NAESB has provided the “fast track” to standards development following the ANSI standards development process for the past 20+ yeras. This new initiative from DOE will likely leverage existing standards work completed by NAESB in 2023 for Grid Services Standards (WEQ025 and RMQ-030). These steps from the DOE will enable the orderly development of the energy transition, based on open industry standards following ANSI standards.
Looking forward to working with everyone in this NAESB process.
Title: A proposal for a standardized pro forma distribution service contract for DER aggregations
The aim of this proposal is for the North American Energy Standards Board (NAESB) to develop a standardized pro forma contract for Distributed Energy Resources (DER) services for the distribution grid. The use of DER services for distribution grids and wholesale markets is anticipated to grow by upwards of 300% over this decade and the need for FERC Order 2222 alignment. However, there are two key issues that need to be addressed. One, there is significant variation and inconsistency in utility distribution service contracts across different utilities, states, and types of DER that create significant market barriers for DER aggregators as noted by DOE. Second, there is a need to conform utility DER services contracts to FERC Order 2222 requirements that flow down to distribution utilities in ISO/RTO markets to ensure market and operational coordination for DER aggregations that participate in both distribution and wholesale opportunities. The DOE emphasized the growing importance of Virtual Power Plants and their crucial role in the energy landscape in a report titled “Pathways to Commercial Liftoff for Virtual Power Plants.” One of the key imperatives of the report is the need for improved standardization in VPP operations within distribution systems. In this context, standardized service agreement contracts will play a pivotal role by ensuring consistency in terms and conditions, providing clarity, and enhancing scalability.
The Department of Energy’s (DOE) Office of Electricity, therefore, requests NAESB to develop a standardized pro forma contract. This contract would be designed to facilitate the implementation and operation of DER aggregation by establishing consistent contracting terms for distribution grid services. This standard DER services contract is expected to undergo a comprehensive development and review process involving NAESB’s members to ensure its relevance and applicability. Once finalized, the contract will be available on the NAESB website.