September 28, 2020
PJM action on valuation ‘opens the door’ to energy storage in its capacity market
The Markets and Reliability committee at PJM Interconnection last week approved an Effective Load-Carrying Capability (ELCC) package in response to the Federal Energy Regulatory Commission’s order on how regional transmission organizations value energy storage in wholesale power markets. Energy storage operators can look forward to the fair value and predictability they need to enter the Mid-Atlantic market, Energy Storage Association (ESA) CEO Kelly Speakes-Backman said in a statement reacting to the committee’s action.
Last week’s action opens the door for storage operators to PJM’s capacity market, Jason Burwen , vice president of policy for ESA, said in an email. ‘The approach approved by PJM’s stakeholders would finally create that ‘reliability-agnostic’ valuation of energy storage, determining the contribution that storage of differing durations makes to system reliability in a manner that allows a more apples-to-apples comparison to fuel-based generation and other resources,’ he said. ‘Today, yet another regulatory barrier to energy storage deployment was removed, following directives from FERC to re-examine how the value of storage is determined in PJM’s capacity market,’ ESA CEO Kelly Speakes-Backman said in a statement.
