U.S. Wholesale DER Aggregation: Q2 2016
In recent years, consumer demand flexibility, known as demand response (DR), has increasingly become a key feature in the design and operation of electricity systems. By linking end-user consumption and production to dynamic system management, these DR programs have achieved significant operational efficiencies, such as mitigating real-time constraints and lowering wholesale prices and end customer costs.
This dynamic next-generation energy system requires further market evolution which fully leverages distributed energy resources (DERs) and other participatory grid edge technologies. Traditionally controlled behind-the-meter resources include load control, thermal storage and on-site generators. However, growing interest in aggregation services is pushing players, independent system operators (ISOs) and regional transmission organization (RTOs) to look beyond traditional behind-the-meter management. New approaches will unlock value streams for up-and-coming technologies such as distributed generation, electric vehicles and battery storage, and accordingly socialize the cost of energy delivery.
Select National Demand Response Aggregators Registered Within ISO/RTO Territories
To achieve these outcomes, evolving market models have begun to integrate DERs in short- and long-term planning at all network levels. This report provides data and analysis of the ISO/RTO markets where various distributed resources are making headway, assessing current program developments and opportunities. Overall insights are also offered with respect to market size and outlook for demand-side flexibility going forward. It is the second report in a new quarterly series on U.S. DER aggregation.