A recently adopted federal regulation aimed at helping electric storage resources participate in wholesale electricity markets could unlock 7,000 megawatts of storage potential -- or up to 50,000 megawatts if all benefits can be captured through state and federal action -- according to a report by consulting firm The Brattle Group.
The study is titled, “Getting to 50 GW? The Role of FERC Order 841, RTOs, States, and Utilities in Unlocking Storage’s Potential.” Released on February 22, 2018, the report concludes that electric storage market potential could grow to 50,000 MW within the next ten years, if storage costs continue to decline and state and federal regulatory
policies continue to be supportive.
The Brattle report comes one week after the Federal Energy Regulatory Commission's issuance of Order No. 841, a final rule aimed at removing barriers to the participation of electric storage resources in wholesale markets operated by regional transmission organization and independent system operators. The Brattle report describes Order 841 as "an important step in unlocking the value in wholesale energy, ancillary services, and capacity markets," noting the consulting firm's finding that at least half of storage's total possible value can be achieved in wholesale electricity markets.
Crucially, the Brattle study finds that fully realizing the value of electric storage will require state policy reforms similar to those at the federal level. Generally speaking, wholesale electricity sales and interstate transmission are subject to federal jurisdiction, while retail sales and local distribution are subject to state jurisdiction. This split jurisdiction means that some value streams available through battery storage can be only captured at the state level -- for example benefits from deferring or avoiding investments in transmission and distribution infrastructure by using storage as a non-transmission alternative, or customer benefits like increased reliability and engagement with power supply.
Storage can also save customers money -- as noted in the report, avoiding retail rate demand changes is one of the primary business drivers for storage deployment by U.S. commercial and industrial customers. But these values can only be fully captured through state action to remove the barriers that remain.
Some states are acting to incentivize or require energy storage investments. California set a mandate of 1,325 megawatts of storage by 2020, and Oregon and Massachusetts have also set state storage mandates.
The report also covers implications for existing storage resources, most of which are hydropower. It finds that existing storage resources can provide substantial new capabilities, if they can be operated more flexibly than today. As noted in the report, "Increasing flexibility of existing hydro can be very valuable, reducing the need for new investments." The report also suggests that optimizing operating strategies could increase storage revenues by 2 to 5 times.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label non-transmission alternative. Show all posts
Showing posts with label non-transmission alternative. Show all posts
Maine explores non-transmission alternatives coordinator
Thursday, July 2, 2015
Should Maine designate an entity to coordinate the development of lower-cost alternatives to new electric transmission lines? The Maine Public Utilities Commission has opened an inquiry to obtain comments on the role of a non-transmission alternative (NTA) coordinator and the parameters for procuring the services of an NTA coordinator.
Modern society counts on electric utilities and power plants to supply consumers with electricity. As consumer needs and plant economics change over time, utilities have traditionally looked to new infrastructure like transmission lines to meet new needs. But in some cases, transmission development may not be the cheapest or best way to meet consumer needs; rather, "non-transmission alternatives" such as distributed generation, energy efficiency or microgrids may be able to achieve the same ends for a lower total cost.
Grid modernization -- and the tools needed to manage the process efficiently -- can be controversial. By order dated May 11, 2015, the Maine Public Utilities Commission declined to designate a "Smart Grid Coordinator" to provide a broad array of services to the state, on the grounds that that the record before it did not support a finding that designate a coordinator to provide all these services was in the public interest.
But the Commission indicated interest in designating someone to provide the services of marketing, implementing, and possibly operating non-transmission alternatives. To that end, the Commission found "there is the potential for benefits from an entity that has the relevant expertise and a commercial interest in the successful development and implementation of NTAs" -- provided that the entity can deliver its services in a way that provides value to ratepayers.
By a June 30 Notice of Inquiry, the Commission initiated the next phase of its exploration of designating an NTA coordinator. The Commission requested comment on issues it had previously identified in its May 11 order as requiring further factual development to enable the Commission to determine whether it is in the public interest to designate an NTA coordinator:
Modern society counts on electric utilities and power plants to supply consumers with electricity. As consumer needs and plant economics change over time, utilities have traditionally looked to new infrastructure like transmission lines to meet new needs. But in some cases, transmission development may not be the cheapest or best way to meet consumer needs; rather, "non-transmission alternatives" such as distributed generation, energy efficiency or microgrids may be able to achieve the same ends for a lower total cost.
