BEYOND THE METER SERIES

Distributed Energy Resources Capabilities Guide Executive Summary

The emergence of distributed energy resources (DERs), combined with the continuing, overall growth in renewable energy, has begun to alter utilities’ approach to ensuring reliability.

Three major factors are driving DER growth:

n Customer awareness. A growing number of utility customers are demanding more choices for their energy needs. They are

installing Wi-Fi-enabled thermostats, electric vehicle chargers, energy storage, and many other devices behind the meter.

n Integration of renewable resources onto the grid. The growth of lower cost solar and wind power has increased variability in the power supply, necessitating flexible resources for reliable integration. Many types of DERs can effectively balance renewable resources.

DER CAPABILITIES MATRIX

TECHNOLOGIES ENERGY

GEN

ERAT

ING

CA

PACI

TY

DIS

TRIB

UTI

ON

CA

PACI

TY

VOLT

AGE

REG

ULA

TIO

N

FREQ

UEN

CY

REG

ULA

TIO

N

LOAD

FO

LLO

WIN

G

BALA

NCI

NG

SPIN

NIN

G

RESE

RVES

NO

N-S

PIN

NIN

G

RESE

RVES

BLAC

K ST

ART

DISTRIBUTED SOLAR Energy Generator No No No

DISTRIBUTED SOLAR + ADVANCED INVERTER FUNCTIONALITY

Energy Generator No No No

BATTERY STORAGE Energy Storage Yes Yes Yes

INTERRUPTIBLE LOAD

Load Shaping Yes Yes No

DIRECT LOAD CONTROL Load Shaping Yes Yes No

BEHAVIORAL LOAD SHAPING

Load Shaping No No No

ENERGY EFFICIENCY Reduce Load No No No

Unsuitable for reliably performing the specified service.

May be able to perform a service, but is not well suited or can provide partial support.

Able to perform a service, but may be limited by factors such as availability or customer behavior.

Well suited to perform a service; may exceed legacy technologies for providing the service.

BEYOND THE METER SERIES

n Changes to wholesale power market rules. The Federal Energy Regulatory Commission and numerous balancing authorities have been modifying rules to accommodate new DER technologies and the companies that are bringing them to energy markets.

Utilities are uniquely positioned to determine the needs of the grid and optimize the grid benefits from interconnected DERs by directly controlling them or communicating grid conditions. This guide describes how DERs can support a more flexible and efficient grid.

Technologies discussed in this report include distributed solar with and without advanced inverter functionality, battery storage, interruptible load, direct load control, behavioral load shaping, and energy efficiency. As shown in the figure below, these technologies are evaluated based on their ability to provide many of the traditional ancillary services at both the distribution and bulk power levels.

As described in a September 2016 report in partnership with Nexant, “Beyond the Meter: Addressing the Locational Valuation Challenge for Distributed Energy Resources,” services can

be “stacked” to leverage multiple, simultaneous values from a single asset. Multiple technologies can also provide similar services, allowing for a portfolio approach to reliability.

Planning and operating the 21st-century grid will require a holistic approach to integrate all grid assets on both sides of the meter. In order to successfully leverage these assets, managing data—from advanced metering infrastructure

and distribution management platforms, for example—will be increasingly important.

As part of the Smart Electric Power Alliance’s (SEPA) expanded mission, we will continue to explore the best practices, concepts, and projects that showcase the potential of DERs to reinvigorate utility business models. SEPA’s 51st State Initiative is just one of many efforts to facilitate these discussions.

This is the third report in SEPA’s Beyond the Meter series, which focuses on three key themes:

1. Evaluating DERs as grid assets: Increasing the sophistication of grid planning and operational tools to account for potential system benefits from distributed energy resources (DERs) on a temporal and locational basis.

2. Integrating customer insights: Leveraging the increased segmentation of customer load profiles, propensity to adopt, and behavioral drivers to better evaluate the economic and achievable potentials of DERs.

3. Rewiring standard operating practices: Expanding planning processes across utilities’ functional areas—system planning, resource planning, marketing, and regulatory affairs—to incorporate more robust and holistic deployment strategies.

REWIRING STANDARD

OPERATING PRACTICES

INTEGRATINGCUSTOMERINSIGHTS

EVALUATINGDERS AS

GRID ASSETS

"BEYOND THE METER:

THE POTENTIALFOR A NEW

CUSTOMER-GRID DYNAMIC."

DERs are physical, as well as virtual, assets that

are deployed across the distribution grid, typically close to load, which can

be used individually or in aggregate to provide value

to the grid, individual customers, or both.