Report and Policy Brief: Capacity Value of Energy Storage in PJM

Posted: July 15, 2019 - 14:40 / Reports

Report: Astrapé Consulting performed a capacity valuation of energy-limited resources (ELRs) using the Strategic Energy and Risk Valuation Model (SERVM) for the PJM Interconnection, L.L.C. (PJM). The intent of this analysis was to determine the duration requirements for ELRs based on their ability to provide the same reliability benefits as conventional fully-dispatchable resources. This analysis was performed using the projected and potential resource mix in PJM over the planning horizon which included aggressive energy storage deployments. Since reliability considerations are unique to the composition of the fleet in each electric system, it was critical that our analysis use an accurate representation of the current and projected PJM system. 

Policy Brief: FERC Order 841 requires regional electric market operators to enable the use of energy storage on the grid to provide services for which it is technically capable. One of these operators, PJM, has requested a special rule that would effectively prevent a number of storage projects from market participation and is based on flawed assumptions. As part of our FERC filings, the U.S. Energy Storage Association (ESA) and National Resources Defense Council (NRDC) commissioned a study by Astrapé Consulting that provides evidence and supporting data that refutes PJM’s arguments about capacity limitations, supporting our arguments that FERC should decline PJM’s request.