In Episode IV, the Battery + Storage Podcast team interviews John Fernandes, Senior Consultant for Customized Energy Solutions (“CES”). In this episode, John discusses how FERC Orders 755, 841, 1000, and 2000 impact battery storage, as well as how battery storage has evolved over the years. John notes, when discussing FERC order 841 for example, that storage resources can get qualified for capacity credit in certain regions if an entity demonstrates it could deliver capacity for a four-hour peak, and how in a few years this number may soon be reduced to a two-hour peak. 

He also discusses how battery storage is becoming a cheaper and faster way for addressing the incredibly expensive and complex challenges associated with building more transmission lines (e.g. removes the need to obtain permits and resolves interconnection challenges). John specifically states that storage’s “flexibility” and ability to move around removes the risk of stranded assets and can improve a utility’s timeliness and financial risk exposure. 

In thinking about bulk power, John discusses how battery storage may in the future be deployed on the bulk power system as distribution, transmission, and generation, as well as the challenges that may arise with such an allowance. John also analyzes ancillary services and how battery storage qualifies to deliver those services as devices aimed at regulation and primary frequency response. He specifically notes, for example, that storage is “… well positioned to earn revenues from a service like regulation.” He further notes how CES specifically models its projects for its clients and is designed as a storage platform that generally relies on lithium-based batteries. 

In the last portion of the show, John discusses the potential pitfalls and merits of the roles the various players should play regarding distribution planning in the storage sector, as well as for the RTOs and ISOs.