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Distributed Energy Resources
Distributed Energy Resources
National
By: ARENA
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Reliability has emerged as a major concern as the grid struggles to guarantee supply
to meet increasing demand, particularly during peak periods when expensive backup
generation is required to keep the lights on.
Common examples of DERs include rooftop solar PV units, natural gas turbines,
microturbines, wind turbines, biomass generators, fuel cells, tri-generation units,
battery storage, electric vehicles (EV) and EV chargers, and demand response
applications. These separate elements work together to form distributed generation.
Affordability is one. Customers with access to DER assets can expect to pay less for
electricity as they sell power back to the grid or are compensated for allowing their
storage systems to help stabilise the grid, especially during peak periods.
Reduced network costs could also lead to a fall in the overall cost of energy. One
study found that investment in DER could reduce network expansion costs by nearly
60 per cent by 2050.
A limiting factor is hosting capacity, or the amount of DER which can be connected to
a distribution network and operated within its technical limits. DERs can be
incorporated into the grid where no threats to safety, reliability or other operational
features exist and no infrastructure upgrades are required. In many cases, however,
grid modernisation is necessary to safely integrate DERs into the network.
BLOG: WHAT’S NEW IN 2020? – THINKING DEEP ABOUT
DISTRIBUTED ENERGY
California offers a useful case study in DER development. The state is a leading solar
producer: rooftop solar penetration is more than 7 percent, and in 2015, 10 percent of
California’s energy came from a combination of solar thermal, utility-scale PV and
rooftop PV. By 2030, 50 percent of the state’s power will be supplied by VER (wind
and solar).
Another slice of funding will be allocated to new studies or models that contribute to
increasing the value, capacity or efficiency of DER, or reducing costs or risks
associated with its development and application.
These studies will help networks, retailers, government and system operators
understand more about the technical and commercial challenges of managing a grid
with a high penetration of DER. This could include identifying new ways of managing
energy flows, better understanding how consumer behaviour might influence DER
take-up or developing local or time-of-day incentives to encourage the use of DER.
For further information and to apply, visit the DER funding page