March 22, 2016



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Market Rules and Market Design




New Initiative: Energy Storage and Distributed Energy Resources Phase 2 Paper Posted, Call 4/4/16




The California ISO is launching a new stakeholder initiative called Energy Storage and Distributed Energy Resources Phase 2, a continuation of the initiative launched in June 2015.  The initiative's issue paper has been posted to the ISO website. A stakeholder call is scheduled for April 4, 2016 to discuss the paper. Please submit comments on the paper by April 18.



Main Text

The ISO is launching a new stakeholder initiative, phase 2 of the Energy Storage and Distributed Energy Resources (ESDER) initiative launched in June 2015. Phase 1 of this initiative identified and considered potential enhancements to existing requirements, rules, market products and models for energy storage and Distributed Energy Resources (DER) market participation.  The initiative began with identification of a wide scope of issues, but after consulting with stakeholders, the scope of ESDER ultimately comprised three topic areas:

1.     Enhancements to the ISO non-generator resources (NGR) market participation model for storage

2.     Enhancements to demand response performance measures and statistical sampling for the ISO proxy demand resource (PDR) and reliability demand response resource (RDRR) market participation models

3.     Clarifications to rules for non-resource adequacy multiple-use applications.

After the scope's completion, the ISO worked with stakeholders to develop policy proposals, which triggered the need for tariff change for topic areas 1 and 2. The policy proposals were approved by the ISO Board of Governors at their February 3-4, 2016 meeting.


Building upon the work accomplished in Phase 1, the ESDER Phase 2 initiative is created to pursue additional enhancements and explore further topics relevant to the market participation of storage and DER.


A stakeholder call is scheduled for April 4, 2016 to review the issue paper, which is available on the ISO website at


A presentation and agenda will be available by close of business March 31 on the initiative webpage at

Please submit comments on the issue paper to by close of business April 18.


Meeting Details

Date: Monday, April 4, 2016

Time: 1:00 p.m. to 4:00 p.m. (Pacific Time)

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