable steps to better utilize energy storage to deliver reliable and affordable power across the United States.”
Before FERC Order 841, energy storage faced obstructions while participating in U.S. wholesale electricity markets. The involvement was limited by market rules designed for traditional power generation technologies. Energy storage resources have helped prevent blackouts and reduce pressure on consumers during historic winter and summer events, while delivering significant cost-savings.
The American electric grid is facing surging demand for more power, creating a need to build and connect more resources and improve flexibility. Energy storage is capable of affordably increasing energy supply and grid capacity for making the grid more efficient and resilient. However, without modernization of market rules, energy storage resources will be restricted from contributing to regional grid reliability, risking economic growth and energy security.
PJM started changing its Surplus Interconnection Service (SIS) rules, which are expected to accelerate the deployment of energy storage to support and enhance sites with existing energy generation. Regional grid operators are poised and well positioned to make additional impactful reforms.
- In the central region of the United States, an updated approach to MISO’s capacity accreditation modeling will help realize the reliability benefits and operational flexibility that storage has delivered in states like Texas and California.
- In the Midwest and Mid-Atlantic, PJM will amend rules to allow energy storage facilities to deliver power when required, harnessing the technology’s ability to react to real-time market conditions.
- In New York, the ISO will make changes to better enable energy storage to efficiently match power supply with demand, saving money and improving grid stability.
ACP and its members will collaborate with regional grid operators, state policymakers, and stakeholders to advance reforms that enhance grid reliability and lower costs for Americans.
