Variable renewable energy resources, such as wind power, can now participate fully in the Midwest Independent Transmission System Operator's (Midwest ISO) economic dispatch under a new resource designation: dispatchable intermittent resources (DIR).
‘For years, the industry has grappled with how to fully reflect the value of renewable energy in the market and to enable renewable resources to realize the financial benefits of operating flexibly and responding to market dispatch instructions,’ says Richard Doying, vice president of operations at the Midwest ISO. ‘This will ensure the resources are utilized most efficiently, producing energy where and when needed.’
The Midwest ISO's Federal Energy Regulatory Commission-approved DIR initiative allows renewable generation to be treated like any other generation resource in the market and, for the first time, participate in the region's real-time energy market.Â
Wind power can now be automatically dispatched up to a forecasted limit based on an offer price and system conditions. This enables wind to submit offers and receive dispatch instructions rather than be manually curtailed when transmission constraints limit renewable energy generation to reach the broader market region, according to the Midwest ISO.