Stakeholders agree DER aggregation has place within wholesale markets

Written By: Katherine Demetre
September 21, 2017

transmission-lines DER

Recently, the Smart Electric Power Alliance (SEPA) in partnership with the Edison Electric Institute (EEI) announced the release of a new report, DER Aggregations in Wholesale Markets: A Review of Technical and Operational Comments Made in Response to FERC’s Notice of Proposed Rulemaking.

Per the company, more than 100 stakeholders revealed in the report that there could be a place for distributed energy resource (DER) aggregation in wholesale markets. In addition, the report provided a foundation for further collaboration and communication in response to the Federal Energy Regulatory Commission’s (FERC) Notice of Proposed Rulemaking (NOPR) that would require regional transmission organizations (RTOs) and independent system operators (ISOs) to facilitate electric storage and aggregated DERs in competitive wholesale markets.

Erika Myers, Research Director at SEPA, commented:

FERC sees participation in the wholesale market as critical for the economic development and deployment of DERs, however, it is widely understood that the traditional electric system was not built with the intention for distributed resources to provide power back to the transmission system. While the FERC NOPR is an important step toward removing barriers for DERs, myriad operational challenges will need to be overcome – through stakeholders working together – before high levels of DERs can truly play a significant role in the bulk power system.

Regardless of how FERC proceeds with the proposal, SEPA and EEI states that they hope to convene key stakeholders discuss these technical and operational challenges with the goal of developing a strategy and/or solution set.