ACP Report Calls for Market Reforms to Unlock Full Potential of Energy Storage in U.S. Grid

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Representational image. Credit: Canva

The American Clean Power Association (ACP) has unveiled a new report, developed in partnership with the Brattle Group, urging U.S. electricity market operators to implement significant reforms aimed at integrating energy storage technologies more effectively. Titled the Energy Storage Market Reform Roadmap, the analysis outlines actionable steps to enable energy storage systems to enhance grid reliability, support renewable integration, and reduce costs.

While states like California and Texas have already showcased the transformative potential of energy storage under updated rules, many U.S. wholesale electricity markets still operate under legacy frameworks that limit full participation of battery storage. The report points out that outdated market structures, originally designed for traditional power plants, are constraining the role of storage despite its proven ability to stabilize grids during peak demand and extreme weather events.

The roadmap highlights recent policy shifts, such as the evolution of PJM’s Surplus Interconnection Service and capacity accreditation modeling in MISO, as steps in the right direction. It also identifies further opportunities in regions like New York and the Midwest to optimize storage deployment through regulatory adjustments.

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ACP emphasizes that modernizing these rules is not only crucial for grid performance but also essential for meeting growing energy demand from sectors like data centers. Storage systems offer fast, dispatchable power, making them ideal for addressing real-time fluctuations, managing congestion, and balancing supply and demand.

Industry leaders, including representatives from Clearway, Jupiter Power, and Alliant Energy, echoed support for the reforms, underscoring storage’s role in enhancing system resilience and lowering costs for consumers. The ACP report positions energy storage as a critical asset in the U.S. transition toward a cleaner, more flexible, and affordable energy future.

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