Energy Storage and Distributed Energy Resources Phase 4: Final Proposal Clarifications
During the Aug. 27, 2020, web conference that discussed the Energy Storage and Distributed Energy Resources (ESDER4) Phase 4 final proposal with stakeholders, the California ISO stated on slide 7 of the presentation, that in the scenario that a self-schedule is a restatement of the Day-Ahead Award, or when a real time self-schedule is combined with an economic bid that is dispatched, the resource would remain eligible for real-time Bid Cost Recovery (BCR) Shortfall payments.
The ISO’s initial thought behind these two exemptions was that a storage resource would responding to an ISO market instruction, rather than the market participant’s preference expressed through the self-schedule. However, the ISO’s Department of Market Monitoring, which initially identified the need to exclude BCR eligibility within the hour prior to a self-schedule, identified additional gaming and strategic bidding opportunities that a market participant could employ to profit from these exemptions that the ISO hadn’t considered during implementation discussions.
Therefore, the ISO notifies market participants that it will no longer be offering any exemptions to BCR eligibility rules within the hour prior to a self-schedule, and will instead be moving forward with the original and final policy, as detailed within the ESDER4 final proposal.