Print
Email
Print Edition Stories
Stuart Garfield
MHT's Cleantech Forum
A new pilot program aimed at bringing alternative technologies to the regulation of power in the local power grid has been launched by ISO New England Inc. — and Tyngsborough-based Beacon Power Corp., which makes flywheel-based energy storage systems, is the first local technology company to throw its hat in the ring.
The program, which still needs approval from the Federal Energy Regulatory Commission (FERC), aims to ease the path to entry for new technologies for power storage and regulation into the local grid, making power generation and distribution more efficient. According to officials at ISO New England, which manages the New England power grid, the program could pave the way for the widespread use of these technologies in the grid, while officials at Beacon Power say it could also provide a new revenue stream.
“This is definitely an opportunity for companies researching these technologies because as we move forward consumer demand is increasing and we recognize the need to diversify our resources,” said Ellen Foley, a spokesperson for ISO New England. Demand, she said, is growing steadily at about 400 megawatts per year.
The 18-month program is aimed at providing a total of 13 megawatts of power storage and regulation, different than baseload generation in that it is used to increase and decrease the electricity level as demand fluctuates. Traditionally, fossil fuel-burning generators have been used to accomplish this.
Beacon Power (Nasdaq: BCON) has proven its flywheel energy storage system in two demonstration programs — one in California and one in New York — but the ISO pilot will be the first commercial application.
The plan is for Beacon Power to provide 5 megawatts of regulation power to the grid and be paid like other regulation power providers, which is done through the ISO, with prices set daily. Executives at Beacon Power would not provide projections on the potential revenue from the pilot program, but based on previous projections the company has made regarding its regulation services in the New York ISO region, 5 megawatts of energy storage could potentially generate more than $2 million in revenue per year.
While no other companies have publicly stated their intentions to participate in the pilot, Foley said several have expressed interest and are being considered. ISO New England has “not made a comprehensive list or determination on technologies or companies.”
Batteries and fuel cells are other possible technologies that may be considered, but because of the nature of regulation, as opposed to generation, participation may be limited to a handful of companies.
“To do regulation, you have to be able to respond quickly, which limits the kinds of technologies you can use,” said Judith Judson, Beacon Power’s director of regulatory and market affairs and the former chairman of the Massachusetts Department of Telecommunications and Energy.
FERC is expected to rule on the program in the next 60 days. If approved, the pilot would become operational in November. Under terms of the program, no single technology will be allowed to provide more than 10 megawatts, and no single company will provide more than 5 megawatts.
RSS Feeds
Comments
Please Login/Register to post comments.
No comments have been added or approved.