The state of connected DERs [partner content]

Charlotte Johnson transitioned from studying ice sheets to focusing on climate change by managing energy resources. Her journey illustrates how modeling skills can apply across different sectors, especially in energy. At Kraken, she helps unlock the potential of distributed energy resources (DERs) to enhance grid reliability as demand for renewable energy grows, emphasizing the importance of modernizing energy systems to accommodate the increasing number of generators and users. As energy consumption evolves with technologies like EVs and smart home devices, innovative market solutions are necessary to ensure efficient energy management. This shift is crucial for maintaining a stable and sustainable energy supply.

Utilities and grid operators are facing challenges in integrating distributed energy resources (DERs) like solar and EV chargers due to their risk-averse nature and lack of infrastructure investment. Many networks lack necessary monitoring, making it hard to gauge what changes are needed. Digitalization is essential for improving visibility and efficiency, but even with technological advances, there is hesitance to fully embrace DERs. These resources could provide critical flexibility to the grid when needed, but operators sometimes avoid using the term 'flexibility' to describe them, possibly due to concerns about reliability or control. The transition to a more energy-efficient system hinges on overcoming these barriers through better data and openness to change.

Energy flexibility is crucial for balancing supply and demand, especially as we shift from traditional, predictable power generation to more intermittent sources like wind and solar. This change requires utilities to adapt quickly, ramping demand up and down as needed. For instance, the UK's National Grid has created a Demand Flexibility Service, incentivizing customers to reduce their energy use rather than increasing coal production during peak demand times. This method can be much cheaper and more efficient, meaning that adapting our energy systems to customer involvement is necessary. By 2050, countries like the UK will need significantly more dispatchable energy capacity, moving from their current reliance on thermal sources. Overall, the shift toward more flexible energy solutions reflects broader changes in how we manage energy consumption and generation, ultimately leading to a more sustainable and cost-effective energy grid.

In the energy market, customers have the choice to participate in services like solar energy. If they join, they can earn money; if they don't, that's also fine. However, in areas with high solar installation, like Australia and Texas, grid operators sometimes need to take control to maintain stability. This means they might limit the energy that can be exported to the grid if required. While some markets allow flexibility and customer choice, others need strict management to deal with urgent issues. This is particularly relevant in Texas, where the surge of renewable energy and decentralized resources has attracted significant international interest, highlighting the need for effective management of new energy sources.

Texas is a key market for flexibility platforms, where controlling grid-scale and residential assets is crucial. Other states like Illinois and Michigan present growth opportunities due to supportive regulations for solar and storage. Engaging consumers is vital; trust is essential. Customers want affordable EV charging and comfortable home temperatures, so utilities must design services around their needs to foster trust and participation. An effective strategy involves ensuring consumers feel involved and reassured that their utility is working in their best interest while also capitalizing on favorable market conditions across different states to enhance service offerings. This focuses on making the consumer the priority in energy management strategies.

Customers want to feel in control even when they allow others to manage their energy assets. They appreciate having simple options to adjust their preferences quickly. This is how the Smart Flex program operates, giving over 200,000 customers around the world the ability to control around 1.2 to 1.3 gigawatts of load. The term ‘virtual power plant’ is used to describe how energy resources are managed, but it can vary in meaning. What matters most is the ability to optimize energy use for value while ensuring the customer can retain control. Flexibility in managing these distributed energy resources is key to adapting to market demands and improving efficiency, benefiting both the customers and the utilities involved.

As the UK and US rapidly install distributed energy resources (DERs) to achieve net zero goals, utilities face challenges in connecting these resources to the aging grid efficiently. Market structures are crucial to effectively transport energy from generation sites to demand areas, as many renewable sources are located far from where the energy is needed. For instance, Scotland generates most of the UK’s wind power, while the demand is concentrated in southern England. Similar patterns exist in other countries where renewable generation does not align with consumption. Therefore, improving market designs and locational pricing will help ensure that energy generated from renewables can reach consumers effectively, maximizing the impact of new, low-carbon technologies.

Kraken stands out in the energy sector because it provides comprehensive digital solutions across the entire value chain, from managing generation assets to serving utilities and retailers. By enhancing power quality, optimizing control, and automating processes, Kraken supports the transition to net-zero emissions, recognizing the need for flexible energy resources worldwide. As countries aim to achieve net-zero goals, they are increasingly aware that flexible capacity is crucial. Stakeholders, from grid operators to regulators, agree that integrating flexibility will play a significant role in future energy systems.

Flexibility in the energy sector comes from using electrification in heat and transport, alongside battery storage and reliable energy sources. Charlotte Johnson, a leading expert at Kraken, highlights how important these innovations are for power providers. Kraken itself manages a significant amount of dispatchable assets, showcasing their strong capabilities in network intelligence and asset management. For anyone interested in enhancing their energy systems, Kraken's platform offers solutions that optimize energy resources and improve reporting for providers globally. Their tools are essential for adapting to the changing energy landscape, making it easier for providers to manage diverse energy streams and enhance overall efficiency. This approach ensures reliable power supply while also addressing the growing demand for sustainable energy solutions in the market, proving that modern technology can lead to significant advancements in the energy industry.