FERC Expands Rulemaking on Energy Storage to Recognize Important Role Played by Other Advanced Energy Technologies
[Washington, D.C., November 18, 2016] —Today, national business group Advanced Energy Economy (AEE) applauded the Federal Energy Regulatory Commission (FERC) for issuing a Notice of Proposed Rulemaking (NOPR) that will begin the process of opening wholesale electricity markets to competition from energy storage and aggregated distributed energy resources.
In April, AEE was supportive of FERC’s initial inquiry on storage, Electric Storage Participation in Regions with Organized Wholesale Electric Markets, and urged the Commission to conduct a separate review of market rules that keep other advanced energy technologies from meeting customer demand and improving grid reliability and resiliency.
What began as an inquiry into barriers to energy storage, has now evolved into a broader rulemaking that will eventually open more doors for advanced energy to compete with traditional resources to provide energy and reliability services.
“Through today’s proposed rulemaking, FERC has recognized that electricity markets can be improved through competition from advanced technologies that provide energy and reliability at lower costs,” said Arvin Ganesan, vice president of federal policy at AEE. “We continue to be supportive of FERC’s effort to open up markets to competition from energy storage--and just as importantly--to expanding this effort to encompass other advanced energy technologies.”
Commissioner Cheryl LaFleur also issued a statement along with the official NOPR from FERC. “I strongly support the development of a market participation model for storage resources, which is a logical next step in our ongoing work to remove barriers to wholesale market participation for new technologies,” she said.
LaFleur was also supportive of expanding FERC’s action to include other advanced energy technologies. She emphasized “I am especially interested in comments on that aspect of the Commission’s proposal.”
Aggregated distributed energy resources (DERs) are already being incorporated into the rules governing California ISO. As AEE commented, DERs can enhance resource adequacy and, when used in conjunction with operational techniques, improve operating reliability. Facilitating the participation of aggregated DERs introduces more competition to the wholesale market, which can drive down prices for consumers.
Commissioner LaFleur highlighted the example set by California and invited comment on “what we are learning from California and how it may inform the substance and timing of implementation of proposed reforms related to distributed energy resource aggregations in other RTO/ISOs.”
About Advanced Energy Economy
Advanced Energy Economy is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. AEE and its State and Regional Partner organizations are active in 27 states across the country, representing more than 1,000 companies and organizations in the advanced energy industry. Visit AEE online at www.aee.net.
- Find FERC Docket No. AD16-20-000 here (link to docket on AEE PowerSuite).
- AEE comments on FERC Docket No. AD16-20-000 are here.
- AEE’s This Is Advanced Energy, a comprehensive directory of 52 technologies, is here.
AEE Comments Before FERC:
- Advanced Energy Economy Applauds FERC Inquiry on Barriers to Energy Storage, Calls for Electricity Market Participation of All Advanced Energy Technologies
- Comments to FERC on Technology-Neutral Competition in Transmission Development
AEE Articles on Wholesale Markets:
- A FERC challenge: Opening up electricity markets to advanced energy technologies
- Advanced Energy Can Improve Reliability - If It’s Allowed to Compete
- How Grid Governance Stands in the Way of Advanced Energy Progress
- AEE and R Street Institute Say to Congress: Improving Competitive Power Markets Can Lower Costs and Take Advantage of Advanced Energy Benefits