How Distributed Energy is Reshaping the Energy Landscape distributed energy, solar power, clean energy, smart home, renewable power, energy transition

How Distributed Energy Is Reshaping the Energy Landscape

Growth of U.S. distributed solar

U.S. annual solar PV power capacity additions (GW)

Residential

Non-Residential

Utility

2011

2013

2015

2017

2019E

2021E

2023E

Pre 2010

2016

2017

2018

2019

2020

2021

2022

2023

132 K Connected Lighting

1.4 M Smart Thermostats

891 K Voice Assistant Devices

2.4 M

265 K Connected Lighting

2.9 M Smart Thermostats

3.5 M Voice Assistant Devices

6.7 M

462 K Connected Lighting

4.4 M Smart Thermostats

5.7 M Voice Assistant Devices

10.5 M

682 K Connected Lighting

5.8 M Smart Thermostats

7.7 M Voice Assistant Devices

14.3 M

939 K Connected Lighting

6.9 M Smart Thermostats

9.2 M Voice Assistant Devices

17.1 M

1.2 M Connected Lighting

7.8 M Smart Thermostats

10.6 M Voice Assistant Devices

19.7 M

1.5 M Connected Lighting

8.7 M Smart Thermostats

11.5 M Voice Assistant Devices

21.8 M

1.9 M Connected Lighting

9.5 M Smart Thermostats

12.4 M Voice Assistant Devices

23.9 M

Annual energy storage capacity additions (GW)

AMI penetration by state

2016

2023

2017

2022

2018

2021

2019

2020

99%

91%

95%

89%

85%

82%

79%

78%

77%

75%

Solar

Other Nonrenewable

Wind

120

160

200

240

Other Renewable

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Power (GW)

2013

2015

2017

2019E

2021E

2023E

10,000 MW

United States

10,000 MW

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27%

21%

20%

0.38 GW

0.69 GW

0.10 GW

0.24 GW

0.34 GW

0.27 GW

0.30 GW

0.83 GW

0.78 GW

0.49 GW

1.07 GW

1.80 GW

0.80 GW

1.10 GW

2.85 GW

1.26 GW

1.05 GW

3.92 GW

2.17 GW

1.06 GW

4.26 GW

2.63 GW

1.70 GW

10.80 GW

2.24 GW

2.25 GW

6.35 GW

2.41 GW

2.11 GW

6.16 GW

2.49 GW

1.79 GW

7.78 GW

2.87 GW

1.93 GW

10.00 GW

3.42 GW

2.01 GW

10.38 GW

3.27 GW

2.02 GW

8.65 GW

3.56 GW

2.10 GW

8.63 GW

3.29 GW

2.28 GW

9.28 GW

0.04 GW

0.06 GW

0.22 GW

0.23 GW

0.21 GW

0.31 GW

0.64 GW

1.90 GW

2.72 GW

3.18 GW

3.83 GW

4.44 GW

82%

95%

56%

72%

20%

26%

77%

10%

21%

25%

40%

18%

64%

85%

75%

19%

30%

31%

11%

17%

28%

78%

60%

21%

32%

57%

37%

74%

89%

59%

26%

32%

20%

19%

60%

99%

72%

14%

79%

22%

91%

28%

66%

115 MW

5 MW

4 MW

0 MW

131 MW

5 MW

3 MW

0 MW

143 MW

5 MW

4 MW

0 MW

150 MW

5 MW

4 MW

1 MW

157 MW

5 MW

1 MW

171 MW

5 MW

1 MW

182 MW

5 MW

1 MW

201 MW

0 MW

5 MW

227 MW

5 MW

0 MW

All States

Today, software controls and DERs, including rooftop and community solar, behind-the-meter energy storage, intelligent homes and grid integrated buildings, are giving grid operators a way to rethink their business and operational models that offer both new sources of revenue and increased resiliency.

Grid Edge Wheel

Utilities are increasingly focused on the needs of their customers in areas that represent a new role, and business opportunity, for their organizations. The goals of various customer engagement initiative can be categorized in three groups: new revenue streams, increased program participation, and customer retention and management

Customer Engagement

While the Grid Edge is at the distribution and customer level, its impact can generate revenue throughout the power sector. This revenue opportunity breaks down into three main areas: wholesale supply, transmission and distribution, and retail power sales

Revenue Area

Utilities have long-standing obligations to maintain power infrastructure and operations. Grid Edge solutions can help address these legacy operations in three primary ways: optimizing assets and infrastructure utilization, maintain a reliable and resilient system, and improving its ability to proactively detect issues and deploy solutions

System Performance

Utility systems are grappling with a host of new technologies that provide challenges and opportunities for system operations. These technologies can be categorized in three groups: software & analytics, distributed energy resources (DERs), and connected hardware devices

Technology Segment

Distributed energy resources have set the stage for profound changes in the way power is produced, stored and used across power grids.

