Utility Dive: PJM action on valuation ‘opens the door’ to energy storage in its capacity market

Utility Dive covered the news that the Markets and Reliability committee at PJM Interconnection last week approved an Effective Load-Carrying Capability (ELCC) package in response to the Federal Energy Regulatory Commission’s order on how regional transmission organizations value energy storage in wholesale power markets. The piece included quotes from Modern Energy’s Betty Watson. Read excerpts below and the Utility Dive piece here.

“This set of rules does a better job of embracing the advanced energy resources that are coming onto the grid, which will make more resources available to grid operators,” said Elizabeth Watson, senior director of policy and market design at clean energy holding company Modern Energy.

“This decision will change the way PJM values limited duration resources like energy storage and intermittent resources, including renewables, in the capacity market, closing the gap between the potential value that advance energy resources can provide to the grid and what they’re able to provide under existing rules,” she continued.

Read the entire Utility Dive piece here.