4 FAQs about Benefits of Distributed Energy Storage
What is distributed energy storage?
Distributed energy storage is a solution for increasing self-consumption of variable renewable energy such as solar and wind energy at the end user site. Small-scale energy storage systems can be centrally coordinated by "aggregation" to offer different services to the grid, such as operational flexibility and peak shaving.
What are distributed energy resources?
Distributed Energy Resources (DERs) are energy generation and storage systems located near the point of consumption. Unlike centralized power plants, DERs produce electricity closer to users, minimizing transmission losses and increasing efficiency.
How does a distributed energy system work?
A distributed energy system operates using a transactive energy framework, where consumers can engage in the energy market directly. Consumers can sell the excess energy that they produce with their distributed energy resources back to the grid, earning tangible compensation in the process.
How do distributed energy resources reduce energy costs?
Distributed energy resources enable consumers to reduce their overall energy costs. These generation units provide energy on site, eliminating the need for expensive infrastructure to transmit and distribute power. As a result, the cost of providing energy decreases overall, delivering cost savings benefits to the energy consumer.