Distributed energy resources – the challenge of integrating supply/demand diversity

Distributed energy resources – the challenge of integrating supply/demand diversity

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Distributed energy resources (DERs) are not new. This study starts with defining types of DERs and core characteristics. Some rely on renewable sources and others are dispatchable. The study moves on to challenges and benefits of the DER. This study has assessed both business and technical challenges from all the major stakeholders. The study next moves to define the building blocks of the components necessary for their smooth integration. The next important section of the study focuses on the economics of DERs and assesses different mechanisms currently available and a look into their evolution. The do's and don'ts section focuses on key considerations that need to be kept in mind as utilities worldwide focus on their own mechanisms for implementing DERs in their grid. There is also a call-out box explaining the concept of ‘why supply and demand must be matched always’. The next tranche of supply of energy is expected to come from DERs and will continue to grow to levels of significance. As a result, learning to integrate them into the grid both from a technical and market forces perspective is critical to the electric utility of the future.

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