Advanced Energy Economy Applauds FERC Inquiry on Barriers to Energy Storage, Calls for Electricity Market Participation of All Advanced Energy Technologies

AEE urges Commission to conduct a separate review of similar barriers affecting other technologies in wholesale electric markets

Washington, D.C., June 7, 2016 — Today, national business group Advanced Energy Economy (AEE) applauded the Federal Energy Regulatory Commission (FERC) for initiating a formal inquiry into barriers to participation of energy storage in regional electricity markets. In comments filed with FERC in its proceeding on Electric Storage Participation in Regions with Organized Wholesale Electric Markets, AEE also encouraged the Commission to conduct a separate review of market rules that keep other advanced energy technologies from meeting customer demand and improving grid reliability and resiliency.

"We wholeheartedly applaud this FERC inquiry, as energy storage technology has proven to be a practical and cost-effective resource. We call on FERC to quickly take steps through this inquiry to address the rules that prevent its broader use," said Arvin Ganesan, vice president for federal policy at Advanced Energy Economy, national business group. "However, since the same challenges exist for a wide variety of other technologies, we urge FERC to identify the barriers to participation in wholesale markets that are facing all advanced energy technologies."
As the technology has developed and costs have come down, FERC is looking to energy storage to help solve wholesale power market challenges, including meeting new demand and enhancing grid reliability and resiliency. Earlier this year, FERC opened Docket No. AD16-20-000, an inquiry into energy storage, asking Regional Transmission Operators and Independent System Operators what barriers exist to the deployment of energy storage in their grid-management territories.
In its comments, AEE identified three characteristics of market rules, tariffs, and product definitions that act as barriers that can impair participation of energy storage, as well as other advanced energy technologies, in wholesale markets:
• Defining eligibility to participate in the market based on resource type as opposed to what a technology can do, thereby banning from competition new technologies that accomplish the same purpose,
• Effectively requiring that all participating resources resemble traditional power plants, thereby excluding a resource like energy storage simply because it is unavailable when recharging, and
• Characterizing all technologies installed behind the customer meter that participate in markets only as "demand response," even if they are not primarily load reduction measures, thereby preventing resources like onsite storage, solar, and fuel cells from providing a broader set of services to the grid.
"AEE and its members look forward to working with the Commission to overcome these and other barriers that prevent advanced energy technologies from participating in wholesale energy markets," said Ganesan. "The advanced energy technology market is growing rapidly. When all technologies are given the chance to compete based on the value they provide, we see great opportunities for advanced energy technology to make the energy we use more secure, clean and affordable."
About Advanced Energy Economy:
Advanced Energy Economy is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE's mission is to transform public policy to enable rapid growth of advanced energy businesses. AEE and its State and Regional Partner organizations are active in 26 states across the country, representing more than 1,000 companies and organizations in the advanced energy industry. Visit AEE online at www.aee.net.

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