A few days ago, we were contacted by an interested professional in Norway who had read our newest white paper, which I co-wrote with Guidehouse Insights to dispel the many myths surround distributed energy resource management systems (DERMS). He posited that Norway may be the world’s largest distributed energy resource (DER) system, noting that 90+ percent of the country’s electricity comes from numerous local, but interconnected, hydro stations. He pointed out that when rainfall is high, electricity is relatively inexpensive and that when it’s low, coal-fired power needs to be imported — a dynamic that’s changing with Norway’s ongoing construction of wind power. Noting that the country’s grid has operated for many years without 21st century grid management, he pondered what could be done with modern DERMS technology to minimize waste and improve the performance of the grid.
Guest blogger Peter Asmus of Guidehouse Insights writes about the changing DERMS market
The concept of integrated distributed energy resources (iDER) is a broad umbrella. Under this umbrella are platforms designed to maximize shared value across the energy ecosystem landscape. A recent Guidehouse white paper referencing virtual power plants (VPPs) and distributed energy resource management systems (DERMS) spells out why iDER strategies are necessary platforms to keep the grid in balance. Two recent acquisitions reinforce the message that these platforms are mature and are moving into the mainstream.
Two years ago, Enbala posted a blog that posed a proverbial 64 dollar question. Noting that “
I think it’s safe to say that, with the possible exception of a psychic or two who claim to have predicted the global pandemic that we’re all hoping would stop plaguing us, none of us had any idea that 2020 would be turned on its ear by a virus we’d never heard of a few short months ago. We’re all wondering what the short- and long-term impacts will be on all aspects of our lives, and at Enbala, we’ve been studying, pondering and prognosticating what the impact will be on the world’s evolution to distributed energy resources — and a greener, more sustainable energy future.
- Will business and residential customers continue to demand clean energy alternatives, and how will the answer to this question impact the market for renewables?
- How long will overall reductions in electricity demand persist, and how will the ramifications impact short- and long-term energy costs and the impact of these costs as drivers for cleaner energy alternatives?
- Can an increased focus on distributed energy resources help speed recovery from the pandemic?
- How will on-again, off-again stay-at-home orders and summer high-demand expectations impact grid reliability/stability, and how can distributed energy resources help?
In 1994, California restructured its electricity market, introducing competition as a theoretical means to bring down the price of power. The end-goal was to help revive an economy that was struggling due to a blend of issues, including high energy costs that were driving major manufacturing companies to leave the state, taking jobs and expendable income with them.
But despite good intentions, the restructured system lacked normal power market stabilizers. This, coupled with sharp, adverse changes in supply and demand, led to opportunistic (and occasionally illegal) behavior from out-of-state energy traders that caused power shortages, extreme price spikes and rolling blackouts during the infamous California Electricity Crisis of 2000-01.
A decade later, as California’s two major utilities teetered on bankruptcy and immense uncertainty, the California Public Utilities Commission (CPUC) established a policy framework in 2004 to prevent this from happening again. The resulting Resource Adequacy (RA) program created the rules for how load-serving entities (LSEs) contract for electricity capacity to ensure demand is met in case of an unexpected event.
I’m wondering how everyone out there is doing today. As I sit down to write this blog, many thoughts and ideas swim through my head about what to write. Should I ruminate on how the virus that has turned all our lives upside down will impact the utility industry? Should I speculate on what the future will bring, offering theories on how long this will last and the different scenarios that might play out when summer peak loads arrive? Or perhaps offer beacons of hope and optimism?
The French author Andre Gide coined an oft-copied phrase, “Everything that needs to be said has already been said,” and in this case, there is a lot of truth in that. The virus is all anyone has been talking and thinking about for days, weeks or months now—depending on where you happen to live. Many of us, including me, are experiencing serious information overload; I feel like I’ve been drinking from a fire hose.
Energy systems are changing. As variable renewable energy generation replaces retiring fossil fuel-run power plants, we see a shift from our century-old mindset of centralized supply following demand, to a more distributed grid with distributed energy resources (DERs) playing an essential role in a sustainable energy future. In order for renewable energy resources and DERs to replace conventional power plants, they need to be able to act like power plants – virtually at least.
At technology and innovation’s finest hour, we are able to aggregate disparate, geographically dispersed DERs and orchestrate them in such a way that they are able to respond to the grid’s needs at the same speed and accuracy as a traditional power plant. That’s where the Virtual Power Plant (or VPP for short) comes in. Navigant Research defines a VPP as:
VPPs are critical for the transition to more sustainable energy systems – so where is the technology at? Where can we find VPPs? And what can we expect in the future?
Guest blogger Peter Asmus of Navigant Research posts this week about the widening use of distributed energy resources around the world, virtual power plants and distributed energy resources management systems.
As distributed energy resources (DERs) continue to proliferate, so do the reliability challenges associated with the world’s aging grid infrastructure. The diversity of resources added to the power grid include plug-in EVs (PEVs) and rooftop solar PV coupled with energy storage devices at residences. As the grid was not designed for two-way power flows, these trends create challenges and opportunities for vendors and grid operators.
Enbala founder Malcolm Metcalfe had the opportunity – and honor – of learning the answer to this question first hand when he met with Queen Elizabeth II earlier this month. Yep, he chatted with the Queen. At Windsor Castle. And it turns out that she shares a dream with Malcolm – the dream of a clean energy future where energy poverty no longer exists for the 1 billion people in the world who are living without electricity today and the 3.8 billion more whose energy sources are insufficient, unreliable, dangerous or prohibitively expensive.
Guest blogger Peter Asmus of Navigant Research posts this week about virtual power plants, distributed energy resources management systems, microgrids — and the way in which Alectra is bringing them all together to meet its customers energy needs and its own grid reliability requirements.
Electricity is a multidimensional product that requires constant fine-tuning. Otherwise, the lights go out, resulting in substantial lost economic activity. The challenge of accomplishing this task has become increasingly difficult as the fleet of distributed energy resources (DERs) begins to take over electricity resource pools. Beginning in 2018, annual centralized power resources began to give way to distributed generation and a more diverse DER mix. I noted last year that this transition was likely.