DISTRIBUTED ENERGY RESOURCES
William F Tyndall
November 2016
Dialogue. Insight. Solutions.
GLOBAL ENERGY CHALLENGES
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1.1 billion live without access to electricity
1 billion people live without reliable electric grid
Overall demand expected to increase by 40% by 2030
Climate goals require substantial decarbonization of electricity supply
which account for 75% of global GHG emissions
• Aging power plants and distribution infrastructure
• Changing customer expectations
Per IEA: price tag
for decarbonization
of electricity
generation by 2050
 $44Trillion
Needed energy
efficiency
 $23 trillion
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INDC’S AND ENERGY
• Discussion of Energy in INDCs
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147 mentioned renewable energy
– 74 outline specific goals for renewable power, heating, cooling,
transport
– 167 mentione energy efficiency
• Existing Targets at end of 2015:
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173 countries had renewable energy targets
47 countries had renewable heating/cooling targets
66 countries had biofuel mandates for transportation
• INDC Effects
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IEA: NDCs will slow energy GHG emissions dramatically, not halt growth
Increase in renewables offset by global increase in power demand 
power sector CO2 emissions flat through 2030
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ENERGY SECTOR CO2 EMISSIONS
GROWTH SINCE 1990
Source: IEA Briefing for COP21 (October 2015)
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ENERGY TRANSFORMATION: AN HISTORIC OPPORTUNITY
Global
Commitment
Paris lays the
groundwork for ambitious
country action
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Climate Finance
Technology
Advancements
Public and private
capital waiting for
deployment
Declining costs and
rising efficiency of
technology
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DISTRIBUTED ENERGY RESOURCES
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THE “DER” TRANSFORMATION
Smart
Controls &
Analytics
Low-cost sensors
Machine-to-machine
controls
Algorithm-based automation
Cloud Computing
& Communication
Distributed
Energy Resources
Data streaming 24/7
Wi-Fi, broadband, 4G,
5G, XG
& mobile devices
Government support
Scaling of
manufacturing
Electric cars spurring
battery technology
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DISTRIBUTED ENERGY: 35% CAPACITY GROWTH
OVER 3 YEARS IN UNITED STATES
2009-2012 US cumulative capacity growth
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GLOBAL PV MARKET CONTINUES TO GROW AS
MORE COUNTRIES REACH RETAIL PARITY
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Source: Duke Energy, CCAP Energy Dialogue, California, 2015
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BATTERIES AND ENERGY AUTOMATION SOLUTIONS
ARE READY TO BE DEPLOYED
• Lithium-ion battery costs expected to fall by 50% over next 5 years
• Controls and sensors market in the U.S. and Europe is expected to
expand by 18% annually between now and 2020
• LEDs getting cheaper and more efficient
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DER IN A COMMERCIAL BUILDING
Value to customer:
• Reduced energy
costs
• Reduced demand
charges
• Emergency power
• $$$$ for net energy
produced
• $$$$ for demand
reduction
• $$$$ for ancillary
services to grid
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STORAGE FOR COMMERCIAL CUSTOMERS
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Demand management software combined with storage hardware
Automated demand reduction
Solar smoothing
Grid support
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DISTRIBUTED ENERGY BENEFITS
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Lower carbon emissions
– Solar and energy efficiency = zero CO2 emissions
– One study: Major California city could decrease carbon emissions by
70% by growing DER by 2% per year
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System benefits
– Reduced transmission losses
– Grid Support
– Greater resiliency
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Cheap and clean electrification
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Reduced Consumer Costs
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Customer Choice
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DER AND RESILIENCY
Risks
Opportunities for Green Resilience
• Power outages 
business interruptions
$20-$55 billion annual losses in
US
• Energy efficiency
•  GHGs
•  grid overload, maintain continuity
• Microgrids, on-site renewables, CHP
•  GHGs
•  resilience – limit impact of storms
and provide business continuity
• Water use efficiency (power plant &
public)
•  energy, GHGs
•  Less dependent on water for
cooling
• Flooding: generating facilities,
substations
• Wind storms: downed power
lines
• Drought: limited water for power
plant cooling
• Heat: fires disrupt grid, increase
demand for A/C
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BARRIERS FOR DER REMAIN THAT REQUIRE
ADDRESSING AS PART OF INDC CONVERSION
OECD 2011
The types and magnitude of barriers faced by a country will depend on
their domestic fossil fuel resources and RE potential
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INDC CONVERSION IS OPPORTUNITY TO IMPLEMENT
EFFECTIVE POLICY THAT WILL DRIVE INVESTMENT
RANGE OF POLICY OPTIONS TO PROMOTE DER
• Financial Incentive Policies:
– Feed-in Tariffs (FITs)
– Tendering, reverse auctions
– Tax policies
– Net metering
• Regulatory Policies
– Renewable Portfolio/Clean Energy Standards
– Cap & Trade, carbon pricing
• Enabling environment for RE ideally should address on-grid,
off-grid, and distributed generation as well as key barriers
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TO OVERCOME BARRIERS, COUNTRIES HAVE
STARTED TO SET TARGETS
Global Renewable Energy Targets by Sector, 2005 - 2015
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Source: IRENA, Renewable Energy Target Setting, 2015
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ADDING TARGETS TO THE INDC IS A GOOD WAY TO
ATTRACT ATTENTION TO THE DOMESTIC MARKET
Many countries mentioned RE targets
in their INDCs:
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China
India
Brazil
800 GW by 2020
175 GW by 2022
89% of power
mix by 2030 23% non-hydro
Namibia 70% of power
mix by 2030
Vanuatu 65% of power
mix by 2020,100%
by 2030
Map: Countries which have submitted their INDC
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Source: Map from World Resources Institute, CAIT Climate Data, 2015
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SUCCESS STORIES: CALIFORNIA’S POLICY MIX
Enabling environment – full range of policy actions over time
• Ratcheting up RPS (utility procurement requirement)
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2002: 20% of retail sales from RE by 2017
– 2003: accelerated 20% deadline to 2010
– 2008: 33% RE by 2020
– 2015: 50% RE/clean energy by 2030
• Interconnection with neighboring states: allowing utilities to trade
energy to balance out supply and demand fluctuations
• Renewable Auction Mechanism: competitive bidding for DG
projects 3-20 MW
• Net Energy Metering : allows for compensation for excess
generation
• DG Goal: 12,000 MW by 2020 (5,200 MW of DG currently online)
• CO2 cap and trade includes utilities: encourages utilities to shift
toward RE, includes out-of-state power purchases
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CALIFORNIA
• CA has more than doubled installed RE capacity over the last four
years, adding over 11,000 MW (out of 21,000 MW currently online)
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SUCCESS STORIES: DENMARK AND DISTRIBUTED
ENERGY
• Denmark’s transition from central power stations (90% imported oil in
1980s) to distributed CHP (providing 47% of the country’s thermal
electricity demand) and wind
Source: Parbo, 2014. Energinet.dk. “Distributed Generation Trends and Regulation: The Danish Experience”.
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THANK YOU
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