On February 15, 2018, the Federal Energy Regulatory Commission (FERC) unanimously approved Order 841, which is designed to remove barriers for the participation of energy storage resources in wholesale markets.
Greatly expanding the access of energy storage resources to wholesale markets will open doors to participation where opportunities are limited or are not cost effective today. With the potential opening of all wholesale markets to energy storage, we will likely see increased participation and expanded growth in energy storage due to greater certainty around wholesale market revenues and the ability to stack value streams.
The timeline presented by FERC effectively gives RTOs/ISOs until the latter part of 2018 to develop new market participation models designed to allow storage to fully participate in capacity, energy, and ancillary services markets. They will then have a year to implement those participation rules, likely significantly growing the wholesale storage market in the United States by 2020.
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