Electricity Policy



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Why aren’t smaller DR resources making greater inroads as ancillary services providers?

 by Peter Cappers, Charles Goldman, Jason MacDonald, and Ookie Ma

With the need for ancillary services growing, it would make sense to look at the factors – policy and practical – that inhibit the participation of smaller users in providing these services and considering how they might best be overcome.

oncerns about the environmental impacts of fossil-fueled generation are forcing a shift in U.S. electricity generation from traditional, dispatchable supply, such as coal, to variable renewable energy.  This shift is being driven, in part, by state and federal policies, such as renewable portfolio standards, tax incentives, and net metering.  Studies and experience indicate system operators will likely be required to procure greater quantities of ancillary services (AS), especially regulation and yet-to-be defined ramping service.

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