The smart grid is defined by its seven principal characteristics. One of those characteristics is “accommodates all generation and storage options.” How this characteristic might be attained is the subject of this paper. This paper talks about a smarter grid, which will need to accommodate not only large, centralized power plants, but also a much wider range and greater number of DERs. These distributed resources include renewables, distributed generation, energy storage and plug-in electric vehicles. And their deployment will increase rapidly all along the value chain, from suppliers to marketers to consumers. This characteristic of the smart grid will enable the generation portfolio to move toward a more decentralized model that will include a balance of large, centralized generating plants as well as DER.