NYISO Workshop Examines the Future of Distributed Resources

RENSSELAER, NY (12/13/2013)(readMedia)-- Focusing on a rapidly growing area of emphasis among energy policy makers, the New York Independent System Operator (NYISO) brought together more than 200 industry experts, regulators and market participants for a workshop to examine the implications of distributed energy resources for the bulk power system and competitive wholesale markets.

The term Distributed Energy Resources (DERs) commonly refers to smaller-scale, on-site power generation and storage technologies that supply all or a portion of a customer's electric load. These technologies also may inject power into a transmission and distribution system or a non-utility local network operating in parallel with the utility grid. The technologies include solar photovoltaic, combined heat and power or cogeneration systems, microgrids, wind turbines, microturbines, back-up generators and energy storage.

In addition to a number of expert panel discussions, the workshop featured remarks by several speakers including NYISO President and CEO Stephen Whitley and Mason Emnett, deputy director of the Federal Energy Regulatory Commission's Office of Energy Policy and Innovation.

In opening remarks, Mr. Whitley identified DERs as a new frontier for the NYISO and highlighted some of the challenges and opportunities.

"This event will augment a comprehensive study that we are initiating to inform the NYISO about DER technologies and their potential implications for the bulk power system and New York's wholesale markets," said Whitley. "I should note that this effort was developed with our market participants and stakeholders, and we look forward to working with them and the FERC and PSC as we shape the future of Distributed Energy Resources in New York's wholesale electricity markets.

"The NYISO is focused on sustaining and enhancing the reliability of the bulk electric system as well as enhancing the efficiency of the wholesale electricity markets. We have led the way on a number of fronts, including renewable integration, the Broader Regional Markets initiative and incorporating smart grid technology into the bulk electric system.

"Distributed Energy Resources represents a new frontier for the NYISO. We are now looking deeper into the system, at the so-called behind-the-meter arena, to understand the role distributed energy resources can play. We see distributed resources at the nexus of the bulk power and local distribution systems as well as the nexus of retail and wholesale markets."

Mason Emnett from FERC's Office of Energy Policy and Innovation offered some perspective from the federal level on the potential impact of DERs on the reliable operation of the transmission grid and wholesale markets.

"We appreciate the attention and leadership of the NYISO in considering these issues," said Emnett. "When we think about distributed resources, we are not focused on how many we can get on the system or the relative benefits of one type of resource versus another. Rather, our focus is on whether the design and operation of wholesale markets is robust and whether the transmission grid is reliably and efficiently facilitating transactions among all types of resources.

"FERC is actively considering how an expansion of DERs will play out in the wholesale markets. We want to be part of the process of enhancing wholesale markets, but understand that choices made by retail regulators and investment decisions made by suppliers and individuals are driving much of the progress."

The day also featured several expert panel discussions on the array of issues relating to DERs, including public policy, the state of technology and market structures. Specific topics covered by the four panel discussions included insights into New York state's views of the current and future role of DERs, understanding the capabilities and limitations of DER technologies, the manner in which DERs are treated in other regional wholesale and retail markets and insights into the customer and utility motivations for installing DERs.