Access documents related to the Order No. 2222: Participation of DER Aggregations in Wholesale Markets Key Project.
On September 17, 2020, the Federal Energy Regulatory Commission (FERC) issued its landmark rule, Order No. 2222: Participation of Distributed Energy Resource Aggregations in Markets Operated by Regional Transmission Organizations and Independent System Operators (RM18-9-000). This Order requires RTOs/ISOs to allow distributed energy resources (DERs) to provide all wholesale market services that they are technically capable of providing through an aggregation of resources. FERC issued Order No. 2222-A (RM18-9-002) on March 18, 2021, and Order No. 2222-B (RM18-9-003) on June 17, 2021, to refine and clarify requirements in the original Order.
ISO New England has enabled thousands of megawatts of DERs to participate in its markets through development of multiple participation options. However, as technologies advance and small DERs proliferate, some of these resources may be unable to meet minimum size and performance requirements. Order No. 2222 reasons that through aggregation, more of these resources might meet those requirements and be able to participate in wholesale markets alongside traditional resources to provide flexible services to the power grid.
To comply with the Order, RTOs/ISOs must propose Tariff revisions as necessary that establish DER aggregators as market participants and address a number of technical directives to facilitate DER aggregator market participation. ISO New England made its primary compliance filing on February 2, 2022, with subsequent compliance filings in 2023. The ISO has dedicated significant resources to this important initiative to develop its compliance proposals through a comprehensive stakeholder process and substantial coordination among a large number of affected entities across the six New England states, including prospective DER aggregators, electric distribution companies and meter readers, electric retail regulatory authorities, and others.
The Order No. 2222 project is just one of several key projects at the ISO, which continuously undertakes a variety of short- and long-term projects to enhance the region’s competitive wholesale electricity markets and ensure reliable operation of the power grid.