FERC proposals to encourage storage

The US Federal Energy Regulatory Commission (FERC) has put forward proposals, currently out for comment, to more effectively integrate electricity storage resources into wholesale power markets to enhance competition and help ensure that these markets produce “just and reasonable” rates.

The proposal stems from concerns that electricity storage resources may face barriers that limit them from participating effectively in wholesale power markets. In April 2016, FERC staff issued data requests to the six US regional transmission organisations and independent system operators, and a request for comments to the public, seeking information on the rules that affect the participation of electric storage resources in the wholesale electric markets and potential barriers to the participation of electric storage resources in those markets. The responses provided the basis for the proposed reforms.

FERC’s Notice of Proposed Rulemaking (NOPR) would require each RTO and ISO, among other things, to establish market rules that, “recognising the physical and operational characteristics of electricity storage resources, accommodates their participation in the wholesale electric markets.”