trending Market Intelligence /marketintelligence/en/news-insights/trending/FUlCgafRQ4hr15lbj6B-4Q2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

FERC approves 1st 2 filings to comply with landmark energy storage rule

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

FERC approves 1st 2 filings to comply with landmark energy storage rule

The Federal Energy Regulatory Commission on Oct. 17 approved compliance filings from the PJM Interconnection and the Southwest Power Pool on FERC's Order 841, a pivotal rule aimed at removing barriers to energy storage resources' participation in wholesale markets.

The orders are the first two that the commission has approved to implement Order 841, which directed all FERC-jurisdictional grid operators to craft rules for accommodating energy storage in their capacity, energy and ancillary services markets.

"Electricity storage must be able to participate on an even playing field in the wholesale power markets that we regulate," FERC Chairman Neil Chatterjee said in a press release. "Breaking down these market barriers encourages the innovation and technological advancements that are essential to the future of our grid."

Despite approving the filings, the commission asked PJM and SPP to submit further compliance filings within 60 days, finding that neither grid operator's market tariff contained minimum run-time requirements for resource adequacy and capacity. As a result, FERC initiated proceedings under Section 206 of the Federal Power Act to address those issues and directed PJM and SPP to submit tariff provisions regarding rules and practices for resource adequacy and capacity minimum run-time requirements for all resource types.

In addition, the agency established paper hearing procedures to examine PJM's minimum run-time rules and procedures for capacity storage resources. During FERC's Oct. 17 open meeting, a commission staff member said the record in the PJM proceeding raised concerns that the grid operator's application of its minimum run-time requirements for capacity storage resources may be unjust, unreasonable, unduly discriminatory or preferential. Those concerns were not raised for the SPP proceeding, the staff member added.

U.S. Energy Storage Association CEO Kelly Speakes-Backman praised FERC's actions.

“FERC’s decision today that PJM must place rules regarding the capacity qualification of energy storage resources in its tariff is a tremendous step in fully removing barriers to energy storage in wholesale markets,” said Speakes-Backman. “Further, ESA is pleased to see FERC open a new proceeding on PJM’s proposed 10-hour duration requirement for qualifying energy storage capacity — which ESA has consistently stated is unjust and unreasonable."

The power industry has broadly viewed electric storage resources as key to greater deployment of wind and solar energy and distributed generation, as well as a way to bolster grid resilience and improve the efficiency of all resource types.

In total, around 33 GW of U.S. energy storage systems are under development, consulting firm Wood Mackenzie Power & Renewables and the Energy Storage Association said in a December 2018 report. But Wood Mackenzie recently slashed its forecasts for U.S. storage deployments in 2019 to 478 MW, citing delays of large-scale energy storage projects and a slower-than-expected second half of the year for behind-the-meter batteries.