Renewable energy is, as most would agree, the energy of the future. Regardless of what we might think about sources such as coal, oil or natural gas, the truth of the matter is that as these resources become scarcer or harder to extract, we will reach a tipping point when using renewable energy simply makes more sense than paying high prices for dirtier energy.
One of the problems with renewable energy, of course, is that supply can be uneven. People need energy at night when the sun doesn’t shine, or any time the wind doesn’t blow. What this means is that energy storage technologies are as critical as the equipment and technologies that generate energy. Renewable energy aside, the type of “smart grids” that are being built across the U.S. today rely heavily on balancing supply and demand in order to attain efficient operations and avoid using older, dirtier sources of energy. This involves making use of energy storage technology, as well.
The U.S. federal government seems to have finally gotten this point, as evidenced by Federal Energy Regulatory Commission (FERC) Order 784, which was passed back in July of this year. According to the Web site Breaking Energ y, Order 784 expands requirements for compensating energy storage entities that were established by FERC Order 755 issued in October of 2011. Order 755, “Frequency Regulation Compensation in the Organized Wholesale Power Market,” requires regional energy transmission organizations and independent system operators to adopt a two-part market-based compensation method for frequency regulation services – a capacity payment reflecting opportunity costs and a market-based performance payment – rewarding faster-ramping resources, such as batteries and flywheels...Read More
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