Distributed Energy Resources Can Provide Valuable Grid Services
Distributed energy resources (DERs) are typically small-scale power resources that are interconnected across the distribution system. In addition to generating, storing, and modulating the use of electricity, DERs can provide a range of other services to the electric grid. These services can play a critical role in meeting local demand, easing localized constraints, and improving reliability. DERs have the potential to provide these services more quickly, at less cost, and with fewer community burdens than traditional grid infrastructure solutions.
Examples of DERs include, but are not limited to
- Solar + storage projects
- Smart devices, such as thermostats
- Stand-alone battery energy storage systems
- Electric vehicles (EVs)
While DERs are deployed broadly in Massachusetts today, we have only begun to tap their potential to respond to location-specific needs on the distribution grid. One key to unlocking this value is determining the appropriate, effective level of compensation for DERs that provide valuable grid services. This calculation is complex, requiring a balance between incentivizing reliable participation, keeping costs affordable for all customers, and ensuring equitable opportunities for participation.
What is the Grid Services Study?
The Grid Services Study is an initiative that creates
- An initial compensation framework for DERs providing location-specific grid services to the distribution grid, including exploring the value that using DERs flexibly can provide in Environmental Justice communities.
- An implementation roadmap intended to guide the longer-term development of offerings for using DER flexibility to support the distribution grid.
MassCEC is leading the Grid Services Study, the concept for which emerged through the Commonwealth’s Electric Sector Modernization Plan (ESMP) process. We’re proud to facilitate the collaboration of our project team, which includes representatives from
- the Massachusetts Department of Energy Resources
- the Massachusetts Attorney General’s Office
- the state's three investor-owned utilities -- Eversource, National Grid, and Unitil
The project is supported by our consulting partners Energy and Environmental Economics (E3) and RMI and will include engagement with a diverse range of stakeholders.
Expected Project Timeline
Process Step |
Timing |
|---|---|
Work begins |
October 2024 |
Stakeholder Workshop 1 |
December 16th, 2024: |
Stakeholder Workshop 2 |
March 3rd, 2025: |
Future stakeholder workshops |
To be announced |
Work concludes; final report released |
Summer 2025 |
Get involved in the study!
Stakeholder Workshops
Stakeholder Workshop 1
Workshop 1 built a foundational understanding and vision for grid services in MA. The workshop covered the goals and intended approach for establishing a compensation mechanism for the value that distributed energy resources (DERs) can provide to the distribution grid. The role and opportunity for future stakeholder engagement was also highlighted.
Stakeholder Workshop 1 Materials
Stakeholder Workshop 2
Workshop 2 highlighted the valuation framework created by the project team and explored how valuation connects to compensation. The workshop included opportunities for feedback on both valuation and compensation, with a specific lens on equity.