Policy change could pave way for new energy services

US energy regulators are looking at ways to make it easier for new energy services — in particular electricity storage and smart-grid technologies — to enter the energy market.

In a new Notice of Inquiry (NOI), the Federal Energy Regulatory Commission (FERC) asks whether the agency should change its policy for so-called ancillary services providers. Currently, the policy requires such enterprises to prove they lack market power before they can sell their services at market-based rates.

The notice also looks at whether FERC should change its accounting and reporting requirements to better accommodate new energy storage resources and operations. At the present, it’s not clear how to best classify storage technologies or account for their costs, which makes it difficult for the agency to establish appropriate rates for such resources.

In response to an agency inquiry in June 2010, FERC officials heard from a number of commenters who said its current regulations are both unnecessary and serve as a barrier to the use of energy storage technologies to provide ancillary services.

There’s a growing interest in regions for new services to help the grid keep operating smoothly, as well as for increased energy storage resources. In addition to easing management of grid loads, removing barriers to such services could also benefit energy customers.

Responses to FERC’s latest request for comments are due within 60 days of the notice’s publication.