Microgrid Knowledge Quotes Jennifer Mersing and Morten Lund on FERC Approval of Tariffs That Improve Prospects for Energy Storage

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Energy attorneys Jennifer Mersing and Morten Lund were quoted in Microgrid Knowledge in an article titled “FERC Tariff Approvals Open Way for Energy Storage in Wholesale Markets,” published December 6, 2019. The article discusses how revisions to the PJM Interconnection and Southwest Power Pool tariffs recently approved by the Federal Energy Regulatory Commission (FERC) will help to give battery storage equal footing in participating in those  markets.

In early 2018, FERC issued Order No. 841, which required regional transmission organizations (RTOs)/independent system operators (ISOs) to revise their tariffs to remove barriers to the participation of electric storage resources in their markets. According to Mersing, “FERC said, ‘Here are a bunch of requirements we want organized markets to adopt in their tariffs’ and left it up to the organized markets to design their own models.”

The main use for distributed battery storage to date has been behind the meter – under time-of-use pricing or to manage demand charges  – but the revisions to the tariffs have given battery owners a path to non-discriminatory access to sell storage into all the wholesale energy markets. “The potential promise at the end of the rainbow is a market scenario where independent battery owners could have a mechanism to get paid for providing grid services,” Lund said.

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Morten A. Lund
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