Value of DER to the grid - Overview and Methodology

Distributed Energy Resources (DERs) provide value through multiple streams and under various categories including the environment, economy and the electric system. One crucial type of value is that DERs may defer the need for capacity upgrades, making the grid more economical. Recognizing this, several states are pursuing different approaches to valuing DERs contribution to the grid. These methodologies to value DER can range between being highly granular to a generalized one, thus leading to varied levels of complexity and ease of implementation. Effective valuation mechanisms for DERs will enable efficient allocation of resources to best improve the planning, operation, resilience and reliability of the distribution system. This presentation will introduce the key concepts in valuing DERs and introduce framework being developed by ComEd, while summarizing recent developments in the methodology and present the analysis for valuing DERs on the distribution grid. The general challenges associated with the design and implementation will also be discussed.