MISO was recently awarded a patent that covers methods and calculations for managing Distributed Energy Resources (DERs) in ISO markets. These methods will help MISO comply with FERC Order 2222, which requires ISOs to better enable DERs to participate in the electricity markets run by regional grid operators.

The Problem

ISOs traditionally do not collect detailed configuration data for distribution-level assets, such as DER parameters, network topology, installed capacity, interconnection status, or flexible loads. Moreover, DER owners and aggregators face challenges in regularly updating dynamic information such as offer prices, available generation, and load flexibility with ISOs.

This lack of granular and timely data hindered the modeling of distribution systems and created coordination gaps between ISOs and DSOs, especially in regions with high DER penetration. Also, while convex hull pricing was initially promising in reducing uplift, its application was computationally intensive.

Thus, we needed to develop more effective coordination methods and data exchange mechanisms to support reliable market integration and operational efficiency.

Patented Solution

Leveraging MISO’s innovative culture, employees developed methods to resolve the limitations associated with integrating DER-rich distribution systems into ISO markets. Key elements include:

• Feasible Region Projection: A method to distill the physical and economic behavior of complex distribution networks into a simplified form that ISOs can use, without needing the full system details.
  
  
• Multi-Port Power Exchange Modeling: Allows for accurate representation of DER behavior even when distribution systems connect to the transmission grid via multiple interconnection buses.
  
  
• Bidding Strategy Integration: Models total operating costs and constraints (e.g., voltage, line flow, dispatch limits) so DERs can participate realistically in ISO markets.
  
  
• No Iteration Required: DSOs pre-compute and send compact representations to ISOs, avoiding iterative coordination and preserving data privacy.
  
  
• Computational Efficiency: Reduces uplift payments and increases feasibility for real-time or day-ahead ISO market operation, with accuracy validated against full system models.

 Congratulations to the team for contributing to MISO’s creative approach to Order 2222 compliance. Your expertise and contributions deliver value to our members.