The American Power Coalition (ACP) recently called for improved mechanisms to allow utility-scale battery storage to participate in wholesale energy, grid capacity, and "ancillary services" markets. ACP noted that the current wholesale market design is showing signs of "obsolescence," and its proposed improvements aim to "enhance grid reliability and ensure that American consumers can benefit from affordable domestic clean energy."

In wholesale markets, the energy market procures kWh of electricity, the capacity market procures capacity on-demand to meet reliability needs, and the ancillary services market procures other real-time resources to maintain grid stability. These markets are managed by a few system operators, which either serve a single state (e.g., California, Texas, or New York) or operate across states. The compensation rules for battery storage vary across system operators.

The ACP developed the “roadmap” in collaboration with the Brattle Group advisors, calling for better compensation for battery storage participating in the wholesale markets of grid operators such as PJM, MISO, and NYISO. The Brattle analysis shows that these operators have already implemented specific reforms and have planned five “future reforms,” which the ACP has put forward in a policy brief.

The ACP said it will "work closely with regional grid operators, state policymakers, and stakeholders" to push for reforms that "will enhance grid reliability and lower costs for Americans." The Brattle report details five reforms, including "day-ahead uncertainty product" and "intra-hour ramp and uncertainty product," which aim to optimize battery storage utilization and improve grid stability.

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