A Review of Distributed Energy Resources

Increasing amounts of distributed energy resources (DERs) located on the customer side of the electric grid represent both a challenge and an opportunity for grid operators. As the grid evolved around centralized generation, grid operators in conjunction with policymakers need to consider adjustments to the current framework for power supply dispatch and delivery to realize the potential benefits of increased DER penetration. The first step is to assess the implications of DERs. Policy and grid operator rules will have a strong influence over DER adoption and on its successful integration with the grid.

Such rules need to account for the constraints of the grid, while others can adapt to a more decentralized framework. Current approaches to integrating demand response and energy storage represent a starting point for integration of DERs, though additional adjustments are likely necessary.

Discussion among industry stakeholders is critical to understanding the implications of changing our generation resource portfolio and transforming our approach to power delivery. This is the first step towards ensuring a smooth transition to the future grid. The New York Independent System Operator (NYISO) commissioned this study to collect information that can aid the discussion. It highlights and summarizes issues relevant to DER, drawing from information about DERs and lessons learned to date in New York and other jurisdictions.

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