NY ISO plan sees storage in state's wholesale markets by 2020

Dive Brief:

The New York ISO yesterday released a new report, "The State of Storage," kicking off the process of developing a model for energy storage resources to participate in the state's wholesale markets.
The roadmap lays out a three-phase plan that focuses on storage integration, optimization and aggregation. Bringing storage into wholesale markets could be accomplished by 2020, according to the timeline.
The report followed Gov. Andrew Cuomo's (D) decision last week to sign legislation making New York just the fourth state to adopt an energy storage target. The state’s Public Service Commission will determine the level of the target and whether or not it will be mandatory.

Dive Insight:

The New York grid operator's report outlines a timeline for integration, development and deployment of a new market participation model for front-of-the-meter energy storage resources (ESRs) that are 0.1 MW and larger.

NYISO President and CEO Brad Jones said the report “envisions a future where ESRs can be eligible to offer all potential services and set market clearing prices."

Storage on the New York grid could include pumped hydroelectric generators, flywheels and batteries capable of withdrawing electricity from the grid to alleviate excess supply. When paired with intermittent renewable generation, the ISO said storage "can help maximize the potential of those resources while promoting more reliable and efficient grid operation of the electric grid."

The report concludes energy resources "will need a participation model for the capacity market. It is envisioned that [in front of the meter] storage and [distributed energy resources] will function under similar models in the capacity market. Consideration of the capacity market model for [front-of-the-meter] or aggregated ESRs will begin in 2018."

Interest in energy storage is growing rapidly. New data from GTM Research shows 50.4 MWh of energy storage was deployed in the United States in Q2 2017, up 6% year-over-year. Behind-the-meter deployments rose 140% quarter-over-quarter; the residential market rose 89% from Q1 2017, while the non-residential market grew 151% across that same time.

New York's storage targets will be set by the Public Service Commission. The state is working to reach a 50% renewable standard by 2030.

Massachusetts, California and Oregon also have energy storage targets.