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A Blockchain Based Co-Simulation Framework for Integrating DERs to Wholesale Electricity Markets

As the number of distributed energy resources (DERs) continue to increase across energy-delivery systems, there remains a need for integrating their capabilities into traditional grid operations. In this paper, a blockchain-based solution is proposed to facilitate FERC's Order No. 2222 implementations. The presented use-case enables small-scale DERs to participate in wholesale market operations through DER aggregators, while also enabling local distribution system operators to enforce distribution system constraints in a secure and traceable manner. The presented use case is built around the Unified Testing Platform (UTP) being developed as a part of the Blockchain for Optimized Security and Energy Management (BLOSEM) project. This is a multi-lab effort intended to simplify the deployment of blockchain-powered grid solutions by enabling the integration of simulation tools, and blockchain technologies through the use of system-agnostic interfaces that provide a modular, interoperable, and reusable connectivity layer.

blockchain interoperability↗

An Integrated Framework for Effective Management of Delivery Risk in Electricity Markets: From Batteries to Insurance and Beyond

Net load imbalances due to imperfect day-ahead forecasts can cause variability in real-time electricity prices and higher system operations costs. We propose a novel market product called Flexibility Options that allow participants to hedge uncertainty by buying flexibility from flexible resources. Simulations show that flexibility options can reduce total system operating costs by up to 15% and can reduce variability in market participant revenues. To better quantify the flexibility that DER aggregators can provide, we develop DER flexibility scores that account for asset flexibility and uncertainty from occupant behavior and weather. Preliminary results show that realistic sets of DERs have significant variability in flexibility and uncertainty metrics.

delivery risk↗

Electric Access System Enhancement (EASE): Assessment of a Distributed Energy Resource Management System for Enabling Dynamic Hosting Capacity

The Electric Access System Enhancement (EASE) project demonstrated a scalable, interoperable, and cost-effective means of integrating high penetration of distributed energy resources (DERs). The control architecture developed leveraged a Distributed Energy Resource Management System, Distribution System Operator for transacting energy, and 3rd Party DER Aggregator platform. The project identified ways to enhance the customer interconnection process to the grid and improve access to information from DERs and optimize the usage of DERs to provide energy services in a simulated day-ahead shadow market while maintain grid reliability. By integrating these capabilities into a scalable system of systems, the DSO can effectively balance DER generation and customer demand on the distribution network. This capability allows the grid to host more DER than traditionally possible on wires alone. Hosting more DER has the added benefit of supplying increased demand growth, sometimes beyond the capacity limits of the distribution network itself. This is known as a dynamic hosting capacity, which could help utilities manage the forecasted growth in electricity demand as California switch to electric vehicles and appliances. This could help to establish energy storage and PV generation as a “pseudo firm” generation resource mix if managed appropriately and provide sufficient resource adequacy for distribution capacity upgrade deferrals.

14 SOLAR ENERGY↗

Integration of Utility Distributed Energy Resource Management System and Aggregators for Evolving Distribution System Operators

With the rapid integration of distributed energy resources (DERs), distribution utilities are faced with new and unprecedented issues. New challenges introduced by high penetration of DERs range from poor observability to overload and reverse power flow problems, under-over-voltages, maloperation of legacy protection systems, and requirements for new planning procedures. Distribution utility personnel are not adequately trained, and legacy control centers are not properly equipped to cope with these issues. Fortunately, distribution energy resource management systems (DERMSs) are emerging software technologies aimed to provide distribution system operators (DSOs) with a specialized set of tools to enable them to overcome the issues caused by DERs and to maximize the benefits of the presence of high penetration of these novel resources. However, as DERMS technology is still emerging, its definition is vague and can refer to very different levels of software hierarchies, spanning from decentralized virtual power plants to DER aggregators and fully centralized enterprise systems (called utility DERMS). Although they are all frequently simply called DERMS, these software technologies have different sets of tools and aim to provide different services to different stakeholders. This paper explores how these different software technologies can complement each other, and how they can provide significant benefits to DSOs in enabling them to successfully manage evolving distribution networks with high penetration of DERs when they are integrated together into the control centers of distribution utilities.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Enabling Grid-Aware Market Participation of Aggregate Flexible Resources