Grid modernization -- and the tools needed to manage the process efficiently -- can be controversial. By order dated May 11, 2015, the Maine Public Utilities Commission declined to designate a "Smart Grid Coordinator" to provide a broad array of services to the state, on the grounds that that the record before it did not support a finding that designate a coordinator to provide all these services was in the public interest.
But the Commission indicated interest in designating someone to provide the services of marketing, implementing, and possibly operating non-transmission alternatives. To that end, the Commission found "there is the potential for benefits from an entity that has the relevant expertise and a commercial interest in the successful development and implementation of NTAs" -- provided that the entity can deliver its services in a way that provides value to ratepayers.
By a June 30 Notice of Inquiry, the Commission initiated the next phase of its exploration of designating an NTA coordinator. The Commission requested comment on issues it had previously identified in its May 11 order as requiring further factual development to enable the Commission to determine whether it is in the public interest to designate an NTA coordinator:
- What duties should be included in the scope of services offered by an NTA coordinator?
- Should T&D utilities be allowed to bid on an NTA RFP and if so should such services be provided through an affiliate?
- If an RFP were seeking proposals for having a non-utility entity operate an NTA in a manner consistent with reliability and cyber security standards, how would the incremental costs to operate the NTA be determined?
- What type of pricing structures should be considered in developing the RFP?
- What factors should be considered in bid evaluation?
- What should be the term of the NTA coordinator contract?
- What entities should be the counterparties to the contract?
- What enforcement mechanisms should be included in the contract?
- What type/amount of financial security should be required?
Electric vehicle pilot program proposed in Maine
Monday, July 23, 2012
A pilot program proposed by a Maine utility could lead to more electric vehicles on the road. Central Maine Power Co. has asked the Maine Public Utilities Commission to approve its Electric Vehicle Pilot Project No. 2, which includes a limited number of grants to help customers purchase or lease an electric vehicle.
As described in CMP's June 21 filing with the Commission, the electric vehicle pilot project consists of grant funding, CMP promotion of electric vehicles, and the collection of data on vehicle usage. CMP envisions issuing cash grants of up to $15,000 each to ten selected organizations located in CMP’s service territory. These organizations, selected through a public solicitation process, could use these grants to help them purchase or lease ten electric vehicles. Each organization can also apply a portion of the grant toward the purchase and installation of a Level 2 (208V or 240V) rapid charging station, if it so chooses.
The project arises out of a requirement approved by the Commission as part of the settlement of a 2008 case over CMP's Maine Power Reliability Program, or MPRP. As part of a deal allowing CMP to invest $1.4 billion in transmission infrastructure in its territory, the Commission required CMP to develop a process for pilot projects to facilitate the increased use of hybrid and electric cars in Maine, and to promote the storage of renewable and other energy generated off-peak to replace fuels with greater climate impacts. Using off-peak electricity to power transportation could both save money for consumers and allow the utility to make more full use of its transmission and distribution grid.
Specifically, the stipulation required CMP to bring forward at least three pilot projects to facilitate the increased use of hybrid and electric cars by the end of 2012. CMP's first pilot project entails integrating a limited number of electric vehicles into CMP's fleet. This project, which is currently being implemented, is designed to give the utility first-hand experience with EVs, in a manner that minimizes costs and risks.
If approved, CMP's second project would introduce ten vehicles into the broader community. The utility has said that its objective is to build awareness and lessen consumers' concerns by getting more of the new EV models into the public's hands. Its ultimate stated goal is to create interest and "buzz" about EVs, particularly among innovative early adopters who would be most likely to purchase an EV.
A third phase is still under development, but CMP has said it will propose reducing barriers to EV use through education, participate in the development of public charging infrastructure, and assess a lower off-peak rate for EV charging.
The Maine Public Utilities Commission is reviewing CMP's proposal and is expected to issue its decision later this year.
As described in CMP's June 21 filing with the Commission, the electric vehicle pilot project consists of grant funding, CMP promotion of electric vehicles, and the collection of data on vehicle usage. CMP envisions issuing cash grants of up to $15,000 each to ten selected organizations located in CMP’s service territory. These organizations, selected through a public solicitation process, could use these grants to help them purchase or lease ten electric vehicles. Each organization can also apply a portion of the grant toward the purchase and installation of a Level 2 (208V or 240V) rapid charging station, if it so chooses.
