Distributed resource utilization involves maturing a set of regulatory, business, and technical capabilities to more fully enable decentralized resources to address growing distribution and bulk power system needs.
Customer, business, and institutional adoption of distributed energy resources (DERs) and electrification is driving greater use of DER-provided grid services for both wholesale and distribution operations. This is expanding the need for maturing practices and setting rules by which all participants involved in the utilization of distributed energy resources can more fully leverage their capabilities.
In this area, the Department is examining regulatory, business, and technical practices needed to support the effective coordination of these grid-edge resources with utility operations. This involves defining “what” is needed, considering “how” best practices should be implemented, and understanding “who” is responsible. This effort includes:
- Development of a holistic set of distribution grid codes reflecting regulatory and industry best practices and technical standards to enable DER integration and utilization.
- Development of practical guides to assist policy makers, regulators, and industry to understand fundamental considerations involved with expansion of DER utilization for grid operations, market access, and community-based energy systems.
Distributed Resource Utilization is a component of the Distribution Grid Transformation effort. Other components include:
The Pacific Northwest National Laboratory supports the Department’s efforts in Operational Coordination where additional materials are available.
Topic Description Date Distribution Grid Code Framework Provides an introduction to a distribution grid code framework which encompasses the various institutional, business, and technical activities associated with integration and utilization of DER, microgrids, and electrification into a structured set of best practices and associated technical standards. 23-Nov Consumer Resource Flexibilty Provides guidance to policymakers, DER aggregators, and utilities when considering large-scale utilization of small commercial and residential customer owned DERs for enhancing wholesale and distribution grid flexibility services. 23-Nov DER Aggregator Code of Conduct Guidance Provides a reference code for managing aggregator and consumer engagement considerations with flexible DER services. This code of conduct enables an aggregator-consumer partnership model, which is essential for engaging consumers and communities to achieve the scale of flexibility services envisioned. 23-Nov Distribution Standard of Conduct Provides a reference standard of conduct for distribution utilities to address the need for greater open access and non-discriminatory distribution operations in the utilization of DER, particularly with FERC Order 2222. 23-Nov Bulk Power, Distribution, and Grid Edge Services Definitions Catalogs the various services, as currently employed, that may be provided by DERs to facilitate applied research and industry discussions. This includes services in the bulk power system, distribution system, and within the edge including customers and communities. 23-Nov Standard Distribution Services Contract Provides a guide for the development of a standard distribution services contract (DSC) between an electric distribution utility and DER aggregator. It summarizes key steps in the overall lifecycle for Distributed Energy Resource Aggregator (DERA) provision of distribution grid services, offers insights into the structure of DSCs, discusses key contractual elements and related forms/agreements for consideration. 23-Nov Distribution Grid Code Adoption Pathways Introduces high-level functional requirements and conceptual architecture considerations for a common DER registry, market coordination and operational coordination platform to address the coordination requirements of FERC Order 2222. The platform functionality discussed is based on commercially available software. 24-Apr TSO-DSO-Aggregator Market and Operational Coordination Requirements Advances market and operational coordination of distributed energy resources, especially their evolving use as virtual power plants 24-Apr Flexible Distributed Energy Resources Electric Vehicle Connections July 2024 The paper introduces and elaborates on three key concepts associated with interconnection strategies for distributed energy resources, specifically dynamic operating envelopes, flexible interconnection, and flexible service connections. It informs regulatory decision processes by presenting emerging flexible connection strategies and case examples, as well as provide a strategic framework for enhancing DER integration and electrification. 24-Jul Distribution Grid Orchestration This paper introduces a DER orchestration model illustrating the various mechanisms for managing distributed energy resources to serve grid operations. The orchestration mechanisms are classified broadly into three categories: dispatch-signal-based, autonomous, and behavioral.Examples of the application of these orchestration mechanisms are provided, which includes a discussion of their maturity. Remaining challenges pertaining to the widespread enablement and adoption of DER orchestration mechanisms include needed advancements in system interoperability, data management, grid-edge technology and associated standards, and robust communications networks for dispatchable resources. 24-Nov Sourcing Distributed Energy Resources for Distribution Grid Services This paper examines the evolving role of distributed energy resources (DERs) in providing services to the distribution grid which may be needed to address load growth power requirements and constraints.A major challenge is that current sourcing mechanisms for DERs are not fully aligned with emerging distribution operational performance requirements, and that a portfolio approach to optimizing the use of all available options can yield improved cost and performance to address growing distribution constraints while providing adequate compensation to DER service providers.The paper introduces a Techno-Economic Decision Model for DER services that provides a systematic approach to developing a portfolio of DER solutions. 24-Dec Topic Description Date Community Energy Considerations A reference guide for decision makers, offering insights into the complexities of policies, regulations, and operational considerations of community energy systems. It provides a holistic treatment of addressing statutory, regulatory, and operational considerations to bolster state and community energy efforts, including a focus on distributed market considerations. FY 2024 Community Microgrid Regulatory and Legislative Needs Explores challenges in multi-stakeholder community microgrid development and offers potential solutions for legislators and regulators, including state energy offices, utility regulators, and electric utilities. It provides an examination of microgrid statutory, regulatory, and operational considerations to support state and community microgrid efforts. FY 2024 Operational Coordination Architectural Methods & Considerations A reference guide for identifying and developing operational coordination frameworks, assisting decision-makers in their efforts to facilitate the integration of DERs into the grid and market through coordinated structures. This resource is designed for practical application, incorporating industry insights from both the U.S. and international contexts. FY 2024 FERC 2222 Investment Requirements for Utilities Provides regulators and utilities with guidance in identifying the necessary utility investments required for FERC Order 2222 readiness and compliance, covering aspects such as interconnection, registration, metering, and operational coordination. FY 2024 FERC 2222 Requirements for Regulators, Utilities and Aggregators Provides a framework and guidance for regulators to identify the challenges and requirements for successful FERC Order 2222 readiness and implementation, covering aspects such as interconnection, registration, metering, and operational coordination. FY 2024 Microgrid Development and Operating Agreement Guide A reference guide for development of a standard community (i.e., multi-customer) microgrid development and operating agreement between distribution utility and microgrid owner/developer/operator. This reference guide draws upon emerging best practices in several states. FY 2024 Grid Codes Pathways Guide Provides a reference framework for identifying key milestones and associated implementation pathways for the adoption of grid codes for institutional and business processes, engineering practices and technical standards. This guide incorporates considerations, based on a capability maturity model, for small, medium and large utilities at each of the 3 stages of DER adoption and utilization. FY 2024 Grid Codes Best Practice & Standards Compendium Serves as a living repository, encompassing a wide range of institutional and technical best practices, and offers practitioners a single access point to industry standards and best practices related to the integration and utilization of DERs. FY 2024