New analysis outlines state of DERA market integration and next steps for implementation

BOULDER, Colo. , Aug. 7, 2025 /PRNewswire/ -- A new report from Guidehouse Research explores distributed energy resources aggregation (DERA) market integration progress, projected growth, and steps to implement U.S. Federal Energy Regulatory Commission (FERC) Order 2222 of 2020.

Since FERC Order 2222, the regional transmission organizations (RTOs) and independent system operators (ISOs) that control the wholesale electricity markets in the U.S. have made substantial progress in implementing DERA participation. However, according to a new report from Guidehouse Research, in navigating the complexities of FERC's market criteria, each RTO/ISO has refined its market concept in its own way, which presents a challenge for the DER industry to fully understand and adapt to the new DERA participation models.

"FERC Order 2222 is intended to better enable aggregations of DER to participate in wholesale electricity markets, with the goal of boosting DER development and market participation to meet increased energy demand, ease congestion on the electric grid, and satisfy residential, commercial, and industrial customers,'" says Adam Stein, senior research analyst with Guidehouse Research. "DERA market plans involve many complex structures that have been highly debated among stakeholders, including RTOs/ISOs, FERC, DER developers and aggregators, renewable energy industry organizations, consumer nonprofits, local DUs, and transmission owners."

According to the report, Guidehouse Research suggests:

• RTOs/ISOs should continually refine market protocols by revising tariffs, when necessary, to enhance DERA market participation and mitigate any market flaws or grid failures.
• Distribution utilities (DUs) should enhance existing programs and create new ones that compensate DER and DERAs at the retail level, so that DUs can directly benefit from the injected energy, grid services, and grid stability provided.
• DER developers and aggregators must thoroughly understand wholesale electricity market rules and DERA participation options to maximize DERA viability and grow business across the U.S.

The report, FERC Order 2222: Implementation Is Progressing, but More Work Is Needed from Stakeholders, outlines the current status of DERA market integration across FERC-regulated RTOs/ISOs, projected nationwide growth, and the steps stakeholders must take to realize the full potential of FERC Order 2222. An executive summary of the report is available for free download on the Guidehouse Research website.

About Guidehouse Research
Guidehouse Research, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Research can be found at guidehouseresearch.com.

About Guidehouse
Guidehouse is a global AI-led professional services firm delivering advisory, technology, and managed services to the commercial and government sectors. With an integrated business technology approach, Guidehouse drives efficiency and resilience in the healthcare, financial services, energy, infrastructure, and national security markets. Built to help clients across industries outwit complexity, the firm brings together approximately 18,000 professionals to achieve lasting impact and shape a meaningful future. guidehouse.com.

* The information contained in this press release concerning the report, FERC Order 2222: Implementation Is Progressing, but More Work Is Needed from Stakeholders, is a summary and reflects the current expectations of Guidehouse Research based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Research nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse Research
+1.646.941.9139
cfradkin@scprgroup.com 

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SOURCE Guidehouse Research