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Swing Contract-Based Valuation for Distributed Energy Resources in Transactive Energy Systems: A Reinforcement Learning Approach

With the proliferation of distributed energy resources (DERs) and power grids with high fractions of renewable energy, market constructs are evolving to allow DERs to participate in multiple possible markets, at different levels of grid hierarchy. The effective participation of DERs in market environments is aided by swing contract-based pricing mechanisms, whereby DERs have a two-part compensation structure – one for their reservation/commitment and another for performancedriven ex-post payment for their actual mobilization during dispatch. In this paper, we propose a reinforcement learningbased (Q-learning) approach that allows a rational DER agent to select the market it wants to participate in within a composite market environment where individual markets are coordinated by possibly different actors. The proposed Q-learning framework aids DERs in their self-valuation by implicitly maximizing their own payoff through market participation, assuming a swing contract-based compensation structure. We complement our work through simulation-based investigations where factors affecting the DER decision making process, such as parametric uncertainties in market (and grid) environments, are studied.

Naqvi, Syed Ahsan Raza

Tidal energy resource characterization measurements at Cook Inlet’s East Foreland: Velocity and turbulence

To characterize tidal current and turbulence at a top tidal energy site off the East Foreland in Cook Inlet, Alaska, United States, three moorings were deployed for two months between July and August 2021, and a transect survey was conducted over the course of two tidal cycles at the end of the deployment period. Measurements of velocity and turbulence were then analyzed to better understand the site's hydrodynamics and power potential. Analysis reveals that swift, north-flowing flood currents peak at 4~m/s, while south-flowing ebb currents reach just over 3~m/s. Turbulence intensity ranges from 23\% at the seafloor to 8\% near the surface, and the presence of the foreland creates more intense turbulence near-shore during ebb tide than flood. Power availability at the site could be as high as 720~MW, or 13~kW/m$^2$, though the energy available to a marine energy device will be smaller than this estimate because of water-to-wire efficiency and wake losses. The results from this measurement campaign will inform the validation of a high-resolution tidal hydrodynamic model, as well as early tidal energy projects that are beginning to move beyond the prototyping and demonstration stages to full-scale deployments.

McVey, James R.

Energy 101: Distributed Energy Resources and Controllable Loads [Slides]

The Energy 101: Distributed Energy Resources and Storage presentation, developed for the Energy Technology Innovation Partnership Project (ETIPP), provides an overview of distributed energy resources (DERs) and energy storage. It covers fundamental concepts, technologies, considerations, case studies, and additional resources.

14 SOLAR ENERGY

Cybersecurity Risk Profiles for Distributed Energy Resource Management Systems

Managing the digitalization of increasingly diversity energy resources is a complex challenge for energy systems planners and managers. As the penetration of solar photovoltaics (PV) and other distributed renewable energy resources (DERs) expands, distributed energy resource management systems (DERMS) will play an increasingly important role in managing, monitoring, and controlling DERs as electric systems before more distributed, interconnected, and networked. However, the cybersecurity implications of DERMS deployments are not well understood today. A lack of understanding around the cybersecurity implications of DERMS deployments and variability in the security posture of DERMS vendors, owners, and operators could introduce new security risks to evolving electric power systems. This paper describes cybersecurity attack scenarios on DERMS, identifies related cybersecurity standards and guidelines, reviews the security features of state-of-the-art DERMS solutions, and offers cybersecurity guidance for DERMS vendors, owners, and operators to protect DERMS' unique capabilities. Standardizing cybersecurity requirements for DERMS could help improve the security of DERMS integrations and improve innovations that are more secure by design. The cybersecurity guidance found in this paper is intended to offer a unified approach and lay the foundation for future standardization of DERMS cybersecurity to reduce risk to the solar industry and other renewable energy stakeholders when integrating these technologies with electric power systems.

24 POWER TRANSMISSION AND DISTRIBUTION

Unlocking America's Abundant Marine Energy Resources

NREL Marine Energy One-Pager: A resource designed for use during NREL campus visits - especially with high-profile guests - as well as at events in Washington, D.C., when engaging with the new administration, and for displays at WPTO or lab booths. The U.S. holds vast untapped marine energy resources - wave, tidal, river, and ocean currents - that can strengthen grid resilience, support coastal communities, and advance energy independence. NREL leads innovation in this space through advanced modeling tools, patented technologies, and world-class testing facilities. NREL's simulation platforms, like OpenFAST and SAM, help reduce development time and risk. Patented devices such as PKelp and FlexWEC demonstrate flexible, resilient approaches to energy capture. At Flatirons Campus, NREL offers motion simulation, structural testing, wave tanks, and megawatt-scale microgrid emulation via the ARIES platform. These capabilities help developers refine and validate devices before in-water trials. With upcoming open-water testing at PacWave and strong partnerships, NREL is accelerating the path to commercialization - positioning the U.S. as a global leader in marine energy innovation.

17 WIND ENERGY

Creating the Distributed Energy Resources Education Center (DEREC)

The built environment in the United States consumes 40% of the energy generated and emits roughly the same percentage of total carbon footprint. Distributed energy resources (DER), small or modular energy generation and storage technologies, present the nation with an opportunity to substantially improve those metrics while securing the nation’s energy independence. As opportunities increase for implementing such technologies, they also continue to evolve and often outpace the nation’s traditional building practices. In an effort to effectively and proactively incorporate distributed energy resources into the nation’s energy supply, Southface Energy Institute convened with national and regional partners to create the Distributed Energy Resources Education Center (DEREC). Using national model codes and their regionally amended versions as a collective starting point, the DEREC team collaborated with industry experts and identified impediments to effective implementation of DERs, developing discipline-specific curriculum to eliminate those impediments. The center, developed in collaboration with Interstate Renewable Energy Committee (IREC) and National Buildings Institute (NBI), leverages existing DER education content as well as new and dynamic training materials and online courses that collectively engage the many roles necessary for DER implementations, including designers, code officials, builders and skilled trades, and building owners who specify, inspect, build, operate, and maintain buildings with DERs.

