esa policy update - energy...
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ESA Policy UpdateOctober 28, 2015
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Agenda• Federal
• IRS• FERC• Congress
• Wholesale markets• PJM• SPP• ERCOT
• States• Policy in Focus:
Distribution Planning Frameworks & Storage
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IRS Guidance on ITC Eligibility• Explicit Qs in IRS Notice 2015-70
• What is the definition of storage?• Is storage qualifying energy property under Section 48?• Is solar-paired storage charged from another source (“dual-use”)
eligible under section 48? Under what circumstances? How should it be credited?
• Other Qs• Is storage added to solar already placed-in-service (“retrofit”)
eligible for ITC? How should it be credited?• Is storage owned by a separate party from paired solar PV
eligible? How should it be treated?• How does eligible dual-use storage affect crediting of shared
components (e.g., BoS)?• ESA planning filing; comments due Feb 16, 2016
• Expected implementation 2018 – after current ITC expiration date
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FERC NOPR on 5-Min Settlements• Requires 5-minute settlement intervals in real-
time markets of all ISOs• Harmonizes with dispatch intervals• Would affect PJM, MISO, ISO-NE• 1 year to implement
• Requires shortage pricing during dispatch intervals with insufficient energy or operating reserves• 4 months to implement
• ESA planning filing; comment due Nov 30• Generally supportive; studying issues specific to
energy storage (e.g., impact on SoC)
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Congress• ESA launches Battery Energy Storage Caucus
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• House E&C Committee passed H.R. 8• Sec 1107 requires utility IRPs to consider resiliency
technologies, including storage• Some controversial provisions—conflicts with Senate
ENR• Floor vote potentially December
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PJM Current Issues• Deadline for Capacity Injection Rights 10/31
• Required for participation in Capacity Performance 2019/20 Base Residual Auction, scheduled for May 2016
• Markets and Reliability Committee voted to implement RegD cap
• Regulation Market Issues Senior Task Force (RMISTF) underway to review Regulation market• Monthly meetings; next meeting 11/11
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PJM RMISTF Staff Interests• PJM priorities
• Ensure regulation mix meets operational needs• Meet Tariff mandates to procure least cost combination of
resources• Minimize operator workload• Arrive at a solution that can be implemented with
reasonable cost and effort• IMM priorities
• Ensure the benefits factor (BF) is calculated in a way that properly measures value of RegD
• Use the BF consistently across market clearing and settlement
• Correct errors they see in calculation details of clearing process
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PJM RMISTF Stakeholder Interests• Thermal generators
• Goal: maximize RegA (slow + long)—oppose RegD
• Pumped hydro• Goal: establish & maximize RegB
(fast + long)• Load interests
• Goal: minimize total costs of Regulation—neutral on RegD
• Non-generating resources• Goal: ensure market access—
support RegD• EPCs
• Goal: unknown• Transmission
• Not engaged
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Company affiliates each have a vote at RMISTF Any solution will require support of pumped hydro
Largest number of votes
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ESA Engagement at PJM RMISTFESA principles, in order of priority:
1. Promote competitive markets for storage2. Preserve (or expand) existing storage market
value3. Set good precedent for Regulation at other
ISOs – SPP to visit PJM on Dec 1 re: storage
Concerns to address• Fate of short-duration resources• Expected prices/revenues
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SPP Market Working Group• SPP considering Revision Request 114
• Restores previously-existing classification of Storage Energy Resources
• First step to market participation, opens conversation on Fast Regulation
• Follow-up expected at 12/15-16 MWG meeting• Expected timing of approval would be April
2016
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SPP Discussion Qs on Storage
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ERCOT / PUCT• DREAM Task Force focused on defining DERs
• Storage registers as both generation & load and settles nodally, by PUC rule; proposed definition of DER excludes load
• ESA engaging on including storage in DER definition• Next meeting to focus on registration, interconnection, metering
• DG Interconnection straw proposal at PUCT• Deals with ability of 3rd parties to sign interconnection
agreements• Workshop 10/29; ESA to discuss further aspects relevant for
storage• Forthcoming info on Ancillary Services Redesign (NPRR667)
• Waiting on Brattle Report on pricing issues for AS products and NPRR revised language
• Nov 9 workshop to discuss NPRR
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ERCOT / PUCT• DREAM Task Force focused on defining DERs
• Storage registers as both generation & load and settles nodally, by PUC rule; proposed definition of DER excludes load
• ESA engaging on including storage in DER definition• Next meeting to focus on registration, interconnection, metering
• DG Interconnection straw proposal at PUCT• Deals with ability of 3rd parties to sign interconnection
agreements• Workshop 10/29; ESA to discuss further aspects relevant for
storage• Forthcoming info on Ancillary Services Redesign (NPRR667)
• Waiting on Brattle Report on pricing issues for AS products and NPRR revised language
• Nov 9 workshop to discuss NPRR
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States• CALIFORNIA: changes to SGIP eligibility (by GHG
intensity) under consideration—likely to favor storage• OREGON: request for storage grant applications
($300K available) due 10/30• NEW JERSEY: $3MM to be made available for BTM
renewables-paired storage FY16• NEW MEXICO: Governor’s state energy plan focuses
on storage for economic development• MASSACHUSETTS: stakeholder engagement session
10/30 on two-part study of energy storage landscape and policies
• HAWAII: net energy metering ended; expedited interconnection for BTM storage
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Policy in Focus:Distribution Planning Frameworks and Storage
10 states now in various types of proceedings on distribution planning frameworks / grid modernization
New York: Reforming Energy VisionCalifornia: Distributed Resource PlansHawaii: DER Docket 2014-0192Massachusetts: Grid Modernization PlansTexas: Distributed Resource in Energy and Ancillary Services Markets Task
ForceConnecticut: Public Act 15-05 ProceedingDistrict of Columbia: Formal Case 1130Minnesota: e21 InitiativeNew Hampshire: Case IR 15-296Maryland: PC40 technical workshops
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Recent Activities• NEW YORK: PSC guidance on DSIP filings
details list of data to release, discusses role of storage in plans
• CONNECTICUT: ESA made filings on storage in grid-side enhancements
• MARYLAND: ESA provided storage view at hearings on value of DERs
• DC PSC: ESA provided storage view at workshop on DERs
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