NYISO Stakeholder Forum

• • DER Integration into Wholesale Markets
  • September 22, 2016

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DER Overview

• • Introduction
  • Grid operators across the country are wrestling with both the challenges and opportunities of distributed energy resources (DERs) Unique market, regulatory, and technical infrastructures mean that each is pursuing a different approach and timeline

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DER Overview

• • Types of Resources

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DER Overview

• • Decentralized Generation by Region

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• *Figures are from 2014 (Form 861), the most recent data available. ISO data is calculated by adding data from participating states and is illustrative of the 2014 DG totals.
• Sources: EIA, ScottMadden Analysis
• Third-party owned net metered systems
• Refers to generators that are less than 2 MW in capacity with a net metering agreement
• Commercial and industrial generators (< 1 MW) not connected or synchronized to the grid
• Includes all commercial and industrial generators (< 1 MW) that are grid connected and grid synchronized

 

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DER Overview

• • Challenges In Integrating Behind-the-Meter Resources
  • Metering infrastructure (or lack thereof) Visibility of assets Verification of performance Dispatchability (reliability and economic) Availability for wholesale and retail needs (economic and reliability) Accounted for as load modifying resource, capacity, or energy resource?

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• While these challenges are not insurmountable, they need to be considered as we integrate BTM resources into wholesale markets.
• Load Forecasting
• Load Modifying Resource
• Demand Resource
• Aggregated Resource
• Demand and Supply Resources

 

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Background Has pursued integration of demand response into wholesale markets for many years Has 600 MW of active DR and 1,900 MW of EE through capacity market in 2016 Plans to integrate DR into all markets in 2018 (energy, capacity, operating reserve) Status of DER Integration to Wholesale Markets Aggregation for DR; some aggregation of generators through lead market participant BTM PV does not participate in the wholesale market, though it is included in forecasts BTM storage typically doesn't participate in the wholesale market

• • Other Observations Grid modernization efforts are underway (e.g., MA), but AMI is not fully deployed Revised operating procedures effective 9/19/16 for generators and other resources
  • DER Integration Status

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Background Long history of DR and EE participation in wholesale market More than 10,000 MW of DR and 1,500 MW of EE resources cleared in 2019/2020 Base Residual Auction Status of DER Integration to Wholesale Markets Aggregation of demand resources enabled by Curtailment Service Provider BTM distributed solar amounts to roughly 3 GW (2016); incorporated into forecasting Tariff allows storage to serve as a capacity resource, but it requires more rule clarity related to injection rights Behind-the-meter injections are not allowed Retail BTM generation can participate as a load modifying resource, if dispatchable by PJM

• • Other Observations Recently set new rules regarding capacity performance to push for enhanced integration of these resources
  • DER Integration Status

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Background Combination of high DER penetration, active state policy making, and proactive regulatory mandates Multiple DERs and DR pilots completed or underway and retail DR programs well established Status of DER Integration to Wholesale Markets Two auctions completed to date under Demand Response Auction Mechanism (DRAM) Bifurcation of load modifying and supply side DR expected in 2018

• • Other Observations DER is defined as any resource with a first point of interconnection to a Utility Distribution Company or a Metered Subsystem
  • DER Integration Status

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DER Integration Status

• • CAISO Approach to Market Bidding of Aggregated DERs

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• CAISO has proposed and FERC has approved the aggregation of BTM DERs by a third party for bidding into wholesale markets.
• This approach enables a third party to aggregate BTM DERs and bid them into the ISO.
• Source: Expanded Metering and Telemetry Options Phase 2: Distributed Energy Resource Provider, 6/10/15, pg. 24.

 

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In Summary

• • Integration Into Wholesale Markets
  • DER penetration, public policy mandates, technical infrastructure, and the regulatory environment all contribute to the degree of BTM DER integration in each RTO/ISO.

9 ISONE PJM

• NYISO*

CAISO

• Load forecasting BTM resources in market
• * Draft roadmap
• Increasing Aggregation and Integration