Distributed energy resourcesProject Pricing and Integration of Distributed Energy Resources
The report examines a way to value and provide pricing and integration for distributed energy resources services within network and customer sites.
Distributed energy resources (DER) such as rooftop PV with and without battery storage, electric vehicles and stationery behind the meter batteries, depending on where they are located and when and how they are operated, can either impose or reduce costs on the overall electricity supply chain.
The central focus of this study was the development of price signals that could be used to better integrate DER with the central generation and grid electricity supply chain. Such price signals would need to inform DER owners and their agents (e.g., aggregators) about the costs and benefits that DER can pose for the supply chain and, hopefully, incentivise:
- Investment in DER
– at the right scale, at the correct location, and at the right time, and
– at the least cost; and
- Operation of DER in such a way that it is allocated to its highest value use in its location at any specific time, so as to maximise its economic value.
The price signals developed in the study focus in particular on providing price signals that reflect the benefits that DER can provide to – and the costs it can impose on – the electricity supply chain.
Input to the project was provided from a variety of stakeholder perspectives via two reference groups that reviewed and commented on the various stages of the work as the study progressed.