Full Title: DER Integration into Wholesale Markets and Operations
Author(s): Matt McDonnell, Jennifer Gorman, Fredrich (Fritz) Kahrl, Lorenzo Kristov, Josh Keeling, Priya Sreedharan
Publisher(s): Energy Systems Integration Group (ESIG)
Publication Date: January 28, 2022
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Distributed energy resources (DERs)—generation, storage, and electric vehicles and other responsive load connected to distribution systems—can provide a range of electricity system benefits. However,
realizing these benefits will require closer coordination between electricity distribution and transmission systems. Without coordination, electricity systems risk being over- or underbuilt and will be increasingly challenging to operate, leading to high costs and potentially lower reliability.
In this report, we examine the changes in regulation, market rules, and operating practices needed to better integrate DERs into U.S. wholesale markets and operations, focusing on nearer-term implementation of the Federal Energy Regulatory Commission’s (FERC’s) Order 2222 as well as on the broader gaps related to DER integration in wholesale markets and distribution systems.