Distributed energy resources

A microgrid is a small network of electricity users that is powered by one or more local sources of supply. It is typically connected to a centralized national grid but can also operate independently. With the growing momentum behind distributed energy resources, the size of a microgrid can scale from a single home to a group of apartments or even an entire industrial area. Microgrids are an ideal solution to enhance grid resilience against overloads or environmental challenges (in islanded mode) and to ensure self-balancing during consumption or production peaks (in non-islanded mode).

In a demand-response program, a company (aggregator) negotiates a contract with a Distribution System Operator (DSO) to “sell” the flexibility of hundreds or thousands of installations, either on the consumption side (e.g., modulation of HVAC systems or EV chargers) or on the production side (e.g., modulation of PV generation). To be effectively deployed, demand-response programs require devices to be installed locally at the facilities. These devices must be capable of measuring consumed/produced power, sharing data, and receiving and executing remote commands.

Energy optimization involves finding the best balance between local energy production, generation, and storage. The goal can vary, such as maximizing self-consumption, feeding energy to the grid when tariffs are highest, or consuming grid energy when tariffs are lowest, and so on. The overall objective is to maximize local energy flow without impacting the grid, while taking into account incentives, market prices, and regulations.

Grid protection focuses on safeguarding the grid from power overloads and issues arising from frequency or voltage mismatches between distributed generation and the grid itself. The connection of distributed generators to the grid must comply with specific regulations and standards, such as CEI021 in Italy, VDE4108 in Germany, and IEEE1547 in the U.S. Compliance schemes, like § 14a and EEBUS in Germany, are part of the regulations that enable Distribution System Operators (DSOs) to control and protect the grid.

Energy communities promote local generation and consumption by leveraging incentives or remuneration schemes. Virtual Power Plants (VPPs) are aggregations of decentralized assets that provide flexibility to the power market. VPPs enable Distributed Energy Resources (DERs) to sell energy, simplifying the trading process for small plants. Both energy communities and Virtual Power Plants involve contracts between multiple DER owners and an aggregating company or authority, which offers a remuneration scheme to the DERs.