The system operator for the grid covering all of New York state is launching a landmark program to integrate aggregated distributed energy resources (DERs), which could include small microgrids, into wholesale electric power markets.

New York Independent System Operator (NYISO) last week announced the new market aggregation plan, which will open access for DER assets of more than 10 kW to compete in the market. These can include solar arrays, residential batteries and electric vehicles with vehicle-to-grid (V2G) bidirectional charging capabilities, all of which are also comprised in many planned microgrid projects.

The NYISO has chosen three aggregators for early participation in the program, starting with Baltimore-based energy management firm CPower Energy. The company will aggregate DERs into virtual power plants (VPPs) then bid the VPPs into the New York DER Participation Model.

“We applaud NYISO for its leadership in establishing the nation’s first program for integrating VPPs into wholesale markets,” CPower CEO Michael Smith said in a statement. “This program is an important step forward for utilizing the full spectrum of value DERs can provide and will improve grid reliability as renewable integration grows.

“We’re honored to be one of the few aggregators approved to bid into the program and look forward to working with NYISO stakeholders over the next few years to develop models to expand the reach of the program to smaller DERs and reduce remaining barriers to participation by larger customers,” Smith added.