A case study of hydropower as a wholesale storage resource
- The benefits of regulatory reform are particularly potent for hydropower as an energy storage resource, which faces unusually high regulatory barriers to entry.
- The most beneficial reforms include streamlining permitting processes, improving market access and ensuring market-based compensation.
- FERC must remain vigilant that grid operators implement the recent energy storage rule thoroughly and efficiently, which will have a large effect on the market value of storage overall and hydropower in particular.
- FERC should revisit how transmission policy facilitates competition from non-transmission alternatives.
- FERC should examine the creation of fuel- and technology-neutral markets for essential reliability services.
- Congress and the Trump administration should pursue reforms that reduce delays and uncertainties in hydropower licensure, especially for projects with minimal environmental impact.
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