New England Grid Operator Incorporates Wind, Intermittent Hydro into Day-Ahead Energy Market

The ISO New England Inc. requires wind and intermittent hydropower generators with a capacity supply obligation to offer their power into the grid operator’s day-ahead energy market, starting June 1. The requirement stems from an initiative launched in 2016 to enable these resources to take part in real-time markets and begin taking electronic dispatch instructions.

The changes enable intermittent resources to set real-time prices, enhance price formation, and make better use of low-cost renewables in areas with transmission limitations. The ISO described the development as a milestone in its efforts to integrate renewable resources into the regional market.

Participation of these resources in the day-ahead energy market will result in a “more accurate commitment of resources and an improvement in the price convergence between the day-ahead and real-time markets,” the ISO-NE said in a June 4 press release. The changes also help address curtailment issues, which occur when the maximum potential output of a resource exceeds the capacity of the existing transmission system.