If you’ve seen solar panels installed on rooftops or wind power being generated off the shores of coastal locales, use smart thermostats, electric vehicles and EV charging systems, fuel cells, or heat pumps, or participate in a local microgrid, then you’ve witnessed some examples of the use of distributed energy resources, also known as DERs.
According to the U.S. Environmental Protection Agency (EPA), distributed energy resources involve “a variety of technologies that generate electricity at or near where it will be used” as opposed to relying on a more centralized power generation source. DERs support everything from single homes and businesses to huge industrial facilities, college campuses, and entire municipalities. (This is often through a microgrid that ties into a central electric utility’s local distribution lines). Based on their demonstrated ability to reduce electricity costs to ratepayers, improve power quality, reliability, and resiliency, engage in the “intelligent” process of two-way electricity flow, and help meet environmental and sustainability goals through their use of renewable energy sources, they’ve become increasingly popular.
Benefits of Distributed Energy Resources
Thanks to DERs, homes and businesses can reduce their dependence on the aging electric grid— portions of which are over a century old and in need of an upgrade. DERs also help minimize the risk of power outages that have risen in tandem with the growing frequency of severe storms and other natural disasters globally. At the same time, DERs offer greater control to end users by enabling them to generate the energy they need for their own use, sell it to the market, and/or modify their own energy demand.
As such, one doesn’t have to look far to see evidence of the growing market and demand for DERs worldwide. For instance:
- On the solar panel front, Fortune Business Insights predicts that the global solar power market will nearly double from US$254 billion in 2023 to US$437 billion by 2032.
- Statista projects that the market for global battery energy storage will grow from US$5 billion in 2023 to US$18 billion by 2030, an over three-fold increase.
- Electric cars, which represented just 2% of all vehicles globally in 2018, accounted for some 18% of all cars sold in 2023.
- Smart thermostat sales in the U.S. are expected to triple from roughly US$1.3 billion in 2022 to US$3.9 billion by 2029.
Growing Demand
The outlook for DERs continues to look bright, for many reasons. Declining initial price points are bolstering demand for these technologies. Additionally, federal support and funding through such legislation as America’s Inflation Reduction Act (enacted in August 2022) are driving demand for a range of DERs by providing financial rebates and incentives that encourage their adoption. Similarly, the U.S. Federal Energy Regulatory Commission’s Order No. 222 (issued in September 2020) will financially compensate the owners of groups of qualified DERs for the power and services they provide to the electric grid. According to the World Resources Institute, this incentive will “[create] a new long-term value stream for the people and entities using these resources.”
Similar actions have been undertaken around the world to help fuel the proliferation of DERs. In Europe, for instance, the ‘European Green Deal’ and ‘Clean Energy for all Europeans’ legislative initiatives are promoting the integration of renewable energy sources and DERs. The International Energy Agency confirms that DERs will be critical to the ongoing energy transformation in China.
Ultimately, experts confirm that the ongoing transition to DERs will promote a more reliable, energy-efficient, and equitable energy system worldwide.
Challenges Abound
While DERs offer many benefits, including the promise of greater resilience, cost-effectiveness, and sustainability, experts nonetheless confirm that there are also many challenges associated with their use.
Among them, the harmonious operation of these systems and devices will require significant investments in new power generation and storage technology. In addition, with so many small-scale DERs being activated at a decentralized level and on disparate platforms worldwide, experts at the World Resources Institute warn that integration of these devices with central power sources can trigger power quality, compatibility, and reliability issues that will require a greater degree of grid management to control.
For all of these reasons, there’s never been a greater need for IEEE Standard 1547, which is designed to ensure the interconnection, interoperability, and safety of DERs connected to the electric grid.
“Before the adoption of this standard, there were significant challenges in connecting renewable energy sources to the grid, as each technology had its own set of protocols and requirements,” explained Christopher Sanderson, energy storage industry expert and IEEE Senior Member. “The development of IEEE Standard 1547 has made it possible for different types of DERs to work together seamlessly, ensuring that electricity generated from various sources can be reliably, [safely], and efficiently distributed and integrated into the grid without causing disruptions.”
Navigate IEEE Standard 1547 Through a Targeted Course Program
Introduction to IEEE Standard 1547-2018: Connecting Distributed Energy Resources is a six-course program developed by IEEE to help train entire technical teams on how to best implement this important standard. The course program reviews testing, verification, and interoperability requirements. It also covers clauses and annexes of IEEE Standard 1547-2018, and power quality issues that can result from the interconnection of DERs with utility grids.
Connect with an IEEE Content Specialist today to learn more about getting access to this program for your organization.
Interested in access for yourself? Visit the IEEE Learning Network (ILN).
Resources
Hurst, R.W. What is Distributed Generation? Distributed Energy Resources. The Electricity Forum.
Distributed Generation of Electricity and its Environmental Impacts. United States Environmental Protection Agency.
Richmond-Crosset, Kyle and Greene, Zachary. (30 September 2022). How Distributed Energy Resources Can Lower Power Bills, Raise Revenue in US Communities. World Resources Institute.
(May 2022). Unlocking the Potential of Distributed Energy Resources. International Energy Agency.
Ali, Junaid. (16 August 2024). The Future of Energy and Distributed Power. Forbes.
(5 August 2024). Solar Power Market Size, Share & Industry Analysis, By Technology. Fortune Business Insights.
Sanderson, Christopher. (30 June 2024). The Power of Standards: How IEEE-1547 Shapes Our Energy Future. LinkedIn.
Will Distributed Energy Resources (DERs) Change How We Get Our Energy? European Parliament.
Prospects for Distributed Energy Systems in China. International Energy Agency.
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