Integration of Distributed Energy Resources and Microgrids - Utility Challenges

The rapid decline in the price of solar PV and storage has resulted in PV systems and in many regions, PV coupled with storage, reaching grid parity. Several utilities are witnessing a disruption of unprecedented scope and speed. To help manage the integration challenges associated with high DER/Microgrid penetration, utilities are assessing a wide variety of technologies - including demand response, grid-edge solutions, smart inverters, and energy storage. In addition to the fundamental issues that separate inverter manufacturers and power system planners and operators, the ever-evolving interconnection standards further complicates the situation resulting in long interconnection study, integration, and testing times. This paper identifies the major integration challenges faced by utilities with high DER/Microgrid penetration and the ever-evolving standards and explores current approaches used by utilities to manage/mitigate the network issues. It does not attempt to address all of the issues associated with DER/Microgrid integration but rather highlights challenges which are often overlooked.