What does FERC 2222 Ruling mean for CleanSpark

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What does FERC 2222 Ruling mean for CleanSpark

If you haven’t heard about the recent ruling from the Federal Energy Regulatory Commission, they recently put out the following ruling: https://www.ferc.gov/sites/default/files/2020-09/E-1-facts.pdf

You can also read more about it here: https://microgridknowledge.com/ferc-order-2222-distributed-energy/

FERC Order Number 2222 will help aggregated distributed energy resources (DERs) compete alongside and work with traditional power grid resources.  The FERC ruling will promote competition in electric markets by removing the barriers preventing distributed energy resources (DERs) like CleanSpark and its partners from competing in an organized capacity in energy and ancillary services markets run by regional grid operators.

For Cleanspark, it unlocks new revenue stream potential for customers – microgrid operators could act as DER aggregators or work with DER aggregators to sell more services into RTO / ISO markets. This would lower the total cost of ownership of a microgrid for customers and therefore lead to more microgrid development benefitting CleanSpark and companies like it.

Microgrid and other DER companies that take advantage of these opportunities will have a superior product and be able to offer it more cheaply to their customers, so they’ll win market share. Those that don’t dive into the grid services aspect risk being left behind.

You can tie that into the GridFabric acquisisition as proof that Cleanspark is making moves in this direction. All this with the caveat that the order won’t have much of an impact for the next 2-3 years, so there’s time to adapt.

For GridFabric, more Demand Response and DER activity is always valuable as it increases demand for our products. Utilizing open standards like OpenADR and IEEE 2030.5 will be table stakes to make these kinds of businesses scale, and our products let companies implement them faster and more cost effectively allowing them to focus on what they do best. So, a rising tide will lift our boat!