PJM may use demand-response approach for distributed energy
PJM Interconnection stakeholders may use a “demand-response type” of framework for integrating distributed energy resources into PJM markets, and more details of this effort will be developed in special sessions of PJM’s Market Implementation Committee.
That was one result of a special session Tuesday of the Markets and Reliability Committee, which was tasked with considering changes to participation rules for distributed resources to participate in energy, ancillary services and capacity markets.
Market participation is also dependent on rules for the interconnection of distributed resources into the bulk power system, and relevant rules for this are among topics on PJM’s Planning Committee task list, according to David Anders, PJM director of stakeholder affairs.
Stakeholders decided to initially pursue ways to incorporate DERs into ancillary service markets and to delegate development of those rules to the Market Implementation Committee.
The situation is complicated by various factors which Anders described. For example, states have primary jurisdiction over local distribution utilities, while the North American Electric Reliability Corp. has responsibility for the reliability of the bulk power system.
“PJM should not be in a role of policing distribution interconnections,” said a stakeholder who was not clearly identified for conference call listeners.
Anders responded, “PJM is not interested in getting into the state jurisdictional area, period.”
Also, PJM’s existing generation framework allows demand response resources to participate in wholesale markets, but only by reducing load, not by injecting power past the load meter into the bulk power system.
Another stakeholder said, “Whether or not injections from behind the meter are being dispatched … they have an impact on the voltage of our distribution facilities.
“There could be several 1-MW facilities behind the meter,” the stakeholder said. “They are all turning on and off at the same time. Most of the time, these are not going to overload the circuit. … It’s the voltage impact that we are most concerned with.”
Anders said PJM must complete studies to ensure “the system can stand it.”
Another stakeholder raised the issue of how existing behind-the-meter generation that is already connected to the grid would be treated in a new DER framework.
“We are totally together on needing to address those things through the stakeholder process,” Anders said. “PJM has not cooked up some preconceived answers on these issues. … What PJM comes back with is not the end product … [but] a work in progress.”
Stakeholders on Tuesday considered two options as a starting point for establishing rules for DERs to participate in ancillary service markets.
