New FERC Rule a Victory for Energy Storage Proponents
Regional operators must propose ESR “participation models” conforming to FERC’s final rule later in 2018. Participation models must:
- Ensure that a resource using the participation model is eligible to provide all capacity, energy, and ancillary services that the resource is technically capable of providing in the RTO/ISO markets
- Ensure that a resource using the participation model can be dispatched and can set the wholesale market clearing price as both a wholesale seller and wholesale buyer consistent with existing market rules that govern when a resource can set the wholesale price
- Account for the physical and operational characteristics of electric storage resources through bidding parameters or other means
- Establish a minimum size requirement for participation in the RTO/ISO markets that does not exceed 100 kW.
- Ensure that the sale of electric energy from the RTO/ISO markets to an electric storage resource that the resource then resells back to those markets must be at the wholesale locational marginal price.
The final rule will result in long-term and substantial changes to the regional markets for ESR. Interested parties will have the opportunity to comment and provide input on the ISO/RTOs’ proposed participation models in the various regional stakeholder processes and upon filing of such proposals with FERC. To learn what your company should be doing to ensure that all RTO/ISOs comply with FERC’s Order, or for questions on any storage-related issue, please contact Andrew O. Kaplan at firstname.lastname@example.org or 617.488.8104; or Liam J. Paskvan at email@example.com or 207.791.1306.