August 25, 2020
EnerKnol’s Visual Primer – Distributed Generation Compensation Evolves to Reflect Benefits With Greater Accuracy
DER valuation initiatives strive to ensure fairness in allocating costs among different customer classes to avoid cross-subsidization while supporting the clean energy economy.
Recently, state regulators have stepped up efforts to value distributed energy resources (DERs) more accurately while looking for ways to better reflect the costs they impose on the grid. Among recent actions, New York adopted a mechanism to move the market towards more cost-reflective rates, while California decided to include avoided transmission costs in the valuation, and Connecticut unveiled a study on quantifying the benefits of these resources.