FERC Approves ERO’s Energy Assessment Mandates
Standards Respond to Variable Energy Output from New Resources
The new standards are intended to address the reliability risks associated with intermittent resources.
The new standards are intended to address the reliability risks associated with intermittent resources. | © RTO Insider LLC 
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FERC approved two new standards outlining how entities must conduct energy reliability assessments to identify potential future emergencies.

FERC has approved two new NERC reliability standards that address the risks from energy sources with inconsistent output by requiring utilities to perform energy reliability assessments (ERAs) and develop plans to minimize the risk of any forecast energy emergencies. 

According to the commission’s Feb. 26 letter order (RD25-5), BAL-007-1 (Energy reliability assessments) will take effect on the first day of the first calendar quarter that is 24 calendar months after the effective date of FERC’s order, or April 1, 2027. TOP-003-7 (Transmission operator and balancing authority data and information specification and collection) will become enforceable six months earlier than the other standard. NERC suggested this timeline when it submitted both standards Jan. 6. (See NERC Submits Energy Assurance Standards to FERC.) 

FERC noted that Calpine, Ameren and Public Citizen each filed motions to intervene before the deadline of Feb. 5; however, neither these nor any other party has submitted comments or protests so far. 

Both BAL-007-1 and TOP-003-7 were developed under Project 2022-03 (Energy assurance with energy-constrained resources), in response to weather-dependent resources like solar and wind generators to replace traditional inertial generation. NERC said in its filing that “traditional capacity-based planning methods and strategies may not identify [the] risks” associated with these resources and their inconsistent output resulting from volatility in weather and load. 

BAL-007-1 will require balancing authorities to perform near-term ERAs and create operating plans to identify and minimize the possibility of forecasted energy emergencies. Assessments performed under the standard must review the resources necessary to serve demand while also providing operating reserves for the grid. 

Assessment periods will begin no more than two days after the operating day, and cover between five days and six weeks. The standard allows BAs to specify how often they perform ERAs; all time periods must be covered unless the BA can demonstrate that an ERA is not needed for a specific time period because the risk of an energy emergency is low. 

BAs can perform the near-term ERA for their work areas alone or jointly with other BAs for multiple areas at a time. Minimum elements that must be in near-term ERAs include: 

    • forecast or assumed demand profiles; 
    • resource capabilities and operational limits (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. 

TOP-003-7 introduces relatively minor updates to TOP-003-6.1 intended to “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.”  

This requirement is the reason for the gap between the two standards’ effective dates. NERC told FERC in January that staggering them would give entities time to collect the data needed for the assessments required under BAL-007-1. 

FERC’s order constitutes final agency action, the commission said. Requests for rehearing must be filed within 30 days of the order’s issuance. 

BALTOP

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