FERC Order No. 2222 Implementation: Market Opportunities and Risks for Distributed Energy Resources
June 16, 2022
On June 16, Day Pitney hosted a webinar, "FERC Order No. 2222 Implementation: Market Opportunities and Risks for Distributed Energy Resources." The panel, Energy Attorneys Sebastian M. Lombardi, Margaret Czepiel and Rosendo Garza, discussed how the Federal Energy Regulatory Commission's (FERC) Order No. 2222 creates opportunities for distributed energy resources (DERs) to participate in the wholesale capacity, energy and ancillary services markets.
The incorporation of DERs into wholesale markets is seen by many as a critical tool for the decarbonized future of the U.S. power grid. Each RTO and ISO has now submitted its compliance filing detailing an implementation plan for incorporating the mandates of Order No. 2222 and paving the way for DERs to integrate in their wholesale markets. The proposed market design mechanisms and technical and administrative details for how the RTOs and ISOs will implement these mandates vary from region to region and have been the subject of scrutiny from stakeholders, and will be subject to scrutiny from FERC. The panelists discussed the mandates of Order No. 2222, the opportunities in the RTO/ISO markets and the risks and challenges of participating in those markets.