Pumping Up Pump Storage | RenewablesBiz





Allowing multivalue cost recovery for bulk storage similar to treatment enjoyed by transmission project developers under federal regulations could be the final policy piece that unlocks the potential of storage to integrate renewable energy and strengthen the grid.

Large-scale or regional bulk energy storage projects have characteristics similar to transmission projects. On the one hand, they bring a variety of economic and social policy benefits to a multitude of stakeholders and ratepayers, often across multiple jurisdictions.

On the other hand, for this very reason, achieving adequate cost recovery is difficult.

The Federal Energy Regulatory Commission issued Order 1000 in part to address the multivalue and cost-recovery aspects of transmission, in effect allowing the cost of multivalue projects to be allocated, or socialized, across an ISO, RTO or utility footprint. An earlier FERC ruling allows incentive rates for certain transmission projects.