Skip to content
Contact
Set Up A Call
  • Blog
  • Independent System Operators Meet FERC Order 841 Milestone
Share this post
David Christopher

David Christopher

Independent System Operators Meet FERC Order 841 Milestone

January 3, 2019
/
Energy Storage Optimization and Trading,NYISO,SPP,Wholesale Market Participation

 

Utility scale energy storage in wholesale markets came one step closer to reality across the U.S. last month on December 3rd as each Independent Systems Operators (ISO) submitted mandatory filings to implement new tariffs in compliance with FERC Order 841. 

The filings describe plans for how energy storage will engage the market with the common goal of allowing Energy Storage Resources (ESRs) to fully participate in energy and ancillary service markets.  Generally, the proposals introduce the storage resource category and explain the modeling, bid/offer parameters, operating limitations and settlement charge codes.   PCI gave a brief summary of the FERC requirements in a previous post.

FERC naturally dictated the fundamental ground rules for Order 841 but left their application up to the individual markets, so implementation details vary somewhat across the country. 

 

Summary of takeaways for each ISO

 
California Independent System Operator (CAISO)

Probably the most notable takeaway from CAISO’s filing is that they are already essentially meeting all Order 841 requirements with their existing model.

 
ISO-New England (ISO-NE)

ISO-NE’s Energy Storage Facilities (ESFs) can be categorized as Binary Storage Facilities (BSFs) or Continuous Storage Facilities.  BSFs can either charge or discharge but are not able to switch seamlessly between the two.  Previously BSFs were limited to pumped-storage hydro facilities, but the the new filing removes this limitation. Continuous Storage Facilities are able to transition rapidly between charging and discharging within ten minutes or less.  ESF’s will be able to participate in the Forward Capacity Market (FCM) although the proposed rules may limit flexibility to operate in the most cost effective way. 

PCI provided a preview of this proposal in a previous post, and additional details are available here.

 
Midcontinent Independent System Operator (MISO)

MISO uses the term “Electric” Storage Resources.  A MISO ESR may Discharge (sell) or Charge (purchase) energy in the Day Ahead Energy and Operating Reserve Market if it is included in the Network Model and has the telemetry to respond to 5-minute dispatch signals.  Additionally, a qualified Electric Storage Resource can supply Regulating Reserve, Spinning Reserve, Supplemental Reserve, Up Ramp Capability, and/or Down Ramp Capability in the Day Ahead Energy and Operating Reserve Market.  The Energy Offer curve to either Charge and/or Discharge must cover the entire range of operation and be monotonically increasing MW/price pairs.  Commitment Statuses include:

  • Charge
  • Discharge
  • Continuous
  • Emergency Charge & Discharge
  • Available
  • Outage and Not Participating

Charge, Discharge, or Continuous Commitment Statuses are for self-committing. The Available Status authorizes MISO to commit the ESR economically.

Valid Energy Dispatch Status specifications include Economic, Self-Schedule, and Not Participating. MISO emphasized that it will not manage State of Charge (SOC) for ESRs, so market participants are responsible for reporting the SOC through offer parameters and telemetry.

 
New York ISO (NYISO)

NYISO, like ISO-NE, distinguishes between what they call Continuous (able to switch between buyer and seller in one interval) and Non-Continuous ESRs.  Either can participate in the Capacity Market but need to meet the existing 4-hour minimum run-time requirement to be qualified.  To that end, Energy Storage Resources can derate their capacity so that, for example, a 40 MWh battery with the capability of injecting 20 MW/h would be able to reduce its capacity to 10 MW for 4 hours to meet the duration requirement. 

New York is betting big on energy storage as evidenced by the recent New York Public Service Commission (PSC) announcement setting an energy storage goal of 3,000 MW by 2030 with an interim goal of 1,500 MW by 2025.

 
PJM

IN PJM, ESRs can already participate in day ahead and real-time power markets, but only as self-scheduled resources, not by setting LMP. Under the new proposal, they can bid into the DA/RT markets in three modes – charge, discharge and continuous – and be dispatched according to LMPs.  Discharge mode is a supply offer (like a unit).  Charge mode is akin to a demand with negative bid.  Continuous mode is a combination of charge and discharge allowing the resource to buy or sell according to prevailing prices, similar to CAISO.

The recent implementation of 5-minute real-time settlements intervals is crucial to the profit margins of these highly flexible resources.  In addition to its DA and RT markets,  PJM will permit ESRs to participate in the Capacity market, albeit with the existing onerous 10-hour duration requirement, which could be difficult for resources like batteries that typically discharge in 4 hours or less.  That’s much longer than any other ISO.

 
Southwest Power Pool (SPP)

According to the October Market Working Group meeting notes, SPP identifies ESRs choosing to participate in the market under the new model by creating a resource registration type called Market Storage Resources (“MSR”).  SPP emphasizes that participation is voluntary, and distinguishes ESRs that choose to participate under 841 from those that elect to stay with the current model.  ESRs may register as any valid Resource type and are subject to the same rules as any other Resource within that type.  Any ESR registered as an MSR  (and meeting the technical standards) may provide Energy, Regulation-Up, Regulation-Down, Spinning Reserve, and Supplemental Reserve services, and submit self or market for commit status.  SPP estimates compliance with FERC Order 841 will cost approximately $850k.

