State opportunities to advance DER aggregations in wholesale markets

March 6, 2025

Aggregated distributed energy resources (DERs) have the potential to provide a variety of grid services at the local and bulk system level such as alleviating resource adequacy constraints. However, these resources are currently underutilized. Across states, the Federal Energy Regulatory Commission Order 2222 aims to improve competition by directing each jurisdictional Regional Transmission Organization and Independent System Operator to make regulatory changes that enable DER aggregations to participate in bulk system services. In parallel at the state level, regulators play a critical role in promoting policy, coordinating across stakeholders, and managing data to enable DER dispatch and compensation for grid services. This webinar will discuss challenges in incorporating DER aggregations into wholesale electricity markets, characterize the various approaches that are emerging to address those challenges, and identify where state regulators can have a complementary role to accelerate inclusion of DER aggregations in wholesale markets and ultimately advance grid affordability, efficiency, and reliability. 

The full report, State regulatory opportunities to advance distributed energy resource aggregations in wholesale markets, can be found here.