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Review of wholesale markets and regulations for advanced energy storage services in the United States: Current status and path forward

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  • Sakti, Apurba
  • Botterud, Audun
  • O’Sullivan, Francis

Abstract

Today, advanced energy storage technologies, particularly electrochemical batteries, represent an increasingly economic option for supporting the integration of renewable energy resources and providing the grid with greater operational flexibility. Crucially though, the large-scale deployment of these assets, and the development of successful business models to support them is heavily reliant on policy, regulation and market design. In this paper, we present a comprehensive review of the array of federal, ISO/RTO and state-level rules and regulations shaping today's energy storage deployment across the United States. We highlight the fragmented and heterogeneous nature of existing market participation models available for advanced energy storage across restructured power markets and emphasize the need for design changes to power markets at all timescales to allow for the more efficient integration of energy storage. We also reflect on how well FERC's recent Order 841 does in terms of providing a framework for the establishment of more fit-for-purpose market participation models for storage, something that will be key for today's evolving power sector as it becomes more dependent on intermittent renewable resources.

Suggested Citation

  • Sakti, Apurba & Botterud, Audun & O’Sullivan, Francis, 2018. "Review of wholesale markets and regulations for advanced energy storage services in the United States: Current status and path forward," Energy Policy, Elsevier, vol. 120(C), pages 569-579.
    • Handle: RePEc:eee:enepol:v:120:y:2018:i:c:p:569-579
    DOI: 10.1016/j.enpol.2018.06.001
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    References listed on IDEAS

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    1. Telaretti, E. & Dusonchet, L., 2017. "Stationary battery technologies in the U.S.: Development Trends and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 380-392.
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    2. Izabela Zoltowska & Jeremy Lin, 2021. "Optimal Charging Schedule Planning for Electric Buses Using Aggregated Day-Ahead Auction Bids," Energies, MDPI, vol. 14(16), pages 1-18, August.
    3. Parra, David & Mauger, Romain, 2022. "A new dawn for energy storage: An interdisciplinary legal and techno-economic analysis of the new EU legal framework," Energy Policy, Elsevier, vol. 171(C).
    4. Kumar, T. Bharath & Singh, Anoop, 2021. "Ancillary services in the Indian power sector – A look at recent developments and prospects," Energy Policy, Elsevier, vol. 149(C).
    5. Dongwei Zhao & Mehdi Jafari & Audun Botterud & Apurba Sakti, 2022. "Strategic Storage Investment in Electricity Markets," Papers 2201.02290, arXiv.org, revised Mar 2022.
    6. Weiqiang Qiu & Sheng Zhou & Yang Yang & Xiaoying Lv & Ting Lv & Yuge Chen & Ying Huang & Kunming Zhang & Hongfei Yu & Yunchu Wang & Yuanqian Ma & Zhenzhi Lin, 2023. "Application Prospect, Development Status and Key Technologies of Shared Energy Storage toward Renewable Energy Accommodation Scenario in the Context of China," Energies, MDPI, vol. 16(2), pages 1-21, January.
    7. Csereklyei, Zsuzsanna & Kallies, Anne & Diaz Valdivia, Andres, 2021. "The status of and opportunities for utility-scale battery storage in Australia: A regulatory and market perspective," Utilities Policy, Elsevier, vol. 73(C).
    8. Loisel, Rodica & Simon, Corentin, 2021. "Market strategies for large-scale energy storage: Vertical integration versus stand-alone player," Energy Policy, Elsevier, vol. 151(C).
    9. Wadim Strielkowski & Dalia Streimikiene & Alena Fomina & Elena Semenova, 2019. "Internet of Energy (IoE) and High-Renewables Electricity System Market Design," Energies, MDPI, vol. 12(24), pages 1-17, December.
    10. Varela Soares, Ian & Mauger, Romain & Santos, Thauan, 2023. "Considerations for benefit stacking policies in the EU electricity storage market," Energy Policy, Elsevier, vol. 172(C).
    11. Fraunholz, Christoph & Keles, Dogan & Fichtner, Wolf, 2021. "On the role of electricity storage in capacity remuneration mechanisms," Energy Policy, Elsevier, vol. 149(C).
    12. Fraunholz, Christoph & Keles, Dogan & Fichtner, Wolf, 2019. "On the role of electricity storage in capacity remuneration mechanisms," Working Paper Series in Production and Energy 37, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    13. Diezmartínez, C.V., 2021. "Clean energy transition in Mexico: Policy recommendations for the deployment of energy storage technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    14. Zhao, Dongwei & Jafari, Mehdi & Botterud, Audun & Sakti, Apurba, 2022. "Strategic energy storage investments: A case study of the CAISO electricity market," Applied Energy, Elsevier, vol. 325(C).
    15. Juan I. Pérez‐Díaz & Marcos Lafoz & Frank Burke, 2020. "Integration of fast acting energy storage systems in existing pumped‐storage power plants to enhance the system's frequency control," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 9(2), March.
    16. Martin Staadecker & Julia Szinai & Pedro A. Sánchez-Pérez & Sarah Kurtz & Patricia Hidalgo-Gonzalez, 2024. "The value of long-duration energy storage under various grid conditions in a zero-emissions future," Nature Communications, Nature, vol. 15(1), pages 1-15, December.

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