Distributed Wind and Impacts of FERC Order No. 2222 Implementation
- Pacific Northwest National Laboratory (PNNL), Richland, WA (United States)
In September of 2020, FERC issued Order No. 2222, directing ISOs to adjust their long-standing tariffs and participation models to enable the operation of distributed energy resource (DER) aggregators in wholesale energy markets. The rule sought to bring wholesale markets under its jurisdiction up to speed with existing expansion of DERs across the United States and to capture the potential benefits that these technologies can provide. This report describes the implementation of FERC Order No. 2222 and the compliance plans that have been submitted so far, attempt to understand the potential impact the rule may have on distributed wind, and provide opportunities for future work to analyze and encourage deployment under these policy conditions. There is an information gap for the type of market interactions distributed wind may have or how it could be best deployed in DER aggregations under future market conditions. There is significant potential for profitable deployment of distributed wind in states that are served by ISOs and covered under Order No. 2222. Distributed wind and other DERs provide local energy that does not need to travel those distances and avoids the losses typically associated with long-distance energy transmission. Deployment of distributed wind can benefit communities that exist away from large load centers by providing local, clean, and affordable energy. Aggregating DERs that include distributed wind could provide these benefits across multiple far-ranging communities if they have access to participate in wholesale markets. A new baseline valuation of distributed wind in areas covered by Order No. 2222 is required to accurately gauge where it is profitable and how it can compete or complement existing or future DER deployment, including as part of an aggregate.
- Research Organization:
- Pacific Northwest National Laboratory (PNNL), Richland, WA (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Wind Energy Technologies Office
- DOE Contract Number:
- AC05-76RL01830
- OSTI ID:
- 2429341
- Report Number(s):
- PNNL--36262
- Country of Publication:
- United States
- Language:
- English
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