Recently the Federal Energy Regulatory Commission (FERC) issued a ruling on pay for performance for fast acting frequency control. The ruling states that the compensation must be given for the actual benefit that the resource can provide. Traditionally regulation compensated has been given to base load generation that is relatively slow in its response to the needs of the grid. Studies have shown that a fast acting resource can provide greater benefit with smaller energy bid in to the market.
Today’s final rule involves compensation for regulation service, an ancillary transmission service that protects the grid
by correcting deviations in grid frequency and balance on transmission lines with neighboring systems. Frequency
regulation service is provided by generators and from storage technologies such as flywheels and electric vehicles,
demand resources and possibly even residential water heaters. Adjusting the compensation for regulation service
providers will recognize the amount of service resources provide, thus correcting the price signal for faster-ramping
resources. This will allow market operators to take advantage of the capabilities of faster-ramping resources to
improve operational and economic efficiency of the transmission system and reduce costs to consumers in organized
wholesale markets.
Steffes Grid-interactive Electric Thermal Storage (GETS) for space and water heating can provide fast response to market needs. We are very excited about this ruling and how it will further enhance the economics of our room units, Comfort Plus, and ThermElect product lines.
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