ESA Applauds Bold Leadership by FERC on Pathways to Accelerate Energy System Deployment and Participation

Landmark Proposed Rulemaking Opens Access to Competitive Markets, Seeks to Compensate Energy Storage for Performance and Value Delivered
Washington, D.C. – November 17, 2016 – The Energy Storage Association and its members applaud the Federal Energy Regulatory Commission (FERC) announcement today in Docket RM16-23 which proposes that all ISO/RTO create market structures that ensure energy storage can participate and be compensated in wholesale markets. This pivotal opportunity opens a pathway for accelerating energy storage deployment as a generation, transmission, and grid services asset, and FERC guidance would recognize the unique dynamic performance of storage systems in both valuation and market operations.
“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.”
FERC outlined a number of key points relating to energy storage in their proposal, noting that individual markets would create their own ‘participation models’ that allow energy storage resources to be eligible to provide all competitive capacity, energy and ancillary services. Participation models must also allow distributed energy resources (DERs), acting independently or an aggregation of multiple systems, to compete, and markets should recognize the unique flexibility and operating parameters of storage systems. Dynamic distributed and customer-sited energy storage systems would then have access to both retail and wholesale opportunities, increasing their market value while also giving grid operators an integrated network of flexible assets that can be called upon to improve grid performance and efficiency. 
Taken all together, along with many other considerations outlined by the Commission, this rulemaking is a substantial step forward to recognizing the multiple values that energy storage can provide to the grid. Breaking down regulatory barriers and creating competitive markets for the numerous applications and benefits that energy storage can provide is critical, and FERC’s unprecedented actions will resonate and drive reforms in markets across the country. 
“ESA is thrilled with FERC’s forward-thinking efforts to enable the participation of energy storage in wholesale markets, bringing more competitive opportunities for innovative companies and ensuring affordable and reliable energy for everyone on the grid,” continued Roberts. “The Commission is building on years of operational experience with cost-effective energy storage systems on the grid, and they are charting a path forward for transforming and modernizing energy markets. Energy storage systems are here today providing value and reducing costs on the grid, and these efforts will provide even more momentum to a rapidly growing industry.”