Energy Storage Market Participation in RTO/ISO Markets Following FERC Order Nos. 841 and 841-A

Description

In 2018, FERC issued Order No. 841 to expand the use of battery storage, flywheel, and other energy storage resources' (ESR) participation in regional wholesale markets. FERC determined that "better integration of ESR into the regional transmission organizations and independent system operators [RTO/ISO] markets is necessary to enhance competition and, in turn, help to ensure these markets produce just and reasonable rates."

On May 16, 2019, in response to several challenges to crucial aspects of the FERC rule on energy storage and requests for rehearing to modify such rule, FERC issued Order No. 841-A, denying those requests for rehearing. This Order, which upheld the initial rule without allowing a state "opt-out" option, provides additional guidance and clarification on key provisions of the rule.

The rule requires RTOs/ISOs to create participation models through a stakeholder process to ensure compensation for characteristics and attributes that energy storage provides but for which it is not compensated. Energy counsel must understand critical challenges relating to project eligibility, storage structure, and asset rights for energy storage participation in RTO/ISO markets.

Listen as our authoritative panel examines FERC Order Nos. 841 and 841-A, their definitions, and framework. The panel will discuss what the rule means for the energy industry, project eligibility, asset rights, and other essential information.