Distributed Energy Resources: Understanding the potential

Sapere was commissioned by Transpower to investigate the potential value of Distributed Energy Resources (DER) in a New Zealand context.
Transpower is seeking to advance the discussion about how the electricity industry and market may need to evolve with increased penetration of DER. This report broadly considers the value of DER to the New Zealand Electric Power System, what economic incentives might encourage use of DER and what the current barriers to deployment and transaction costs are.
The timing of this work is significant. Transpower analysis suggests there could be significant uptake of DER within five years. The authors analysis confirms this. Our assessment also suggests that higher specification equipment would be needed than might otherwise be installed to unlock the full value potential of DER. To ensure that the best decisions are made for DER technology, investment signals for the services DER can provide should be put in place now.