Unleashing the Potential of Distributed Energy Resources – Analysis

Distributed energy resources (DERs) are small-scale energy resources typically located near sites of electricity use, such as rooftop solar panels and battery storage. Their rapid expansion is transforming not only the way electricity is produced, but also the way it is traded, delivered and consumed.

As a result, DERs can create new opportunities for the power system, but at the same time, can pose new challenges when a network has not been properly prepared. Many jurisdictions are just beginning to understand how DERs fit into the broader energy landscape – what they are and what impacts they have on the grid, and how they can be used to improve system reliability and reduce outages. overall energy costs. Meanwhile, other regions have gained experience with DERs, demonstrating that they can provide valuable services to the grid when encouraged by appropriate technologies, policies and regulations.

However, not all countries use the same electricity market model or are at the same stage of DER penetration, and the right solutions will vary from place to place. This report reviews lessons from early adopters and distills best practices (with examples and case studies) to help policymakers, regulators and system operators across the world understand which experience is most relevant to their own situation. Readers will be able to draw on a wide range of practical information on electricity market design and regulation to help unlock the multiple grid benefits of DER technologies.