A recent survey indicated that many of the nations electric companies are planning on incorporating distributed energy resources (DERs) into their business model. However, as is typical with this sector (and many others), most companies would prefer to see the concept proven before they make a significant investment in it themselves. Many utilities are investing in pilot programs such as rooftop solar panels or storage to experiment with DERs, rather than making significant alterations to their core infrastructure. Pilot programs have been used by utilities for decades are considered to be an effective method of testing a concept prior to making a large and costly commitment to an unproven idea.
SEHNDE, GERMANY – MARCH 10: Steam rises from cooling towers at the coal-fired Kraftwerk Mehrum power plant at Haemelerwald on March 10, 2015 near Sehnde, Germany. Energy production from conventional-based resources is becoming less profitable as renewable energy production has expanded and matured in Germany in the last decade. RWE, one of Germany’s biggest utilities, today warned of pending job cuts due to financial losses derived from its conventional energy production. The Kraftwerk Mehrum plant is majority-owned by Stadtwerke Hannover AG. (Photo by Alexander Koerner/Getty Images)
Clean and efficient methods of producing, storing, and transmitting energy are considered to be the wave of the future but when and how this wave will make landfall is still the subject of much debate. In general areas where technology has already penetrated the market are more open to further use of that technology. Many states have begun regulatory proceedings or have already written regulations to govern the use of DER pilot programs. Throughout much of the country energy advocates are coming together with utility companies to create pilot programs which will be mutually beneficial for both companies and consumers.
In states across the nation consumers are working with utility companies to work out equitable compromises on issues such as behind the meter storage, demand charges, and usage of consumer rooftop solar panels. Overall the relationship between DER stakeholder groups and is generally amicable with both sides working together to find compromises on issues which benefit all parties involved.
Utilities which have long been looking for business opportunities in DERs but have been reluctant to make significant investments themselves are finding that consumer investment is a low cost way to move forward. Consumers who are investing in pilot programs in areas such as solar, wind and geothermal energy are eager to make long term investments that will lower their utility bills provided they can be assured of fair treatment by utility companies.
