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ARTICLE · 22 SEPTEMBER 2020

Federal Energy Regulatory Commission Order Opens Competitive Markets For Distributed Resources

On Sept. 17, 2020, the Federal Energy Regulatory Commission (FERC) approved Order No. 2222 and forged a new path forward for the nation's wholesale energy markets

United StatesEnergy and Natural Resources

On Sept. 17, 2020, the Federal Energy Regulatory Commission (FERC) approved Order No. 2222 and forged a new path forward for the nation's wholesale energy markets, which will soon welcome participation from distributed energy resource (DER) aggregators that can bundle a wide array of technologies, from rooftop solar to electric vehicles.

Under this landmark ruling, regional transmission organizations (RTOs) and independent system operators (ISOs) are required to revise their tariffs and market rules to help facilitate the entry of DERs into the regional capacity, energy and ancillary service markets. FERC is requiring that each RTO/ISO recognize DER aggregators as a type of market participant and also accommodate the physical and operational characteristics of DER aggregation.

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