Market Segment Watch: Energy storage in the Northeast United States 2018

 1500,00

New York and Massachusetts drive the Northeast of the US in terms of energy storage, representing a cumulative opportunity of up to 2 000 MW of storage to be built by 2025 in the region.

Description

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Table of contents

1           Energy Regulation, Actors, and Profile of the Northeast United States (7)

1.1        Regulators, Stakeholders, and Utilities in the northeast (7)

1.1.1     Power Producers in the northeast of the United States (10)

1.1.2    Utilities (12)

1.1.3    Electricity Retailers (14)

1.2       Energy Storage Developers and Actors in the Northeast United States (17)

2          The current state of energy storage and potential opportunities in the Northeast (19)

2.1       Current opportunities for energy storage in the northeast (19)

2.1.1    Opportunities for Energy Storage in New York (20)

2.1.2    Opportunities for Energy Storage in Massachusetts (21)

2.1.3    Opportunities for Energy Storage in Rhode Island (21)

2.1.4    Opportunities for Energy Storage in Maine (22)

2.1.5    Opportunities for Energy Storage in Connecticut (23)

2.1.6    Opportunities for Energy Storage in New Hampshire (23)

2.1.7    Opportunities for Energy Storage in Vermont (24)

2.2       Energy Storage projects in the northeast – the current state of charge (24)

2.2.1    New York. (24)

2.2.2    Massachusetts (25)

2.2.3    Rhode Island (27)

2.2.4    Maine (27)

2.2.5    Connecticut (28)

2.2.6    New Hampshire (28)

2.2.7    Vermont (28)

2.3       Current Incentives for Energy Storage Deployment in the Northeast USA: New York and Massachusetts (29)

2.3.1    New York (29)

2.3.2    Massachusetts (32)

3          Market-Based Revenue Streams for Energy Storage in the Northeast USA (35)

3.1       Electric Energy Markets (37)

3.1.1    Frequency Regulation in NYISO and ISO-NE (38)

3.1.2    Capacity Markets in NYISO and ISO-NE (39)

3.2       ISO New England Energy Market (40)

3.2.1    Ancillary Services (43)

3.2.2    Frequency Regulation (44)

3.2.3    Forward Capacity Market (47)

3.2.4    ISO New England Demand Response Programs (49)

3.2.5    Conclusions and Future Plans for ISO-NE (51)

3.3       New York ISO Energy Market (51)

3.3.1    Ancillary Services (55)

3.3.2    Frequency Regulation (56)

3.3.3    Installed Capacity Market (59)

3.3.4    NYISO Demand Response Programs. 61

3.3.5    Conclusions and Future Plans for NYISO.. 62

4          The North American Electric Power System 62

4.1       Regulators 62

4.2       Interconnections and Reliability Councils 63

4.3       Balancing Authorities (Regional Transmission and System Operators) 65

4.4       System Operators 66

4.5       Power Producers in the United States 67

4.6       Utilities in the United States 67

5          Northeastern State’s Energy Snapshots – General Energy Information (68)

5.1       New York (68)

5.2       Massachusetts (70)

5.3       Rhode Island (71)

5.4       Maine (72)

5.5       Connecticut (73)

5.6       New Hampshire (74)

5.7       Vermont (75)

Figures

Figure 1. Northeast America’s Electric Power System Value Chain (8)

Figure 2. ISO-NE wholesale load zone map (9)

Figure 3. NYISO Area Load Zone Map (10)

Figure 4. Map of regulated and deregulated gas and electricity markets in the United States (13)

Figure 5. NYISO Energy Storage Integration and Optimization Proposed Timeline (37)

Figure 6. Schema of services in New England’s Electricity Market (42)

Figure 7. Repartition of ISO-NE costs which make up wholesale electricity prices in 2016 (43)

Figure 8. Repartition of the value of Ancillary Services in the 2016 ISO-NE Wholesale Market (44)

Figure 9. Example of ISO-NE Continuous, Energy-Neutral Trinary, and Energy-Neutral Continuous Frequency Regulation signals (45)

Figure 10. ISO-New England FCM payments during each capacity commitment period (48)

Figure 11. ISO-New England FCM capacity during each capacity commitment period (49)

Figure 12. ISO-NE Demand Resource Market Structure Schema (50)

Figure 13. Schema of services in New York’s Electricity Market.(54)

Figure 14. NYISO Day-Ahead Ancillary Service Prices (2015 – 2016) (56)

Figure 15. Example of perfect performance (left) and performance error (right) for NYISO Frequency Regulation (57)

Figure 16. NYISO Frequency Regulation price and expenses for 2015 – 2016 (59)

Figure 17. Map of regional electric reliability councils and NERC interconnections in North America (64)

Figure 18 Nine ISO and RTOs in North America (adapted from ISO-NE) (66)

Figure 19. Schema of the AC electricity infrastructure in the United States (67)

Figure 20. New York’s Energy Profile Snapshot (69)

Figure 21. Massachusetts’s Energy Profile Snapshot (71)

Figure 22. Rhode Island’s Energy Profile Snapshot (72)

Figure 23. Maine’s Energy Profile Snapshot (73)

Figure 24. Connecticut Energy Profile Snapshot (74)

Figure 25. New Hampshire’s Energy Profile Snapshot (75)

Figure 26. Vermont’s Energy Profile Snapshot (76)

 

Tables

Table 1. Main Independent and Investor-Owned Power Producers in the northeast United States (12)

Table 2. Major Electricity Distributers (Utilities) in the northeast United States (16)

Table 3. Entities in the northeast United States who have installed energy storage (16)

Table 4. List of Energy Storage Actors in the Northeastern United States (18)

Table 5. Electric Renewable Portfolio Standards for northeastern states (20)

Table 6.  New York large-scale (³ 1 MW) energy storage projects (currently operational) (25)

Table 7. New York large-scale (³ 1 MW) energy storage projects (announced in 2017) (25)

Table 8. Massachusetts large-scale (³ 1 MW) energy storage projects (currently operational) (26)

Table 9. Massachusetts large-scale (³ 1 MW) energy storage projects (announced in 2017) (27)

Table 10. Rhode Island large-scale (³ 1 MW) energy storage project (announced) (27)

Table 11. Maine’s large-scale (³ 1 MW) energy storage projects (operational) (28)

Table 12. Connecticut’s large-scale (³ 1 MW) energy storage project (operational) (28)

Table 13. New Hampshire’s large-scale (³ 1 MW) energy storage project (operational) (28)

Table 14. Vermont’s large-scale (³ 1 MW) energy storage projects (29)

Table 15. Summary of Energy Storage Incentive Programs in New York (30)

Table 16. Summary of Energy Storage Incentive Programs in Massachusetts (33)

Table 17. ISO-NE and NYISO Frequency Regulation Comparison (39)

Table 18. ISO-NE and NYISO Capacity Market Comparison (40)

Table 19. Frequency Regulation Signals for ISO-NE (45)

Table 20. Energy Storage Resource Types for the NYISO Energy Market (55)

Table 21.  Demand Response Programs in New York  (62)