Digital at the Speed of Sunlight: Transform with Distributed Energy Resources

Abstract

Distributed Energy Resources (DERs) are a primary driver requiring utilities to become more digitalized. DERs are disrupting traditional distribution utility business models, creating new opportunities in the way utilities and customers generate electricity, manage load, and finance and procure resources. With more than 33 states having clean energy action plans and a majority of Americans in all 50 states supporting the actions to move the country toward 100 percent clean energy generation by 2035, utilities are being called upon to support investment in DERs. DER capacity is expected to grow through both FERC Order 2222, which would enable DER aggregators to participate in wholesale electricity markets, and in support of electric vehicles infrastructure development. The rise of DERs in response to decarbonization and clean energy goals provides an opportunity for both utilities and developers to improve grid reliability and improve the load profile on the distribution grid. The increased penetration of DERs continues to foster greater customer participation in meeting their loads while increasing pressure on utilities to interconnect and derive value from DERs and grid‐edge assets. These complexities require a significant shift in thinking and paves the way for industry leaders to think digitally.