Hybrid Storage: A Worthy Adversary for Conventional Peakers?

August 6, 2020

For many years, U.S. storage and hybrid “solar + storage” projects have been a solution in
search of a problem — and perhaps more importantly, a solution in search of market-based
compensation mechanisms reflecting the value-added attributes a battery brings to the
transmission ecosystem. Markets have accelerated that evolution, opening doors for storage to
play in the bilateral and wholesale realms, even if the benefits of FERC Order 841 (and the recent
court decision upholding it) take years to play out in key RTOs and ISOs. Solar hybrid projects
have now evolved from beta testing to mainstream solutions — in many cases being as big or
bigger than peaking generation facilities — and are fundamentally changing how renewables are
evaluated by grid operators, utilities, developers and investors.