Technology Tuesdays: Distributed Energy Resources (DERs)

This month, I am pulling out the acronym book once AGAIN! We are all about DERs for the month of August.

Now, as you read this, you may be thinking, “What is a “DER” and why is it important to me?” Chances are, you encounter them almost every day, but you may not think of them as “DERs.” Below are some of the most common examples:

  • Rooftop solar PV system

  • Energy Storage Systems (systems used to store energy for use later, i.e. batteries or fuel cells)

  • Electric vehicles

  • Microgrids

  • Demand response

  • Wind turbines

  • Combined heat and power

These items are familiar to most people; however, some may be more common than others, depending on where you live. For example, in the San Joaquin Valley, rooftop solar, battery storage, and EVs are nearly everywhere. However, due to the wind profile in our region, wind turbines are not as common. The above list is not exhaustive but is compiled of examples to help illustrate the topic.

The acronym “DER” stands for Distributed Energy Resources and refers to systems that produce energy at or near the where it is being utilized. These systems are often renewable.

Why are DERs important? If done right, they can contribute to overall grid resiliency and help generate cost and energy savings.

Resiliency
DERs are essential to our journey toward resiliency for many reasons. One of those reasons is public safety power shut-off events, which you may know as PSPS events. Each year, the number of cooling-degree days in California increases. Additionally, the heat intensity of those cooling degree days also increases. As long as these trends continue, we can expect to have more PSPS events. In fact, as I am writing this article, I received a notification from PG&E about possible power outages in my area.

DERs are an effective means of maintaining power in the event of an outage, whether due to a PSPS event or a system failure. DERs commonly use some form of energy storage, which can be used as backup power during an outage. Additionally, DERs, such as microgrids, provide independence from the grid, sparing users from the negative effects of a power outage.

DERs also help improve grid resiliency by creating multiple access points to the electricity grid, a process called decentralization. The likelihood of a power outage is significantly reduced if there are multiple access points to the grid. Decentralization also reduces the number of people affected and the size of the outage when compared to a single access system.

DERs also allow for better diversification of the energy mix. A DER system can incorporate many types of renewable energy sources, thus reducing dependence on fossil fuels.

Cost Savings
DERs play a crucial role in overall cost savings. They do this by shifting energy use load from peak to non-peak times of the day. This allows the user to avoid costly peak time rates resulting in lower energy bills. If you would like to read more about peak and non-peak rates and why load shifting is important, read What the Duck?!, another installment of our Technology Tuesdays.

Another way DERs help generate cost savings is by generating their own energy. This is most often done with solar panels or wind turbines. Reducing the amount of energy being drawn from the grid will always result in cost savings. The more energy being generated, the more cost savings results.

With the proper software integration, DERs can also increase energy efficiency and deliver additional cost savings to the user.

Energy Savings
While resiliency and cost savings are significant goals for DERs, we must not forget about the energy savings component. Now, you may be asking, how is this different from cost savings?

While cost savings and energy savings are often related, we must consider that energy savings are tied directly to energy efficiency. The definition of energy efficiency is “using less energy to perform the same task.”

This definition creates a very important distinction between using less energy and using less energy without compromising comfort or functionality. How exactly do DERs help us to do that?

When DERs are combined with energy efficient measures, truly comprehensive energy savings can be achieved. It is through this combination we can make a real difference in lowing our greenhouse gas emissions and make significant strides toward sustainability

The savings never stop!

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Sources:

https://www.aemc.gov.au/energy-system/electricity/electricity-system/distributed-energy-resources
https://www.energy.gov/femp/distributed-energy-resources-resilience
https://www.buildings.com/resiliency-sustainability/energy-water-efficiency/article/33018290/harnessing renewable-power-the-benefits-of-distributed-energy-resources
https://www.eesi.org/topics/energy-efficiency/description