FERC Order 841 and Energy Storage 101

05 Aug 2020
Rao Konidena
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torage is a generation, transmission, and distribution asset. Hence the services storage provides, and the revenue from storage should include all the services provided. FERC Order 841 treats storage as a generation asset. Stakeholders need to know all the costs and benefits of storage, so that storage is valued appropriately for consumer benefits. Utilities are focused on a single attribute of storage like congestion deferral, or capacity value. Or state storage is not cost-effective right now. Because of focusing on one single revenue stack.

Since storage is all of the above - generation, transmission, and distribution assets, it is a bit complex. But, by focusing on the primary value like a peaker replacement or reducing peak demand charge utilities and their customers realize the benefit. Rakon Energy will provide independent cost estimates from talking to various vendors and emphasize the multiple value-stack benefits from storage.
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