Unlocking the Potential of Distributed Energy Resources – Analysis

Distributed energy resources (DERs) are small-scale energy resources that are commonly used near-site electricity, such as rooftop solar panels and battery storage. Their rapid expansion is not the only way electricity is generated, but also how it is traded, delivered and consumed.

Accordingly, DERs can create new power system opportunities, but at the same time, a grid is not prepared when new challenges arise. Many jurisdictions are just beginning to understand how DERs fit into the wider energy landscape – and what impacts they have on the grid, and how they can be used to improve system reliability and lower overall energy costs. Meanwhile, other regions have DERs with built-in experience, demonstrating that they can provide valuable services to the grid when incentivized with appropriate technologies, policies and regulations.

Nonetheless, not all countries use the same power market model or DER penetration of the same stage, and the fit-for-purpose solutions will vary from place to place. This report reviews lessons from forecasters and distillers best practices (with examples and case studies) to help policymakers, regulators and system operators across the globe understand what their experience is most relevant to. Readers will be able to draw on a wide range of practical insights to help power the market design and regulation of multiple grid benefits of DER technologies.