September 17, 2020

ESA CEO Kelly Speakes-Backman Commends PJM Stakeholders for Approving Critical Reforms to the Capacity Valuation of Energy Storage

“Today, yet another regulatory barrier to energy storage deployment was removed. Following directives from FERC to re-examine how the value of storage is determined in PJM’s capacity market, PJM stakeholders approved updates to rules determining the contribution of storage to electric system reliability. Once the rules approved today are implemented faithfully, storage will finally get equitable consideration alongside other resources in the mid-Atlantic to provide resource adequacy. Since commissioning our own analysis on the capacity value of storage in PJM, ESA has been advocating for the outcome realized today, and have appreciated FERC’s decision to review this matter. Ultimate adoption of this framework provides energy storage operators the fair value and predictability they need to enter PJM’s capacity markets, competing with other solutions to provide reliability, lower costs to consumers, and pave the way for a more diverse supply mix.”

“We commend PJM staff for their efforts to run a fair and open stakeholder process in response to FERC’s aggressive deadline, and we thank PJM executives, our members, and the many stakeholders who worked tirelessly to find solutions with broad support that appropriately bring energy storage into the resource adequacy framework. We ask PJM’s Board of Directors to move forward with this innovative framework, and we look forward to supporting a tariff filing consistent with today’s vote for approval at FERC.”

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