New York Grid Operator Implements Rules for Full Participation of Energy Storage in Power Markets
The New York Independent System Operator Inc. on Sept. 8 announced it has finalized the process required to allow full participation of energy storage resources in the grid operator’s wholesale energy markets.
The rules are required for compliance with the Federal Energy Regulatory Commission’s Order No. 841, which directed grid operators to establish a market model that recognizes the unique characteristics of storage. The New York grid operator is the first to implement rules to enable full participation of electric storage resources, positioning the state to meet the aggressive mandates in the 2019 Climate Leadership and Community Protection Act. The law sets the state on the path to achieve economy-wide carbon neutrality and transition to a zero-emissions electricity sector by 2040. New York is required to achieve 6 gigawatts of solar by 2025, 3 gigawatts of energy storage by 2030, and 9 gigawatts of offshore wind by 2035.
The system operator has also proposed participation options for hybrid storage resources, enhancing market design to meet the future challenges expected to arise with high levels of intermittent renewable and distributed energy resources.