By Michael Yoder

PJM members last week advanced efforts to integrate the growing volume of energy storage and hybrid resources in the RTO, endorsing one issue charge and hearing a first reading of another at Thursday’s Markets and Reliability Committee meeting.

The MRC approved an issue charge to consider using effective load-carrying capability (ELCC) to set the capacity value of limited-duration resources such as battery storage. The initiative, which will be run by a new Capacity Capability Senior Task Force (CCSTF) reporting to the MRC, was approved by acclamation with one objection.

Alternative to 10-hour Minimum Run Time

PJM’s Andrew Levitt said ELCC, which was already under consideration for solar and wind resources, could be an alternative to the 10-hour minimum run time requirement for storage that was rejected by FERC in October.

FERC partially approved PJM’s Order 841 compliance filing but set a paper hearing to determine whether its 10-hour minimum for storage seeking capacity obligations was unjust and unreasonable. (See FERC Partially OKs PJM, SPP Order 841 Filings.)

In February, PJM requested the hearing be held in abeyance until Jan. 29, 2021, when it hopes to file Tariff changes applying ELCC to capacity storage resources. FERC responded March 2 by extending the deadline for initial briefs to April 27 and reply briefs to May 27. It said it could extend them further depending on its ruling on PJM’s request (EL19-100). “We’re optimistic” FERC will approve the request, Levitt said.

ELCC, which is already used by MISO, NYISO and CAISO, evaluates reliability in each hour of a simulated year and compares a resource mix with limited resources against one with unlimited resources. A resource that contributes a significant level of capacity during high-risk hours will have a higher capacity value than a resource that delivers the same capacity only during low-risk hours.

Levitt said the new senior task force will build on previous Planning Committee discussions on using ELCC for intermittent resources.

“We thought there was enough similarity there that it made sense to put them all under the same effort,” Levitt said. “The new senior task force we’re considering here to start with is essentially a blank slate, although one that is informed by prior efforts.”

Phase I of the effort will focus on solar, wind and energy storage, including batteries and pumped hydro. Phase II, expected to begin in 2021, will cover all other intermittent and limited-duration resources, including hybrids and resources for which part of the capacity is limited-duration and part is unlimited.

Brian Kauffman of Enel N.A. praised PJM’s strategy for resolving the storage issue. “I think it will save a lot of money and resources to have this discussion at PJM rather than in front of FERC,” he said.

Jim Davis of Dominion Energy said he appreciated PJM splitting the process into two phases, especially when looking at hydro resources. “We view run-of-river … as different than pumped storage and other types of storage,” he said.

Hybrid Resources Issue Charge

PJM’s Scott Baker presented a first read of an issue charge that would create a new senior task force to clarify how existing rules for intermittent and energy storage resources would apply to inverter-based solar-battery hybrids. The task force would also consider new requirements needed to incorporate hybrids into PJM markets. The committee will be asked to endorse the issue charge at its next meeting on April 30.

There are more than 10,000 MW of co-located generation and energy storage hybrid resources in the PJM interconnection queue, Baker said, and more than 95% of those megawatts are solar-battery hybrids.

“Given the amount of solar-battery hybrid resources in the interconnection queue and the existing rules clarification and gaps needed to be addressed for this resource type prior to operation in the PJM market, it is recommended that this work begin immediately and that the senior task force target completion of its work by the end of 2020,” the issue charge says.

Some areas are being considered out of scope of the issue charge, Baker said, including PJM’s implementation of compliance with FERC Order 845, stakeholder engagement related to the FERC directive regarding capability of energy storage resources in the capacity market and providing new capabilities to “toggle” the accounting for solar output between sales to PJM and the self-supply to the battery component.

Pete Fuller of Autumn Lane Energy Consulting asked why some of the items are being considered out of scope and when they may be addressed going forward.

Baker said other PJM committees are working on Order 845 compliance and that issues surrounding battery technology would make the initiative too complex to be resolved on an expedited timeline.

“It’s our preference to keep it out of scope just because we think that they are complicated enough that it may slow down the effort,” Baker said.

Ken Foladare of Tangibl thanked the PJM staff for bringing forward the issue charge. “With the entrance of hybrid resources recently into the PJM queue, we think it’s very important to clearly define the market rules for these resources and also to educate PJM stakeholders on the different configurations and how they affect the PJM grid,” Foladare said.