Last month, New York state grid operator NYISO officially started offering batteries and other energy storage resources a novel opportunity: a chance to earn money as both wholesale and retail energy resources, not just one or the other.
On August 26, NYISO enabled the software to allow batteries, pumped hydro facilities and other storage resources to submit offers to buy and sell energy in its real-time and day-ahead markets, and provide fast-responding ancillary services like frequency regulation to keep the grid stable. It also opened up its Installed Capacity market auctions to storage resources, giving them a chance to offer their services to support grid reliability during times of peak electricity demand.
“NYISO is blazing a trail for dual use of storage in wholesale and retail service, pursuant to Order 841,” said Jason Burwen, vice president of policy at the Energy Storage Association trade group. But as ISOs and RTO implement the changes Order 841 requires, “a lot of focus is shifting to, how do these markets actually work when you bring storage to them?”