Realizing the Value of DERs: A Utility Perspective

Across the world, policy makers are encouraging the deployment of large quantities of distributed energy resources (DERs), including photovoltaics (PVs) and battery energy storage, to mitigate the effects of climate change and implement resiliency-enhancing grid technologies. As part of this effort, many have emphasized the potential value that DERs can provide directly to the distribution grid, thereby increasing their total social, environmental, and infrastructure value stack. However, these same DERs pose integration challenges to electric utilities, particularly as utilities seek to ensure that grid benefits can be affordably and equitably leveraged by all communities the utilities serve. Fairly and accurately quantifying the value that each DER provides to the grid is critical to developing a sustainable economic model for the integration of future DERs.