Distributed Energy Resources 101:
How to Achieve Energy Resilience

In an era marked by increasing concerns over severe weather, the affordability of energy sources, and the reliability of traditional power grids, distributed energy resources have emerged as a game-changer for achieving energy resilience. Every day, new organizations and businesses upgrade from grid-reliance to flexible, reliable distributed energy infrastructure.

Are you looking to understand the basics of distributed energy resources? Here, we delve into the fundamentals of distributed energy solutions, including their benefits, integration strategies, the role of advanced microgrids, and what’s needed for true energy resilience. Get ready to learn how to unlock energy independence and safeguard your operations against power outages.

What Are Distributed Energy Resources?

Disturbed energy resources (DERs) refer to many different power-generating or storage technologies and devices that store or provide energy for homes, communities, businesses, or government buildings. Usually, DERs are smaller-scale resources, with most only producing 10 megawatts of energy or less.

Understanding Distributed Energy Resources: The Basics of DERS

Whether it’s retail businesses, hospitals, or vital utility infrastructure, distributed energy resources are essential in ensuring lights remain on and services continue.

The benefits of utilizing distributed energy resources include increased energy efficiency, cost savings, reduced carbon emissions, enhanced energy resilience, and reliability even in severe weather. DERs are most commonly used in Virtual Power Plants (VPPs) or microgrids. Common types of DERs include:

• Solar photovoltaic units (solar panels)
• Geothermal energy resources
• Wind turbines
• Energy storage systems (batteries)
• Combined heat and power units
• Reciprocating engines
• Fuel cells
• Hydropower schemes
• Natural gas and diesel generators
• And others

What Is the Difference Between Virtual Power Plants and Microgrids?

If your organization is considering installing DERs at your facility, you’ll likely run across the choice between a microgrid or a virtual power plant (VPP). While they both utilize distributed energy resources, microgrids offer greater resiliency and the ability to run in islanded mode when the main grid is down.

What Are Virtual Power Plants?

Virtual power plants refer to a collection of DERS that can provide energy and economic value to the main grid. VPPs provide these benefits by aggregating many DERs and coordinating them through the main grid. For example, a community might connect DERs they use daily, such as EV chargers, rooftop solar panels featuring batteries, and smart technology to create a VPP.

A VPP’s central goal is to support the grid by managing, charging, or discharging their DERs at times best suited to serve the main grid. When working correctly, these resources can prevent the grid from going dark. However, since VPPs only work when the grid is running, they don’t provide backup power in the event of a main grid outage. As a result, they’re not a solution for organizations that need a dedicated source of backup power that they can turn to during a main grid emergency.

What Are Microgrids?

Microgrids, or distributed energy solutions, are independent power systems that provide and often store energy for organizations. They typically feature various DERs to assist with power generation or storage, such as batteries, solar panels, and diesel generators. Like VPPs, microgrids can be used in conjunction with the main grid to support it. When in grid-connected mode, the microgrid can also often save organizations money by providing power in place of the main grid when its energy costs are the highest.

Unlike VPPs, microgrids can run independently of the grid in islanded mode. In this mode, the microgrid will disconnect from the main grid and be the sole source of power for a facility. Usually, a facility will put its microgrid in islanded mode when the main grid has gone down due to an emergency or a planned outage. Since a microgrid can run independently of the main grid, they’re a true source of backup power, in contrast to a VPP.

What Is the Difference Between Virtual DERs and Physical DERs?

A physical DER refers to a small-scale asset that can consume, store, or generate energy, with these DERs operating locally. The local operation could refer to a small DER being used by a homeowner to supply power to their home without this DER being involved in a VPP. Larger DERs that can generate more power will often be used in a microgrid to provide backup power to a facility if the main grid is down.

A virtual DER refers to physical DERs that have been made available to electricity markets after being aggregated together. A utility participating in an electricity market will see a virtual DER as one resource even when they aggregate multiple types of DERs, such as a solar panel and a natural gas generator. When virtual DERS have several megawatts of capacity, they’re often referred to as a VPP.