Increasing integration of distributed energy resources (DERs) within distribution feeders provides unprecedented flexibility at the distribution-transmission interconnection. With the new FERC 2222 order, DER aggregations are allowed to participate in energy market. To enable market participation, these virtual power plants need to provide their generation cost curves. This paper proposes efficient optimization formulations and solution approaches for the characterization of hourly as well as multi-time-step generation cost curves for a distribution system with high penetration of DERs. Network and DER constraints are taken into account when deriving these cost curves, and they enable active distribution systems to bid into the electricity market. The problems of deriving linear and quadratic cost curves are formulated as robust optimization problems and tractable reformulation/solution algorithm are developed to facilitate efficient calculations. The proposed formulations and solution algorithm are validated on a realistic test feeder with high penetration of flexible resources.

aggregated distributed energy resources↗

FERC order 2222 & DER policy and implementation report - January 2026

The January 2026 FERC 2222 Tracker Report provides an overview of the progress and challenges in the implementation of FERC Order 2222, emphasizing the critical need for state-level action to address gaps in DERA/EDC communication protocols. The report highlights the importance of reliable communication between electric distribution companies (EDCs) and DER aggregators (DERAs) for seamless market operations, noting the absence of specific directives from FERC and RTO/ISO compliance filings. Key discussions include the operational coordination required to manage DER operations within aggregated markets, the potential use of tools like DER Registries for efficient data exchange, and the implications of non-performance due to communication issues. While steps are being taken at the state level, such as ongoing policy development and bi-monthly webinars for stakeholder education, no states have fully developed coordination frameworks as of early 2026. The report underscores the growing role of states and local regulators in defining these protocols and ensuring effective coordination amidst the complex dynamics of distributed energy resources (DERs) integration into wholesale markets.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Robust VAR Capability Curve of DER with Uncertain Renewable Generation

Active distribution system with high penetration of inverter based distributed energy resources(DER), can be utilized for var-related ancillary services at the transmission side interface. In order to utilize the DER flexibility, transmission system operator must be presented the aggregated DER flexibility of distribution system. However, the uncertainty in renewable generation, questions the credibility of aggregated capability curve in practice. In this paper, we incorporate the uncertainty into aggregation process to develop capability curve while preserving the real physics (unbalance and lossy nature) of distribution system. The Resulting capability curve with the associated probability can be harnessed by the TSO for decision making for both planning and operation.

Kar, Aditya Shankar↗

Austin Sustainable and Holistic Integration of Energy Storage and Solar PV [Austin SHINES]. Final Report, Version 2

