August 17, 2020
In New York state certain DERs have an opportunity to participate in wholesale programs administrated by NYISO. These programs include the reliability-based demand response program, emergency demand response program, and the special case resources program. Others may participate in NYISO’s economic demand side programs and the Day-Ahead Demand Response Program or the Demand Side Ancillary Service Program. DERs must inject at least one MW in the grid or be aggregated to inject this one MW minimum capacity. NYISO also allows Behind-the-Meter Net Generation Resources to participate in the DER programs as well.
The Aggregation participation model allows aggregators to combine individual facilitates and DERs to participate in energy markets, ancillary service markets, and NYISO’s ICAP market. The DERs are grouped and dispatched as a single Transmission Node. The aggregations can be a single resource type or multiple resource types.
NYISO proposes that an Aggregator will be the market participant that interfaces with NYISO concerning the participation of the Aggregation in the NYISO markets, and therefore the Aggregator will be categorized as a “Supplier” under the NYISO Tariffs. NYISO explains that an Aggregation will be offered in the NYISO markets as a single unit, and all bidding and offer obligations will apply to the Aggregator or Aggregation, and not to individual facilities that comprise the Aggregation. Similarly, it proposes to require that Aggregations satisfy the minimum eligibility and performance requirements for wholesale market participation in the same manner as any other Resource, but does not require individual facilities that make up an Aggregation to meet these minimum requirements except where specifically noted.
NYISO explains that most resource types currently eligible to participate in the NYISO markets will be eligible to participate as part of an Aggregation, with the exception of generators with Public Utility Regulatory Policies Act (PURPA) contracts, limited control run-of-river resources, Behind-the-Meter Net Generation resources, municipally-owned generation, system resources, and control area system resources. In addition, NYISO states that certain facilities not currently eligible to participate in the NYISO markets will have the opportunity to do so by joining an Aggregation because the Aggregation Participation Model will: (1) permit multiple individual facilities to combine their capability to meet minimum eligibility requirements; (2) provide flexibility to Aggregators seeking to manage obligations among the wholesale market, local distribution system, and host facility; and (3) allow Aggregators to stack individual facility capability sequentially to meet minimum run-time requirements.
NYISO proposes to require that each individual facility within an Aggregation be electrically located in the NYCA and electrically connected to the same NYISO identified transmission node. NYISO states that it will identify transmission nodes throughout the NYCA, following consultation with the New York Transmission Owners (NYTOs), and will reflect the collection of electrical facilities (e.g., distribution feeder lines) associated with the transmission node to which individual facilities may aggregate. NYISO proposes to identify each transmission node in the ISO Procedures, and review the set of transmission nodes on an annual basis to account for changing conditions on the New York State Transmission System and underlying distribution systems. NYISO states that requiring facilities within an Aggregation to be electrically connected to the same transmission node will enable NYISO to manage transmission constraints and reliability concerns thereby resulting in lower overall production cost.
NYISO states that requiring Aggregations to locate at a single transmission node, with an associated nodal Locational Based Marginal Price, will also encourage location-specific development of DERs in areas where additional supply will enable it to more effectively manage transmission constraints and improve grid reliability while also lowering overall production costs. NYISO clarifies that its proposal does not limit the total number of Aggregations permitted at a single transmission node, and allows one or more Aggregators to enroll one or more Aggregations at a transmission node. NYISO proposes to allow an individual facility to leave an Aggregation or change the Aggregation in which it participates, to be effective at the start of a calendar month, as long as the facility provides NYISO with at least thirty calendar days’ notice of its intent to change Aggregations and receives approval from NYISO before participating in a new Aggregation. NYISO states that facilities seeking to change Aggregations that are participating in the ICAP Market must also satisfy additional requirements.
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Sources:
https://www.nyiso.com/distributed-energy-resources-der-