Increasing adoption of distributed energy resources (DERs) and grid-scale variable renewable energy is resulting in a growing demand for technologies that can rapidly ramp up and ramp down electricity generation to match electricity demand. Although various mature and upcoming technologies that provide these ancillary services are currently part of market mechanisms and have well-defined physical as well as economic characteristics, fast-ramping capabilities available in some of these technologies remain unleveraged. Market participants are seeking clarity on whether the benefits of fast-ramping capabilities can be monetized or paid for in energy markets. This presents a need to establish a better understanding of the technical, regulatory, market, and performance landscapes for fast-ramping electric power generation technologies. Consequently, this report focuses on comparing potential fast-ramping technologies, their costs and capabilities; analyzing how these technologies are being leveraged in different jurisdictions; identifying gaps between current markets and the capabilities of these technologies; and deriving a methodology to estimate the technologies’ value. Specific technologies considered include mature technologies such as pumped hydro storage, reciprocating internal combustion engines, and gas turbines, as well as upcoming technologies such as batteries, flywheels, and compressed air storage.
fast-ramping, demand response, storage, energy markets, CAISO, AESO, IESO, PJM, FERC, valuation, engines, turbines, hydro