Distributed Energy Resources (DERs) - Utility Response
- Aug 25, 2019 6:06 pm GMT
This item is part of the Special Issue - 2019-09 - Distributed Energy Resources, click here for more
As DERs supply a greater and greater portion of the total energy used, the utilities are going to have to respond to a situation where they will be losing market share but yet expected to continue to provide 100% electricity supply security.
Integrated utilities historically have supplied capacity(C) and energy(E) to customers on their grid. The regulators and the utilities themselves have not spent a lot of analytical time separating out the cost of capacity and energy. The traditional method for determining a fair and acceptable electricity rate within a jurisdiction has been to add up all the utility costs (C and E related) on an annual basis and assign these costs to their customer base. Normally this has been done separately for residential and business or commercial customers. For residential customers, their usually has not even been an attempt to separate out C and E costs and, for business customers the separation has not been very precise. In a monopoly situation where an integrated utility supplies all of the C and E for a jurisdiction, separating out the cost of these two items has not been that important.
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