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

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.

Automated summary

The incorporation of distributed energy resources (DERs) has been widely adopted as part of global energy transition. It enables end users to participate in capacity auctions, opens up diverse business models, and allows for valuation of energy resources based on different times and places. This transformation has led to more competitive and innovative structures, creating opportunities for integrating technologies and promoting pluralized participation.