Economic and Environmental Impacts of Distributed Energy Resources

Abstract

The current power system suffers from inherent inefficiencies and transmission line congestion due to the spatial split between power generation and end usage. This potentially introduces shortcomings in meeting load demands, grid liability, renewable portfolio standards, and environmental considerations such as carbon emission reduction targets. The economic and technical viability of distributed energy resource (DER) technologies may accelerate the transition to more sustainable energy production. This paper investigates the economic and environmental benefits of DERs compared to utility prices and emissions for residential dwellings using the Distributed Energy Resources Customer Adoption Model (DER-CAM). The results show a tradeoff between the CO2 emissions and electricity costs, but improvements over purchasing the electricity.