MISO's Distributed Energy Resources Program aims to prepare for higher penetration of distributed energy resources like rooftop solar and electric vehicles. The program focuses on four key areas: developing an integration approach and roadmap through stakeholder collaboration; coordinating policy changes; identifying visibility and communication needs across MISO's footprint; and enhancing market participation and systems. MISO is conducting research and working with stakeholders to understand impacts and prioritize solutions to address DERs in planning, operations, and markets.

1. Distributed Energy
Resources Program
MISO What We Do, How We Do It

2. 1. What are DERs?
2. Why work on DERs now?
3. What is MISO doing to
address DERs?
Agenda
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3. What are DERs?
3

4. Distributed Energy Resources (DERs)
are power generation, storage or load-modifying resources
connected to the electrical system, either behind the meter
on a customer’s premises, or on a utility's primary
distribution system
4
Solar Photovoltaic (Solar PV) Combined Heat and Power (CHP)
Wind Energy Waste to Energy
Electric Vehicles (EVs) Controllable Water Heaters
Smart Thermostats Demand Response
Energy Storage
(Batteries, Flywheels, Thermal,
Compressed Air, Pumped Hydro)
Reciprocating Engines
Type of DERs

5. 5
https://vimeopro.com/nerclearning/der-workshop/video/247990532

6. DER integration can present certain
challenges
1. Visibility: There is no requirement to report or telemeter Behind the Meter
(BTM) generation
2. Intermittency: Many DERs are renewable (e.g. wind or solar) and will come
and go with weather
3. Control: Use of DERs often serves end user needs and not market or society
needs.
4. Markets: Communication protocols and other issues must be worked out for
market participation
5. Reliability: DER generation would need to be considered in system balancing
6. Planning: Growth in DER penetration must be forecasted by location
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7. DER integration also comes with
specific benefits
ü Market participation of DERs can provide additional low
cost resource and added flexibility
ü DERs can provide resilience and improve reliability
ü DERs can reduce losses as generation located close to
load
ü DERs may reduce carbon emission
ü DERs are able to provide multiple revenue streams or
cost savings to owner
ü DERs can provide local jobs
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8. Florida news clipping
8 Source: https://cleantechnica.com/2018/02/05/rooftop-solar-storage-hurricane-energy-resiliency/

9. Poll How many DERs,
electric vehicles or
smart devices do you
have in your home?
9
a. 0
b. 1
c. 2 to 5
d. Greater than 5

10. • The energy paradigm is changing
• Members are investing in DERs
• DERs create planning, markets
and operational challenges
and opportunities
• Addressing these, will require
collaboration across MISO
• It will take time to work through
the complexity together with
stakeholders to identify and
implement solutions
10
Why work
on DER’s
now?

11. The energy paradigm is evolving
Source: Navigant Consulting, Inc. Read more: https://www.navigant.com/insights/energy/2018/energy-cloud-411
TODAY
One-way Power System
EMERGING
The Energy Cloud

12. 3Ds are enabling this industry evolution…
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Decentralization
De-marginalization Digitalization
• Megatrends are driving change
across nearly all sectors
• Drivers and impacts are
interrelated – transformation is
needed across system planning,
market design, products,
operational tools and systems
• While new challenges will
emerge, new solutions will also
be possible and necessary

13. … and driving the growth of DERs
13
Decentralization
De-marginalization Digitalization
• De-marginalization: Zero
marginal cost distributed
generation assets include
rooftop solar, community solar
gardens and small wind farms
• Decentralization: Batteries,
heat pumps, electric heating,
electric vehicles and distributed
generation are often chosen and
owned by the end-user
• Digitalization: This includes
advanced communications,
cloud computing, Internet of
Things - e.g. smart thermostats,
controllable load, virtual power
plants and system aggregators
DERs

14. MISO Members are investing in DERs
14
Example: Xcel Energy $1.2Bn FY18-FY22

15. and addressing retirements with DERs
15 https://www.consumersenergy.com/-/media/CE/Documents/sustainability/integrated-resource-
plan-summary.ashx?la=en&hash=9F602E19FE385367FA25C66B6779532142CBD374
GW
8
6
4
2
0
Example: Consumers Energy Replacement Plan (to address retiring fossil fleet)

