The American Clean Power Association (ACP), in collaboration with The Brattle Group, has released a comprehensive Energy Storage Market Reform Roadmap, highlighting key reforms that regional grid operators can implement to fully harness the benefits of energy storage technologies.
While some regions—like California and Texas—have successfully integrated energy storage into their energy systems, many organized electricity markets across the U.S. have yet to tap into its full potential. Energy storage is uniquely positioned to boost grid reliability, enhance the performance of both renewable and conventional energy sources, and reduce overall system costs. “Energy storage technologies add a new dimension of flexibility and efficiency to our electric grid,” said ACP VP of Energy Storage Noah Roberts. “Energy storage has proven to boost reliability and lower energy costs. In Texas, the state added 5 GW of energy storage in one year, eliminating calls for customers to reduce electricity use during historic summer heat, stabilizing the grid through volatile winter storms, all the while delivering more than a billion dollars in energy cost savings. This roadmap outlines actionable steps to better utilize energy storage to deliver reliable and affordable power across the United States.”
The report underscores that updated market rules in states like California and Texas have proven that energy storage can effectively complement both thermal and renewable generation. These technologies help meet region-specific reliability demands while also mitigating the impact of rising capacity prices on utility bills.
As electricity demand surges nationwide, driven by economic growth and electrification, the need to quickly deploy scalable, flexible resources is more urgent than ever. Energy storage offers a reliable, affordable solution to increase grid capacity, efficiency, and resilience. However, outdated market structures continue to limit its participation, jeopardizing future reliability and affordability.
Several actionable reform opportunities identified in the roadmap include:
- PJM Interconnection is beginning to modernize its Surplus Interconnection Service (SIS) rules, a move expected to accelerate energy storage deployment at existing generation sites.
- In the Midcontinent Independent System Operator (MISO) region, improving capacity accreditation modelingwould allow energy storage to better contribute to grid reliability, following successful examples in California and Texas.
“Many existing rules around energy markets were developed prior to the advancement of new technologies. As electricity grids struggle to keep pace with the feverish growth in energy demand across the country, every electron of power counts,” said Stephanie Smith COO of Eolian. “Battery energy storage helps both thermal and renewable energy technologies optimize their participation and increase reliability and resilience by providing power when and where it is needed quickly. By updating existing rules to account for new technologies, regional electricity markets can enhance grid performance and lower costs for consumers.”
- PJM can go further by updating rules to enable storage resources to provide power during peak demand, leveraging their fast response capabilities to enhance real-time market operations.
- In New York, reforming ISO rules would better align energy storage capabilities with system needs, helping match supply and demand more efficiently while lowering costs and improving stability.
ACP and its members reaffirm their commitment to working closely with regional grid operators, state policymakers, and stakeholders to push forward market reforms that unlock the full potential of energy storage. These changes are critical to ensuring a reliable, affordable, and resilient grid that supports the evolving energy needs of all Americans.
