Distributed Energy Resource Aggregations in Wholesale Markets
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Distributed Energy Resource Aggregations in Wholesale Markets

  • Summary of recent FERC notice of proposed rulemaking on DER aggregation
  • Review of over 100 stakeholder comments
  • Summary of key technical and operational issues related to DER aggregation

A comprehensive overview of key challenges to DER aggregation

Integrating DERs into the wholesale markets could shake up the system and require changes to the way the bulk power system works to ensure that electric distribution companies can continue to provide reliable power to customers and operate the grid effectively.

After a comprehensive review of stakeholder comments, SEPA and EEI identified key areas of agreement among stakeholders as well as three areas of technical and operational issues associated with aggregating DERs for bulk power.

Three possible issues with bundling DERs for bulk power:
1. Eligibility requirements
2. Metering and telemetry requirements
3. Operational coordination among the RTO/ISO, DER aggregator, and the electric distribution utility

FERC wants to get DER aggregation in the wholesale game

In late 2016, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) that would require regional transmission organizations (RTOs) and independent system operators (ISOs) to modify or create rules to enable energy storage and aggregated DER participation in wholesale markets. Summarizing hundreds of pages of comments filed by more than 100 stakeholders, this paper identifies key technical and operational areas that ISO/RTO revised tariffs would need to address before DER aggregation at scale is possible.

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