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.