We decided it was time we wrote another review of distributed energy resources (DER). These are small-scale electricity generation units, that may or may not provide energy to a power grid. By small-scale, we mean delivering electricity that is at best a couple of megawatts. Such units are usually close to the point of electricity consumption, even in the consumer’s home.
Distributed Energy Resources and Renewable Energy
DER’s were originally standalone installations that delivered their load to their owners. More recently, the idea surfaced of using the electricity to supplement utility resources during peak demand periods. However, this idea has failed to fulfill its full potential, on account of large-scale renewable energy installations, as described in our reviews of distributed energy resources elsewhere.
Nonetheless, the idea is still alive in the minds of individual consumers, and some immediate neighborhoods too:
- Owner-driven DER’s open the possibility of individual homes and businesses operating entirely off grid.
- But they also offer the alternative of operating those resources during peak demand periods, to avoid high tariffs.
- More recently, some small DER owners have begun selling their energy to utilities, and making money to pay for their panels.
A Fourth Option Arises – Battery Energy Storage
Individually-owned distributed energy resources are largely solar-panel powered, because the lightweight panels attach directly to existing roofs. These panels feed their energy to batteries, from where it powers owner devices and / or utility grids.
However, those batteries are increasingly used as standalone installations receiving utility electricity during off-peak periods when prices are low. Their owners sell the electricity back to their utilities during peak hours, for higher prices. They use this income to supplement their electricity bills!
We end our review of distributed energy resources with this thought. Purchasing electricity from individual electricity entrepreneurs reduces load losses, and saves on transmission costs. Could this idea eventually do away with centralized power generation? Please tell us what you think.
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