Key Takeaways
|
What are distributed energy resources?
Distributed energy resources are small-scale technologies that provide generation, storage, or data back to the grid. They are connected to the local grid, allowing them to provide energy directly to where it’s needed or to store it for future use. Examples include:
- solar panels
- wind turbines
- battery storage systems
Using vehicle-to-grid (V2G) technology, electric vehicles (EVs) can also serve as distributed energy resources when connected to an EV charger.
Why are distributed energy resources important for grid reliability?
Distributed energy resources enable the use of energy independently or in coordination with the larger power grid, offering flexibility in energy production and consumption. This flexibility is particularly valuable in balancing supply and demand as the grid connects more variable generation technology.
Distributed energy resources allow consumers to consume energy more independently or in coordination with the larger power grid, offering flexibility in energy production and consumption. This flexibility is particularly valuable in balancing supply and demand, which is increasingly important as the grid connects more variable generation technology like wind and solar. According to the International Energy Agency (IEA), by 2028, renewable energy sources are expected to account for over 40% of global electricity generation, making the flexibility that distributed energy resources provide even more critical.
Source: iea.org
Global renewable energy capacity is expected to more than double by 2030, increasing by 4,600 gigawatts (GW). That’s about the equivalent of combining the power generation capacity of China, the European Union, and Japan. As energy becomes more decarbonized and decentralized, DERs are changing how energy is produced, consumed, and distributed. For EV and grid stakeholders, DERs can help build a sustainable and resilient energy system while also supporting the expansion of EV charging infrastructure.
Why are distributed energy resources important for EV charging infrastructure?
The rapid adoption of electric vehicles is placing new pressure on traditional power grids. These grids, originally designed to distribute energy from centralized sources, may need help meeting the increasing demand for energy for EV charging. DERs supplement the grid to create a more resilient and efficient EV charging infrastructure.
Batteries
Battery energy storage systems (BESS) are important to modernizing the grid and supporting rapid global EV adoption. Cumulative energy storage additions are expected to grow more than 20% yearly over the next decade. During peak-demand periods, when multiple EVs are charging simultaneously, batteries can help alleviate grid pressure by supplying additional power.
- Peak times: a BESS discharges stored energy to supplement the grid, preventing overloads and reducing blackouts
- Off-peak times: a BESS recharges from the grid
Renewable energy
Batteries offer even more value when paired with on-site solar panels by supporting environmental sustainability and providing continuous energy for EV charging.
- Sunny days: plentiful solar supplements the grid to charge EVs and the BESS
- Cloudy days: with limited solar production, the BESS discharges to reduce grid strain
Integrating onsite renewable energy also helps future-proof charging infrastructure. Distributed energy resource capacity on the grid helps match the growing demand for future electrified transportation, heating, and power systems.
How can distributed energy resources save costs and generate revenue?
Managing the increase in demand for electricity for EV charging is a significant challenge for utilities. Distributed energy resources can help reduce grid strain during periods of peak demand while lowering EV charging costs and creating new revenue opportunities for homeowners and businesses.
| DER Strategy | Financial Benefit |
| On-site solar energy | Charging EVs with self-generated solar can reduce electricity costs |
| Battery energy storage system | Discharging stored energy during periods of peak demand helps reduce demand charges and lower overall electricity costs, while maintaining charging capacity |
| Smart EV charging | Shifting charging to off-peak hours when electricity rates are lower |
| Demand response participation | Reduce grid energy consumption during utility demand response events to earn revenue |
| Vehicle-to-grid technology | Sell excess energy in batteries back to the grid to generate income while supporting grid stability |
Community benefits of distributed energy resources
For communities, distributed energy resources reduce their dependence on centralized energy sources and enhance resilience, fostering greater energy independence. During a grid outage, DERs in local microgrids operate independently from the main grid to maintain essential services. This is particularly important during natural disasters or other emergencies when reliable access to energy is critical.
Conclusion
Distributed energy resources are vital for EV infrastructure and creating a resilient, efficient, and sustainable energy system. They help manage increased demand on the grid and offer numerous benefits to utilities, businesses, drivers, and policymakers. By embracing and integrating distributed energy resources, we can ensure a smooth and sustainable transition to electric mobility.
The Driivz EV Charging and Energy Management platform helps operators integrate distributed energy resources into EV charging infrastructure. Smart energy management balances EV charging demand with grid capacity, onsite renewable energy, and battery storage to support more resilient and sustainable charging networks.
