[Webinar 23 March 2021] Incentivizing the Adoption of Distributed Energy Resources (DER)

This is the second webinar in the distributed energy resources (DER) webinar series organized by the Asia LEDS Partnership (ALP) and the LEDS Global Partnership (LEDS GP) under the ALP Grid Renewable Energy (GRE) Community of Practice.

Deployment of DERs is often challenged by the consumers’ ability to connect their small-scale renewable energy projects to the electricity grid. The challenges faced by the prosumers (consumers who also produce) include the technical procedures, legal requirements and financial investments. Scaling up deployment of DERs can be enabled through public policies and regulatory mechanisms such as compensation mechanisms (net metering, Feed-in-tariffs), direct financial incentives (cash rebates, tax credits), low interest debt financing options, and revenue decoupling. Policy directives aimed at clean power generation and support to innovative business models can also act as key enablers in DER deployment.

Ms. Sopitsuda Tongsopit, Renewable Energy Expert Consultant from the USAID Clean Power Asia talked about the compensation mechanisms and financial incentives available to encourage distributed energy resources in Asia.

Mr. Lin Fu-Ming, Division Director, Green Energy and Environment Research Laboratories, Industrial Technology Research Institute shared experiences and lessons from Chinese Taipei in the application of Energy Service Company ESCO model to advance solar PV deployment. In this model, ESCOs invests the full or major part of the initial investment and results in win-win situation for both site owners and ESCOs.

Session Agenda
∙ Welcome and Introduction - ALP [5 min]
∙ Compensation Mechanisms & Financial Incentives – Sopitsuda, USAID Clean Power Asia [20 min]
∙ Lessons Learned from Chinese Taipei – Applying ESCO to Advance Deployment of Solar PV, Lin Fu-Ming, Industrial Technology Research Institute [20 min]
∙ Discussion and Q&A, Laura Beshilas, National Renewable Energy Laboratory (NREL) [30 min]
∙ Closing – Laura Beshilas & ALP [15 min]

Please click on the links below to learn more about DERs by using The Clean Power Hub.

We encourage you to post any questions you have on DERs for the webinar speakers here by replying to this thread. The webinar speakers will answer your questions in this thread!

You can watch a recording of the webinar here or below:

And access key highlights from the recording:

Who has experience with DER compensation mechanisms? What are challenges you faced?

Why is it so important to think about incentivizing DER?

During the webinar, we talked about how compensation mechanisms interact with energy storage.

Storage can give more bill savings to consumers - stored power can be used for self-consumption during higher costs times. Solar + storage can maximize solar potential.

There are many methods for how the utility can manage the impact of storage technologies - for example, the utility can set a size cap for the system.

Thanks to Dr. Tongsopit for answering this question! Do you want to know about storage & compensation mechanisms? Ask here!

Dr. Lin presented on Taiwan’s PV-ESCO Business model (PV-Energy-Service-Companies = PV-ESCO), a business model to reduce financing burdens and take care of the application process for site providers in order to facilitate PV deployment. Do you have any questions about PV-ESCO? Ask them by replying here!

We also talked about the analysis needed to understand the pros & cons of different compensation mechanisms. Dr. Tongsopit noted that there are multiple points of views to consider - the utility, the DPV customer, and the non-DPV rate payers.

Here are two resources that can help you understand the different perspectives:
-Distributed Photovoltaic Economic and Technical Impact Analysis in the Philippines- Distributed Photovoltaic Economic and Technical Impact Analysis in the Philippines | USAID Clean Power Asia
-Understanding the Impact of Distributed Photovoltaic Adoption on Utility Revenues and Retail Electric Tariffs in Thailand - Understanding the Impact of Distributed Photovoltaic Adoption on Utility Revenues and Retail Electricity Tariffs in Thailand | USAID Clean Power Asia