Opening the Door to DERs

Posted by Reports on Oct 1, 2020 11:50:00 AM

Publish Date: October 1, 2020

On September 17, 2020, FERC issued a landmark order directing Regional Transmission Organizations and Independent System Operators (RTOs/ISOs) to open their electricity markets to participation by aggregated distributed energy resources (DERs).

DER adoption has been skyrocketing across the United States, driven by consumer demand solar, energy storage, demand response, energy efficient appliances and equipment, and electric vehicles. To date, legacy market rules have left these technologies with limited opportunities to provide energy, capacity, or ancillary services in wholesale power markets operated by RTOs/ISO. FERC’s Order No. 2222 requires RTOs/ISOs to remove market barriers preventing DERs from fully participating in the RTO/ISO electricity markets that serve two-thirds of consumers in the country.

"Opening the Door to DERs" summarizes Order No. 2222’s key findings and determinations, catalogues the specific compliance requirements that RTOs/ISOs must satisfy, and highlights compliance details that will ultimately determine the extent to which wholesale markets are opened to participation by aggregated DERs.

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Topics: Federal Policy, Wholesale Markets