The Austin SHINES project and solution is a software management platform, for an electric grid with a high penetration of dispersed photovoltaic (PV) solar generation sites, which maintains the traditional power quality and reliability associated with grid service. This project developed and deployed the platform as a Distributed Energy Resource Management System (DERMS), engaging multiple advanced controls, to evaluate operation and optimization of a fleet of diverse DER assets, installed at several locations among Austin Energy’s customers and distribution system. The project also produced a methodology to create a replicable DERMS template, adaptable to other regions and market structures. Last, Austin SHINES aimed to demonstrate the solution’s methodology would enable the DER grid ecosystem to serve load at a technical cost (System Levelized Cost of Electricity, or System LCOE) of less than the U.S. Department of Energy SHINES program metric of $0.14/kWh, in a defined boundary, while enabling a high penetration of distributed PV. Research was categorized in 6 reports (Final Deliverables = FD) listed below, with titles and descriptions indicating which area of understanding was investigated: FD-1: System Levelized Cost of Electricity (System LCOE) Methodology The creation and use of the System LCOE to Serve Load metric that encompasses the holistic, system-level costs and benefits of all resources, and enables them to be evaluated based on their ability to support an efficient and low-cost integrated grid ecosystem. FD-2: Software Platform Product Description The creation of new DER control methodologies deployable within a utility-grade software platform that enable DER's to maximize their benefit within a grid, that is capable of serving load enabling a high penetration of distributed PV generation. FD-3: Optimal Design Methodology Optimal design methodologies for individual DER installations that enable utilities to determine the optimal combinations and sizing for individual DER sites. FD-4: Austin SHINES Ownership and Operation Models for DER System Performance A comparison of multiple DER aggregation and ownership methodologies including direct utility control, third-party aggregator, and autonomous. FD-5: Economic Modeling & Optimization A comparison of multiple DER technology mixes and configurations within the distribution system, providing insight into an optimal blend of technologies that best enable the distribution system to serve load at the lowest cost at high penetrations of solar. FD-6: Fielded Assets Deployed DER assets within the Austin Energy SHINES circuits. Austin SHINES provided an opening for state-of-the-art technology products to be deployed, providing a rich opportunity for improving how each of the products perform as stand-alone products, and in concert with other complementary products. The Austin SHINES project comprised of two key metrics for System LCOE: SystemLCOE_SHINES<$0.14/kWh Modeled ΔSystemLCOE_SHINES/ΔSystemLCOE_Base≥20% at same solar penetration The System LCOE calculation uses the costs of the utility-owned infrastructure as it exists today, the cost of the DERs that exist in the system today, and the cost of the purchase of energy from ERCOT wholesale markets over the course of the calendar year. All costs are on an annualized basis. The capital and operating costs are derived from the rate case, which produces a yearly cost. The net cost of energy and services imported to the system is integrated over the test year, as is the load served and solar penetration. The first metric was easily achieved by every scenario considered. The goal was set when the Department of Energy’s SHINES Funding Opportunity Announcement was written in 2015 and was a more difficult target at the time. Due mostly to rapidly declining costs for DERs and the significant decrease in the Electric Reliability Council of Texas (ERCOT) energy market prices, which results in lower net cost of energy purchases, the System LCOE is well below this target for all scenarios considered. A fleet of DERs can assume different mixtures, each of which serves the load at a different LCOE. The optimal mixture of DERs serves load at the smallest System LCOE. The second metric (hereinafter %delta metric) asks that the holistic DERMS controls reduce the incremental cost above the baseline of going to a high solar penetration future by at least 20% as compared to the case of a DER deployment with no sophisticated controls (autonomous). Many comparison sets were created throughout this project. Physical technology was installed for informing utility engineering and testing several types of operational control schemes, through the DERMS. The types of operational control which were compared for valuation of the System LCOE Metric were: Holistic control = using the full suite of the DERMS platform to decide and optimize how/why the systems operate depending on weather, market, and reliability signal input. Autonomous control = a local mode at the asset site, wherein a schedule operates the asset, with visibility into performance only No control = the baseline for comparing value against the other two types of control The types of ownership control included: Direct Utility control = the utility dispatches a signal to each asset Third-Party Aggregator = a third party aggregates a fleet of assets and the utility dispatches one signal for all Autonomous = a local mode is set for operation at the asset site, wherein a schedule operates the asset, with visibility into performance only The types of control methodologies deployable within a utility-grade software platform included: Utility Peak Load Reduction = Lower transmission cost obligation Day-Ahead Energy Arbitrage = Realize economic value through price differential Real-Time Price Dispatch = Realize economic value from real-time price spikes Voltage support = Reduce losses and increase solar generation Distribution Congestion Management = Increase local grid reliability Demand Charge Reduction = Lower customer bills and realize system benefit The fielded assets deployed for the project were: Utility Scale Kingsbery Energy Storage System: 1.5 MW / 3 MWh Li-Ion battery storage Mueller Energy Storage System: 1.75 MW / 3.2 MWh Li-Ion battery storage, 7 Energy Storage Units (250 kW each) La Loma Community Solar: 2.6 MW Commercial Scale Aggregated storage installations at 3 sites, with existing solar (300+ kW): One 18 kW / 36 kWh Li-Ion battery storage Two 72 kW / 144 kWh Li-Ion battery storage Residential Scale Aggregated storage installations: -Six stationary battery storage systems (10 kWh each) at homes with existing solar -One Electric Vehicle installed as Vehicle-to-Grid (V2G) Utility-Controlled Solar via Smart Inverters at 12 homes Autonomously-Controlled Smart Inverters at 6 homes Over the course of the project, Austin SHINES undertook installing more than 3 MW of distributed battery energy storage, smart PV inverters, a DER control platform, and other enabling technologies utilizing customer and utility locations and aggregation models. All of these resources were to be integrated and optimized at the utility level. DER assets and control methodologies were designed to achieve a credible pathway to a System LCOE for energy delivered to load of $0.14//kWh or less by 2020, while maximizing distributed solar generation and maintaining acceptable standards of power quality. The project also established a template for other regions to follow, to maximize the adoption of distributed solar PV in support of an economic and efficient grid. In total, the Austin SHINES project added value to the DER subject area in each layer of integration. From utility, to commercial to residential scales, the sheer hierarchy of communication and coordination was a significant accomplishment in addition to learnings from what these communications revealed was unique to each. Economically, the most effective method demonstrated was the criticality of planning phases. Contingencies and multiple projection scenarios helped guide the project to deploy optimal design as close as feasible, in real world conditions. The project and reports will serve public benefit by outlining specific areas of DER strategy and installation where many stakeholders and needs can be addressed with improved efficiency. Overall, communities and utilities should use the results to guide the increasing options available for powering the grid with DER, renewables, and carbon considerate energy.

