How to Refine Electric Utility Compensation for Increasing DER Market Participation

As the energy sector embraces the core principles of sustainability, North America's electricity markets are experiencing a paradigm shift. The proliferation and acceptance of distributed energy resources (DERs) have fundamentally altered the dynamics of electricity generation and distribution, and how we leverage energy storage and demand response. 1 This is especially true for all utility types and DER owners/representatives, on the distribution system. While many consumers with DERs have successfully navigated the wholesale and retail energy markets, many challenges still exist with traditional utility models, sparking a reevaluation of compensation mechanisms for energy providers on the distribution system.