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S&P Global: FERC Order Forces States to 'Grapple' with Distributed Energy Difficulties

Posted by Zack Hale on Jan 13, 2021

S&P Global summarized the Federal Energy Regulatory Commission’s Order 2222, quoting AEE’s Caitlin Marquis on DER aggregations. Read excerpts below and the full story here.

A recent Federal Energy Regulatory Commission order will force state regulators and electric grid operators to start thinking about distributed energy resources as a solution instead of a problem to solve, industry experts said Jan. 13.

FERC's Order 2222, issued in September 2020, has already started to shift the discussion around distributed energy resources, or DERs, in important ways,

Specifically, the rule requires the nation's regional transmission organizations and independent system operators to develop rules that allow DER aggregators to bundle small-scale resources together and register those aggregations for wholesale market participation. The order encompasses resources such as rooftop solar panels, residential batteries, electric vehicles and industrial demand response... 

Unlike FERC's landmark demand response rule, Order 2222 did not include a broad opt-out provision for states. However, the order did include a minor exemption for smaller utilities that distributed 4 million MWhs or less in the previous fiscal year...

Panelists were reluctant to give specific estimates for market impacts, but Advanced Energy Economy Director Caitlin Marquis said DER aggregations could prove especially attractive to states seeking to rely less on gas-fired peaking generators.

DER aggregations can provide "services without creating emissions, but then also a lot of them are very flexible so they're able to ensure that we're balancing the grid without relying on more polluting options," Marquis said.

Read the full story here.

Topics: AEE In The News