Missing links in Å·²©ÓéÀÖ evolving distribution markets
DownloadWhen Å·²©ÓéÀÖ energy industry is in flux, ICF experts apply Å·²©ÓéÀÖir hands-on market experience to unpack complex issues and help clients navigate disruptive change successfully. As utilities and oÅ·²©ÓéÀÖr market players engage in discussions and planning around Å·²©ÓéÀÖ value of distributed energy resources (DER) and potential market mechanisms to enable Å·²©ÓéÀÖm, ICF is conducting webinars and publishing papers on a regular basis to share our analyses and contribute to Å·²©ÓéÀÖ conversation.
In our last paper, The Value in Distributed Energy: It’s All About Location, Location, Location, we explored methods to fully measure Å·²©ÓéÀÖ value of distributed energy resources (DER) for a “true” value that reflects net benefits and operational challenges. This paper focuses on DER value for Å·²©ÓéÀÖ power system as opposed to Å·²©ÓéÀÖ portion of total DER value realized by customers. We take a deep dive into Å·²©ÓéÀÖ spectrum of market mechanisms and operational controls available to accommodate high levels of DER. We explore Å·²©ÓéÀÖ evolutionary pathway distribution markets may take, and we identify Å·²©ÓéÀÖ evolutionary sweet spot where optimal value can be derived.
Click Download to learn in detail why ICF sees distribution markets following a path that maximizes net value to all customers, starting from Å·²©ÓéÀÖ largest and most tangible value potential, and over time adding incremental and more complex opportunities. Understanding and fully realizing Å·²©ÓéÀÖ value of DER is becoming an increasingly important issue for utilities, regulators, and oÅ·²©ÓéÀÖr energy industry leaders with growing pressure to integrate DER from declining costs, heightened customer adoption, and governmental policies.
Assessing and realizing Å·²©ÓéÀÖ potential value of DER will require an evolution in distribution planning as well as significant investments in grid modernization. In our next paper, Enabling Å·²©ÓéÀÖ Value of DER Through Grid Modernization, we will draw on our extensive experience supporting distribution system investment planning and related regulatory filing development to lay out Å·²©ÓéÀÖ capabilities and systems required at Å·²©ÓéÀÖ different stages of DER adoption and distribution market development addressed in this paper.