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The increased prevalence of distributed energy resources is driving changes to utility planning. The ACEEE's new report, The Role of Energy Efficiency in a Distributed Energy Future, found that most utilities are not currently using energy efficiency in distribution system planning, but several states are pursuing new approaches to using efficiency to displace traditional distribution infrastructure upgrades and integrate more renewables into the grid. These states provide clear examples of how energy efficiency can be used as a resource on the distribution system.
Energy Efficiency as a Distributed Energy Resource
The purpose of distributed resource planning processes is to integrate distributed energy resources into the grid and address other related issues such as rate design and valuation approaches. However there is no common definition of distributed energy resources. The National Association of Regulatory Utility Commissioners defines it as "a resource sited close to customers that can provide all or some of their immediate electric and power needs and can also be used by the system to either reduce demand or provide supply to satisfy the energy, capacity, or ancillary service needs of the distribution grid." Our review of other definitions shows that most, but not all, include energy efficiency, which allows utilities and customers to cost effectively reduce energy needs and demand.
Utilities have been implementing energy efficiency as a resource for several decades and the benefits of efficiency are also well documented. At the distribution level, energy efficiency may delay or avoid the need for new distribution infrastructure, and also reduce demand and energy needs at individual homes and businesses...