The main difference between them is that physical DERs may not be aggregated together, while virtual DERs will always be aggregated. Virtual DERs are also always used in VPPs, and physical DERs can be either stand-alone units or connected together in a microgrid.

How Do Different Kinds of Microgrids Use Distributed Energy Resources?

While deciding on a microgrid, you can also find different types of them. The main three include mobile, basic, and advanced microgrids. Find out more about the differences between them and how they use DERs below:

• Basic microgrids: A basic microgrid tends to only use one type of DER to provide backup power to a facility. Since they only run on a single kind of DER, they tend to be less resilient than advanced microgrids. For example, if your basic microgrid only runs on diesel generators, a shortage of diesel or an inability to get diesel to your facility would make it so your basic microgrid can’t provide power. As a result, they tend to be good for organizations that plan to expand their grid or don’t expect to use their microgrid very often.
• Advanced microgrids: Unlike basic microgrids, advanced microgrids use at least two types of distributed energy resources. This usage of multiple DERs makes advanced microgrids more resilient, as they’ll have another DER to draw power from if one type isn’t producing enough power.
• Mobile microgrids: While standard basic and advanced microgrids are stationary and can’t be easily moved, a mobile microgrid is designed for transportability. As its name suggests, a mobile microgrid mounts its DERs (typically gas or diesel generators) on a trailer that can be driven from one location to another. Mobile microgrids tend to be great for organizations that have multiple facilities and need a reliable backup power solution they can use during planned outages or severe weather situations.

How to Properly Utilize Distributed Energy Resources in a Microgrid

Generally, the more energy resources integrated into your microgrid and available as backup, the more energy resilient your system. That’s why, for true energy resiliency, it’s essential to integrate grid power and multiple distributed energy resources effectively.

In fully integrated systems, organizations can choose grid power when they want it and independent distributed energy resources when they don’t. The best grid-interactive systems seamlessly switch to the most cost-effective and reliable energy solutions without any cut-off in power. This makes for energy resiliency and cost-efficiency even in the face of rolling blackouts, inclement weather, or spiking summer electrical rates.

When looking to benefit from all the advantages of distributed energy solutions, consider that energy storage plays a key role, particularly when taking advantage of power solutions that aren’t available 24/7 (such as power and wind). Integrating battery power, grid power, solar power, and other distributed energy solutions requires advanced controls—particularly for owners looking for blipless power transfer.

Implementing Distributed Energy Resources for Energy Resilience

When installing or upgrading your distributed energy solutions, the first step is to contact an advanced microgrid expert who can perform an energy audit to assess your organization’s fundamental energy needs and vulnerabilities. This expert can also help steer you toward resources that can help you identify potential tax credits for making the upgrade.

Designing a Customized DER Solution

Your professional advanced microgrid installer will evaluate site-specific requirements and constraints, ensuring regulatory compliance and permitting. They can help install and integrate the right distributed energy solutions so that your organization will operate with peak energy resilience and efficiency.

Take note: When selecting an advanced microgrid installer, choose a servicer who can fully integrate your system. Otherwise, you may fail to optimize your power efficiency and cost-savings—and suffer from compromised energy resilience.

Maintenance and Monitoring of DER Systems

After the initial installation, it’s necessary to conduct regular inspections and performance evaluations. Prompt repairs and upgrades will be needed to maintain optimized system performance. The right advanced microgrid solutions can make regular upkeep and maintenance simple and cost-effective.

PowerSecure: Distributed Energy Solutions

At PowerSecure, we offer customized microgrid solutions for those looking to take advantage of the benefits of distributed energy resources. We seek to deliver continuous, redundant power generation even during blackouts and other grid disruptions.

Our end-to-end turnkey solutions include energy efficiency audits, design, procurement, construction, and financing. Post-installation, our expert support includes real-time monitoring and on-site maintenance, so you have everything you need to enjoy peace of mind and true energy resiliency.

Contact the PowerSecure experts to learn more today.