FERC Order No. 2222 and the Use Cases It Can Unlock

Posted by Reports on Jun 9, 2021 10:05:00 AM

Publish Date: June 9, 2021

This report outlines multiple use cases, each illustrating the benefits Order 2222 can unlock and how aggregated DER participation in wholesale markets can benefit everyone.

In September 2020, the Federal Energy Regulatory Commission issued Order No. 2222, a landmark order enabling aggregations of distributed energy resources (DERs) to participate on a level playing field in the wholesale markets operated by Regional Transmission Organizations and Independent System Operators.

DERs, which include small, flexible resources such as customer-sited batteries, electric vehicles, rooftop solar, and smart thermostats, have proliferated across the United States, but have been largely left out of U.S wholesale power markets.

Order No. 2222 embraces these market trends and unleashes the power of distributed energy technologies by removing market barriers to allow DERs to compete.

Use Cases

This report outlines four use cases that DER aggregators and other stakeholders expect to pursue under Order No. 2222:

  • Use Case 1: Frequently Dispatched DERs
  • Use Case 2: Residential Demand Response, e.g., Smart Thermostats and Water Heaters
  • Use Case 3: Residential Behind-the-Meter Resources, e.g., Solar, Solar + Storage, Storage, and EV Charging
  • Use Case 4: Front-of-the-Meter Distribution-Connected Resources

This should help policymakers and regulators better understand what wholesale market participation will look like for these resources and provide insight into the benefits they can provide, as well as the barriers preventing DER participation. 

Download the report to find out how aggregators and developers can bring DERs to wholesale energy markets to create a more reliable and flexible grid.

Please fill out the form to download the report.

Topics: Wholesale Markets