Integrating distributed energy resources in power distribution systems: A comprehensive review of impacts, challenges, and opportunities from a distribution system operator’s perspective

Han Pyo Lee

Applied Energy, 2026, vol. 403, issue PB, No S0306261925017829

Abstract: Distributed energy resources (DERs)—including solar photovoltaics (PVs), electric vehicles (EVs), and energy storage resources (ESRs)—are reshaping power distribution systems (PDSs) through decentralized generation, bidirectional energy flows, and enhanced demand-side flexibility. While DERs can improve power quality and support grid stability, their rapid growth presents significant challenges for distribution system operators (DSOs), who must transition from managing passive, radial networks to coordinating active, multidirectional systems. This paper provides a comprehensive review of DER integration in PDSs from a DSO operational perspective. In contrast to broader reviews centered on macro-policy or transmission-level issues, we emphasize DSO-specific challenges and opportunities at the distribution level. We present an analytical framework for DSO-centric DER integration, assess the limitations of widely used test models—particularly their ability to represent low-voltage (LV) secondary circuits—and examine both the individual and coordinated operation of PVs, EVs, and ESRs. The review synthesizes practical methodologies for optimizing DER performance, examines emerging solutions to future challenges—including voltage management, advanced technology integration, congestion mitigation, protection adaptation, and cybersecurity—and identifies critical gaps in LV observability and data accessibility. By integrating these insights, the paper aims to guide effective, DSO-led strategies for reliable, efficient, and equitable DER integration in modern power grids.

Keywords: Distribution energy resources; Distribution system operator; Electric vehicle; Energy storage resources; Photovoltaic; Power distribution systems; Secondary circuit; Solar (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1016/j.apenergy.2025.127052

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