The locational value of distributed energy resources: A parcel-level evaluation of solar and wind potential in New York state
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
We report distributed energy resources (DERs) are poised to play a significant role in evolving power systems because of their flexibility to be sited in areas of high value to the grid. Traditional DER compensation frameworks, specifically net energy metering (NEM), inadequately communicate differences in the locational and temporal value of DER generation to the grid. As a transition from NEM, New York State's (NYS's) Value of Distributed Energy Resources (VDER) framework provides a methodology for calculating different value components that DERs offer the grid. To study the impacts of VDER frameworks on DER deployment, we developed a model to assess the value of distributed solar and wind systems configured as either a behind-the-meter system or a front-of-the-meter system for each parcel of land in NYS. Using parcel-level granularity, we can closely evaluate DER locational value and siting availability, particularly in urban and suburban settings. Our analysis finds while most DER generators would be modestly compensated for deferred transmission and distribution infrastructure upgrades (~0.01 $$\$$$$/kWh for solar PV), a subset of projects receive significant value from this component (0.035 to 0.089 $$\$$$$/kWh for top 5% of parcels for solar PV). Finally, our analysis finds VDER provides less overall compensation than NEM to the average DER generator, however, it increases access to compensation for front-of-the-meter DERs - a large and emerging market.
- Research Organization:
- National Renewable Energy Laboratory (NREL), Golden, CO (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Wind Energy Technologies Office
- Grant/Contract Number:
- AC36-08GO28308
- OSTI ID:
- 1871808
- Report Number(s):
- NREL/JA-6A20-78362; MainId:32279; UUID:2b55b78a-2eb6-4612-9a6a-251fe9bdf0f6; MainAdminID:64612
- Journal Information:
- Energy Policy, Journal Name: Energy Policy Vol. 166; ISSN 0301-4215
- Publisher:
- ElsevierCopyright Statement
- Country of Publication:
- United States
- Language:
- English
Similar Records
The Value of Distributed Wind: A Valuation Framework
Cybersecurity Assessment for a Behind-the-Meter Solar PV System: A Use Case for the DER-CF