Post: PJM continues to apply processes that discourage battery energy storage systems: report

PJM continues to apply processes that discourage battery energy storage systems: report

PJM Interconnection, which is risking a shortfall of electricity, is continuing to apply processes that discourage the deployment of battery energy storage systems (BESS), according to a report.

PJM’s most recent load forecast report suggests that regional demand will grow by nearly 40GW by 2039. Retirements are also accelerating. An average of about 3.9GW of generation in PJM has retired annually since 2011 and around 5.4GW of retirements are pending. As of June 2024, there are about 45GW of BESS supply in PJM’s queue.

In 2018, FERC issued Order 845, directed all jurisdictional utilities to adopt expedited Surplus Interconnection Service (SIS) study processes to allow new resources that do not require transmission upgrades to interconnect at the site of an existing generator. Both units can operate if their aggregate output does not exceed the maximum levels studied in the legacy generator’s interconnection agreement. Importantly, SIS requests are studied separately from the conventional interconnection queue.

But in the report, commissioned by the American Council on Renewable Energy in partnership with the American Clean Power Association and the Solar Energy Industries Association, found that PJM has prevented BESS technologies from using a tool to expedite connection to the grid.

It said the SIS could be utilized to provide a simpler, expedited study process that occurs outside the conventional interconnection queue, allowing new generators that do not trigger transmission system upgrades to use an existing generator’s unused interconnection capability. 

The report, “ReSISting a Resource Shortfall: Fixing PJM’s Surplus Interconnection Service (SIS) to Enable Battery Storage”, recommends that PJM:

• eliminate the current prohibition of SIS participation by grid-charging BESS resources
• harmonise BESS and pumped hydro storage modeling assumptions
• adopt FERC’s standard allowing SIS if resources do not trigger the need for new network upgrades