Conversations about a permitting/grid omnibus are heating up, and I have a modest contribution: The United States has hundreds of thousands of battery storage systems and backup generators on the electric distribution system. They could add GWs of capacity immediately, but they are reserved for private use and basically invisible to grid planners. Already installed and operational, they should be configured in the market.
FERC Order 2222 was supposed to fix this problem. The first PJM auction where these resources will be allowed to participate is for the 2028/29 capacity season – 8 years after 2222. (DYK? That’s how FERC orders work: you add up the digits and that’s their implementation timeline! Kidding!!)
The underwhelming implementation of Ord 2222 was a result of RTO rules that create a vague landscape of metering/telemetry rules, “double counting” prohibitions where the burden is on customers to explain how a utility isn’t otherwise compensating them, and other arcane hang-ups that, while well intentioned, has basically created a dead letter for an otherwise promising reform.
At the same time, demand for home batteries and backup power is soaring. Many localities have not kept pace. It isn’t unlike the permitting regime that greeted the telecom revolution, where every community had its own bespoke view of what 4G permitting should look like. That didn’t work, and that’s why Congress passed laws like the ’96 Telecomm Act, which has become an emblem of cooperative federalism.
As Congress is considering a permitting reform, it should consider the twin issues of market access and local barriers on storage and backup power generation permitting. It’s great to see that these items are possibly in the hopper for consideration!