The stars appear to have aligned for distributed energy resources (DER) to play an increasingly important role in providing energy services to consumers. Some see this growth in capacity from devices such as solar photovoltaic (PV) panels, fuel cells, advanced batteries, and other forms of DER as the supreme threat to incumbent distribution utilities, echoing the much-ballyhooed “utility death spiral” story line. Others see this evolution as an opportunity for utilities to reinvent themselves, aligning their business strategy and business models with the emerging digital economy.
Either way, it is going to be a bumpy ride into the future. Yet there are signs that it is possible to create win-win scenarios by leveraging the diverse services that energy storage can provide. Advances in software that can optimize DER to provide bidirectional value along with the bridging capabilities that energy storage brings to the market can create order out of what would otherwise be chaos.
Is there a way for everyone to come out as winners? The key is intelligent distribution networks, an ecosystem of solutions that spans concepts such as nanogrids, microgrids, and virtual power plants (VPPs.) These three platforms were described in a previous blog.Read More