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FERC Revises Energy Storage Regulations to Improve Market Competition

FERC logoThe Federal Energy Regulatory Commission has issued a final rule (No. 784) revising certain aspects of its current market -based rate regulations covering new electric storage technologies, ancillary services requirements under the pro forma open-access transmission tariff (OATT), and accounting and reporting requirements.

Specifically, the commission has revised Part 35 of its regulations to reflect reforms to its Avista policy with the aim to  foster competition and transparency in ancillary services markets, the FERC said.

The revision to the 2011 FERC Order 755 benefits batteries and flywheels, because they are technologies that can respond more quickly than traditional gas- or coal-fired plants in the ancillary services market, according to Greentech Media.

The FERC notes that there is a growing need for ancillary services to support grid functions in the face of potential changes in the portfolio of generation resources as well as a growing interest of transmission providers to have flexibility in meeting ancillary services needs.

The Electricity Storage Association praised the ruling. The rules specifically addresses energy storage by creating reporting mechanisms to track the installation, operations and maintenance costs for energy storage. Enabling this information to be available to regulators will ensure transparency as more projects are deployed.

ESA said that the rule stands to demonstrate how energy storage benefits the grid, which will improve investments into new storage projects.

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