ISOs (Independent System Operators) and RTOs (Regional Transmission Organizations) are actively adapting to FERC Order 841 by revising and updating their market rules and tariffs to better integrate electric storage resources into wholesale electricity markets. The key adaptations include:
- Creating or modifying market participation models to explicitly accommodate electric storage resources. This involves establishing new categories such as distributed energy resource (DER) aggregators as discrete market participants, allowing storage to participate under various models reflecting their unique operational characteristics.
- Enabling storage to provide all technically feasible services in capacity, energy, and ancillary service markets. ISOs and RTOs have updated their rules to remove barriers that previously limited storage participation due to its unique physical and operational features distinct from traditional generation assets.
- Lowering overall metering and interconnection costs to facilitate easier and more cost-effective participation of storage resources, giving RTOs/ISOs flexibility in how metering requirements apply to these resources, thereby reducing administrative and financial hurdles.
- Enhancing competition and efficiency in the wholesale markets by ensuring storage resources can compete on a level playing field. This broad market access is expected to encourage technological innovation and greater deployment of storage capacity, which can contribute to grid reliability and potentially lower wholesale prices.
- Tariff revisions to support compensation mechanisms that recognize the unique capabilities of electric storage, ensuring they are fairly compensated for all services they provide, as mandated by FERC.
In essence, ISOs and RTOs are implementing comprehensive tariff and market rule reforms prompted by Order 841 to integrate energy storage fully, optimize its value across multiple market products, and facilitate its growing role in the evolving electric grid landscape.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-are-isos-and-rtos-adapting-to-the-requirements-of-ferc-order-841/
