2020 PES GM 8/4 Panel Video: DER market integration – opportunities and challenges

This panel discussed challenges and opportunities of DER integration in the electricity market design and operation. The electricity industry has a successful track record of providing electricity to homes and businesses via the traditional industry model of central-station power plants, high-voltage transmission lines, and local distribution systems. This centralized operation model is shifting toward a higher penetration of distributed energy resources (DERs) that are often variable resources located on local, low-voltage electricity distribution networks, or “behind the meter” at homes and businesses. Unlike traditional system resources, many DERs — from generation to storage and demand management — may be less visible or invisible to bulk system operators. Furthermore, DERs, including rooftop and utility-scale solar, will create variability that is distinctly different from today’s demand pattern, most likely more dynamic and less predictable. Greater dynamics, lesser predictability and limited visibility could increase operational risk significantly. At the same time, DERs have the potential to increase flexibility for the grid, and wholesale markets could help enhance and leverage the full value of these resources through regional diversity, optimization capabilities and system flexibility.