Project

Are We There Yet? Getting Distributed Energy Resources to Markets

A timeline depicting the developments relating to FERC's Order No. 2222

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.

People installing solar panels

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."