Opening New Revenues to Hydro
MCLI Recommendation: “States should consider including pumped storage hydro as transmission assets entitled to cost-of-service rate recovery in their transmission planning as an alternative to construction of new transmission lines.”
LPDD Recommendation: “RTOs and ISOs should enact market rules to accommodate the participation of energy storage (including hydro pumped storage) in energy markets, consistent with FERC’s final rule.”
LPDD Recommendation: “RTOs and ISOs should establish new products and reform existing products that would adequately compensate ancillary services such as those provided by hydropower.”
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4 resources
Energy Policy Act of 2005
The Energy Policy Act of 2005 established a program to support the expansion of hydropower at existing dams and impoundments through incentive payments. Congress funded this program in 2014 and 2016. ...
FERC rule on pumped storage in RTO and ISO markets
In 2018, FERC issued a final rule to allow energy storage resources (including pumped storage) to more fully participate in organized electricity markets by removing barriers to these resources in the...
FERC policy statement on pumped storage in transmission markets
FERC issued a 2017 policy statement affirming that storage resources (including pumped storage) can serve as transmission assets, and therefore receive multiple revenue streams in organized markets.
FERC Order 890
FERC Order 890, Preventing Undue Discrimination and Preference in Transmission Service, required that non-generation resources be evaluated on a comparable basis to services provided by generation res...
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