Energy storage set to compete in US wholesale markets following landmark ruling

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Distributed energy storage facilities in the US are set to join wholesale markets and compete to provide grid services after what’s described as the “single most important act” for the energy transition so far.

The United States Court of Appeal in the District of Columbia ruled last week against petitioning from the National Association of Regulatory Utility Commissioners and others which sought to prevent Federal Energy Regulatory Commission Order 841 from passing.

In doing so and allowing Order 841 to pass, distributed energy storage units can now compete with other assets, including fossil fuel resources, to provide grid services in wholesale markets.

FERC chairman Neil Chatterjee lauded the decision when it was handed down late last week, adding his consideration that it would be regarded as the “single most important act we could take to ensure a smooth transition to a new clean energy future.”

“…I’m extremely pleased that the DC Circuit denied the petitions challenging Order 841 on jurisdictional grounds and upheld our orders on the merits. The court found our actions to be well within our statutory authority,” Chatterjee said, adding that Order 841 and removing barriers for energy storage technologies had long been one of his top priorities as FERC chairman.

What is FERC Order 841 and why is it considered so important?

Order 841 states that barriers to distributed and behind-the-meter energy storage participating in wholesale electricity markets should be removed. FERC passed the bipartisan rules in February 2018 after a lengthy process that began with it being tabled in 2016, ordering regional transmission operators (RTOs) and independent system operators (ISOs) to reconfigure wholesale markets to accommodate storage resources to allow them to provide capacity, energy and ancillary services.

Read Next

January 16, 2022
The US Government has appealed against the reinstatement of an exemption from Section 201 tariffs for bifacial modules.
January 14, 2022
The US Department of Energy (DOE) has launched a “Building a Better Grid” initiative to catalyse the development of “new and upgraded high-capacity electric transmission lines” across the US under President Joe Biden’s US$1 trillion Bipartisan Infrastructure Law.
January 13, 2022
Solar developer Invenergy has partnered with US-based investment platform Lafayette Square to form a joint venture (JV) that will develop and operate PV plants primarily serving low- to moderate-income (LMI) communities and areas disproportionately affected by the clean energy transition.
January 13, 2022
Lightsource bp has closed on a US$533 million financing package for the development of 480MW of solar PV across the US as the company continues to expand its operations in the country.
January 13, 2022
Proposed net metering (NEM) rules in California that would add a US$8/kW per month grid access fee for residential solar systems have been described as “regressive and out of touch with reality” by a NEM policy expert.
January 12, 2022
Global Infrastructure Partners (GIP) alongside co-investors has closed on a US$500 million investment in independent power producer (IPP) BrightNight LLC to fund the company’s development efforts as well as the construction and operations of its projects.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal