The roadmap to the lowest cost grid is paved with distributed solar and storage
We wanted to know what the grid would look like, and cost, if we stopped ignoring the benefits of DERs and optimized the integration of these resources through a better modeling process. We found that when you use better planning models and scale both local solar and storage, as well as utility-scale solar and wind, you maximize cost savings and unlock the path to the lowest cost grid.
The model found that by scaling local solar and storage at the distribution level and closer to customer load, we don’t have to over-rely on the most expensive parts of the transmission system and under-utilize the distribution system as many traditional planners assume. The daily peaks that the system must ramp up and down to serve can be permanently and more cost-effectively managed by local solar assets, storage injections, and off-peak charging. These DERs cost-effectively reshape the load as seen by the large-scale grid, reducing bulk power system costs and smoothing volatility and variation in load across the system. This allows for a more efficient overall allocation of investments, and a more flexible and local electricity system through the addition of 247 GW of distributed solar and 160 GW of distributed storage by 2050.
Just by integrating and optimizing distributed solar and storage, we found potential for over $300 billion in grid savings. When we asked the model to also meet a 2050 clean electricity target, we found $473 billion in grid savings versus a clean electricity grid that doesn’t scale distributed solar and storage.
We wanted to know what the grid would look like, and cost, if we stopped ignoring the benefits of DERs and optimized the integration of these resources through a better modeling process. We found that when you use better planning models and scale both local solar and storage, as well as utility-scale solar and wind, you maximize cost savings and unlock the path to the lowest cost grid.
The model found that by scaling local solar and storage at the distribution level and closer to customer load, we don’t have to over-rely on the most expensive parts of the transmission system and under-utilize the distribution system as many traditional planners assume. The daily peaks that the system must ramp up and down to serve can be permanently and more cost-effectively managed by local solar assets, storage injections, and off-peak charging. These DERs cost-effectively reshape the load as seen by the large-scale grid, reducing bulk power system costs and smoothing volatility and variation in load across the system. This allows for a more efficient overall allocation of investments, and a more flexible and local electricity system through the addition of 247 GW of distributed solar and 160 GW of distributed storage by 2050.
Just by integrating and optimizing distributed solar and storage, we found potential for over $300 billion in grid savings. When we asked the model to also meet a 2050 clean electricity target, we found $473 billion in grid savings versus a clean electricity grid that doesn’t scale distributed solar and storage.