Utility Dive•about 1 month ago
Xcel defends storage ownership in distributed capacity pilot
Key Takeaway
The regulatory decision on Xcel Energy's proposed utility ownership of distributed battery storage in its Capacity*Connect pilot will set a critical precedent for market access and competition for DER developers and IPPs in future capacity programs.
AI Summary
- •Xcel Energy is proposing to own all battery storage deployed under its Capacity*Connect distributed capacity pilot program in Minnesota.
- •This utility ownership model is facing strong opposition from stakeholders advocating for increased competition and third-party ownership of distributed energy resources (DERs).
- •The outcome of this regulatory debate will significantly impact market opportunities for battery storage developers and independent power producers (IPPs) seeking to participate in utility-led DER capacity programs in the region.
- •The Capacity*Connect pilot aims to integrate distributed resources into the utility's capacity planning, with the ownership structure being the primary point of contention.
Topics
capacity-marketmisopolicystorage