ORIGINAL REPORTING: New Markets Opening Up To Distributed Resources
How aggregated DERs are becoming the new demand response; Grid operators are designing new markets and mechanisms to get reliability and flexibility from aggregated distributed energy resources.
Herman K. Trabish, July 20, 2016 (Utility Dive)
Editor’s note: Since this story ran, more policy work has been directed at opening opportunities for distributed resources.
The value of electricity is never greater than when it is not available. California’s historic energy crisis in the early aughts led to political upheaval and real demand response programs across the United States, which the California Independent System Operator (CAISO) and other system operators now depend upon. But coping with today’s dynamic grid and rising levels of variable renewables takes more than just load reduction because demand response is no longer simply about meeting demand peaks. It is also managing voltage and frequency fluctuations and handle shifting loads and over-generation. As a result, demand response is turning to aggregated distributed energy resources, according to a recent report from GTM Research.
The increasing penetration of DERs and the capability of providers to deliver aggregated behind-the-meter fleets of the resources is allowing system operators to seize their value. It is expected to eventually allow the private sector and system operators to partner in bringing consumers into energy delivery. But, first, grid operators must learn to deal with diverse aggregations of resources such as rooftop solar, battery storage, EV batteries, hot water heaters, and home appliance loads. Of North America’s nine major grid system operators, the report looks carefully at “market evolution” necessary to “transition to the next-generation energy system,” in four: The PJM Interconnection, the Midcontinent Independent System Operator (MISO), the Electric Reliability Council of Texas (ERCOT), and the CAISO… click here for more