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Distributed Energy Resources

August 21, 2018

Distributed Energy Resources (DER) are a broad category of resources that includes distributed generation, energy storage technologies, combined heat and power systems, and microgrids.

In support of its efforts to harness the benefits of DER, last year, we released a Distributed Energy Resources (DER) Roadmap. The DER Roadmap offers routes to a future where consumers and emerging technologies support more optimized grid utilization. It offers our vision to integrate diverse, bi-directional resources onto the grid. However, the DER Roadmap represents just the first step toward building that grid of the future.

Through the DER Roadmap, our goal is to develop a series of market enhancements to more fully integrate DERs into energy, ancillary services, and capacity markets to ultimately improve market animation, increase system-wide efficiency, and improve reliability and resiliency.

The fundamental premise behind the NYISO’s DER Roadmap is straightforward:

  1. Competitive markets and system operations will benefit from access to emerging technologies that can adjust demand on an economic basis in response to price signals from the market.
  2. Developing and implementing the market enhancements necessary to realize this premise will entail a considerable amount of time, effort, and stakeholder engagement.
  3. We will use the DER Roadmap over the next three to five years as a framework to develop the market design elements, functional requirements, and tariff language necessary to implement its vision to integrate a dispatchable DER.

This year, we will develop an appropriate set of rules for DER integration, focusing on the value DERs provide the wholesale markets and bulk power system. We also just announced a set of DER pilot projects which will demonstrate the capabilities of DERs and how they may integrate into our wholesale markets in the future.

While DER installations may be used primarily to assist with distribution system reliability and resiliency, we believe they can provide valuable services to the wholesale market and we are developing participation models for dispatchable and non-dispatchable DERs.

We are an independent, not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State.