16. It only takes 1% of non-conforming load to impact
the reliability of MISO’s operations
Impact of DERs on Bulk Electric System, Argonne National Laboratory
• The high penetration of distributed energy resources (DERs) on modern distribution
systems introduces:
• Intermittent power generation,
• Stochastic [random] system operating conditions, and
• Bidirectional power flows
• These impact the system responses to various types of disturbances and may pose
challenges to the operations and reliability of the Bulk Electric System (BES).
• In order to understand the impact of DERs on the planning and operation of the
BES, the distribution system can no longer be represented as a single load at a
node on the transmission system.
• At the same time, advanced control capabilities of DERs offer potential opportunities
for improving BES reliability by transforming DERs from a passive “do no harm”
resource to an active ‘support reliability’ resource when applied in a planned and
well-thought-out manner.
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17. 17
Activity What does MISO need to
prepare to do differently to
address the risk of a future
with more DERs?
1.______________
2.______________
3.______________

18. What is MISO doing
to address DERs?
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19. For past two+ years, MISO has focused on listening to
stakeholders, academia, industry and peers on DER needs
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Grid/Market Operators
Labs/Universities/
Vendors/Industry
Stakeholders
Member Outreach

20. These insights informed MISO’s strategy to focus
on four key issues for the DER Program
Roadmap & Integration
Approach
Define integration approach and coordinate
roadmap development in collaboration with
stakeholders
Governance and Policy
Coordinate governance and policy changes
at federal and state level
Visibility Needs
Identify visibility, situational awareness,
forecasting, and communication needs
across footprint
Markets
Enhance market participation model and
innovate market system computational
capabilities
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21. DER Program Goal
The Distributed Energy Resources Program is focused on preparing for
the risks, both threats and opportunities, of a future with a higher
penetration of distributed energy resources in the MISO region.
This includes research to understand impacts to and prioritize solutions
(services, products, tools, technology, processes, etc.) for planning,
operations and markets that is responsive to state, federal and member
needs.
Internal and external collaboration is essential to meeting this goal and
a central component of the program approach.
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22. Program Management work stream
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Facilitate coordination across a cross-
functional team to support DER integration
efforts and DER Program awareness
The Program Management work stream works to
identify DER program needs, facilitate work stream
coordination, provide DER education opportunities and
strategically communicate DER program-related
information to internal and external stakeholders in a
transparent, consistent way

23. Roadmap & Integration Approach
work stream
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The DER Roadmap and Integration work stream will develop
a comprehensive and aligned approach to DER integration
by providing a catchall level of coordination to ensure a
consistent and coherent functional approach for DER across
work streams and technical coordination of work stream
efforts to avoid gaps or overlaps.
Recommend an optimal DER integration
approach and coordinate the development of
a DER Roadmap in collaboration with internal
and external stakeholders

24. Governance & Policy Coordination
work stream
MISO is working with the Organization of MISO States
(OMS) and affected transmission owners and
distribution operators to develop policies and
procedures to facilitate DER participation in the market
while maintaining the safety and reliability of Bulk
Electric System and the respective Distribution Systems
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Coordinate DER governance and policy
changes at federal and state level

25. 25
Visibility Needs work stream
The Visibility Needs work stream will address a
particularly challenging need of the Bulk Electric
System — visibility of where DERs are located relative
to the bulk system, and what impacts they might have
on the bulk system
Identify visibility, situational awareness and
communication needs across footprint

26. Markets work stream
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The Markets work stream will consider DER impacts
and integration into all MISO markets. Coordination with
MISO Market System Enhancement (MSE) activities will
be crucial to this effort.
Enhance the market participation model and
innovate market system computational
capabilities

27. Three key take-aways:
1. What are DERs?
2. Why work on DERs now?
3. What is MISO doing to address DERs?
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28. Questions?

