The Federal Energy Regulatory Commission Seeks New Rules In Energy Storage

FERC in November held a technical conference that explored issues such as under what circumstances it would be appropriate for energy storage resources to provide multiple services, and whether the wholesale market tariffs need to include provisions to accommodate them.

Some storage projects, such as Indianapolis Power & Light’s (IPL) 20 MW Harding Street facility, having been bumping up against market rules that do not take into account their operating characteristics.

IPL has petitioned FERC to look into the Midcontinent ISO’s market rules, which it says are designed for flywheel storage and are disadvantageous for battery storage.

PJM Interconnection rules have been more accommodating, but even there a rush of storage projects to provide frequency regulation service has resulted in a temporary halt in projects until the RTO can sort out its rules and parameters for other storage uses.

In announcing the NOPR, FERC Commissioner Cheryl LaFleur noted California is also reforming its rules for energy storage in its wholesale market, and said the commission will watch the state’s nation-leading storage sector closely.

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