Hailed as a game changer, battery storage projects will be ubiquitous one day. Until then, making each project a reality requires breaking through barriers. Knowing the roadblocks that lie ahead, and potential options to avoid them, is critical to choosing the right opportunities to pursue.
ISO/RTO interconnection queues are quickly filling with battery storage projects and growth is nearly exponential. Yet, many of these projects will fail without the experience needed to stack or de-risk revenue streams, choose sites wisely, or manage other critical factors. Experience from working on some of the earliest projects in the US that participated in ISO/RTO markets will help ensure your project’s success.
While changing, the regulatory challenges for storage remain significant. FERC has worked to open ISO/RTO markets to energy storage, but most grid operators are still defining participation rules. Transmission planners are only beginning to understand the potential of energy storage and continue to seek clarification from FERC. Utilities, uncertain of stacked revenues, are often approaching battery storage projects cautiously. Through Center for Renewables Integration, we have been at the forefront working at FERC and ISO/RTOs on regulations that enable front-of-meter battery storage, participating directly to help shape rules and create markets.