In an article for POWERGRID International, Guidehouse Insights says iDER is key to a more resilient, sustainable, and affordable energy future
The adoption of smaller, smarter, and cleaner energy systems is on the rise thanks to declining technology costs for distributed energy resources (DER) and new energy as a service business models linked to long-term financing offers.
In an article for POWERGRID International, Peter Asmus, research director with Guidehouse Insights, says these developments are key pieces of the puzzle to a more resilient, sustainable, and affordable energy future – but only if DER can be integrated into markets, customer sites, and the grid in a way that creates shared value.
“By 2030, new DER capacity additions will be nearly twice the capacity on an annual basis as centralized generation systems,” Asmus said. “For conventional utility industry paradigms, this trend would be significantly problematic. However, if DER can be orchestrated by market participants at scale, these assets can enhance the value of energy and power infrastructure and activate a broader stakeholder ecosystem that creates and receives value in dynamic markets.”
While the ownership of assets has been the traditional way for energy stakeholders to reap financial rewards in the past, future value creation will focus more about orchestration in real time, according to the article. Better long-term planning and improved interconnection processes will be important in realizing the benefits of integrated DER (iDER).
“This integration can support greater visibility of DER, shared control, real-time insights, and interoperability standards,” Asmus said. “Utilities and other stakeholders need to take a lead role in this emerging Energy Cloud ecosystem to maximize shared value from DER integration, enabling industry transformation to be sustained across the entire value chain.”