The Role of Distributed Energy Resources and Associated Business Models in the Decentralised Energy Transition: A Review

Karlson Hargroves (), Benjamin James, Joshua Lane and Peter Newman
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Karlson Hargroves: Curtin Sustainability Policy Institute, Curtin University, Bentley 6102, Australia
Benjamin James: Curtin Sustainability Policy Institute, Curtin University, Bentley 6102, Australia
Joshua Lane: University of Adelaide, Adelaide 5005, Australia
Peter Newman: Curtin Sustainability Policy Institute, Curtin University, Bentley 6102, Australia

Energies, 2023, vol. 16, issue 10, 1-15

Abstract: The shift from large-scale centralised energy systems to smaller scale decentralised systems based on Distributed Energy Resources (DER) is likely to cause a sector-wide replacement of current electricity management practices and business models—creating a new energy paradigm. If handled well, such a transition will not be inherently disruptive; however, it can cause major disruption if long-held views and assumptions are not rapidly reconsidered and renewed, and new supporting structures are not swiftly put in place—hence, if disruption is experienced it will be due to a lack of strategic responses rather than the nature of the technology. This paper clarifies the nature of DERs and outlines key issues and opportunities associated with a range of associated service configurations and business models. The paper outlines key factors affecting the viability of such approaches and identifies leverage points for accelerating uptake. The paper concludes by considering how shifting landscape factors and related opportunities in the coming decades will shape the transition to a decentralised energy system. This paper contains findings from research performed at the Renewable, Affordable, Clean Energy Cooperative Research Centre (RACE CRC) in Australia.

Keywords: distributed energy resources; energy transition; renewable energy; energy storage; decentralised energy; leverage points; service configurations; landscape conditions; new energy paradigm (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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