NYISO: Pilot program launched to integrate DER into wholesale market systems

The New York ISO (NYISO) on Oct. 25 said that it has launched a pilot program to integrate innovative distributed energy resources (DER) into its wholesale market systems.

The effective integration of DER can help grid operators improve system resiliency, energy security, and fuel diversity, the NYISO said, adding that DER will play an important role in achieving the state’s Reforming the Energy Vision (REV) and Clean Energy Standard goals.

As noted on the REV’s website, Gov. Andrew Cuomo has tasked the New York State Public Service Commission, the New York Energy Research and Development Authority, the New York Power Authority, and the Long Island Power Authority “to work together to make the governor’s strategy for a clean, resilient, and more affordable energy system a reality, while actively spurring energy innovation, bringing new investments into the state, and improving consumer choice.”

As noted on Cuomo’s website, the Clean Energy Standard requires that 50% of the state’s electricity come from renewable energy sources by 2030, with an aggressive phase in schedule over the next several years.

The NYISO said in its statement that the pilot program will inform market design efforts within the NYISO; build operational DER experience among the NYISO, utilities, and market participants; as well as demonstrate coordination of market and grid operations with new or revised market rules for DER integration, the NYISO said.

The pilot will be guided by the NYISO’s DER Roadmap, which, the NYISO noted, established a clear path toward integrating DER into the wholesale markets, and is consistent with the REV objectives.

The NYISO said that key program objectives include:  

  • Identifying and evaluating opportunities for DER, regardless of technology
  • Demonstrating proof of concept of objectives established in the DER Roadmap
  • Demonstrating processes and procedures for coordination between the NYISO, resource aggregators and the utility distributed system platform
  • Understanding technical capabilities and dispatchability of DER and aggregated resources
  • Assessing performance of aggregated resources in the market
  • Evaluating the impact of integrating DER into various NYISO software systems

The pilot program will be limited to five individual projects with a maximum of 50 MW of capacity statewide at any given time, the NYISO said, noting that it anticipates accepting its first pilot projects early next year.

As noted in the program guide, individual pilot projects will only be able to participate for a maximum of 12 months in the pilot program.

The pilot program will be active until April 2020 and when there is availability for the NYISO to accommodate new pilot projects due to reasons such as completion of a pilot project or changes in the NYISO resourcing support, the NYISO will inform its stakeholder community, and periodically open enrollment to new applications, the guide noted.

To further minimize market and operational impacts, each transmission node within the New York Control Area will be limited to 10 MW of pilot capability from the active pilot projects in the pilot program, according to the guide.

Among other things, the guide noted that the applicant is not required to be a NYISO market participant, but must execute a pilot participation agreement with the NYISO upon acceptance into the pilot program.

About Corina Rivera-Linares 3058 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.