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

by Omar Saadeh

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.

Omar Saadeh Senior Analyst, Grid Edge

Omar Saadeh is a Senior Analyst with GTM Research and is the lead author of the Grid Edge Customer Network executive briefings. Omar has published numerous utility and smart grid market reports covering policy development, the competitive technology landscape, market evolution and business model economics. He has delivered keynote presentations at industry conferences and has contributed to publications such as Bloomberg, ComputerWorld, E&E’s ClimateWire, PV-Tech, Utility Dive, Yahoo News, and others.

Before joining GTM Research, Omar completed a Master of Engineering degree in power engineering at McGill University, where he was awarded a Graduate Excellence Fellowship, authored research for IEEE and Cigré, and contributed as a staff writer to The McGill Daily. He has also worked as a building efficiency sales associate at Johnson Controls and holds a bachelor’s degree in electrical engineering from McGill University with a minor in economics.

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