NYISO Gets FERC Approval To Add Energy Storage To Real-Time Market Settlement Rules

on May 9, 2019
Platts

Washington — Having received the nod from the Federal Energy Regulatory Commission, New York’s grid operator is moving forward with a proposal to prepare its real-time market settlement rules for the expansion of wholesale market participation by energy storage resources.

New York currently has about 30 MW of energy storage capability, all located downstate, but its grid operator anticipates that figure growing to more than 1,000 MW by 2025 and nearly 4,000 MW by 2039.
FERC’s Order 841, issued last year, mandated tariff changes creating market participation rules that recognize the physical and operational characteristics of storage and accommodate its participation in the wholesale power markets. New York Independent System Operator in December filed a suite of tariff revisions (ER16-467) to comply with the order, and separately worked energy storage resources into a March 15 proposal (ER19-1332) to remove unnecessary complexity from its real-time market settlement rules.

NYISO has requested an effective date no earlier than May 1, 2020, for its Order 841 compliance filing, which remains under FERC review. But the commission Friday accepted the proposed real-time market settlement rule tweaks.

The changes, which will take effect May 15, clarify calculations regarding energy injections and withdrawals that are not scheduled in the day-ahead market, including deviations from day-ahead schedules. Such injections and withdrawals are subject to NYISO’s real-time market settlement often referred to as balancing market settlements.

The resulting balancing payments and charges address differences between scheduled and actual energy injections and withdrawals as well as differences between real-time and day-ahead energy schedules.

CONSOLIDATED TARIFF SECTIONS
FERC’s Friday sign-off clears the way for NYISO to consolidate tariff language addressing real-time market settlement for energy injections into one section and settlement for withdrawals in another section. The grid operator determined that differentiating between whether actual market activity exceeded or was less than day-ahead schedules was adding “unneeded complexity to the tariff rules.”

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Fractal Energy Storage ConsultantsNYISO Gets FERC Approval To Add Energy Storage To Real-Time Market Settlement Rules