PV AND BATTERIES VALUE ADDED SALES IN ISO LOAD RESPONSE (PEAK POWER) AND REGULATION MARKETS

摘要

PV continues to have minor penetration into grid based electricity markets primarily due to the high average cost of power delivered by PV systems. This paper will investigate the potential to increase the value of PV systems with batteries by participation through peak price dispatch of stored energy in the new load response programs created in all of the northeastern states transmission power pools as well as the California power pool. Load response programs are a key component of the Federal Energy Regulatory Commission's push for nation wide standard electricity market design and are being touted as an important method to reduce real time super peak prices. The valuation undertaken in this paper focuses on the Pennsylvania-New Jersey-Maryland (PJM) Independent System Operator (ISO) power pool markets, both for peak power pricing, expected PV output and battery dispatch as well as the real time regulation market. While PV systems with batteries could be used today in the Federal Energy Regulatory Commission (FERC) approved ISO load response programs, the program parameters may need to be adjusted both to provide the capabilities for small systems to provide this service as well as a pricing structure that allows aggregated generator access. In addition to load response during peak power pool periods, the use of battery storage may allow small system access to the ISO regulation markets - the markets used by power pool operators to address the technical requirement of matching system-wide electricity consumer load with an equal and exact amount of generation on a real time basis. This paper will provide general overview of each of these wholesale markets including insights into how individual systems could participate in under existing federal rules. The paper will identify the existing market program elements that will need to be altered and technical components that are needed before individual systems will be able to participate directly. While some may argue that the cost effectiveness of PV is diminished and maintenance is increased when batteries are added to grid connected systems, the ability to add value and a revenue stream that may justify the battery and interconnection costs may go a long way towards making PV systems cost effective. If customers see a short payback on an investment in an inverter, batteries and other balance of system costs, PV needs then to only be cost effective as a module cost.