Distributed Energy Resources (DERs) are small-scale electricity supply or demand resources further interconnected with an electric grid. These power generation resources are present near the load centres and are utilised individually or collectively. Whether it’s rooftop solar or charging piles, they are both facets of DERs.
For years, distributed energy resources have enjoyed a booming development considering the advancing technologies and policy support. According to the report by EY (Ernst & Young), Australia is embracing DERs, with a huge uptake of solar panels, batteries, and electric vehicles.
The Draft 2024 Integrated System Plan (ISP) of the Australian Energy Market Operator (AEMO) projects that DER, including rooftop solar and storage, will reach about 120 GW by 2050. According to the EY analysis, this indicates that DER will be the biggest source of capacity, surpassing utility-scale wind and solar power and outstripping the majority of other sources of electricity.
But is it a good investment? What further benefits will they bring? This blog may give you some hints.
Common Types of Distributed Energy Resources
Let’s look at some common types. Knowing these will help you understand DERs.
Solar Photovoltaic (PV)
Distributed, or rooftop, solar PV systems are installed within the distribution network, typically on rooftops, parking lots, or close to where the energy will be consumed. In contrast, centralised or utility-scale PV plants are connected to the transmission network and are usually situated in areas with high solar potential and strong interconnection capabilities.
Wind Turbines
Use the kinetic energy of the wind to produce electricity. These smaller systems are ideal for areas with suitable wind resources.
Battery Energy Storage Systems (BESS)
Store excess electricity generated from renewable resources. When production is low, or demand is high, they release energy.
Combined Heat and Power (CHP) Systems
Generate heat and electricity from a single fuel source. They are more efficient than traditional generation techniques.
Microgrids
Localised grids that can operate independently or in conjunction with the main grid. They can also integrate several distributed energy resources.
Benefits of Distributed Energy Resources to Australia
Australia is blessed with a unique natural environment, which makes it the leading country in the employment of DERs, especially distributed solar energy.
Australia’s vast expanse and low population density mean that even in major cities, most residents live in detached houses. With abundant wind and solar resources across the country, Australia boasts the highest per capita rooftop solar users in the world. According to the Infrastructure Investor, about a third of all households in Australia already have rooftop solar panels installed, and the number is said to have a boom in the following years.
Let’s see why the application of distributed energy sources, rooftop solar, to be specific can become the national trend.
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Reduced Electricity Bills
Rooftop solar panels enable users to save significantly on electricity bills by generating their own power and reducing reliance on the grid. Excess generation can be fed back into the grid, reducing system load and, ultimately, electricity prices.
With lower midday demand due to solar generation, traditional midday peak loads have shifted, often resulting in lower or even negative electricity prices during sunny days.
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Environmental Impact
By generating electricity locally, distributed energy sources like rooftop solar reduce greenhouse gas emissions and reliance on fossil fuels, contributing to a cleaner environment.
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Energy Independence
Households with rooftop solar panels can achieve greater energy independence, particularly when combined with home battery systems that store excess energy for use during peak demand periods or power outages.
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Grid Stability and Reliability
Distributed energy sources enhance the stability and reliability of the grid. By reducing peak demand on the grid, they alleviate stress on the transmission and distribution infrastructure, minimizing the risk of blackouts and reducing the need for expensive grid upgrades.
Conclusion
Looking for reliable DER solutions providers?
Always opt for companies with experience and expertise. Sungrow is a leader in this industry and has a comprehensive portfolio of products. From solar inverters for homes to utility-scale solar solutions. Sungrow has you covered. For more information about Sungrow solutions for deploying distributed energy resources, you can visit their website.
