Overview of Distributed Energy Resource Integration in NYISO Energy Markets

This paper provides an overview of the design and integration of Distributed Energy Resources (DERs) in the wholesale energy markets administered by the New York Independent System Operator (NYISO). DERs can provide benefits by reducing system cost, increasing reliability, and relieving congestion among others. However, large quantities of DERs can impose computational challenges in market software. Therefore, appropriate market design considerations are essential to reduce software computational complexity while ensuring modeling accuracy. To that end, we first discuss the market design considerations that establish the DER participation model in the NYISO day-ahead and real-time markets. The NYISO Business Management System (BMS) software which solves the Network Security Analysis (NSA) and Network-Constrained Unit Commitment and Dispatch (NCUC/NCED) for both day-ahead and real-time markets is explained. We then discuss the changes that were applied in NSA and NCUC/NCED modules to accommodate DERs. Potential restrictions imposed by the design are also addressed.