The project arises out of a requirement approved by the Commission as part of the settlement of a 2008 case over CMP's Maine Power Reliability Program, or MPRP. As part of a deal allowing CMP to invest $1.4 billion in transmission infrastructure in its territory, the Commission required CMP to develop a process for pilot projects to facilitate the increased use of hybrid and electric cars in Maine, and to promote the storage of renewable and other energy generated off-peak to replace fuels with greater climate impacts. Using off-peak electricity to power transportation could both save money for consumers and allow the utility to make more full use of its transmission and distribution grid.
Specifically, the stipulation required CMP to bring forward at least three pilot projects to facilitate the increased use of hybrid and electric cars by the end of 2012. CMP's first pilot project entails integrating a limited number of electric vehicles into CMP's fleet. This project, which is currently being implemented, is designed to give the utility first-hand experience with EVs, in a manner that minimizes costs and risks.
If approved, CMP's second project would introduce ten vehicles into the broader community. The utility has said that its objective is to build awareness and lessen consumers' concerns by getting more of the new EV models into the public's hands. Its ultimate stated goal is to create interest and "buzz" about EVs, particularly among innovative early adopters who would be most likely to purchase an EV.
A third phase is still under development, but CMP has said it will propose reducing barriers to EV use through education, participate in the development of public charging infrastructure, and assess a lower off-peak rate for EV charging.
The Maine Public Utilities Commission is reviewing CMP's proposal and is expected to issue its decision later this year.
NJ-PA transmission line challenged
Friday, May 4, 2012
A New Jersey court is considering a challenge by environmental activists to a proposed high-voltage transmission line connecting Pennsylvania and New Jersey.
Proposed by PPL Electric Utilities and Public Service Electric and Gas Co., the Susquehanna-Roseland line would run 145 miles from PPL's Susquehanna substation near Berwick, Pennsylvania to Roseland, New Jersey. The route, which is nearly finalized, would cross three units of land managed by the National Park Service: the Delaware Water Gap National Recreation Area, the Middle Delaware National Scenic and Recreational River and National Recreation Water Trail, and the Appalachian National Scenic Trail.
The Susquehanna-Roseland project has received the approval of the New Jersey Board of Public Utilities, as well as federal support in the form of an expedited permitting process. Regional grid operator PJM Interconnection, LLC has also said that the line is essential to improving reliability and reducing transmission line congestion in the region.
At the same time, the line has drawn opposition from environmental groups and others. The Sierra Club and other organizations have challenged the line as continuing a "reliance on toxic fossil fuels by shipping coal-fired power into New Jersey." Instead, the Sierra Club calls for increased use of demand response, energy efficiency and renewable energy to meet peak energy demands. Other have challenged the project's proposed route through National Park Service lands, including widening some existing transmission corridors and associated road-building activity.
This past Wednesday, the Appellate Division of the Superior Court of New Jersey heard oral argument over whether the New Jersey Board of Public Utilities' approval of the project was valid. Among the challenges raised was whether the BPU fully considered non-transmission alternatives to the line, such as demand response and energy efficiency.
While the court process concludes, the utility proponents believe that construction should not be affected by the lawsuits. The line is expected to be placed in service by summer 2015.
Proposed by PPL Electric Utilities and Public Service Electric and Gas Co., the Susquehanna-Roseland line would run 145 miles from PPL's Susquehanna substation near Berwick, Pennsylvania to Roseland, New Jersey. The route, which is nearly finalized, would cross three units of land managed by the National Park Service: the Delaware Water Gap National Recreation Area, the Middle Delaware National Scenic and Recreational River and National Recreation Water Trail, and the Appalachian National Scenic Trail.
The Susquehanna-Roseland project has received the approval of the New Jersey Board of Public Utilities, as well as federal support in the form of an expedited permitting process. Regional grid operator PJM Interconnection, LLC has also said that the line is essential to improving reliability and reducing transmission line congestion in the region.
At the same time, the line has drawn opposition from environmental groups and others. The Sierra Club and other organizations have challenged the line as continuing a "reliance on toxic fossil fuels by shipping coal-fired power into New Jersey." Instead, the Sierra Club calls for increased use of demand response, energy efficiency and renewable energy to meet peak energy demands. Other have challenged the project's proposed route through National Park Service lands, including widening some existing transmission corridors and associated road-building activity.
This past Wednesday, the Appellate Division of the Superior Court of New Jersey heard oral argument over whether the New Jersey Board of Public Utilities' approval of the project was valid. Among the challenges raised was whether the BPU fully considered non-transmission alternatives to the line, such as demand response and energy efficiency.
While the court process concludes, the utility proponents believe that construction should not be affected by the lawsuits. The line is expected to be placed in service by summer 2015.
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