NERC MOD-032-2, IBR & DER Modeling: What It Means for Grid Reliability—and How Keentel Engineering Leads Compliance

Introduction: The Grid Is Changing And So Must Compliance

The North American power grid is undergoing one of the most significant transformations in its history. The rapid growth of Inverter-Based Resources (IBRs)—including solar, wind, and battery energy storage systems (BESS)—along with the expansion of Distributed Energy Resources (DERs) has fundamentally changed how power systems behave.

To address this shift, NERC Project 2022-02 introduces critical updates to:

• MOD-032-2 – Data for Power System Modeling and Analysis 
• TOP-003-8 – Transmission Operations Data Requirements 
• IRO-010-6 – Reliability Coordinator Data Collection 

These updates are designed to ensure accurate system modeling, improved reliability, and compliance with FERC Order 901.

At Keentel Engineering, we specialize in helping utilities, developers, and asset owners navigate these evolving requirements through advanced modeling, compliance strategy, and engineering excellence.

Understanding MOD-032-2: The Backbone of Power System Modeling

MOD-032-2 establishes the data requirements necessary for accurate power system models used in:

• Planning studies 
• Stability and dynamic simulations 
• Interconnection analysis 
• Reliability assessments 

A key shift in the updated standard is the expansion of data requirements to include IBRs and DERs, ensuring that modern grid behavior is fully captured.

Key Change: Inclusion of DER Data

For the first time, MOD-032 explicitly requires aggregate DER modeling data, including:

• Location 
• Real power capability 
• Resource type (solar, battery, diesel, etc.) 

This ensures that DERs are no longer treated as “invisible load offsets” but as active contributors to system behavior.

New Definition of DER: Why It Matters

The document introduces a standardized definition of DER:

A generator or energy storage resource connected to the distribution system capable of delivering real power in parallel with the Bulk Power System 

Why This Is Critical

• Eliminates ambiguity across regions 
• Aligns modeling assumptions 
• Excludes demand response (treated differently in studies) 
• Includes behind-the-meter resources 

This definition ensures consistent modeling across utilities, ISOs, and planners.

IBR Modeling Requirements: A Major Compliance Shift

FERC Order 901 mandates accurate modeling of IBR behavior. MOD-032-2 responds by requiring detailed representation of:

IBR Dynamic Performance Characteristics

• Momentary cessation 
• Tripping behavior 
• Ride-through capability 
• Frequency response 
• Voltage control 

These parameters are essential for understanding grid stability during disturbances.

Why This Matters

Incorrect modeling has already caused real-world reliability issues, including:

• Frequency instability 
• Unexpected generation loss 
• System oscillations 
  

DER Modeling: From Approximation to Engineering Precision

Historically, DERs were either ignored or approximated. That approach is no longer acceptable.

MOD-032-2 Introduces:

• Aggregate DER modeling 
• Dynamic behavior requirements 
• Explicit inclusion in transmission planning models

Key Insight

DERs must now be modeled based on:

• Ride-through behavior 
• Voltage response 
• Frequency-droop characteristics 
• UFLS/UVLS interaction 

This represents a paradigm shift in planning studies.

Handling Data Gaps: Estimation Is Now Mandatory

One of the biggest challenges in DER compliance is data availability, especially for:

• Behind-the-meter solar 
• Small-scale storage 
• Unregistered IBRs 

MOD-032-2 Solution

Entities must:

1. Provide actual data where available 
2. Estimate data where unavailable 
3. Document: 

• Methodology 
• Assumptions 
• Limitations 

Example Estimation Methods

• Satellite-based solar estimation 
• Regional penetration assumptions 
• Average DER profiles by feeder 

This introduces engineering accountability and transparency.

Uniform Modeling Framework: Aligning Planning & Operations

A major requirement under FERC Order 901 is consistency between planning and operational models.

Standards Alignment

• MOD-032 → Planning models 
• TOP-003 / IRO-010 → Operational models

The updated standards require:



• Consistent model structures 
• Alignment of IBR parameters 
• Coordinated data sharing across entities 
  

Compliance Responsibility: Who Owns the Data?

MOD-032-2 clarifies responsibilities across entities:

Typical Responsibilities

• Distribution Providers (DP): DER data collection 
• Transmission Owners (TO): Data when no DP exists 
• Planning Coordinators (PC): Define requirements 

Even for unregistered DERs, registered entities must provide data.

Important Clarification



DERs themselves are not becoming BES assets, but their data must be included for system reliability studies

Keentel Engineering: Your Partner in NERC Compliance

At Keentel Engineering  we don’t just interpret standards—we implement them in real-world systems.

Our Core NERC Compliance Services

1. MOD-032 Compliance & Data Framework Development

• Data request templates 
• Entity responsibility mapping 
• Reporting procedures 

2. IBR & DER Modeling

• PSSE / TSAT / PSCAD modeling 
• User-defined model validation 
• Dynamic performance tuning 

3. DER Aggregation & Estimation Studies

• Hosting capacity analysis 
• DER penetration modeling 
• Satellite & statistical estimation

4. Model Validation & Verification (MOD-026/027 Alignment)

• Field vs. model comparison 
• Parameter tuning 
• Performance validation

5. Grid Code & FERC Order 901 Compliance

• Gap analysis 
• Implementation roadmap 
• Audit support 
  

Why Keentel Engineering Stands Out

• 30+ years of power system expertise 
• Deep experience in NERC, ERCOT, CAISO, PJM, SPP 
• Advanced simulation capabilities (PSSE, PSCAD, PowerFactory) 
• Proven success in IBR and DER integration studies 

We help clients move from compliance risk → compliance confidence.

Conclusion: The Future of Compliance Is Data-Driven

MOD-032-2 and related standards mark a turning point in the industry:

• DERs are now visible and measurable 
• IBRs must be accurately modeled 
• Data gaps must be engineered—not ignored 

Organizations that fail to adapt risk:

• Non-compliance penalties 
• Study inaccuracies 
• Operational reliability issues 

With Keentel Engineering, you gain a partner that ensures your systems are:

• Accurate
  
• Compliant
  
• Future-ready
  

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