pwr_january-2025 - 20

DISTRIBUTED ENERGY RESOURCES
Central Theme for Energy's
Future: Decentralizing
Power Generation
The use of distributed energy resources (DERs) will continue to grow as utilities,
businesses, and residential neighborhoods look for ways to balance the power grid
and support more reliable and resilient electricity.
Darrell Proctor
T
he use of distributed energy resources
(DERs) continues to grow
as individuals and businesses look
for more control of their energy costs
and electricity supply. The use of on-site
generation technologies, including solar
panels, batteries, small wind turbines,
and gas- and diesel-powered generators,
is helping power customers mitigate the
impacts of grid outages and high prices
for electricity.
DERs help local utilities by contributing
to a more resilient and sustainable
power supply. Customers may have
the opportunity to sell excess electricity
back to the grid during periods of
peak demand; in addition, DERs are
the backbone of virtual power plants
(VPPs) that are enabling utilities to
better manage the power supply, and
avoid the cost of building new physical
power generation facilities.
The use of decentralized power
production means utilities and their
customers no longer have to rely on a
single generation resource, but rather
can utilize a variety of technologies to
mitigate the impact of extreme weather
and other issues. The use of DERs in
microgrid configurations allows for a
steady supply of energy in remote locations,
an important consideration for
military bases and other businesses
with a need to operate in areas far from
the traditional power grid.
" DER programs allow utilities to
shave peak demand, balance supply and
demand, and reduce energy losses during
transmission and distribution, thus
offering a far more stable and efficient
grid for everyone. Utilities should not
only be involved but further incentivize
more adoptions, creating a more resilient,
flexible, and economically efficient
energy system, " said Shawn McLaughlin,
CEO and founder of Emporia, a
20
Colorado-based energy management
solutions provider. " At the state level,
utility incentive programs have led to
growth in DER programs like solar rebate
programs and efficiency loans, reduced
costs for efficient or renewable
technologies, and water conservation
incentives. These programs further support
technology and encourage more
residential and commercial adoptions of
smart energy technologies. "
Jeff Simmons, senior vice president at
Toshiba America Energy Systems, said,
" DERs are more than just a backup power.
They're shaping a more future-ready
and resilient ecosystem that allows
businesses and communities to better
manage resources, reach their sustainability
goals, and achieve long-term energy
independence. There's no doubt
that distributed energy resources are
revolutionizing the energy landscape by
helping businesses and homes improve
energy reliability, resilience, and sustainability.
At Toshiba, we are working on
advanced DER solutions and anticipate
great potential in their growth. "
Clean Energy Economy
The energy experts who spoke with
POWER noted that the use of DERs also
represents a key part of a clean energy
economy. Their deployment allows for
more electricity from solar (Figure 1),
wind, and battery storage, along with
biogas, hydrogen, and other lower-emission
fuels. They also bring a reduction in
wasted energy and power loss as energy
travels shorter distances from producer
to consumer. DERs support grid
resilience and greater efficiency in energy
usage, and of course result in lower
emissions of carbon.
The experts also said legislative
support at the local, state, and federal
level has and can continue to increase
the deployment of DERs. They agree
that even with changes in the regulatory
framework, the use of DERs will
still rise because of economic considerations
related to energy costs and
power reliability.
" Ideally, there needs to be alignment
among utilities, state, and federal
policies to support the future growth of
1. A rooftop solar array, here on a downtown business, can help control energy costs for a
commercial and industrial enterprise-and support a more reliable power supply. Courtesy:
Eaton
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