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Renewable Energy World: Three Reasons Why Dual Participation Market Model at NYISO is Best for Energy Storage

Posted by Rao Konidena on Mar 26, 2020

Renewable Energy World covered FERC's approval of New York Independent System Operator (NYSIO)'s dual participation model, noting AEE siding with FERC on legal proceeding. Read excerpts below and the entire Renewable Energy World piece here. 

New York Independent System Operator (NYISO) received FERC approval for its dual participation model. Dual participation refers to resources that participate in both wholesale and retail markets. This model has positive benefits for distributed energy resources, including aggregated energy storage.

NYISO’s model leverages existing bid rules within energy, capacity and ancillary services market structures. Grid operators with states that have clean energy goals can learn from the emphasis NYISO places on aggregation. Utilities in states within organized markets that do not allow third-party aggregation can learn from NYISO’s weight on interaction with N.Y. Transmission Owners...

There are concerns about distribution connected storage charging from the retail end (e.g., solar farm) and discharging in the wholesale market. There is litigation at D.C. Circuit of Appeals surrounding FERC’s Order 841. Solar Energy Industries Association (SEIA) and Advanced Energy Economy (AEE) are on FERC’s side. Concerns around distribution connected electric storage resources are the reason behind the National Association of Utility Regulatory Commissions (NARUC) and Edison Electric Institute on the opposite side. Wholesale versus retail issue is complicated, but with NYISO’s dual participation model, there is hope for market participants.

What makes NYISO’s dual participation model unique is, NYISO will retain all wholesale dispatch functions but coordinate with N.Y. T.O.s on local reliability needs. NYISO found a way to tackle both DER and Electric Storage Resource (ESR) market reforms at the same time. Unlike FERC, who has released an order on ESR (Order 841) but not on DER Aggregation yet...

Read the entire Renewable Energy World piece here. 

Topics: AEE In The News