Rooftop Solar Will Soon Be Allowed to Compete in the Wholesale Electricity Market

Fight disinformation. Get a daily recap of the facts that matter. Sign up for the free Mother Jones newsletter.


David Roberts reports today on changes at the Federal Energy Regulatory Commission. In particular, they’ve proposed a new rule that would allow small, distributed energy resources to compete in the wholesale electricity market:

There’s a wide range of DERs: generation, like rooftop solar; storage, like home or EV batteries; and smart software/devices/appliances, like the Nest thermostat.

Until fairly recently, DERs were too widely dispersed, poorly tracked, and small in scale to play a role in wholesale energy markets. To participate, they needed to be more trackable, predictable, and controllable.

That’s starting to happen. In particular, it is now possible to aggregate large numbers of DERs into “virtual power plants.” By using information technology to coordinate the behavior of a large number of distributed devices, an aggregator can effectively make them behave like a single, large, predictable source.

It sounds great that new technology allows DERs to supply electricity to the wholesale market. This will make electricity markets more competitive, and I can’t think of any compelling reason that Republicans should hate the idea of FERC recognizing this. Well, I can think of one: it involves a regulation proposed under the Obama administration.1 Will that be enough to kill it? Stay tuned.

1Plus it’s kind of vaguely carbon friendly and therefore kinda sorta associated with climate change. So I guess that’s two reasons.

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you'll agree is worth supporting.

payment methods

ONE MORE QUICK THING:

Or at least we hope. It’s fall fundraising time, and we’re trying to raise $250,000 to help fund Mother Jones’ journalism during a shorter than normal three-week push.

If you’re reading this, a fundraising pitch at the bottom of an article, you must find our team’s reporting valuable and we hope you’ll consider supporting it with a donation of any amount right now if you can.

It’s really that simple. But if you’d like to read a bit more, our membership lead, Brian Hiatt, has a post for you highlighting some of our newsroom's impressive, impactful work of late—including two big investigations in just one day and covering voting rights the way it needs to be done—that we hope you’ll agree is worth supporting.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate