FERC just issued Order 2222 requiring all RTOs and ISOs to allow distributed energy resources to participate in wholesale markets. I've been reading through it but the technical requirements are pretty complex. The order covers everything from solar+storage to electric vehicle aggregations. Here in Tennessee, we're not in an RTO so this might not directly affect us, but I'm curious if anyone has insights on how this could impact retail rates. TVA has been talking about wholesale market participation for years.
New FERC Order 2222 - anybody understand the implications?
Terry, this is huge for those of us in ISO-NE territory. The order requires compliance within 270 days, but implementation will probably take 2-3 years. The interesting part is it allows aggregated DER resources as small as 100kW to bid into energy and ancillary services markets. For larger commercial customers with solar+storage, this could create new revenue streams that weren't available before. Eversource has been dragging their feet on interconnection, but this might force faster approvals.
Vince is right about the revenue opportunities. In PJM territory, we're already seeing some large customers explore this. The challenge is the operational complexity - you need real-time telemetry, 4-second response capabilities, and sophisticated control systems. Most behind-the-meter resources aren't set up for wholesale market participation. Derek, Georgia Power isn't in an RTO either, so you're in the same boat as Terry with TVA.