Financial Transmission and Storage Rights presented by Josh Taylor

The intermittency of wind and solar power make it difficult to balance the supply of and demand for electric power. Energy storage and flexible load aggregations can solve this problem by storing power in times of surplus and releasing power during deficits. Presently, high costs and technical complexity hinder the use of storage and load flexibility in power systems. In this webinar, we present the financial storage right, a new market mechanism that enables storage to participate in electricity markets in the same manner as transmission lines, and further enables risk-averse market participants to hedge against price volatility due to congestion.