What are Distributed Energy Resources?

Distributed Energy Resources, also known as DERs, are small-scale units of local power generation that operate in conjunction with or independently of, the larger power grid. DERs are usually situated close to loads and serve as resources for power generation.

DERs play a significant role in the future of sustainable energy. As decentralised power sources, they can reduce dependency on the grid and contribute to greater grid resiliency. They also promote energy independence and encourage the use of renewables such as wind and solar, increasing demand for smart grids and energy storage systems while reducing greenhouse gas emissions. Multiple DERs can be combined into a microgrid, either connected to the main grid or operating as an island. A microgrid can be 100% renewable or hybrid, integrating renewable and traditional power sources to ensure energy resilience.

Types of Distributed Energy Resources 

• Solar Power
• Wind Power
• Battery Energy Storage
• Combined Heat and Power
• Demand Response Technologies  

Solar Power

Solar power is one of the most popular and widely used types of DERs. Over the past decade, the cost of solar has decreased substantially, making it more accessible and popular across commercial, residential, and industrial sectors. In addition to its low cost and easy installation, solar's adaptability and scalability make it an increasingly attractive choice for renewable and decentralised energy.

Wind Power

Small-scale wind turbines can be installed near load centres in residential, commercial, or industrial areas, providing a clean and renewable source of decentralised energy. Like solar, wind power is a DER known for its adaptability to different environments. 

Battery Energy Storage

Battery Energy Storage is a type of DER that stores excess energy for later use, most commonly through lithium-ion batteries and intelligent BESS software. These efficient storage systems enable seamless integration of renewable energy sources and provide a reliable backup power supply.  

Combined Heat and Power Systems (CHP)

 Combined Heat and Power (CHP) is a type of Distributed Energy Resource that generates both electricity and thermal energy from the same fuel source. CHP captures heat that is normally wasted in traditional power generation and repurposes it as thermal energy alongside electricity. Small CHP plants can be built near load centres and are a highly efficient and cost-effective type of DER.

What are the benefits of Distributed Energy Resources?

• Energy efficiency and conservation 
• Reduction of greenhouse gas emissions 
• Energy independence and security
•  Economic benefits (cost savings, job creation)  

Energy Efficiency and Conservation

By generating power closer to where it is consumed, Distributed Energy Resources (DERs) significantly reduce transmission and distribution losses. This localised production improves overall system efficiency and reduces wasted energy. DERs also encourage the adoption of local and renewable energy sources, offering a cost-effective and more sustainable alternative to traditional centralised power generation.

Reduction of Greenhouse Gas Emissions

DERs play an important role in reducing greenhouse gas emissions by promoting the use of clean, renewable energy sources such as solar, wind, and hydropower. In addition to replacing fossil fuel-based generation, DERs further support emissions reductions by improving system efficiency and minimising the carbon footprint associated with long-distance energy transmission. 

Energy Independence and Security

The decentralised nature of distributed energy resources allows them to operate independently or alongside the grid. This reduces dependency on the main grid, enhances resiliency, and lowers the risk of widespread blackouts. By utilising local resources, DERs empower communities to be self-sufficient in power generation, promoting reliable and flexible energy systems that adapt to their needs.

Improving System Resilience 

Demand Response Technologies are a type of DER that manage electricity consumption based on available energy supply, for example, by encouraging consumers to reduce usage during peak demand periods. These technologies prevent demand from exceeding supply, enhancing energy system resiliency and reducing costs.  

Economic Benefits of Distributed Energy Resources

Distributed energy resources offer various economic benefits. By improving energy efficiency, DERs can significantly reduce energy costs. They also lower the need for peak demand charges, and if equipped with Battery Energy Storage Systems, they can optimise surplus power distribution within the grid by offering energy storage during periods of low energy demand. DERs, thanks to their local presence, reduce the need for costly infrastructure upgrades. Additionally, DERs promote investment in sustainable technology and create jobs within local communities.

The Challenges of Distributed Energy Resources

Integration with the Existing Grid

One of the biggest challenges for distributed energy resources is integrating with the existing grid. Proper mains protection is essential to ensure compliance with each country's standards. 

