FERC Order 2222 is an historic event that will transform the energy industry into a truly modern and Smarter Grid. Bravo!
Under the new rule, regional grid operators must revise their tariffs to establish DER aggregators as a type of market participant, which would allow them to register their resources under one or more participation models that accommodate the physical and operational characteristics of those resources.
The tariffs also must address technical considerations such as:
• locational requirements for DER aggregations;
• distribution factors and bidding parameters;
• information and data requirements;
• metering and telemetry requirements; and
• coordination among the regional grid operator, the DER aggregator, the distribution utility and the relevant retail regulatory authority.
The rule also directs the grid operators to allow DERs that participate in one or more retail programs to participate in its wholesale markets and to provide multiple wholesale services, but to include any appropriate, narrowly designed restrictions necessary to avoid double counting.