With a significant chunk of the power systems contributed from intermittent sources such as solar and wind, Independent System Operators’ (ISOs) visibility in the supply and demand (S-D) imbalance has continued to decline in those markets. This is further exacerbated by weather-related disasters such as Winter Storm Uri in February 2021, which savaged Texas’ grid system and resulted in power outages for several days. The S-D imbalance, lower visibility and grid failures have become a major concern for CAISO, ERCOT and other ISOs. Demand reduction and peak-shaving programs have shown promise, but are not capable of fully stabilizing the grid system due to demand outpacing supply.
Given the intraday volatilities driven by the new energy mix in CAISO and ERCOT, batteries and Battery Energy Storage Systems (BESS) will not only become an increasingly important part of the U.S. power grid, but their applications will also broaden to include price arbitrage, creating additional revenue for utilities in these markets.
More options for different applications