Implications of Regional Transmission Organization Design for Renewable Energy Technologies

This report summarizes the development of Regional Transmission Organizations (RTOs) and assesses the potential implications of market rules for renewable energy technologies. The report focuses on scheduling provisions, as these have proved problematic in some cases for intermittent renewable energy technologies. Market rules of four RTOs-the Pennsylvania-Maryland-New Jersey ISO, the ERCOT ISO, the Midwest ISO and the New York ISO (NYISO)-were examined to determine the impact on intermittent renewable energy projects such as wind energy generators. Also, a more general look was taken at how biomass power may fare in RTOs, specifically whether these technologies can participate in ancillary service markets. Lastly, an assessment was made regarding the implications for renewable energy technologies of a Northeast-wide RTO that would combine the three existing Northeast ISOs (the aforementioned PJM and NYISOs, as well as ISO New England).