Amir Saeed

Effective integration of distributed energy resources (DERs) demands enhanced planning, updated regulations, and a collaborative mindset to optimize resources and investments for a sustainable and reliable energy system.

Talking to WealthPK, Dr. Shahid Rahim, a freelance consultant specializing in the planning and development of sustainable energy systems, highlighted that integrating DERs into the distribution systems does introduce complexities, but these aren’t insurmountable. Careful advance planning, proper design, and real-time operation can effectively manage these issues. “Assessing the potential impacts of DERs and protecting the system requires detailed system impact studies and implementation of countermeasures.

The distribution companies need to enhance their planning and design capabilities to acquire the necessary expertise and tools,’’ he said. He said that the distribution codes should define the processes, requirements, and standards for planning, developing, connecting, and operating DERs at the distribution level. These codes need to be updated to reflect the unique characteristics of DERs for interconnection and operation, and should be self-contained documents.

He emphasized that the current process for connecting the DERs to the grid needs improvement. The existing process is cumbersome and reactive and must evolve. The distribution companies (DISCOs) need to proactively plan for DER integration by studying power demand and the potential for DER deployment at various points. “The National Electric Power Regulatory Authority (NEPRA) should require the distribution companies to conduct regular assessments and publish their findings to guide the potential developers.

The Authority should also establish clear rules for processing DER connection applications, including time limits, priority determination, and cost allocation for system upgrades.’’ Talking to WealthPK, Ahsan Gaylani, a senior energy professional with extensive experience in sustainable energy, said that a significant shift in regulatory and managerial thinking is needed to view DERs not as a threat to the established practices but as partners in providing reliable and affordable electricity to the customers.

“The DERs offer opportunities to avoid capital investments being located near the demand sources. To cut costs, the utilities need to change the way they plan and manage energy systems. Planning with DERs requires different techniques and skills, as their resources are dispersed, intermittent, variable, and location-specific,’’ he said. He added that a significant portion of system planning needs to shift from the NTDC to DISCOs, as they are closer to the end-users and better positioned to plan for the demand and supply.

The distribution entities will function as mini-grids, operating as autonomous systems connected to the national grid. “The DISCOs management needs to develop tools, data, information, and knowledge bases accessible to the customers and investors for evaluating the DER projects. They need to modernize their networks into intelligent and smart grids that support DER integration, optimize resource utilization, minimize costs, and maximize system reliability and resilience.’’

“NEPRA needs to establish a regulatory framework that encourages DERs, storage technologies, and ICTs in the distribution systems. This framework should enable the DISCOs to develop pricing and compensation mechanisms to incentivize consumers and investors to adopt these technologies. Without a favorable business environment, the full potential of DERs may not be realized,’’ he stressed.

Credit: INP-WealthPk