Avoided Costs of Distributed Energy Resources
- Janice White
- May 15
- 1 min read
Distributed energy resources (or DERs) are gaining traction as part of a “all solutions” new energy landscape. Located within the distribution grid, these assets not only provide localized energy, but can significantly reduce strain on the grid if optimized.
When evaluating the true financial value of DERs, utilities and regulators must consider not only the capital costs to build and maintain, but also the avoided costs, which would have been incurred if the DERs were not there.
One study (See District of Columbia Docket FC1130), completed by Synapse Energy Economics found the following ranges:
