FERC 2222 clears path for Distributed Resources in wholesale markets

FERC clears path for DERs in wholesale markets

On Sept 17, FERC approved Order 2222 enabling distributed energy resource (DER) aggregators to compete and participate in regional organized wholesale electricity markets. FERC expressed that Order 2222 will increase competition and enhance grid flexibility and resiliency attributes by allowing DER participation, also expressing that DERs have already proven ability to regulate grid frequencies and deliver localized capacity across the country. Specifically, FERC intends Order 2222 to remove barriers to entry for DERs to expand the ability ‘to harness the full potential of these flexible resources’. Under Order 2222, RTO/ISOs must revise tariffs to establish DER aggregators as a type of market participant to allow them to register resources under one or more participation models to accommodate the physical and operational characteristics of DERs and prohibits them from broadly excluding DERs from participation. FERC highlighted DERs including but not limited to, BTM solar, storage, demand response, energy efficiency, EVs and EV chargers, and other controllable loads (grid-responsive water heaters and HVAC systems for instance). New markets structures are to be created by RTO/ISOs in compliance with Order 2222. PJM as a potential opportunity market for DERs with Order 2222. HGP is focused on aggregating commercial/ residential solar+storage grid services increasing utilization of these resources, decreasing congestion on the system and lowering costs for all.

HGP is unlocking additional revenue streams that will benefit individual DERs as well as a greater sum of the parts multi-node aggregation Virtual Power Plant (VPP.)