Regulating DER Participation in U.S. Electricity Markets: CAISO, ERCOT and NYISO


Traditionally, wholesale market regulation has focused on large generating and load-curtailment resources, while imposing restrictions that inhibit the participation of smaller-scale resources. Growing adoption of behind-the-meter distributed energy resources (DERs), especially variable generation, is having an undeniably profound effect on the industry, not only threatening to disrupt existing business models, but also jeopardizing grid stability. System operators often face operational challenges and have an increased need for grid flexibility to rapidly ramp resources in response to increasingly variable system dynamics.

CAISO Holds Highest Market Potential for a DER

This slide-based report investigates recently proposed and implemented wholesale market regulations in CAISO, ERCOT and NYISO that promote greater supply and load DER market participation opportunities, aiming to reduce DER market barriers, more accurately compensate resource participation and allow for increased third-party aggregation models.

Please contact Tate Ishimuro ( for more information.

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