Energy Storage Regulation Needed – Guest Blogger Garth

It’s fast becoming apparent that large clean energy storage is needed for variable renewable energy integration into the grid, not only to stabilize that resource but to avoid inevitable curtailment due to transmission constraints. The resulting VERS (variable energy resources) losses incurred reduce the value of clean energy, particularly wind, in some cases by 50%. Detailed information of this nexus is spelled out in a subcontracted study by NREL released October 2009. (NREL/SR-550-46716)

There is a simple solution for the regulatory agencies and commissions that would ensure fair pricing, VERS stabilizing components, energy security, while maximizing the nation’s clean renewable energy portfolio thus aiding States to meet their RPS (renewable portfolio standard) goals to reduce GhG emissions. It is imperative that, like licensing, stabilizing bulk storage needs regulation and control by the FERC to ensure grid security.

Under the Federal Power Act, we need to form a new Power Authority, the Wind Power Authority (WPA); an entity like BPA, TVA, and WAPA.
• Task A of the WPA would be to perform a large Transmission study of the U.S, determining: firm energy needs under existing and proposed RPS’s(on-peak and off-peak) if coal plants are shut down or scaled back and as the economy recovers, optimize smart grid configuration and technology, and raw wind energy requirements.

• Task B of the WPA is to issue an RFP to Transmission owners and the Transmission market and Bulk energy Storage developers and fiber optic providers to offer in components of this grid.

• TaskC WPA selects the winning bidders and assembles the grid in a long, complicated engineering problem.

• Task D is to issue the RFP to buy the raw wind energy from existing and planned wind energy developers.

• Task E is to issue an Open Season offer for firm clean electricity to utilities, municipalities, co-ops, and wholesale brokers and traders. Prices are set to recover capital, operating and raw material costs. Prices can be adjusted to clear the market.

• Task F is to operate the Smart Grid, buying off-peak and on-peak electricity; running the Storage fleet; and selling firm peak hour electricity. This job is similar to running the Bonneville or TVA systems without the fish issues.