 

Stay-tuned

Each ISO has until December 3, 2019 to revise and implement the new Order 841 market rules.  Below are some links to the filings for each ISO:

  • CAISO 
  • ISO-NE
  • MISO
  • NYISO
  • PJM
  • SPP 

 

David Christopher

David Christopher

Related blog posts

Loading...
battery storage units in a field of grass
Oct 25
Energy Storage Optimization and Trading,Sustainable Energy

Green Energy and Energy Storage

Jul 26
Energy Trading and Optimization,Portfolio Optimization,Wholesale Market Participation

What You Need to Know About Renewable Energy Optimization Across Day-Ahead and Real-Time Markets

May 23
CAISO,Wholesale Market Participation

Large U.S. Federal Power Marketing Entity Joins the Western Energy Imbalance Market

Related press

Loading...
Laptop computer with code displayed on the screen
Jan 23
Cybersecurity

PCI Successfully Completes SOC/FISMA Examinations for 2022

Ron Swartz, senior director of Trading Analytics, at PCI Energy Solutions
Jan 11

Energy Trading Product Visionary Ron Swartz Joins PCI Energy Solutions

Transmission Lines
Nov 16
SEEM

Multiple Customers Go Live With the PCI SEEMTrader Platform for Autonomous Power Trading in the Southeast Energy Exchange Market (SEEM)

PCI Energy Solutions

PCI Energy Solutions

Also known as Power Costs, Inc.

Connect with us

U.S. 1+ 405.447.6933

Sales 1+ 405.701.7301

301 David L. Boren Blvd., Suite 2000
Norman, OK 73072

Contact us

We’re Hiring! 

Linkedin Twitter
  • Energy Trading and Optimization
  • Wholesale Market Participation
  • ETRM
  • Portfolio Optimization
  • Settlements and Billing
  • Gas & Fuels Management
  • Generation Outage Management
  • Company Type
  • Utilities
  • Generators
  • Traders
  • Renewable Energy
  • Asset Managers
  • Retailers
  • About
  • About Us
  • Cybersecurity
  • Leadership
  • Our Technology
  • Newsroom
  • Careers

Subscribe to our newsletter

Subscribe
  • Transmission and Reliability
  • Transmission Outage Management
  • Transmission Scheduling
  • e-Tagging
  • Balancing Authority Operations
  • Energy Accounting
  • Settlements and Billing
  • Sustainable Energy
  • Renewables Trading & Scheduling
  • Energy Storage Optimization & Trading
  • Hydrogen
  • Hydropower
  • Carbon Intensity
  • Markets
  • US ISO/RTO Markets
  • US Bilateral Markets
  • Canada
  • Chile
  • Mexico
  • Europe
  • Australia
  • Thought Leadership
  • Blog
  • Webinars & Events
  • Customer Portal
  • INFOCUS Conference
  • Product Trainings
  • Product Documentation
  • Issue Tracker

© Power Costs, Inc. 2022 | All Rights Reserved.

  • Privacy Policy
  • Sitemap
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}

Request More Information

  • This field is for validation purposes and should be left unchanged.

Contact

Name(Required)
This field is for validation purposes and should be left unchanged.

Subscribe

Name
I am not a robot 🤖

Solutions

Energy Trading and Optimization

  • Wholesale Market Participation
  • ETRM
  • Portfolio Optimization
  • Settlements and Billing
  • Gas & Fuels Management
  • Generation Outage Management
  • Wholesale Market Participation
  • ETRM
  • Portfolio Optimization
  • Settlements and Billing
  • Gas & Fuels Management
  • Generation Outage Management

Transmission and Reliability

  • Transmission Outage Management
  • Transmission Scheduling
  • e-Tagging
  • Balancing Authority Operations
  • Settlements and Billing
  • Energy Accounting
  • Transmission Outage Management
  • Transmission Scheduling
  • e-Tagging
  • Balancing Authority Operations
  • Settlements and Billing
  • Energy Accounting

Sustainable Energy

  • Renewable Energy Trading & Scheduling
  • Energy Storage Optimization & Trading
  • Hydrogen
  • Hydropower
  • Carbon Intensity
  • Renewable Energy Trading & Scheduling
  • Energy Storage Optimization & Trading
  • Hydrogen
  • Hydropower
  • Carbon Intensity

Markets

  • US ISO/RTO Markets
  • US Bilateral Markets
  • Canada
  • Mexico
  • Chile
  • Europe
  • Australia
  • US ISO/RTO Markets
  • US Bilateral Markets
  • Canada
  • Mexico
  • Chile
  • Europe
  • Australia

Resources

Thought Leadership

  • Blog
  • Webinars & Events
  • Blog
  • Webinars & Events

Customer Portal

  • INFOCUS Conference 2023
  • Product Trainings
  • Product Documentation
  • Issue Tracker
  • INFOCUS Conference 2023
  • Product Trainings
  • Product Documentation
  • Issue Tracker

About Us

  • About
  • Leadership
  • Newsroom
  • Our Technology
  • Cybersecurity
  • About
  • Leadership
  • Newsroom
  • Our Technology
  • Cybersecurity

Careers

Contact Us