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FERC Order 2222 Paves Way to Participatory, Modernized Grid of the Future

Oct. 27, 2020
Order 2222 expected to remove barriers to participation of distribution and retail customer DERs in wholesale markets.

FERC Order 2222, issued Sept. 17, 2020, brings 'open access' of the 1990s into the 21st century. The original set of 'open access' orders opened bulk electric power transmission access to competitive wholesale electricity markets that thrive today across North America. Order 2222 is expected to have a similar revolutionary impact by removing barriers to distribution and retail customer participation. It will also impact how distribution grids operate to allow distributed energy resource (DER) access to the power markets while maintaining reliability and integrity of the distribution grid.

Variable renewable energy resources require the North American power systems to incorporate flexible resources to maintain power balance, system reliability, and market efficiency. Distributed and demand side resources will be the source of such flexibility, offering economic benefits to participating consumers, decreases in energy cost, improved retail and wholesale grid operations, and reductions in greenhouse gases.

With the emergence of smart homes and smart cities, declining cost of DERs, electrification of transportation, ubiquitous availability of high-speed data communications, connected devices, and internet of things (IoT) technologies, FERC Order 2222 is expected to have a long-term impact on the future of the electric utility and power market operations.

Dr. Sasan Mokhtari, OATI president and CEO, said: "More than a decade ago, OATI assessed the potential impacts of DERs and developed a comprehensive suite of technologies and solutions to allow our customers real-time visibility and capability to control DERs. FERC Order 2222 brings 'open access' full circle and OATI looks forward to working with utilities, ISO/RTOs, and industry organizations to define new requirements and further develop our technologies and solutions to accommodate this expanded energy industry, particularly in support of bulk power market and distribution grid operations."

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