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FERC Order 2222 Gives Boost to DERs
Author(s) -
Cartwright Echo D.
Publication year - 2020
Publication title -
climate and energy
Language(s) - English
Resource type - Journals
eISSN - 2692-3823
pISSN - 2692-3831
DOI - 10.1002/gas.22203
Subject(s) - distributed generation , electricity , electricity market , environmental economics , electricity generation , electricity retailing , business , grid , investment (military) , wind power , renewable energy , industrial organization , economics , engineering , power (physics) , electrical engineering , physics , geometry , mathematics , quantum mechanics , politics , political science , law
As the electricity industry looks to the future with a more decarbonized electricity grid and higher penetrations of clean energy generation, distributed energy resources (DERs) are front and center to this transition. DERs are considered alternatives to traditional industry investment in electric power generation, and, in some cases, transmission and distribution infrastructure. DERs include solar, wind, battery storage technologies, microgrids, and demand response, to name a few. Yet, as critical as DERs have become and will continue to be for a cleaner electricity grid and to achieve state and regional clean energy and climate goals, existing market rules have prevented DERs from being as competitive as traditional energy generation resources in the wholesale electricity markets. Recent actions by the Federal Energy Regulatory Commission (FERC) are designed to change the playing field by removing market barriers for these resources to be more competitive.