California Grid Operator Implements Policies Supporting Electricity Grid Reliability

The California Independent System Operator Board and the Western Energy Imbalance Market Governing Body have approved both the Energy Storage Enhancements and Resource Sufficiency Energy Enhancements initiatives, according to a Dec. 16 news release. The initiatives are expected to be adopted by the upcoming summer when extreme temperatures create high demand during peak hours.

The Energy Storage Enhancements initiative allows for new market rules and changes to the existing energy storage optimization models, so that renewable energy can be entirely integrated into the market. Moreover, these enhancements would allow renewable energy assets to be leveraged, so that they can maintain grid reliability. More specifically, the enhancements improve the grid operator’s policies ensuring batteries are precisely priced in the real time market and fully charged, so that they can be utilized when required.

The refinements in the energy storage proposal include: enhanced accounting of a battery’s state of charge, certifying the resources are available when needed and better tools for dispatch, in order to ensure that resources are sufficiently rewarded so that batteries’ energy is accessible during periods of high demand.

As part of the Resource Sufficiency Energy Enhancements, the grid operator plans to add an energy assistance program to its existing resource sufficiency evaluation design. Each WEIM balancing area will be able to choose whether or not it elects to receive energy assistance. Moreover, the enhancement ensures that WEIM entities have enough capacity and energy in the real time market to fulfil demand before transferring electricity to other participants.