US regulator starts process of developing energy storage market

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Source: S&C Electric.
The US energy regulator has opened a consultation process on the integration of energy storage into a competitive market structure.

The Federal Energy Regulatory Commission (FERC) said it wanted “to more effectively integrate electric storage resources into organised wholesale markets to enhance competition and help ensure that these markets produce just and reasonable rates”.

It has circulated a proposal and requested input from the country’s six regional transmission organisations (RTO) and independent system operators (ISO).

The proposal would require each RTO and ISO to alter their tariff structure in order to recognise the specific characteristics of energy storage resources and classify storage operators in a way that enables their participation in wholesale energy markets.

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“Today’s announcement is a major step forward in transforming America’s power sector, and FERC’s action lays the foundation for competitive markets where energy storage and distributed energy resources are considered side-by-side with traditional grid assets,” said Matt Roberts, executive director of the Energy Storage Association.

“Regulatory and market certainty is paramount for our emerging industry, and the outcomes of this rulemaking will undoubtedly fuel continued energy storage growth – bringing even more jobs and investment in the advanced energy economy, and accelerating our transition to a more resilient, flexible, and sustainable grid,” he added.

The public have 60 days from the date of publication to respond. FERC began working with network operators in the spring.

The latest proposal is available online.

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