One big roadblock to the development of energy regulation and storage technologies has been the lack of standards regarding how to properly compensate the companies that have developed and are now operating these advanced storage and regulation technologies: many industry insiders blame the bankruptcy of Beacon Power to instabilities in the way the company has been compensated for its services. In early November, shortly after Beacon Power filed for Chapter 11, the Federal Energy Regulatory Commission (FERC) approved a new rule that will provide incentive payments to companies like Beacon that manage the energy moving through the grid. The new legislation will effectively change the way utilities who operate the power grid pay companies like Beacon that provide frequency regulation to help make sure electricity flows through the grid efficiently at a constant frequency of 60 hertz.
While the FERC ruling wasn’t specifically crafted to rescue Beacon – the ruling was first proposed back in February – it may result in doing just that once it goes into full effect, since it ultimately may double Beacon’s revenue, boost its share price and inviting new sources of capital to come forward.
--Green & Clean
Cleaner Energy and a Box To Store It In November 15th, 2011 | Author: Tracey Schelmetic
