Technologies to Enable Aggregated DER Participation in Wholesale Power Markets
In 2020, the Federal Energy Regulatory Commission (FERC) issued Order 2222 to facilitate participation and promote competition in wholesale energy markets by removing barriers that limit how aggregated distributed energy resources (DERs) connect and contribute to wholesale energy markets overseen byRegional Transmission Organizations (RTOs) and Independent System Operators (ISOs).
To support effective and efficient implementation of FERC Order 2222, it is essential that specific technologies are deployed in the grid infrastructure. This paper explores and outlines the grid technologies which are vital for DER aggregation and the various utility and customer-side products. Addressed are those unique to DER aggregation, such as Virtual Power Plants (VPPs) and DER Management Systems (DERMS). Other processes and technologies used and owned by utilities may support additional grid functions beyond supporting DER aggregation. These include: Advanced Integrated Planning, LoadDER Forecasting, Analytics Platforms, Advanced Distribution Management Systems (ADMS), Standard DER Integration, Voltage Optimization (VO), Geographic Information Systems (GIS), DER Submetering, Advanced Retail Billing, Automated Metering Infrastructure (AMI), and Communications (fiber, private wireless broadband networks and other field area networks).
Shorter- and longer-term benefits of deploying these various technologies in support of FERC Order 2222 are described in detail within this paper, explaining the purpose, benefits, and use of these technologies to support the order and additional implications and benefits to utilities, aggregators, and customers.