IEEE Power & Energy Magazine - November/December 2019 - 41

NYISO will be directed to the entire aggregation. DER aggregators will be responsible for
✔ receiving the aggregation-level dispatch instructions
from NYISO in real time
✔ identifying the dispatch of individual DERs within the
aggregation
✔ transmitting dispatch instructions to individual DERs
✔ collecting responses from individual DERs
✔ consolidating the responses to an aggregation level
✔ communicating the aggregation-level response back
to NYISO with real-time telemetry.
Performance will be measured for the DER aggregation rather than individual DERs. As NYISO encounters transmission constraints, its market dispatch signals
can effectively dispatch the aggregation of DERs to address
reliability issues at the lowest cost. This approach allows
aggregators the flexibility to meet NYISO dispatches using
DERs within the aggregation, based on availability, costs,
and other factors.
Enhanced operational coordination among the wholesale
system operator, distribution system platform (DSP) operator, aggregator, and individual DERs is necessary to ensure
the reliability of the transmission and distribution systems.
DERs may provide services to the wholesale and retail markets and to end-use customers (see Figure 7). Individual
DERs that make up an aggregation may be located on different distribution feeders and have different impacts on each of
them. Enhanced coordination ensures that the DSPs have situational awareness of the impacts of NYISO dispatch signals
across the transmission-distribution system interface. In the
event of conflicts between the transmission and distribution

future, NYISO is developing market-based mechanisms to
integrate DERs into the wholesale electricity markets that
it administers. NYISO's DER market design is expected to
be implemented in 2021. The proposed design recognizes
the unique characteristics of DERs. For example, the market design acknowledges that individual DERs may be small
in size yet aggregate to a large capacity and that they can
be fast-acting but with a limited capability to deliver energy
for long durations. The proposed market design considers
DERs that may have the capability to provide services to
wholesale markets, retail markets, and end-use customers
(see Figure 7).
NYISO's DER integration proposal focuses on enhancing
operational coordination among BPS and distribution system
operators and on developing market rules that allow DERs to
aggregate to provide wholesale market services. Individual
DERs that do not have sufficient capability to participate in
the wholesale markets can aggregate with other DERs as
a larger virtual resource. NYISO is lowering its minimum
participation threshold from 1 MW to 100 kW for DERs.
Aggregators can enroll many DERs of different technologies
at different physical locations (as long as they are behind
the same BPS transmission node) and choose to use DERs
in the aggregation, or a subset of those DERs, to respond
to NYISO market dispatch instructions. DER aggregators
can submit offers to provide energy, regulation, operating
reserves, and capacity. To determine the least-cost resource
dispatch, NYISO will evaluate these offers with those from
other BPS supply resources in its multi-interval, securityconstrained economic dispatch to co-optimize energy, regulation, and operating reserves. Dispatch instructions from

Wholesale Service
Provided to ISO

Wholesale
Service
Direct
to ISO

Wholesale Services
Capacity Energy
Regulation Services
Operating Services

Retail Service
Provided to DSP

Distribution
System
Provider (DSP)
Retail Services

Aggregator

Service Provided
Through Aggregator

Wholesale
Services

Retail
Service
Direct
to DSP

Retail
Services

DERs

figure 7. The concept of the NYISO wholesale and retail market designs incorporating DERs.
november/december 2019

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IEEE Power & Energy Magazine - November/December 2019

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