Are We There Yet? Getting Distributed Energy Resources to Markets
Federal Energy Regulatory Commission Order Nos. 841 and 2222 are two landmark orders which aim to open organized wholesale markets to new technologies in the transition to a clean energy future. This issue brief rounds up efforts to implement the orders, showing where there has been progress, where there have been delays, and what is at stake.
Commenters and advocates hailed Federal Energy Regulatory Commission (FERC) Order No. 841 and Order No. 2222 as landmark orders in the transition to a clean energy future when they were issued in 2018 and last September, respectively. These orders aim to open organized wholesale markets to new technologies. Order No. 841 does this for energy storage resources, while Order No. 2222 does it for distributed energy resources. Of course, whether the orders live up to their billing as transformative and revolutionary efforts to demolish barriers to market participation will turn on whether the required details and intricacies can be mastered during implementation. Former FERC Chairman Norman Bay said, together, Order Nos. 841 and 2222 “have the potential to be truly landmark orders as the energy transition accelerates.” But, as with nearly all regulations, the effectiveness of Order Nos. 841 and 2222 will be determined by how faithfully and timely the regulated parties - here Regional Transmission Organizations/Independent System Operators (RTOs/ISOs) - implement FERC’s vision for the orders. So here we round up RTO/ISO efforts to implement Order Nos. 841 and 2222, showing where there has been progress, where there have been delays, and what is at stake.
Jessica and Hampden also wrote an op-ed in Utility Dive to compliment the launch of the issue brief.
The DER future is nearly here? Stuck in the weeds on Order No. 2222 implementation.
July 15 • Utility Dive “In advance of the original compliance deadline for the order this month, the State Impact Center’s recent report takes a closer look at the compliance process in each regional market and where the delays are happening.”