The Effect of DERs on Operations Growth in DERs could affect operations in various ways. Visibility becomes an important consideration for all players across the transmission and distribution spectrum. DER may change the way MISO operates its system given increasing variability, uncertainty and unconventional net load profiles. DERs can help self-supply the energy needs at the local distribution level, using instantaneously available renewable fuel supply or by leveraging battery storage. Greater DER penetration suggests increased real-time resource variability across the entire footprint as DERs react to local weather and load conditions, even if complemented by the unique operational characteristics of battery storage. As the number of DERs increase, reliability will depend increasingly on local distribution and weather conditions, including sun, clouds, rain, ice and snow. DERs introduce an additional level of uncertainty to MISO Real-Time Operations. New DER tools and forecasting methodologies must be introduced to better manage this uncertainty. Accurate and aligned price signals at the distribution and transmission interface may also assist in managing this uncertainty. Suppose a large metropolitan area has 500 MW of installed solar panel DER capacity. An unexpected rain storm rolls in, blocks the sun and reduces solar generation to nearly zero megawatts. MISO's tools would indicate a large spike in energy needs, because the DERs are unable to meet the local demand. To overcome this spike MISO may have to deploy reserves and/or possibly commit fast-start generation resources such as gas-fired combustion turbines, which can be costly to operate. Such risk can begin to be better managed through improved DER visibility, which could help MISO see what is happening at the local level, as well as provide insights on capacity, capability and generation. With this knowledge, MISO and/or Local Balancing Authorities may communicate with and receive realtime information from the DERs. Visibility information on the electrical location and size of the DER would allow MISO to apply forecasting methodologies to determine the expected DER generation. MISO would need to establish new tools for DER situational awareness to compare forecasts to actual output. This will allow analysis and betterinformed future decision-making, including response to abnormal events. Finally, MISO would need to maintain visibility related to DER availability, including awareness related to large-scale DER outages and returns to service. MISO and stakeholders could further explore the nexus of DER and operations through examining questions such as: • How might distribution operators and MISO coordinate to address real-time reliability risks? What level of detail and timing is needed? • How will DER outputs be forecasted (Intra-hour? Day-Ahead?) and how might such a forecast be shared and maintained? 8
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