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

• Published in: Renewable & sustainable energy reviews Vol. 157; p. 112018
• Main Authors: López González, Diana María, Garcia Rendon, John
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.04.2022
• Subjects: Distributed energy resources; Distributed generation; Energy market; Energy transition; Opportunities and challenges; Renewable and non-conventional energy sources; Q21; Opportunities and challenges; Distributed energy resources; Energy transition; D47; L94; L51; Distributed generation; Renewable and non-conventional energy sources; Energy market; O31
• ISSN: 1364-0321; 1879-0690
• DOI: 10.1016/j.rser.2021.112018

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. •Renewables could provide 90% of the reductions in CO2 emissions.•Digital transformations in energy markets with big data help to better respond to consumer preferences.•International experience has shown that DERs can deliver relevant energy, environmental and economic impacts.•The right balance must be sought between competition, regulation and collaboration.