Technical FAQs 4

What is station use energy?

Station Use: “Station use” energy refers to energy that is required for the operation of an energy generation or storage resource in order for such resource to operate. For certain types of resources the station load can be significant.

What is a PPA for new energy storage resources?

Some PPAs for new energy storage resources have been structured as capacity-only contracts in which the developer is responsible for the sale of energy and all costs associated therewith—including the costs of the required energy procured from the utility.

Why is energy storage important?

Like transmission, energy storage can help to manage supply and demand over broad areas of the electric system because it can provide both generation and load by converting excess electric power into another medium to be stored for later use.

How do energy storage contracts work?

For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.

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