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The Integrated Grid: Realizing the Full Value of Central and Distributed Energy Resources

The electric power system has evolved through large, central power plants interconnected via grids of transmission lines and distribution networks that feed power to customers. The system is beginning to change – rapidly in some areas – with the rise of distributed energy resources (DER) such as small natural gas-fueled generators, combined heat and power plants, electricity storage, and solar photovoltaics (PV) on rooftops and in larger arrays connected to the distribution system. In many settings DER already have an impact on the operation of the electric power grid. Through a combination of technological improvements, policy incentives, and consumer choices in technology and service, the role of DER is likely to become more important in the future.
The successful integration of DER depends on the existing electric power grid. That grid, especially its distribution systems, was not designed to accommodate a high penetration of DER while sustaining high levels of electric quality and reliability. The technical characteristics of certain types of DER, such as variability and intermittency, are quite different from central power stations. To realize fully the value of distributed resources and to serve all consumers at established standards of quality and reliability, the need has arisen to integrate DER in the planning and operation of the electricity grid and to expand its scope to include DER operation – what EPRI is calling the Integrated Grid.
The grid is expected to change in different, perhaps fundamental ways, requiring careful assessment of the costs and opportunities of different technological and policy pathways. It also requires attention to the reality that the value of the grid may accrue to new stakeholders, including DER suppliers and customers.
This paper is the first phase in a larger Electric Power Research Institute (EPRI) project aimed at charting the transformation to the Integrated Grid. Also under consideration will be new business practices based on technologies, systems, and the potential for customers to become more active participants in the power system.

Document Type:
Technical paper