On July 26, the New York Independent System Operator (NYISO) selected Borrego Solar as one of three pilot projects to demonstrate the capabilities of distributed energy resources and options for their integration into its wholesale markets.
Our pilot project will deploy three energy storage systems that demonstrate new business models for solar and storage in the State of New York. The projects will participate in NYISO’s distributed energy resources (DER) Pilot Program, a collaborative initiative aimed at animating new wholesale market functions for DER like PV and energy storage.
Our proposal envisions demonstrating “dual participation,” a term that describes a prohibited architecture in which a distributed resource receives its primary service from a distribution utility, but simultaneously provides wholesale-level services such as frequency regulation and spinning reserve. The pilot projects will build a bridge to “dual participation,” which will enable the NYISO to take full advantage of the full range of benefits provided by DERs. The business model also unlocks previously unavailable revenue opportunities for DER integrators and owners, contributing to the vision of a fully unsubsidized future for solar-plus-storage projects.
On the technical side, the projects will demonstrate advanced methods of telemetry by responding to a single NYISO signal for ancillary services, which will be disaggregated and distributed to each of the three energy storage systems.
The pilot program, which was unveiled in October 2017, is designed to inform the NYISO’s market design efforts, build operational DER experience among the NYISO, utilities and pilot participants, and demonstrate new or revised operational coordination processes among NYISO, utilities and DER aggregators.
The NYISO received ten proposals for consideration and selected the following DER aggregation projects to move forward, including Borrego Solar’s:
- Front-of-the-meter batteries, managed and operated by Con Edison, to demonstrate the coordination of multiple DERs to be effectively dispatched by NYISO or Con Edison depending on system needs or conditions;
- Front-of-the-meter batteries co-located with solar to evaluate the ability of such aggregated resources to provide both wholesale and retail services. The system will be managed and operated by Borrego Solar, Inc.; and
- High-rise buildings with curtailable energy load, managed and operated by iES – Integrated Energy Services Corporation, which will evaluate the capability of building management systems to provide ancillary services.
The NYISO said the pilot program will be administered through a test environment that is not integrated into the NYISO’s production market and operations systems. “This will enable the pilot projects to test and demonstrate new operational processes and alternative communications solutions that may not be permitted under today’s market rules,” the grid operator said.
The NYISO is working with each project participant to evaluate facility interconnection and finalize preparations through the end of this year and it is expected that demonstration testing will begin in the first half of 2019.
Key findings from the pilot program will be shared with market participants and stakeholders as the NYISO works to develop operational processes and market rules to integrate DER as well other resources.
See the full NYISO press release here.