DER Subcommittee reviews initiatives

At the Jan. 5 Distributed Energy Resources Subcommittee meeting, stakeholders discussed proposals and ideas that established the groundwork for future discussions on potential rules for market participation of wholesale distributed energy resources.

PJM defines a distributed energy resource as a generation or electric energy storage resource connected at distribution voltages and/or connected behind a load meter.

Andrew Levitt, senior market strategist, Emerging Markets, reviewed the PJM proposal, which examines how to account for wholesale distributed energy resources (W-DER) that are co-located behind the customer meter with additional W-DER or additional wholesale Demand Response.

Levitt presented a general overview of the draft proposal, which provides a separate set of rules for W-DER. A resource could choose to participate as either generation or demand response or under the new W-DER rules. Participation under the new W-DER rules would be voluntary.

He also discussed the PJM straw proposal, presented in 2017 (when the subcommittee was a special session of the Market Implementation Committee).

Pete Langbein, manager – Demand Response Operations, discussed PJM’s need for non-wholesale DER information and its existing efforts to gain greater situational awareness of non-wholesale DER.

Langbein looked at opportunities for PJM to leverage available information (such as the NERC EIA 860 report) and validate it through the transmission owners and their associated electric distribution companies. This includes finding and loading data loaded into the Dispatch Interactive Mapping Tool for Operations dispatchers. The NERC EIA 860 report collects generator-level specific information about existing and planned generators and the associated environmental equipment at electric power plants with 1 megawatt or greater of combined nameplate capacity.

PJM and Monitoring Analytics, PJM’s independent market monitor, provided education for capacity market participation.

Melissa Pilong, senior analyst – Market Analysis, discussed status quo and principles, including definitions of cost-based offers and fuel cost policy. Monitoring Analytics added further demand response background.

Stakeholders presented a proposal on market rules for combined wholesale DER, retail DER and load response resources.