14 SOLAR ENERGY↗

State Regulatory Opportunities to Advance Distributed Energy Resource Aggregations in Wholesale Markets

The report discusses how state regulators can promote the participation of DERs in wholesale markets, including complementary actions that they can take to support Federal Energy Regulatory Commission Order 2222 implementation. It also summarizes wholesale market operators’ Order 2222 compliance and associated compliance challenges along with potential state regulator roles. The report identifies actions that state regulators can take to accelerate DER aggregations providing grid services.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Incorporate day-ahead robustness and real-time incentives for electricity market design

In this paper, we propose a two-stage electricity market framework to explore the participation of distributed energy resources (DERs) in a day-ahead (DA) market and a real-time (RT) market. The objective is to determine the optimal bidding strategies of the aggregated DERs in the DA market and generate online incentive signals for DER-owners to optimize the social-welfare taking into account network operational constraints. Distributionally robust optimization is used to explicitly incorporate data-based statistical information of renewable forecasts into the supply/demand decisions in the DA market. We evaluate the conservativeness of bidding strategies distinguished by different risk aversion settings. In the RT market, a bi-level time-varying optimization problem is proposed to design the online incentive signals to tradeoff the RT imbalance penalty for distribution system operators (DSOs) and the costs of individual DER-owners. This enables tracking their optimal dispatch to provide fast balancing services, in the presence of time-varying network states while satisfying the voltage regulation requirement. Simulation results on both DA wholesale market and RT balancing market demonstrate the necessity of this two-stage design, and its robustness to uncertainties, the performance of convergence, the tracking ability and the feasibility of the resulting network operations.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Impact of DER Communication Delay in AGC: Cyber-Physical Dynamic Co-Simulation: Preprint

Distributed energy resource (DER) frequency regulations are promising technologies for future grid operation. Unlike conventional generators, DERs might require open communication networks to exchange signals with control centers, possibly through DER aggregators; therefore, the impacts of the communication variations including the latency on the system frequency stability need to be investigated. This paper develops a cyber-physical dynamic simulation (CPDS) model based on the Hierarchical Engine for Large-Scale Co-Simulation (HELICS) to evaluate the impact of the communication variations, such as delays in DER frequency regulations. The feasible delay range can be obtained under different AGC parameter settings. The results show that the risk of instability generally increases with the communication delay and that the difference of AGC provided from DER and conventional generation units should be recognized when designing frequency regulation controllers.

