EnergyTech senior editor Rod Walton discusses ERCOT pilot projects that will impact microgrids.
FERC 2222 is coming to the Lone Star State.
The Electric Reliability Council of Texas (ERCOT), the system operator that manages the Texas electric grid, has approved a pilot project to evaluate the participation of aggregated distributed energy resources (DERs) in the ERCOT wholesale electricity market. The approval follows a directive from the Public Utility Commission of Texas to study the impact of DERs on the competitive grid market.
This could ultimately allow the Texas system to include megawatts (MW) and potentially gigawatts of generating capacity from rooftop solar, residential and business battery storage, and microgrids.For now, ERCOT plans to put limits and controls on the pilot study.
“Initial systemwide participation will be limited to 80 MW of registered capacity and 40 MW of non-spinning reserve service (non-spinning),” ERCOT documents about the project state. “These systemwide limits will initially be used to develop load zone and qualified scheduling entity (QSE) level limits to provide diverse geographic and technical participation opportunities.”
In 2020, the Federal Energy Regulatory Commission, which includes appointees from both parties in the Trump Administration, approved FERC Order 2222, which focuses on removing barriers for aggregated DER assets to participate in all region-wide electricity markets. This includes system operators such as PJM Interconnection, ISO-New England, Southwest Power Pool, California ISO, and Midcontinent Independent System Operator (MISO).
Some of these ISOs have already implemented steps of FERC’s order, but others are grappling with complex issues. Incorporating intermittent renewable energy comes with unknowns and challenges of bidirectional flows onto the grid.
ERCOT’s order comes as Texas continues to rapidly add renewable energy capacity — the state already has the largest amount of installed wind power and is in the top five for solar power — but is increasingly considering the impact that battery storage and microgrids (which include solar, battery storage and gas-fired generators) will have on the system.
“Lessons learned from the initial phase will be considered when designing additional phases of the pilot project, creating opportunities to expand overall participation while maintaining reliable operation of the transmission and distribution grid,” ERCOT’s document states. “Using a phased approach will allow the pilot to begin as soon as possible while minimizing changes to ERCOT and distribution service provider (DSP) systems. This will allow ERCOT to gain valuable information prior to making changes to ERCOT’s rules and systems that may be required for the long-term integration of ADER.”
DER participants who want to interconnect their generation to the grid must meet ERCOT telemetry and metering accuracy standards. If dispatched generation is unpredictable and threatens frequency coverage, it could put the grid at risk.
The first phase of the ERCOT DER study will look at dispatch and pricing challenges, as well as congestion management in the system. The pilot will also analyze whether aggregated DER (ADER) assets can provide key frequency response services and other potential activities.
The system operator’s ADER task force will produce its Phase 1 report approximately one year after the first wholesale market offers are received from aggregated DER participants.
This article is sponsored by EnergyTech. EnergyTech and Microgrid Knowledge are both part of Endeavor Business Media.
