Commentary: With battery technology ready, regulatory framework must catch up
1 min read
Photo caption: Solar-plus-storage projects like this one use batteries to deliver power when it is most valuable, instead of just when the sun shines. Photo by Dennis Schroeder/NREL. Article by Rafael Esteban/Acconia.
The energy sector sits on the cusp of a truly transformative change: Utility-scale ready battery storage technology has arrived.
As is with the case with many disruptive technologies, before reaping the benefits of energy storage — which are many — we need modernization of the regulatory framework. This work is well underway. In 2018, the Federal Energy Regulatory Commission issued Order 841, requiring regional energy agencies to adopt rules for energy storage. According to the order, rules must allow energy storage to participate in the wholesale, retail and capacity markets. Then came FERC order 845, which asked for interconnection standards and clarity on how storage would participate in capacity markets. Across the nation, regional transmission organizations and independent system operators are developing plans to come into compliance with this order. […]
