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GETTING MORE GRANULAR: HOW VALUE OF LOCATION AND TIME MAY CHANGE COMPENSATION FOR DISTRIBUTED ENERGY RESOURCES

January 10, 2018

Built during the last century, the United States electric grid was primarily designed to transport electricity from large central station power plants to end-use customers. But with a rapid growth of distributed energy resources (DER) resulting from falling costs and technological advances, customers are increasingly taking charge of their own energy. These resources offer the promise of a more innovative, economic, and cleaner electric grid. DER, such as solar power, will play an important role in providing power and grid services where they are needed most. To reach this goal, however, distribution grid planning must evolve to allow more transparency into system needs, enable more robust data exchange between utilities and DER providers, and include DER as a standard component of utility load forecasts.

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