61 RADIATION PROTECTION AND DOSIMETRY↗

Tri-Sectional Approximation of the Shortest Path to Long-Term Voltage Stability Boundary with Distributed Energy Resources

Ensuring long-term voltage stability is critical for reliable operations of power grids. High share of distributed energy resources (DERs) can create complicated system operation modes that may invalidate the traditional long-term voltage stability analysis based on typical operation modes. To address this challenge, this paper investigates how to compute the shortest path to the voltage stability boundary in the DER aggregated load space with large dispersion. Instead of working in the Euclidean space, we establish the analysis and computations on the algebraic power flow manifold to better capture the curvature change of the shortest path along the direction of losing stability. A modified optimal control framework is presented for obtaining the ground-truth of the smooth shortest path on the manifold. To efficiently and accurately solve for the shortest path, we further leverage the geometric features of the power flow manifold and propose a tri-sectional approximation model that is scalable for large-scale systems. Several numerical examples, up to the 1354-bus system, with different DER penetration levels and high dimensional renewable power injection variations are evaluated. The simulation results demonstrate that the tri-sectional approximation achieves high accuracy and efficiency to approximate the shortest path to the voltage stability boundary.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Defining a Platform Approach and Market Participation: Data Driven Business Models for Solid State Transformer-Based Synthetic Inertia and Voltage Stability Controls (CRADA Final Report, Project 1, Mod 1)

The primary objective of this project is to determine the incremental value created with the medium voltage solid-state transformer (MV SST) technology to different stakeholders in view of the updated DER grid regulations. This includes studying the benefits of the MV SST technology in a range of use cases for EV and DER penetration including (1) “corridor charging” for EVs and (2) solar plus storage (FERC 2222). The potential customers of this technology include utilities for EV charging, DER installers who must meet utility interconnection requirements, balancing authorities, and DER aggregators. The traditional transformers on the grid could be a limiting factor for the EV-grid integration as the distribution transformers were not designed to handle the dynamic and fluctuating EV charging loads. Thus, the issues such as voltage fluctuations, increased losses and reduced efficiency [1] can negatively impact the grid operation. To address these challenges, transformers with flexibility and adaptability become imperative to meet the evolving energy demands. In this regard, the concept of Medium Voltage Solid-State Transformers.

14 SOLAR ENERGY↗

Harnessing Virtual Power Plants Reliably: Enabling tools for increased observability, controllability, operation, and aggregation of distributed energy resources

Harnessing virtual power plants enhances the integration of distributed energy resources into utility grids for a sustainable energy future. Virtual power plants (VPPs) aggregate DERs to enhance resource adequacy and reduce emissions. U.S. utilities are exploring various technologies to manage DERs effectively. FERC Order 2222 allows DERs to participate in both wholesale and retail markets. Enhancing observability and controllability of behind-the-meter (BTM) DERs is essential for reliable grid operations. A hierarchical control architecture can improve coordination among residential energy resources. Field tests showed nearly 20% energy savings and 30% peak power reduction during grid events. Effective management of DERs requires enhanced situational awareness to prevent grid congestion. Integrating DER management systems (DERMS) with existing planning tools can improve operational security. Near-real-time grid models can validate optimal resource set points against resource uncertainty. Traditional uninterruptible power supplies (UPS) can be upgraded to support grid services and become part of VPPs. Upgrading UPS systems can reduce costs by 75% and unlock significant battery capacity. New battery management systems and grid-aware controllers are essential for optimizing UPS performance. Continued research and development are necessary to address challenges in integrating DERs into utility grids. Encouraging customer participation in pilot programs is vital for the evolution of VPPs. Here, the shift towards price-responsive DERs and VPPs is expected to enhance energy distribution efficiency.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Distributed Automatic Generation Control Considering DPV Using T&D Dynamic Co-Simulation

