NYISO Implements Nation's First Market Empowering Distributed Energy Resources

RENSSELAER, NY (04/18/2024) (readMedia)-- The New York Independent System Operator (NYISO) this week launched a first-in-the-nation program to integrate aggregations into the wholesale electric markets of distributed energy resources (DER), such as small-scale solar arrays, residential batteries, and electric vehicles. This follows approval of new market rules by the Federal Energy Regulatory Commission (FERC) to implement the ground-breaking program.

The NYISO's new market rules allow aggregations of DER resources over 10 kilowatts, which will provide reliability benefits and other important services to the electric grid as New York continues its shift to more renewable energy resources. The NYISO forecasts distributed generation in the state to roughly double over the next three decades as the state strives to have 70% of its electricity generated by renewable resources by 2030 and achieve a 100% clean power grid by 2040.

"FERC's acceptance of our landmark model is a huge win for grid reliability and energy consumers in New York," said Rich Dewey, President and CEO of the New York Independent System Operator. "Bringing small-scale resources into our wholesale markets will add much-needed capacity to the grid and bring New York closer to reaching its ambitious climate goals. We're excited for the future and proud to be a vanguard of DER aggregation."

In FERC's order, Chairman Willie Phillips and Commissioner Allison Clements recognized NYISO's efforts on DER aggregation by writing: "To date, NYISO has been at the forefront of developing a participation model for DERs and seeking to implement that model expeditiously."

The NYISO encourages interested parties to learn more about its new DER aggregation and participation model: https://www.nyiso.com/der-aggregations

FERC's Order can also be viewed here: https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20240415-3070

About the New York ISO

The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the bulk electricity grid, administering the competitive wholesale electricity markets, conducting comprehensive long-term planning, and advancing the technological infrastructure of the electric system serving the Empire State.