29. Definitions
TERM DEFINITION
Advanced metering
infrastructure (AMI)
An integrated system of smart meters, communications networks, and data
management systems that enables two-way communication between utilities and
customers.
(Source: https://www.smartgrid.gov/recovery_act/deployment_status/sdgp_ami_systems.html)
Behind-the-Meter
BTM system is a renewable energy generating facility that produces power intended for
on-site use in a home, office building, or other commercial facility.
(Source; http://www.ppcsolar.com/behind-meter-mean/)
Demand Response
The reduction or shifting of electricity usage during peak periods in response to time-
based rates or other forms of financial incentives.
(Source: https://www.energy.gov/oe/activities/technology-development/grid-modernization-and-smart-grid/demand-
response)
Distributed Energy
Resources (DERs)
Power generation, storage or load-modifying resources connected to the electrical
system, either behind the meter on a customer’s premises, or on a utility's primary
distribution system.
Integrated Resource Plan
(IRP)
An IRP is a roadmap to meet forecasted energy demand using both supply and demand
side resources to ensure reliable service to customers in the most cost-effective way.
(Source: https://blog.aee.net/understanding-irps-how-utilities-plan-for-the-future)
Intermittency
An intermittent energy source is any source of energy that is not continuously available
for conversion into electricity and outside direct control because the used primary energy
cannot be stored.
Renewable Energy Energy from a source that is not depleted when used, such as wind or solar power

30. Types of DERs & Characteristics
Type Characteristics Comment
Solar PV Output a function of solar
irradiance. Will be
Intermittent
Inverter connected. Smart inverters have
capability to provide grid support if
configured correctly and can respond to
control signals.
Wind Intermittent source based
on wind
Inverter connected. See above
Electric
Storage
Withdraws for later
injection
Broad range of capability. Primarily
installed to shape or shift customer load.
Can provide regulation, spin or
Supplemental depending on energy
capacity. Must be very large to arbitrage
energy
Combined
Heat and
Power
Combustion engine
operates for local backup
or economics
Generally on or off based on Customer
desire to shape or shift load
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31. Types of DERs & Characteristics
Type Characteristics Comment
Waste to
Energy
Combustion engine
operates based on fuel
availability
May or may not be dispatchable.
Electric
Vehicles
Charging may be
dispatched by utility or
aggregator
Preliminary programs being examined in
US; Programs underway in Europe
Smart
Thermostats
Demand response to
shape or shift load
Temperature setting dispatched up down
by utility or aggregator for Demand
Response programs
Controllable
water heaters
Demand response to
shape or shift load
Temperature setting dispatched up down
by utility or aggregator for Demand
Response programs
Demand
Response
Varied Any program to shape, shift or shimmy
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32. Types of DERs & Definitions
Type of DER Definition
Solar Photovoltaic
(Solar PV)
A photovoltaic system in which solar cells produce
direct current electricity from sunlight which can be
used to power equipment or to recharge a battery
Wind Energy A form of energy conversion in which turbines convert
the kinetic energy of wind into mechanical or electrical
energy that can be used for power.
Energy Storage
(Batteries, Flywheels, Thermal,
Compressed Air, Pumped
Hydro)
The conversion of electrical energy into a form of
energy which can be stored, the storing of that energy,
and the subsequent reconversion of that energy back
into electrical energy.
Combined Heat and Power
(CHP)
An energy efficient technology that generates
electricity and captures the heat that would otherwise
be wasted to provide useful thermal energy—such as
steam or hot water—that can be used for space
heating, cooling, domestic hot water and industrial
processes.
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33. Types of DERs & Definitions
Type of DER Definition
Waste to Energy A process in which energy is gained through the
process of combustion directly or sometimes fuel is
produced from waste, which is the source for energy
Electric Vehicles
(EVs)
A vehicle which uses one or more electric motors for
propulsion
Smart Thermostats Devices that can be used with home automation and
are responsible for controlling a home's heating and/or
air conditioning
Controllable Water Heaters Electricity supplied to an electric hot water systems
which are often separately metered to allow
automation of operation during off-peak hours
Demand Response The reduction or shift of electricity usage during peak
periods in response to time-based rates or other forms
of financial incentives.
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