Filters applied: Governance and Oversight of Wholesale Market Participating Grid Edge Resources
January 1, 2025
State regulatory opportunities to advance grid edge resource aggregations in wholesale markets
Component
Technical
Author
Sydney Forrester; Ryan Hledik; Adam Bigelow; Natalie Mims Frick; Kala Viswanathan (Lawrence Berkeley National Laboratory – Energy Markets & Policy Department)
Stakeholder
State public utility commissions (regulators), distribution utilities, grid edge resource Aggregators, and RTO/ISO market operators – focusing on the interaction among these in compliance oversight.
Identifies how state regulators and utilities can enforce compliance for grid edge resource aggregators participating in RTO/Independent System Operator markets (under FERC Order 2222). It reviews the FERC Order 2222 compliance filngs of market operators and highlights remaining challenges in monitoring and enforcement, then outlines actions states can take to bolster reliability. For example, the report suggests that states establish provisions to penalize underperformance by grid edge resource aggregators when a distribution utility’s override of an aggregator’s dispatch leads to lost expected output. In other words, if a utility must curtail an aggregator’s resources for safety, the aggregator could face a performance penalty for failing to deliver contracted services when a distribution utility’s override of an aggregator’s dispatch leads to lost expected output. This creates an incentive for aggregators to coordinate closely with utilities to avoid overrides. The report also discusses frameworks for utility-aggregator coordination (such as communication protocols to give utilities override capability) and oversight measures to ensure aggregators comply with both market rules and distribution reliability needs. It emphasizes real-world enforcement—e.g., requiring aggregators to meet registration requirements, adhere to dispatch limits set in utility review processes, and face penalties or removal from programs if they don’t comply.
Order on DRIVE Act On-Site Generating System Incentives and DER Aggregator Licensing
Component
Institutional
Author
Maryland Public Service Commission
Stakeholder
Maryland Investor-Owned Utilities (Baltimore Gas And Electric Company, Pepco, Delmarva, Potomac Edison); third-party DER aggregators like CPower (which commented in the proceeding) ; potentially Pennsylvania-New Jersey-Maryland market participation via ag
Implements Maryland’s DRIVE Act by establishing a licensing framework for DER aggregators. It confirms PSC authority over DER aggregators, seekings to protect consumers while avoiding onerous requirements . The order sets direction for regulations and oversight of DER aggregators interacting with wholesale markets.
Grid Edge Resource Strategy (section in NERC’s November 2022 Reliability Risk Committee agenda)
Component
Technical
Author
NERC
Stakeholder
NERC System Planning Impacts from Distributed Energy Resources Working Group (tasked with Grid Edge Resource Integration issues – cited in the paper) ; FERC (for any future jurisdictional changes); large grid edge resource aggregators (e.g., those managin
The North American Electric Reliability Corp.’s strategy document addresses the reliability challenges of rapid Grid Edge Resource growth and the emergence of the grid edge resource aggregator role. It notes that grid edge resource aggregators, as introduced by FERC Order 2222, present “unique operational benefits and challenges” for grid planners and operators . NERC discusses potential new oversight: e.g., whether large grid edge resource aggregators should be registered entities for reliability standards compliance, and how to coordinate transmission-distribution operations as aggregations grow . It also flags cybersecurity concerns with aggregators controlling many distributed assets . This strategy guides how reliability rules might evolve to include grid edge resource aggregators.