Distributed solar and storage owners face one more hurdle before participating in wholesale markets
“Relatively minor" changes are needed in distribution planning and operations before owners of distributed solar and distributed storage may earn money from participating in wholesale markets through an aggregator, says a report from the Energy Systems Integration Group.
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Sunrun, Tesla, and Stem backed an early proposal by the Federal Energy Regulatory Commission (FERC) to require grid operators to open their wholesale markets to participation by distributed solar and distributed storage, as well as other distributed energy resources (DERs). That proposal, which called for an aggregator serving as intermediary between DERs and grid operators, became FERC Order 2222. As grid operators, known as RTOs and ISOs, comply with the order, one more step remains before distributed solar and storage can sell energy, capacity, and ancillary services into wholesale markets, says an Energy Systems Integration Group (ESIG) report.
That step involves “relatively minor” near-term changes in distribution system planning and operations, and only minimal infrastructure investments. Those changes will require involvement of both state regulatory commissions and distribution utilities, the report says, many of which “are still in the early stages” of such work.