Energy Storage in the New York Electricity Markets

Posted: March 18, 2010 - 13:10 / NYISO / White Papers

At the heart of the electric system is the need to balance supply and demand on a 
moment-to-moment basis. Energy commodities such as natural gas, oil, and coal can be 
readily stored in massive quantities. In contrast, the storage of electricity has been 
relatively expensive and complex. Electric system operators often need to rely on 
reserves of conventional generation to meet changes in demand (i.e. consumption). 
However, emerging technologies designed to store electricity can provide significant 
energy, economic and environmental benefits. 

The New York Independent System Operator (NYISO) is committed to integrating 
resources that promote the reliability and market efficiency of New York State’s electric 
system. New and emerging energy storage technologies, which include flywheels, 
advanced batteries, compressed air energy storage (CAES) and plug-in electric vehicles 
(PEVs) represent a new class of resource that has the potential to create a more robust 
power system and lower costs to consumers. Increased amounts and types of electric 
energy storage have the potential to work with smart grid technology to support the 
integration of large amounts of renewable energy into the electric grid. The New York 
Public Service Commission (NYPSC) and the Federal Energy Regulatory Commission 
(FERC) have acknowledged the important role that energy storage plays in the 
implementation of smart grid technologies.