Distributed Energy Resources (DERs) Provide Cost Savings and Resiliency

Efficient Power Tech (EPT) is in the business of providing:   energy management, energy efficiency products and services, generation, transportation charge management (EV Charging), and other energy technologies  for our commercial and industrial clients. 

In order to understand the benefit of DERs to your business it is helpful to have a working knowledge of issues associated with the electrical grid. Having an understanding of the supply side of the electrical grid allows a business owner to make informed decisions about the applications of DERs to current and future needs. In a series of short papers Efficient Power Tech will provide information to help you evaluate your supply (utility provider) and demand (your specific need for power) side for electrical power and make decisions to optimize your cost/production equation.

The National Renewable Energy Laboratory recently issued a report titled “Electrification Futures Study (EFS):  Operational Analysis of U.S. Power Systems with Increased Electrification and Demand-Side Flexibility.”  The link to the EFS is here:

Demand-Side Flexibility (DSF) as stated in the EFS refers broadly to any programs or capabilities in the electricity demand sectors (buildings, transportation and industry) that enable or encourage end-users to alter their consumption with the aim of improving the efficiency and/or reliability of the power system.

The Report points out that DERs are a key component to achieving DSF, specifically it points out that having on-site generation is a key component to creating flexibility and in turn cost savings and reliability.

 That’s right,  having on-site generation  at your facility will result in cost savings but also improved  reliability and resiliency.  Yes, it requires a long-term financial commitment and additional operational expertise.  However, these costs typically have a good ROI, particularly if viewed over time and in context of grid risks and the impact those risks have had and will have, on your production. The rising cost of energy production, additional regulations, and the strain on the power grid  have helped to push energy technologies and DER developments that will allow your business new options.

There are currently under consideration some very complex regulatory proceedings at the Federal Energy Regulatory Commission (FERC) related to allowing DER’s to participate via Demand Response aggregations in the wholesale power markets.   Without knowing the outcome with certainty, it seems safe to say that DER’s are on the radar and have support,  of regulators and the courts.  Current thinking can be simplified into the notion that DER’s have evolved  significantly to become a major part of the Energy Transition landscape in the coming years.

At Efficient Power Tech we believe that  DER’s can fit into your business plans and are a “now” vs. “later” proposition for a few reasons:

1. Black-outs and brown-outs are a real business risk in many regions of the USA.
2. Equity is in search of environmental resiliency
3. Except for batteries, Cap-Ex costs are approaching a leveling off on the price curve
4. Electricity prices are subject to the variability of off-site centralized renewable energy resources that are not connected directly to your facility
5.  –Traditional carbon-based generation resources will see increased regulatory burden and costs
6. The reliability associated with energy technologies is proving to hold up against the doubters of early adoption

Distributed Energy Resources are a key component  to lowering overall demand  for  grid-based power. As the “electrification of everything” ramps up, and sources for production become more dependent on greener technologies, we will need DERs to become functioning contributors, and a key component, to the grid’s health. 

Efficient Power Tech offers custom analysis and solutions  for your Distributed Energy Resources and networks. Each solution is customized  to a client’s needs and facility requirements. Sign up for a consultation and let us discuss your energy optimization and future.