DNE Dispatch Explained: Is PJM Borrowing from ISO-NE’s Playbook?

As renewable energy grows in the U.S., power system operators are fine-tuning their approaches to reliability and efficiency. ISO-NE’s Do Not Exceed (DNE) Dispatch protocol is a novel approach for managing variable resources like wind and solar to economically participate in the wholesale market while keeping the system stable. PJM’s recent dispatch changes may be borrowing from ISO-NE’s DNE Dispatch methodology. This article examines the similarities and differences between ISO-NE’s DNE protocol, PJM’s proposed new approach, and what it means for market participants.

The Do Not Exceed (DNE) Dispatch protocol was introduced by ISO-NE nearly a decade ago to allow variable energy resources (VERs) like solar and wind to participate in real-time dispatch, with it only becoming a requirement for solar resources in late 2023. DNE Dispatch caps a resource’s output at a certain level (the DNE limit) based on system conditions, forecasted generation, and real-time pricing. The limits are updated frequently to reflect current system reliability needs so VERs can participate in the market without compromising stability.

DNE Dispatch has been vital to VERs, allowing them to provide energy efficiently without affecting system imbalances. By issuing DNE limits, ISO-NE can optimize the use of intermittent resources, align their economic output with grid needs, and avoid scenarios where excess generation causes reliability issues. For renewable asset owners, DNE Dispatch introduces challenges, as it requires rapid response capabilities and precise compliance to avoid penalties or market inefficiencies.

PJM has taken a page out of ISO-NE’s playbook in the past, including when it developed its Capacity Performance carrot-and-stick framework for its capacity market, modeled after ISO-NE’s Pay-for-Performance framework. Recent proposed changes to PJM’s renewable dispatch methodology suggest they are considering adopting a construct similar to ISO-NE’s DNE Dispatch.

PJM’s current methodology assigns a dispatch signal to VERs in an effort to optimize system stability. These limits, driven by market clearing engines and system conditions, attempt to reduce over-generation and manage renewable variability. However, PJM has seen issues with VERs not following their dispatch points, so they have proposed changes. Although the terminology is different, PJM’s proposed new approach shares the same core principles as ISO-NE’s DNE protocol: accurate wind and solar forecasts, dynamic updates, precise compliance, and alignment with system needs.

Core Principles and Objectives: Both ISO-NE’s DNE Dispatch and PJM’s proposed renewable dispatch updates allow VERs to participate in the market without compromising reliability. By setting dynamic limits, both systems manage variability, economically align generation with demand, and prevent system instability.

However, ISO-NE’s DNE Dispatch is designed for regions with high renewable variability and tight system constraints. ISO-NE’s smaller footprint and higher reliance on intermittent resources make DNE Dispatch a key part of its operating framework. PJM is still evolving, adding more renewable capacity to a larger and more diverse system.

Real-Time Updates and Communication: ISO-NE’s DNE Dispatch provides real-time updates to market participants so DNE limits reflect the current system conditions. PJM’s proposed updates include real-time communication with renewable assets to provide dynamic dispatch limits. Both systems require robust telemetry and operational capabilities from VER owners to comply with dispatch signals accurately.

Market Operations: ISO-NE has DNE limits integrated into its real-time market operations so renewable assets can participate in the energy market without risking reliability violations. PJM has a different challenge in aligning its new dispatch methods with its existing market structures, which are still primarily designed for thermal resources. PJM has made progress in this area, but fully integrating renewables into its market-clearing engines has been a work in progress.

Market Participants: For renewable developers and asset owners, the adoption of DNE-like protocols in PJM will require more operational precision and market expertise. Compliance with these protocols requires investment in advanced telemetry, real-time monitoring, and dispatch capabilities. ISO-NE and PJM are putting the onus on asset owners to ensure their systems can meet dynamic dispatch requirements without incurring penalties.

As PJM continues to develop its methodology, real-time dispatch and stricter compliance requirements will also increase. Asset owners in PJM need to be proactive in their approach to integration and operation.

SYSO has experience managing renewable assets in complex markets like ISO-NE and PJM. We focus on operational optimization, compliance, and revenue maximization so assets are integrated seamlessly and perform optimally under dynamic dispatch.

Dynamic Dispatch Management: SYSO’s 24/7 NOC monitors real-time market signals and adjusts asset operations to meet dispatch limits. For assets under DNE Dispatch or similar protocols, SYSO’s expertise ensures compliance without sacrificing profitability.

Data-Driven Optimization: SYSO uses advanced analytics and predictive modeling to forecast market conditions and optimize dispatch strategies. We align asset operations with market trends so renewable owners can navigate the complexities of both ISO-NE and PJM dispatch.

Full Market Access: ISO-NE and PJM regulatory compliance require market expertise. SYSO handles market registration, compliance, and participation so asset owners can focus on growth while we manage the details.

Contact Us Today To Learn More About Navigating DNE For Your Asset

As PJM moves to adopt a construct similar to DNE dispatch, VER owners must become acquainted with a more dynamic market. These changes mean that more precision, compliance, and operational expertise are required to succeed in the new world of renewable integration.

SYSO’s full-service solutions help standalone solar and solar-plus-storage assets be DNE-compliant while maximizing revenue opportunities. As a market participant in both ISO-NE and PJM, SYSO is the ideal partner for renewable developers in these complex markets. Contact our team today to see how we can help you optimize your assets.