Advanced Energy Perspectives

In September 2020, the Federal Energy Regulatory Commission (FERC) generated buzz across the advanced energy industry when it issued a long-awaited order (Order 2222) opening up wholesale energy markets to aggregated distributed energy resources (DERs). In a new report, AEE set out to illuminate the benefits Order 2222 can unlock by showing various use cases for aggregated DERs in wholesale markets. If grid operators, known as Regional Transmission Operators/Independent System Operators (RTOs/ISOs), create a level playing field, the Order could increase interest and investment in various DER aggregations, improve grid reliability, and lower consumer costs. But they’re just starting the process of developing the market rules to implement Order 2222, RTO by RTO.

In the last decade, technology has changed nearly every facet of our lives. We’ve traded in touch-tone phones for smartphones, replaced cabs with ride sharing apps, and upgraded bulky desktops for sleek laptops. While technology has changed life in so many dramatic ways, less obvious, but no less dramatic is the way technological advancements have changed the way we use electricity. Most notable is the way technology has allowed us to gain control over electricity demand, through energy efficiency and demand response. The challenge now is to make sure that newfound power to reduce and manage demand gets fully utilized in wholesale electricity markets.