Full Title: Aggregated Distributed Energy Resources in 2024: The Fundamentals
Author(s): Stephanie Bieler, Cara Goldenberg, Avery McEvoy, Katerina Stephan, and Alex Walmsley
Publisher(s): National Association of Regulatory Utility Commissioners
Publication Date: July 21, 2024
Full Text: Download Resource
Description (excerpt):
The current and anticipated growth of distributed energy resources (DERs) is changing the energy landscape. Unmanaged, DERs have the potential to disrupt grid operations and require additional infrastructure build out. However, when managed and incentivized appropriately, DERs—especially when aggregated—can provide tremendous value to the grid and reduce unnecessary system costs. State-level policymakers and regulators have the opportunity to establish rules and requirements for aggregated DERs (ADERs) and enable policies and programs to bring these resources online safely and effectively. However, as ADERs continue to evolve, there are a myriad of technical and economic challenges policymakers will have to overcome. Establishing the successful and sustainable use of ADERs to support the grid will likely require iterative approaches as the industry changes, state priorities evolve, national standards are set, and new tools emerge.
This report is part of the National Association of Regulatory Utility Commissioners (NARUC)-National Association of State Energy Officials (NASEO) DER Integration and Compensation Initiative. It is designed to be an accessible guide for understanding the fundamentals of ADERs so policymakers can make informed decisions that fit their state context and needs.
This report builds upon existing literature and leading examples of ADER pricing and programs in practice to equip commissioners and staff at Public Utilities Commissions (PUCs) and State Energy Offices with the fundamentals of ADER grid services, valuation options, and approaches to compensation. Examples, active debates, and opportunities for further reading are highlighted throughout the document for readers to explore.