Market Considerations of DER In addition to addressing important reliability-driven considerations in planning and operations, MISO and stakeholders can enhance value for DERs that already participate in MISO’s wholesale markets as well as investigate ways of incorporating new forms of DERs in the future. One participation option is aggregation, which allows many small DERs to participate in the wholesale markets as larger, consolidated blocks of assets. Without aggregation, MISO's least-cost commitment and dispatch system cannot efficiently optimize a large number of small resources with large centralstation power plants. Also, small individual resources may see prohibitively high participation costs. Meanwhile, MISO needs visibility and coordination to manage reliability at the transmission-distribution interface. An aggregation over a large region, without details of locational injection into the power grid, can challenge MISO's ability to efficiently manage transmission constraints. Aggregation should support a balance between efficient DER participation and overall system reliability. MISO offers products in energy, capacity, ancillary services and congestion hedging. What market rule changes or new market approaches are possible/ required to enable broader participation, coordination and optimization of DERs? Could such potential new market rules apply uniformly to all types of DER technologies, such as utility-scale solar, rooftop solar, load management, and batteries? Or might some types of DERs require unique market approaches? Other questions to consider: • Can the current eligibility requirements be modified to further maximize the value of these resources? Accurate price signals are needed to incentivize efficient market outcomes, investment and transmission-distribution coordination. MISO optimizes resources to serve demand at the least cost and reflect the marginal costs in Locational Marginal Prices of energy and Market Clearing Prices of ancillary services. • How can aggregated DER effectively participate in pricing and maintain local price accuracy? 10
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