The Federal Energy Regulatory Commission manages the transmission and wholesale sale of electricity, and natural gas in the United States. Its FERC Order 841 was a change in policy because it required regional transmission organizations (RTO’s) an’d independent system operators (ISO’s) to change gear. They had to allow storage resources to sell into the wholesale market without fear or favor.
Mid-Continent Independent System Operator
MISO, to use the abbreviation, provides open-access, high voltage transmissions in the Midwest United States and Manitoba, Canada. Its services also extend to much of Arkansas, Mississippi, and Louisiana. Therefore, its response to FERC Order 841 could become a trend setter.
MISO announced a new policy on August 13, 2018. This committed it to expanding energy storage access to its portfolio. It wants to access new entrants in terms of two dimensions. These are Megawatts (power) and Megawatt Hours (volume). MISO hopes this will give startups a more level playing field in terms of capacity and energy opportunities.
But These Storage Assets Must Also Be Able to Connect to the Grid
However, the Midcontinent Independent System Operator is not prepared to ‘wet nurse’ the new entrants. Therefore, their battery farms must have either a network resource interconnection service, or firm transmission service.
This is fair in terms of what it expects of its other suppliers. Thus we agree. If battery storage is to compete, it must do so proudly without expecting special treatment. However, there is one more conundrum to resolve. Is battery storage a supplier of energy, or a temporary store of surplus power?
FERC Order 841 suggests that energy storage can have a role on ‘both sides of the meter’. This opens the door for individual homesteads to participate. America has 125 million families across six time zones. Now that is a ‘cottage industry’ worth taking seriously, don’t you think?
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Preview Image: Battery Energy Storage Facility
