Understanding the Value of Distributed Energy Resources: New Methods and Insights for Electricity Economics, Planning, and Operations
Distributed energy resources (DERs), including distributed generation, storage, and demand response, create new options for the provision of electricity services. As detailed in the recently released MIT Utility of the Future study, these distributed resources compete with and complement one another as well as conventional generation resources and network assets. In addition, many DERs exhibit tradeoffs between “locational value" (deriving from loss mitigation, network capacity deferral, constraint mitigation, etc.) and economies of unit scale. New electricity system modeling tools are needed to evaluate the value of DERs and provide insights into how, where, and why DERs can be economically attractive contributors to an affordable and reliable electricity system. This seminar will describe a new electricity resource capacity planning tool, "GenX," suitable for analyzing the role and value of DERs in power systems and present insights from initial case studies.