The increasing adoption of distributed energy resources (DERs) over the last decade warrants a reconsideration of control of generation resources. This paper proposes a distributed Automatic Generation Control (AGC) using transmission-and-distribution (T&D) dynamic co-simulation framework for the efficient DPV frequency regulation services. The co-simulation framework allows AGC units to exchange the information for distributed AGC, based on their adopted communication network topology. As a result, a cost-effective automatic generation control is achieved with DPV and conventional generators. The proposed distributed AGC is based on the gossip algorithm in which the neighboring AGC units share the relevant local information with each other and updates their share of AGC regulation signal. Distributed photovoltaics (DPV) unit contribute to AGC response based on their headroom capacity via DER aggregators. The algorithm is tested on IEEE-14 bus transmission system under conditions of generation failure and random load variation to observe effective frequency regulations service offered by DPVs and other AGC units. The study shows that DPV can effectively participate in AGC with the proposed distributed control framework.

automatic generation control↗

A Large Language Model for Determining Partial Tripping of Distributed Energy Resources

Knowing the status of individual distributed energy resources, i.e., being tripped or not, after a contingency can inform the development of an aggregated DER model. Here, this letter presents a large language model application to determine the partial tripping of distributed energy resources depending on the types, locations, and duration of faults in the transmission network. The large language model, or more specifically BERT-based approach can streamline the fault information into tokenized input, which not only reduces the complexity of the machine learning model but also demonstrates a robust performance with only limited data sets.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Assessing the New Home Market Opportunity: Case Study and Cost Modeling for Solar and Storage in 2030

Residential solar and storage markets are growing in the United States. With approximately 1 million new homes constructed every year, this represents a significant opportunity for solar and storage installations. Some homebuilders have begun to build new homes with solar and storage included as a standard offering. It is not clear how solar and storage is incorporated into the new construction process and at what cost. Further, it is unclear what barriers or opportunities exist to scale this model nationwide. To fill this gap in the literature, this research conducts a case study of Mandalay Homes' new solar and storage community in Arizona to gather lessons learned. From this foundation, we further generate a set of pathways to reduce install costs and expand solar and storage market penetration in this sector. To model existing and 2030 solar and storage costs, we use the National Renewable Energy Laboratory's (NREL's) bottom-up cost model. This modeling is further informed by 12 interviews conducted with new home builders, solar contractors, and other subject matter expert organizations. Our case study analysis generated three key considerations for other homebuilders including: 1. Educating local permitting, inspection, and in some cases utility officials on solar and storage products, designs, and code compliant building practices may be required. The need for education may decline as more local governments and utilities review and approve solar and storage projects. 2. Incorporating solar and storage systems into the homebuilding process can add complexity and related coordination challenges. This does not need to result in home construction delays, but can result in costly contractor "dry runs" to construction sites. 3. Deploying solar and storage at the time of new construction has significant economies of scale, which can improve the value proposition of the systems. The case study, extant literature, and interviews were used to model both existing and future solar and storage installation costs at time of new construction. Here, we find three key cost reduction opportunities relating to solar and battery storage hardware, customer acquisition, and overhead. If future contractors can maximize the cost reduction opportunities outlined here, residential new construction costs could decline by 8 - 25% by 2030, depending on the modeled scenario. Though we expect costs to decline through 2030, it is unclear which of these scenarios may ultimately appear. Interviewees further identified a variety of barriers across each cost category that could temper the savings shown here. At the same time, interviewees described several pathways to scale the new construction solar and storage market, beyond installation cost savings. Interviewees confirmed that changes in finance, rate design, resilience policies, deployment mandates, and DER aggregation could all support more market adoption than seen today. These findings suggest that there are significant opportunities to expand new construction markets and this research can serve as a baseline to assess progress in this segment through 2030.

14 SOLAR ENERGY↗

R-SEEDS Final Report

DER aggregation and grid digitalization imply a future grid that would benefit from more fluid interaction between the bulk power system and the distribution system. This scenario presents a challenge for grid modeling, which treats the two systems separately. Grid modeling also focuses on the engineering aspects of grids without incorporating modeling of the human and social dimensions of the grid as a cyber-physical-social system. The R-SEEDS project examines the integration of human and social models into grid modeling and its implications on decarbonization, energy justice, and distributional impacts.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