A new era for energy storage is born in West Virginia

By Sam Jaffe, IDC Energy Industry Insights Community |  Green IT

AES expects to continue to expand its energy storage operations in the United States, especially now that several ISO's are creating specific tariffs for fast storage frequency regulation. PJM, for instance, will debut a new market in 2012 that grades systems on their response time and accuracy and provide a greater payouts for frequency regulation services according to their score. For instance, a lithium-ion system like the one at Laurel Mountain would get a high score because it can respond to a signal in microseconds and provide a frequency response that is within a few hundredths of an oscillation. A conventional combined cycle gas plant would need five seconds to respond and come within a few tenths of an oscillation. Because of the higher performance of the battery system, it would receive a higher dollar value for the service it delivers than the gas plant. PJM expects their new market to be cost neutral for ratepayers because the higher cost services provided by fast storage will be balanced out by an overall decline in frequency regulation capacity. If the new PJM system is successful, and if other ISO's adopt similar models, it could lead to the creation of a lot more systems like the one on Laurel Mountain.


Originally published on IDC Energy Industry Insights Community |  Click here to read the original story.
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