The Value of Electrification: Leveraging Electrification and Distributed Resources for Customer Benefit

Abstract

Distribution utilities face a pivotal moment as rapid electrification and dispatchable distributed energy resources (DERs) proliferate across the grid. When effectively managed and paired with smart rate design, these resources offer utilities and customers significant economic, operational, and environmental benefits. Maximizing the use of grid assets without increasing peak demand allows utilities to reduce upward rate pressure to benefit customers. Integrating flexible assets with advanced grid monitoring and control schemes provides an opportunity for utilities to strengthen reliability and optimize the sourcing of clean energy resources to meet clean energy goals. Harnessing these trends matters for utilities and supports their role in strengthening the grid. Key enablers that utilities can utilize include innovative rate design (such as revenue decoupling), advanced DER management systems (DERMS), improved load identification and forecasting, and robust customer programs. The shift from being a reactive provider to a proactive partner is essential for utilities to deliver the full value of electrification and DERs to customers by enabling a cleaner, smarter, and more resilient grid.