Nanogrids and Distributed Energy

An aerial photo of many building rooftops in NYC

A blog post by Steven Winter Associates

Key Takeaways

  • New York State’s Renewing the Energy Vision (REV) initiative is intended to be the next step beyond simple net metering, providing market-based incentives for deploying DERs that are beneficial to both consumers and utilities.
  • Building nanogrids, comprised of multiple DERs together can perform at better efficiencies than the individual components.

Executive Summary

Distributed Energy Resources (DERs) are a growing part of the energy landscape in the United States, and they are becoming an ever more attractive opportunity for households, companies, and building owners to gain control of their own energy needs. By 2024, it is estimated that solar PV plus energy storage will represent a $14 billion industry. These resources are installed on the customer side of the utility meter and include distributed generation, such as combined heat and power (CHP) and solar photovoltaics (PV); energy storage assets, such as batteries; energy efficiency and demand management; and building energy management software. When deployed correctly, DERs have the potential to reduce the carbon footprint of the electric grid, increase grid reliability and resiliency, and defer the need for costly upgrades to grid distribution and transmission infrastructure.

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