The New York ISO’s attempt to integrate aggregations of distributed energy resources into its wholesale power markets has exposed a range of thorny issues surrounding a landmark Federal Energy Regulatory Commission rule. Order 2222, issued in September 2020, requires FERC-jurisdictional grid operators to clear market barriers to aggregations of distributed energy resources (DERs), such as small-scale solar arrays, residential batteries and electric vehicles. FERC reasoned that combinations of those types of behind-the-meter resources can provide crucial reliability benefits and other services to the grid as the US continues to shift to more variable renewable energy resources.
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