Distributed energy resources
ISO market rules allow aggregations of distributed energy resources to participate in the ISO market and provide energy and ancillary services. Distributed energy resource providers are market participants who own or operate an aggregation of distributed energy resources in order to participate in the wholesale market.
Separate from (but interconnected to) generating facilities that produce electric supply, distributed energy resources move the electricity to the end user, and must, therefore, interact with the transmission-distributed interface to do so. For more information on this and distributed energy resources generally, please see Coordination of Transmission and Distribution Operations in a High Distributed Energy Resource Electric Grid.
Coordination with utility distribution company
Before beginning the ISO New Resource Implementation process, a distributed energy resource provider must obtain concurrence from the applicable utility distribution company (UDC) or metered sub system (MSS) that there are no concerns about the distributed energy resources comprising a distributed energy resource aggregation. This concurrence review process takes 30 business days. We recommend that prospective distributed energy resource providers begin working with the applicable UDC/MSS prior to commencing the 30-day review process.
- Participation Comparison - Proxy Demand, Distributed Energy Resource Provider, Storage, and Load Forecast Adjustment11/28/2023, 3:14 PM
- Distributed Energy Resource Provider Participation Guide and Checklist10/02/2019, 4:34 PM
- List of utility distribution company contacts05/18/2024, 7:42 PM
New resource implementation process
Distributed energy resource providers must successfully complete the new resource implementation (NRI) process prior to participating in the ISO market. Participation in the ISO market requires a scheduling coordinator and ISO-certified revenue-quality meters. Bidding in ancillary services requires special certification and installation of direct telemetry.
Documents required for participation
Establish the contractual agreements early in the process to participate. Contact RegulatoryContracts@caiso.com for assistance with contract type selection and execution.
- ISO Tariff, Appendix B.1 - Scheduling Coordinator Agreement03/21/2018, 7:42 PM
- ISO Tariff, Appendix B.7 - Meter Service Agreement for Scheduling Coordinators03/21/2018, 7:42 PM
- ISO Tariff, Appendix B.21 - Distributed Energy Resource Provider Agreement07/15/2022, 7:42 PM
- Distributed Energy Resource Provider Agreement Information Request Sheet10/18/2021, 11:07 AM
- Distributed Energy Resource Provider UDC/MSS Concurrence Letter Template08/16/2016, 1:45 PM
- Meter Service Agreement for Scheduling Coordinators Information Request Sheet07/18/2024, 2:02 PM
Existing agreements
The List of Distributed Energy Resource Provider Market Participants provides a list of entities that have signed the Distributed Energy Resource Provider Agreement (DERPA).
Related ISO Tariff and Business Practice Manual
All participants are subject to the terms of the ISO Tariff and Business Practice Manual.
- ISO Tariff05/18/2024, 7:42 PM
- Business Practice Manual for Generator Management05/16/2024, 3:29 AM