CAISO Seeks Comments on Storage/DER Straw Proposal

The California Independent System Operator (CAISO) has released its Energy Storage and Distributed Energy Resources (ESDER) Phase 4 Revised Straw Proposal. The purpose of the ESDER initiative is to “enhance[e] the ability of ISO connected and distribution-connected resources to participate in the ISO market, including rooftop solar, energy storage, plug-in electric vehicles, and demand response.” Phase 4 of ESDER is aiming to refine participation models to better capture distributed energy resources’ value while enhancing grid reliability.

For example, the CAISO is proposing to allow scheduling coordinators to submit end-of-hour state-of-charge parameters for non-generator resources, which includes storage, in the real time market. This will allow scheduling coordinators to better dictate their state-of-charge and potentially receive more desirable energy schedules. The CAISO is also proposing a maximum daily run time parameter for more efficient use of demand response resources with daily hourly limitations. This will better accommodate demand response resources with a limited number of starts and a set number of hours available for dispatch within a day. Additional ESDER Phase 4 topics include streamlining non-generator resource interconnection, market power mitigation for non-generator resource participants, vetting qualification and operational processes for variable-output demand response resources, and the non-24x7 settlement implications of behind the meter resources.

The CAISO encourages stakeholders to submit comments by November 12, 2019. The CAISO will hold an additional working group meeting to refine proposals before the second revised straw proposal is published.

For more information contact Brian Biering or Andrew Brown.