With the growth of distributed energy resources (DERs), and their potential benefits as grid resources, there is a need for an entity to manage the scheduling and dispatch of these resources in a manner similar to how ISOs and other balancing authorities schedule and dispatch transmission-level resources. One model is to evolve the distribution utility into a new type of entity called a distribution system platform provider or DSPP. The DSPP is being developed in New York’s Reforming the Energy Vision (REV) proceeding. Under the DSPP model, the regulated electric distribution company would:
- construct, maintain, and operate the distribution system
- coordinate customer distributed resource activities to optimize use of energy efficiency, demand response, distributed generation, distributed storage, and microgrids
- provide a platform for third-party providers to offer services to customers
- bid aggregated DERs into competitive ISO wholesale markets in competition with centralized generators
The DSPP would own and operate all distribution utility assets and the utility regulator would oversee the utility’s services.