The energy industry has become increasingly diversified and complicated as it takes on new resources and strives to fight climate change. Innovative sources of power and changing consumer patterns present an entirely new set of challenges, but they could also be a valuable tool to help utilities evolve.

A recent study outlines how distributed energy resources (DERs) adopted by consumers could help energy providers manage the grid in the face of rapid change. “Households Transforming the Grid: Distributed Energy Resources are Key to Affordable Clean Power” was published on June 12, 2024, by the Deloitte Research Center for Energy & Industrials.

The research paper notes that household energy use is transforming. Individual purchases of smart home appliances, solar and storage systems, and electric vehicles are exponentially increasing the number of DERs connected to the grid.

This is radically altering the relationship between customers and their utilities. The new “bidirectional” relationship between the two has contributed to a proliferation of DER networks at the periphery of the grid, which the study refers to as “DERstribution networks.”

These networks have given customers an unprecedented level of control over their financial, operational and environmental priorities, according to the study. A unique set of challenges is presented to utilities, which still must provide power and services to their customers, while addressing affordability and carbon emissions.

If managed improperly, the paper argues, these demands will become even more challenging. On the other hand, utilities could harness these networks as a resource to help them meet rising and changing demand patterns, increase the use of clean energy and place downward pressure on rates.

The paper makes several recommendations along those lines. Better planning and use of data, opt-out time-of-use rates and equitable distribution of building efficiency technology, among other things, could help harness the potential of DERs at the grid periphery.