What are distributed energy resources?
As the energy future becomes more decarbonized and decentralized, distributed energy resources (DER) will play an important role in changing how energy is produced, consumed, and distributed. For EV and grid stakeholders, distributed energy resources are set to build not only a sustainable and resilient energy system, but also help expand EV charging infrastructure.
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
Through the use of V2G technology, electric vehicles (EVs) can also be a distributed energy resource while they are connected to an EV charger.
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.
Why Are Distributed Energy Resources Important for EV Charging Infrastructure?
As electric vehicle adoption reaches new heights, the demand for efficient and reliable charging infrastructure will remain a key priority for industry stakeholders and policymakers. DER are critical to building a sustainable and resilient energy system, and their deployment and integration will be a crucial part of EV infrastructure rollout.
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 to meet the increasing demand for energy for EV charging. This is where DER come into play. By supplementing the grid, distributed energy resources, including solar panels and battery storage, create a more resilient and efficient EV charging infrastructure.
During peak demand times, for example, when multiple EVs are charging simultaneously, distributed energy resources can alleviate pressure on the grid by supplying additional power. For instance, battery storage systems can discharge stored energy during these peak times, preventing grid overloads and reducing the likelihood of blackouts. Later on, when demand for EV charging subsides, the battery storage systems can be recharged from the grid.
According to BloombergNEF, energy storage installations worldwide are projected to reach a cumulative by the end of 2030. This increase underscores the vital role of DER, particularly battery storage, will play not only in modernizing the grid, but also in supporting the rapid adoption of EVs worldwide.
The Role of Renewable Energy as a Distributed Energy Resource
Solar panels installed at EV charging sites can generate clean energy, reducing reliance on the grid, but since these systems depend on the weather, they are not reliable sources of energy on their own. When paired with battery storage, together these systems can provide a continuous supply of energy for EV charging. On sunny days, solar energy will be plentiful and can supplement the grid to charge EVs and recharge local battery storage. On cloudy days, when solar energy is not available, the onsite batteries can discharge to reduce strain on the grid.
This integration of renewable energy with EV charging infrastructure not only supports environmental sustainability but will also future-proof the charging infrastructure. A study by Wood Mackenzie found that, in the United States alone, 262 gigawatts (GW) of new DER and demand flexibility capacity will be installed from 2023 to 2027, close to matching the 272GW of utility-scale resource installations also expected during that period. Distributed energy resource capacity on the grid is expected to help match the growing demand for future electrified transportation, heating, and power systems.
How Can Distributed Energy Resources Help Achieve Cost Savings and Generate Revenue?
Managing the increase in demand for electricity for EV charging is a significant challenge for utilities. To mitigate strain on the grid during periods of peak demand, utilities can offer demand response programs which significantly reduce costs for EV owners and generate revenue for businesses.
Homeowners with solar panels can charge their EVs using self-generated solar energy or use smart charging capabilities to defer EV charging to off-peak late-night hours. In both cases, they will significantly reduce their energy costs for EV charging. Similarly, through the use of a smart EV charging and energy management platform, businesses can reduce energy consumption from the grid for EV charging upon demand to earn revenue through the utility’s demand response program. During these demand response windows, onsite distributed energy resources can replace grid power to maintain EV charging at the required capacity. Additionally, as vehicle-to-grid (V2G) technology continues to mature, both EV owners and businesses can sell excess energy stored in EV batteries to the grid to generate income while supporting grid stability.
What Are the Benefits of Distributed Energy Resources for Community Resilience and Energy Independence?
For communities, distributed energy resources enhance resilience and energy independence. In the event of a grid outage, distributed energy resources in local microgrids, can operate independently from the main grid to ensure that critical services remain operational. This is particularly important during natural disasters or other emergencies where reliable access to energy is critical. Additionally, communities that use distributed energy resources are less dependent on centralized energy sources, fostering greater local energy autonomy.
Conclusion
The integration of distributed energy resources is vital for building the future of EV infrastructure. As the number of EVs continues to grow, so does the need for a resilient, efficient, and sustainable energy system. Distributed energy resources provide the necessary support to manage the increased demand on the grid, integrate renewable energy sources, and offer numerous benefits to stakeholders across the EV ecosystem.
Understanding the important role DER will play in the future of EV infrastructure is essential for stakeholders—from utilities and businesses to individual EV owners and policymakers. By embracing and integrating distributed energy resources, we can ensure a smooth and sustainable transition to a future where electric mobility is the norm.
