New study By Astrapé, Energy Storage Association and National Resources Defense Council refutes PJM arguments in FERC 841 Order
Washington, DC (July 15, 2019) — A new study released by Astrapé Consulting, funded by the U.S. Energy Storage Association (ESA) and National Resources Defense Council (NRDC), concludes that Federal Energy Regulatory Commission (FERC)efforts to encourage more energy storage deployment is supported by sound data. The findings, which are specific to the PJM market, show that PJM’s proposal requiring a storage asset to run for 10 continuous hours in order to qualify its full output for the capacity market is unnecessary and unduly restrictive. The Astrapé study concludes that a shorter storage duration requirement correctly reflects its capacity value for the foreseeable future.
In February 2018, FERC issued Order 841 requiring regional electric market operators to accommodate the use of energy storage on the grid where technically feasible. PJM, which operates throughout the mid-Atlantic, responded by proposing its overly restrictive 10-hour requirement.
“Energy storage is being installed on electric grids across the country at a rapid pace, helping transform our electric system to a more resilient, efficient, sustainable and affordable one,” said ESA CEO Kelly Speakes-Backman. “We stand behind the leadership at FERC to modernize energy rules to enable this transition. This study clearly affirms FERC’s judgement to include a broader set of technologies to participate, saving consumers money and supporting a diverse supply of clean energy generation.”
“Storage is a key technology enabling a low-carbon grid,” said Tom Rutigliano, a senior advocate at NRDC. “This study agrees with many others in showing that batteries are an effective replacement for power plants. It also underscores the importance of FERC’s commitment to ensuring that rules developed for older technologies do not become barriers to storage.”
The U.S. Energy Storage Association (ESA) is the national trade association dedicated to energy storage, working toward a more resilient, efficient, sustainable and affordable electricity grid – as is uniquely enabled by energy storage. With more than 180 members, ESA represents a diverse group of companies, including independent power producers, electric utilities, energy service companies, financiers, insurers, law firms, installers, manufacturers, component suppliers and integrators involved in deploying energy storage systems around the globe.
The Natural Resources Defense Council (NRDC) is an international nonprofit environmental organization with more than 3 million members and online activists. Since 1970, NRDC lawyers, scientists, and other environmental specialists have worked to protect the world’s natural resources, public health, and the environment. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, and Beijing.
About Astrapé Consulting
Astrapé Consulting has provided electric system planning services and resource adequacy studies for many of the largest utilities and regulators in the U.S. and Europe. Astrapé consultants have decades of experience in a range of electric system planning functions.