As society continues to shift towards cleaner energy options and distributed energy resources (DER), there is a growing need to transition existing distribution systems away from traditional operating models and accommodate more open and robust platforms. The future electricity system must maintain high standards of reliability and resiliency while also addressing operational challenges arising from increased DER penetration. This report first reviews the current state of the electricity grid, existing industry trends, and how the distribution system may evolve. Future operating model paradigms are then explored, with a focus on the roles of specific functional entities along the distribution system. Finally, the evolution of the distributed market in conjunction with greater DER adoption and the business implications of shifting to new operating models are examined.
Distribution System, Operating Model, Distributed Energy Resources, Microgrids, Distributed Markets, Grid Modernization, Advanced Grid