CAISO finalized a set of updates to its proposed policies on demand response and distributed generation, saying there is strong stakeholder support for the new rules to be presented to the Board of Governors in July.
The grid operator has been working on three related but distinct proposals regarding DR, non-generator resources and multiple-use applications. (See CAISO Proposes Rules for Distributed Resources, Storage.)
An incremental approach would be best as CAISO learns from the changes stemming from the policies and their influence on generation resources and grid operations, the ISO said in a draft final proposal on “Energy Storage and Distributed Energy Resources (ESDER) Phase 2.”
“The ISO will continue collaborating with stakeholders on the remaining ESDER 2 topics in a phased policy approach that is appropriate in a rapidly evolving market environment that currently does not have a clear end state,” CAISO said.
The board next month will review finalized proposals for alternative baselines, distinguishing between charging power and station power for energy storage resources, and changes to the threshold price for DR, among others.
For DR, a baseline analysis working group developed enhancements to the method whereby proxy DR resources are evaluated. The ISO has finalized the alternative baselines, which are designed to improve the accuracy of DR performance calculations. CAISO said there has been “overwhelming” support for the alternative baseline proposal.
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