Intermittency of Renewable Energy Sources  

The intermittency of renewable energy sources such as wind and solar can cause power fluctuations that may destabilise the grid. As renewable energy adoption increases with the expansion of DERs, maintaining grid balance and reliability becomes increasingly complex.

Bi-Directional Power Flow    

Another major challenge for distributed energy resources is the bi-directional flow of power. Since the traditional grid was designed for one-way power flow, bi-directional power flow can cause issues such as voltage fluctuations, instability, and errors in protection systems and fault detection.  

Solutions for Overcoming the Challenges of Distributed Energy Resources (DERs)

Smart Energy Management

Smart energy management uses advanced digital technology to monitor and control energy generation and distribution, making it one of the most effective solutions for addressing the challenges of distributed energy resources.

As a solution, smart energy management ensures effective communication between DERs and the grid by implementing sophisticated communication protocols and interoperability standards, enabling seamless compatibility and integration.  

Smart energy management also manages the intermittency of renewables through real-time data analytics and battery energy storage systems (BESS), which store excess energy for use during periods of low generation. This ensures that the energy supply consistently meets demand.

Additionally, to address bi-directional power flow, smart energy management incorporates advanced automated control and management capabilities. These capabilities detect faults, regulate voltage, and maintain grid stability.

 Distributed Energy Resource Management Systems (DERMS)

Distributed Energy Resource Management Systems (DERMS) are centralised software platforms designed to optimise and manage DERs in relation to the grid. They provide effective solutions to many challenges associated with DERs. DERMS often function as part of smart grids, focusing primarily on the optimisation and efficient management of distributed energy resources within the grid.

By providing real-time optimisation through analytics and intelligent algorithms, DERMS effectively balance energy supply and demand, enhancing the reliability and efficiency of DERs.

Another key feature of DERMS is their ability to manage the unpredictable output of renewable DERs such as wind and solar. By predicting consumption and energy production patterns, DERMS calibrate DER power output to meet grid demand. This significantly improves grid stability by reducing the risk of intermittency 

Additionally, DERMS enable centralised control over DERs, facilitating effective integration and coordination of their operations.

Examples of Distributive Energy Resources in Action

Microgrid with integrated DERs for a First Nation Community

The Kwikwasut'inuxw Haxwa'mis First Nation is an off-grid community in Canada that uses a sophisticated microgrid to integrate the use of renewable solar energy and a battery energy storage system (BESS). This reduces the community’s dependency on diesel energy generation and improves their sustainability. As a result, the KHFN’s microgrid has enabled the community to offset over 73.000 litres of diesel annually, saving 187.600 kg of CO2 emissions, and substantially improving the living standards of its residents.

Read more here

Combined Heat and Power (CHP) on a German winery (CHP)

The Heinrich Vollmer winery in Germany uses an innovative combined heat and power system to optimize its bottle cleaning procedures. In order to remove the cleaning chemicals commonly used in wineries, the Vollmer winery utilises their excess heat to produce boiling water as a substitute for the chemicals, providing an organic cleaning alternative and improving the energy efficiency of the winery.

Read more here  

Photovoltaic Solar panels integrated with Switzerland’s Greenest Datacentre  

The Ostschweiz datacentre in Eastern Switzerland uses a fleet of photovoltaic solar panels in combination with its gensets to significantly offset emissions and ensure efficiency in its operations. In addition to solar panels on the centre’s roof and façade, the centre utilises the cold air of its surroundings to provide natural cooling. As a result, the Osteschweiz centre is so efficient that it generates more energy than it needs, exporting its excess energy to a nearby cheese factory.  

Read more here

Conclusion

While challenges to DERs remain, innovative technological solutions such as smart energy management and DERMS continue to advance, enhancing the adaptability and usability of renewable energy sources.

The benefits of DERs are undeniable. By enabling the seamless integration of renewables like wind and solar, along with advanced technologies such as smart energy management and DERMS, DERs promote sustainable practices while reducing emissions and operational costs. Additionally, they improve the reliability and resiliency of energy systems, ensuring continuous power for critical infrastructure and providing independence and security from external threats to the larger grid. 

As the demand for modern, sustainable energy practices grows and decentralised energy systems gain popularity, DERs represent a transformative shift in the future of energy generation, consumption, and management.