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Rao Konidena's picture
Independent Consultant Rakon Energy LLC

Rao Konidena found Rakon Energy LLC because Rao is passionate about connecting clients to cost-effective solutions in energy consulting, storage, distributed energy resources, and electricity...

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  • Jan 4, 2021

Due to Federal Energy Regulatory Commission (FERC) Order 2222 on Distributed Energy Resource Aggregation (DERA), grid operators such as Midcontinent Independent System Operator (MISO) should start stakeholder discussions on how to comply with the FERC Order 2222.

The link references the first task force meeting of MISO's DER TF.

The stakeholder chair for this MISO task force is from Minnesota Public Utility Commission. The vice-chair is from Xcel Energy.

The task force has its work cut out before July 2021, when MISO should file with FERC its plan on how MISO intends to comply with this Order 2222.

Rakon Energy LLC will be closely tracking this order at MISO.

The key to DERA is whether MISO states would allow third party aggregation. Because it is simply not possible for an ISO to deal with 100's of 250 kW individual DERs. It makes more sense to deal with 10s of aggregators who bundle those DERs and bid into the market. Yes, MISO distribution utilities can aggregate. However, if third party aggregators are allowed whose main focus is aggregating and bundling these DERs - utilities can focus on the grid modernization efforts needed to incorporate these DERs such as the hosting capacity analysis.

A FERC Order levels the playing field and brings much needed clarity on a specific policy objective. In this Order 2222, its all about distributed energy resources.

Matt Chester's picture
Matt Chester on Jan 4, 2021

Because it is simply not possible for an ISO to deal with 100's of 250 kW individual DERs. 

Is this statement just based on current resources and feasible logistics, or is it more of a long-term truism that ISOs simply won't ever be able to tackle these individual DERs? 

Rao Konidena's picture
Rao Konidena on Jan 5, 2021

Good question, Matt.

Here is the technical challenge in the algorithm called Security Constrained Economic Dispatch, that determines which resource gets dispatched. If we take MISO for example, which has currently 6,692 generating units (according to Corporate Fact Sheet) - MISO's SCED algorithm has to solve for all those units plus these DERs. To find that merit order dispatch for the next hour and next 5 mins. That solution engine takes time, it has to solve every 4 secs or so for prices every 5 mins.

When you have 1000s of DERs with small capacity ratings, that would take time for the engine to solve I think, without any evidence. We need to test this out.

Now, with technology advancing in machine learning, AI and other optimization algorithms - is it possible to solve in future? Absolutely.

Remember I gave a simple example by focusing on generating units alone here. In reality, all the 65,800 miles of transmission under MISO functional control is also included in the model to run "what if" scenarios.

Hope this helps


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