The world is changing. This isn’t news, of course. In fact, it’s rather old news – the world has changed. And the composition of the power grid has changed along with it. More roofs have solar panels. More garages house electric vehicles. The devices consumers plug into outlets have radically different load profiles than the devices of previous generations. Today there is an increased prevalence of wind farms, smart inverters, batteries and many other distributed energy resources (DERs) at the grid edge.
All these DERs offer tremendous potential through control and optimization. But while this capability presents copious opportunities, it also creates a few headaches, particularly for grid operators, often miles away (literally and figuratively) from where the DERs are located.
Yet DERs are becoming so entrenched in the daily operations of the grid that it’s tempting to ponder just where their limitations lay. With advancements in technology and business models, many innovators are looking to increase value from DERs, which leads to the latest question surrounding the capabilities of these assets: Can DERs play in utility and wholesale markets?