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Opportunities and challenges of mainstreaming distributed energy resources towards the transition to more efficient and resilient energy markets

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  • López González, Diana María
  • Garcia Rendon, John

Abstract

The incorporation of distributed energy resources (DERs) has been generalized worldwide as part of the energy transition. A review of the literature in the most important scientific databases shows that this transformation has enabled the participation of final users in capacity auctions, as is the case of Germany, the opening to diverse business models, as in the United Kingdom, and the valuation of energy resources according to different times and places, as in the United States. In Australia, it has brought about the linkage of the retail market with the wholesale market, making it clear how distributed generation can contribute to minimizing costs through collaboration agreements. The common objective in these four leading countries is to compensate for possible misalignments between the cost, price and value of electricity caused by this transition. DERs have generated more competitive and innovative structures, which represents a transcendental opportunity to integrate technologies that complement the generation matrix and to pluralize participation towards a more efficient and resilient energy market.

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  • López González, Diana María & Garcia Rendon, John, 2022. "Opportunities and challenges of mainstreaming distributed energy resources towards the transition to more efficient and resilient energy markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:rensus:v:157:y:2022:i:c:s1364032121012818
    DOI: 10.1016/j.rser.2021.112018
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    More about this item

    Keywords

    Distributed energy resources; Distributed generation; Energy market; Energy transition; Opportunities and challenges; Renewable and non-conventional energy sources;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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