Market & business transformation

Distributed generation under 100 MW in ERCOT

A global snapshot of grid innovation

There are now more than 2 million solar installations in the U.S., with an additional 2 million coming by 2023. Distributed generation offers both opportunities and challenges for grid operators that have relied on one-way power flows for decades.

Falling costs for energy storage are providing opportunities for grid operators, businesses and homes to use these assets for load shifting, power when it's needed and grid balancing services.

Growth of U.S. distributed storage

Washington, DC

Nevada

Maine

Georgia

Oklahoma

California

Vermont

Michigan

Texas

Arizona

Connected home forecast

The combination of advanded metering infrastructure (AMI), connected devices such as smart thermostats and voice assistant devices are offering new opportunities for homes to be active participants in grid services.

99%

Large power plants provided energy to homes and businesses and support services to the grid. While centralized generation will continue to play a major role in providing power, DERs are changing the picture.

Traditional power flows evolve

A changing grid

Among most utilities today, adaptation is the first step as DER penetration grows. Customer adoption of solar, smart devices and battery storage has occurred with little coordination with power providers.

Adapting to DERs

Utilities have added advanced metering infrastructure, distributed sensors and intelligent grid software, but mainly as a means to accommodate DERs without a clear line of sight to new revenues.

A brave new world

As DER costs continue to fall and penetration rises, these assets are reaching a point where they can be treated as a true grid resource, providing services that benefit both the customer and the utility. As renewables continue to take market share away from the power market's centralization generation, intelligently managed DERs offer a vision of a world where demand may be as easily dispatchable as supply. Markets and regulations must be redesigned, but the technical capabilities for this new grid have arrived.

Renewable penetration across U.S. energy markets

In two years, DERs have more than doubled in the Texas power market ERCOT from Q4 2016 to Q4 2018.

Intermittent renewable generation penetration varies by region, but is growing across all markets, with distributed generation growing in CAISO, ERCOT and PJM due to market condidtions.

In the U.S., utilities and regulators are increasingly looking at distributed energy solutions, such as demand response and energy storage, instead of natural gas peaker plants. For example, in April, Southern California Edison selected a roster of energy storage projects to supply capacity needs instead of the 262-megawatt natural-gas peaker plant it had chosen previously.

Brazil

Brazil is the leader in distributed solar Latin America with more than capacity growing more than 10-fold since 2017 to 750 megawatts.

India

The consultancy Bridge to India expects utility-scale solar capacity additions to cross 10,000 megawatts for the first time in 2019 in India, and for rooftop solar capacity additions to rise nearly 50%.

Africa

Off-grid energy investment, which includes solar panels to power lights, cellphones and other household devices, up to microgrids that power entire communities, rose from nearly nothing prior to 2010 to a total of nearly $1.7 billion at the end of 2018, with about 80 percent of that investment going to Africa.

Australia

Australian utility Evoenergy is creating virtual power plants using a mix of residential and commercial demand response paired with distributed battery storage.

Japan

Japan’s most recent Big Energy Plan calls for 44 percent of its 2030 power mix to be zero-emission using a mix of renewables and nuclear. Since 2016, the country has also deregulated its electricity sector with more than 450 energy retailers competing to offer solar and energy storage.

Germany

Germany will effectively have to replace 47 percent of its baseload capacity with new forms of generation in the coming years as it phases out nuclear generation and coal entirely.

United Kingdom

UK has clocked more than a week without burning coal to fuel its power needs for the first time since the Industrial Revolution, instead relying primarily on wind and nuclear generation, followed by biomass, natural gas, solar and imported electricity.

DERs proliferate

New Mexico

10%

Washington

Utah

Hawaii

Massachusetts

New Jersey

West Virginia

New York

Rhode Island

Puerto Rico

South Carolina

26%

Wyoming

North Dakota

New Hampshire

Indiana

Colorado

Montana

25%

22%

21%

20%

Virginia

20%

19%

Louisiana

Ohio

Nebraska

Minnesota

Connecticut

Iowa

19%

18%

17%

14%

11%

Kansas

64%

60%

Illinois

Pennsylvania

Florida

Tennessee

Oregon

South Dakota

60%

59%

57%

56%

40%

Mississippi

37%

32%

North Carolina

Kentucky

Missouri

Arkansas

Alaska

Wisconsin

32%

31%

30%

28%

Alabama

Maryland

Idaho

Delaware

74%

72%

66%

27%

21%

20%

Solar

Other Nonrenewable

Wind

Other Renewable

120

160

200

240

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Designed & Created by Binh Nguyen