The California Independent System Operator Corp.'s (California ISO) board of governors has launched what it calls a ‘regulation energy management’ service, which the California ISO believes will open up opportunities for energy storage and demand response to become larger parts of the ancillary-services market that makes up ISO operating reserves.
An estimated 5 MW to 10 MW of energy storage is expected to begin bidding into the ISO market once the Federal Energy Regulatory Commission approves the required tariff changes and the software modifications are made. The California ISO will be closely monitoring the performance of these new technologies and adapt market rules as necessary to maximize the benefits they provide.
‘The integration of renewable resources introduces new requirements to reliably manage the grid,’ says California ISO President and CEO Yakout Mansour." Our five-year strategic plan points out that storage technologies bring unique operational solutions to grid management as a tool for helping balance renewables on the system. We are ready to gain valuable operational experience with this potentially versatile resource.’
SOURCE: California ISO