Tesla Tells TX PUC To Allow Multi-use Batteries Which Function As Both T&D, Wholesale Market Assets
October 28,2016
Tesla Motors, Inc, filed a notice of intervention to participate in the petition of AEP Texas North for authorization to install two batteries on its distribution system, with Tesla recommending that the Texas PUC, "consider approving a regulatory framework that would allow for 'multi-use energy storage systems' that provide both transmission/distribution functions as well as wholesale energy market functions while remaining consistent with existing state law."
"Enabling multi-use energy storage systems would allow for the efficient deployment of energy storage systems in Texas, lower costs for Texas electricity customers, and increase electric system reliability," Tesla claimed
"For example, a multi-use energy storage system may offset the need to build a new distribution line that would otherwise be required to meet a local peak need ten-days per year while also participating in wholesale energy markets providing energy shifting and ancillary services the other 355 days per year. Currently, Texas lacks a regulatory framework to enable multi-use energy storage systems but it is possible to develop such a regulatory framework within existing state law," Tesla claimed
"[T]he Commission should consider adopting a regulatory framework that would allow the owners and/or operators of energy storage systems to enter into contractual relationships to share the operation of multi-use energy storage systems. Such a regulatory framework and corresponding contractual structure could and should maintain a functional separation between regulated and competitive services in order to preserve the integrity of Texas competitive electricity markets," Tesla claimed