The Challenges And Benefits Of Distributed Energy Resources (DER) For Municipalities

The growing interest in, and deployment of, distributed energy resources ("DER") has been thought to be of interest, albeit for different reasons, primarily to consumers and to local electricity distribution utilities. However, DER has important implications for municipalities, both in their capacity as the owners of those distribution utilities and as a means to promote both conservation and the development of contaminated properties.

DER is a term which covers power generation and storage resources, of varying sizes, types, and capacity. DER is typically found on a consumer's premises and is used to supply all, or a portion of, the consumer's electricity load. Depending on the size and capacity of the DER technology used, it may also be able to supply excess power to the utility grid.