Carmel, Ind.-based regional transmission organization Midcontinent Independent System Operator (MISO) has added electric storage resources to its market portfolio for the first time as it prepares for a larger share of renewables to be added to the grid, according to a (Sept. 6) news release.
The new resource type is expected to support reliability and resilience amid the industry transition in resources. Electric storage resources include batteries, pumped storage facilities and compressed air energy storage.
“We are excited to see this space grow with increasing member interest and participation, particularly as we continue to adapt to the accelerating resource transition,” said Jessica Lucas, MISO’s executive director – system operations.
According to the Federal Energy Regulatory Commission, electric storage resources are “capable of receiving electric energy from the grid and storing it for later injection of electricity back to the grid regardless of where the resource is located on the electrical system.” According to the release, electric storage resources are flexible resources that can help reduce peak demands, manage congestion and provide backup power for major disruptions because they can respond quickly and switch between injection (discharge) and withdrawal (charge) modes.
Because MISO has included electric storage resources in its market portfolio, the resources can participate in MISO’s energy and operating reserves markets as supply and demand.
“The MISO team has demonstrated excellent collaboration with our stakeholders, and the pursuit of creative solutions resulted in MISO’s first secured patent,” Lucas said. “The development of the (electric storage resources) participation model has been a key element of the market redefinition pillar of MISO’s Response to the Reliability Imperative in the resource models and capabilities area.”
The near-term benefits of the new model are expected to be modest amid a small volume of the storage resources, but the model places MISO ahead of the increased storage participation that’s expected with higher penetration of renewables and distributed energy resources over the next five to 10 years, the release shows.
According to the U.S. Energy Information Administration (EIA), 15 gigawatts of new utility-scale electric generating capacity were added to the U.S. grid in the first half of 2022. Recent reports show another 29 gigawatts of capacity are expected to be added in the second half of the year. Wind generation accounted for about one-third of the capacity added in the first half of the year, while solar is expected to account for nearly half of the generation added in the second half of the year.
According to the EIA, U.S. electricity generation from renewable sources is expected to rise from 22% of electricity generation in 2022 to 24% in 2023 as more generating capacity from wind and solar come online and other generation sources, such as coal and nuclear, are retired.
MISO manages the electric grid across 15 U.S. states, including Arkansas, and the Canadian province of Manitoba.