Distributed Energy Resources: Breaking Down Barriers

Distributed Energy Resources
 

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Distributed energy resources (DER) are smaller-scale clean energy resources, such as renewable energy and energy storage resources, located near customer load. In recent years, DERs have made great strides due to market reforms, advanced technologies, and declining costs. Despite these advances, DERs serve less than 1% of electricity load nationally. Many barriers exist to greater deployment of DERs. These barriers include the utility business model, market structure, and regulatory policies.

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Distributed energy resources (DER) are smaller-scale clean energy resources, such as renewable energy and energy storage resources, located near customer load. In recent years, DERs have made great strides due to market reforms, advanced technologies, and declining costs. Despite these advances, DERs serve less than 1% of electricity load nationally. Many barriers exist to greater deployment of DERs. These barriers include the utility business model, market structure, and regulatory policies.

New York is making great strides to eliminate these barriers. The New York Public Service Commission (Commission) opened a proceeding earlier this year, known as “Reforming the Energy Vision” (REV), that will re-examine the utility business model and the market barriers to greater deployment of DERs. In order to support its bold vision of reforming the state’s utility business model, New York will have to take into account the increased role of DERs and properly value their costs and benefits.

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