NERC has submitted two new reliability standards for FERC approval, both aimed at addressing the risks arising when energy resources with inconsistent output are unable to meet the demands of the grid and maintain reliability. 

The ERO filed BAL-007-1 (Energy reliability assessments) and TOP-003-7 (Transmission operator and balancing authority data and information specification and collection) on Jan. 6, asking that the commission approve both standards, along with proposed definitions for the terms “energy reliability assessment” (ERA) and “near-term ERA.” If approved, the definitions will be added to NERC’s Glossary of Terms. 

NERC’s Board of Trustees approved the standards, their implementation plans and the definitions at its most recent open meeting Dec. 10, along with several other proposed standards. (See “Standards Approved for FERC Submission,” NERC Board of Trustees Briefs: Dec. 10, 2024.) 

BAL-007-1 and TOP-003-7 were developed under Project 2022-03 (Energy assurance with energy-constrained resources) and received segment-weighted approval votes of 81.53% and 92.77%, respectively, in a formal ballot round that ended Nov. 4. (See “Approved Standard to be Updated,” NERC Standards Committee Briefs: Nov. 13, 2024.) 

NERC began the project in response to the grid’s ongoing transition from traditional inertial generation resources to weather-dependent resources like solar and wind. The ERO said in its filing that “traditional capacity-based planning methods and strategies may not identify [the] risks” associated with these resources, which may suffer inconsistent output associated with the weather and volatility in load. 

It called BAL-007-1 “a step in transitioning to energy-based planning methods in the operations planning time horizon [by helping] achieve a level of consistency across the industry” in terms of planning methods and strategies. The standard would require BAs to perform near-term ERAs and create operating plans to identify and minimize the possibility of forecasted energy emergencies. 

Near-term ERAs required by the standard must include assessments of the resources necessary to serve demand while also providing operating reserves for the grid. An assessment period would begin no more than two days after the operating day, and cover between five days and six weeks. 

BAs would be able to specify the frequency of their ERAs. By default, all time periods must be covered, so that, for example, a near-term ERA that covers two weeks may be performed every two weeks or every other week, but not every three weeks, because this would leave a gap in coverage. This requirement may be waived if the BA can demonstrate that an ERA is not needed for a specific time period because the risk of an energy emergency is low. 

A BA could perform the near-term ERA for its work area alone or jointly with other BAs for all their areas together. NERC said this arrangement was meant to mirror partnerships that already exist between BAs for “other operations or planning activities and real-time operations.” 

The standard also lists minimum elements that BAs must include in near-term ERAs: 

• • forecast or assumed demand profiles; 
  • resource capabilities and operational limitations (including fuel supply); 
  • energy transfers with other BAs; and 
  • known grid transmission constraints that limit the ability of generation to deliver their output to load. 

The proposed changes in TPL-003-7 are relatively minor. NERC said they will “ensure that [BAs] have the necessary data to perform the [near-term] ERAs” by adding them to the activities for which they “must have documented data specifications to collect data from relevant entities.” 

As set forth in the proposed implementation plan, the ERO asked that FERC make TOP-003-7 effective the first day of the first calendar quarter that is 18 calendar months after the effective date of its order approving the standard, with BAL-007-1 to take effect six months later. This arrangement would provide six months for entities to collect the data needed for near-term ERAs and provide it to BAs before they are required to perform the assessments.