Valuing wind as a distributed energy resource: A literature review
As more distributed energy resources are deployed on electric grid systems across the world, it is important to identify, characterize, and quantify the value elements of different types of distributed energy resources so that policymakers, developers, and utilities can make informed energy deployment decisions. This paper focuses on the value of wind energy as a distributed energy resource (i.e., “distributed wind”). Because of a lack of distributed wind-specific valuation studies, in this review we document the current state of distributed energy resource valuation, analyze a wide array of distributed energy resource valuation metastudies, and identify several value elements for which we recommend developing more robust and standardized calculation methodologies for their potential inclusion in distributed wind valuation. These value elements are ancillary services and locational, resilience, reliability, and resource diversity benefits. Furthermore, this work lays the foundation for a future comprehensive framework for distributed wind valuation studies.