14 SOLAR ENERGY

Modeling distributed energy resource aggregations in security constrained unit commitment and economic dispatch

The Federal Energy Regulatory Commission (FERC) recently issued Order 2222, which requires all wholesale electricity markets in the US to allow distributed energy resources (DERs) to participate in the market as aggregated resources. These DER aggregations may be composed of many individual resources that are offered and dispatched by the market as a single entity. We present here a model of a distributed energy resource aggregator (DERA) that is scheduled by a market operator’s security constrained unit commitment (SCUC) and security constrained economic dispatch (SCED). The DERA model includes constraints for battery energy storage systems (BESSs), demand response resources (DRRs), and a simple distributed energy resource (DER). This paper describes a model for each resource type and presents two methods for the DERA to generate market offer curves: a profit-maximizing optimization to compute cost curves and a direct cost algorithm to determine dispatch costs for each resource and combine into cost curves. Once all participating DERAs are scheduled in SCUC/SCED, the model is then modified to dispatch individual DERs to maximize profit or minimize schedule deviation of the DERAs. A simulation of a representative day illustrates the DERA offers, the scheduled generation, and the DERA dispatch. Findings show the potential for unavoidable schedule deviations due to internal DER constraints and due to economic incentives to deviate from the SCUC/SCED schedules. This highlights the importance of DERA offer construction on market efficiency and system reliability. Novel aspects of our approach include: (1) We consider the asymmetry of price incentives impacting DERAs from the wholesale market compared to those impacting consumers from the retail market, as imposed by current regulations and laws. (2) We model aggregate consumer response through statistically parameterizable utility functions rather than a potentially impractical approach of modeling each individual consumer. (3) We show how to use the DERA operational dispatch model to create offers into the wholesale electricity market. (4) We show how DERAs may fail to meet their scheduled dispatch because the market offer format may not permit them to fully express their operational features such as intertemporal costs and constraints to the market.

aggregations

Scheduler Modeling of Distributed Energy Resources for Providing Ancillary Services

Distribution energy resources (DERs) have been integral components of modern power systems, and their capability to provide grid services has been widely studied. To promote the deployment of these resources in providing grid services in real-world utility operations, this paper proposes a day-ahead scheduler model for a distribution system connected DER plant. A certain amount of generation capacity of this DER plant is reserved for frequency services, and some ancillary services for the distribution system-including peak load reduction, voltage regulation, and power factor control-are integrated into the model. The model is tested on a real-world distribution system. From the simulation results, the energy and reserve schedule of the solar photovoltaic (PV) unit and battery energy storage system (BESS) can be determined, and voltage and power factor are well maintained. Additionally, in order to demonstrate the specific characteristics of the co-located and hybrid operation modes for the PV and BESS, these two modes are analyzed both theoretically and through real-time simulation. Simulation results show that most of PV's variability is transferred to the net power in the co-located mode, whereas it is transferred to the BESS in the hybrid mode. This proposed scheduler model and the comparison of co-located and hybrid modes can provide practical guidance for the applications of DER plant in the real-world utility.

14 SOLAR ENERGY

EMPOWERED Distributed Energy Resources Permit Accelerator Pilot

This report summarizes the EMPOWERED Distributed Energy Resources (DER) Permit Accelerator Pilot project. Its primary objective was to streamline the design, installation, permitting, and inspections of targeted Distributed Energy Resource (DER) solutions. Streamlining these processes is critical to strengthening and accelerating the adoption of DER solutions nationwide. Moreover, streamlined processes help expedite the clean energy transition and expand energy resilience by improving understanding and capability among key stakeholders like property owners, code officials, and the general workforce. The project team accomplished this by developing and deploying a set of design and permitting guides for simple DER solutions, which they rolled out via a permitting pilot program. The project team developed nine permitting and inspection guides for simple DER solutions, as follows: 1. Single-Family and Duplex: Electric Vehicle Service Equipment (EVSE), and Storage, Solar + Storage (each in two code cycles) 2. Multi-family and Office: EVSE, Storage, Solar + Storage (each in two code cycles) 3. A permitting process guide to support the implementation of the permitting guides. The guides cover key code requirements via plan review and field inspection checklists for code officials and building owners to follow to streamline the permitting and inspections process for DER solutions. Following the development of the initial set of guides, the project team formed two cohorts, each made up of four jurisdictions, to participate in the Permit Accelerator Pilot. Each cohort received training and technical assistance to support them in incorporating the guides into use. The project successfully engaged jurisdictions in two disparate US regions: Chelsea, Somerville, Natick, and Norwood in metro Boston; and Pima County, Town of Gilbert, Flagstaff, and Sedona in Arizona. Feedback gathered from the project was valuable in refining the guides to better address jurisdictional needs. After the pilot period, the project team developed final versions of the guides based on extensive feedback from the cohorts and from external technical peer review. Feedback included needs and barriers related to implementation, as well as detailed technical improvements from external peer review. The final guides were presented in a series of webinars with a national reach, with 192 attendees from 35 states in the live session of the final webinar, and the final guides are posted online and available for use nationwide. Key findings: • The most receptive jurisdictions were those adjacent to other jurisdictions that had already adopted similar initiatives. The least receptive jurisdictions were those in the midst of adopting new code cycles. • The most common barrier to jurisdictional adoption of new guidelines were internal administrative and process delays, more so than technical barriers. • The main technical barrier to adoption proved to be the concern of fire hazard risks posed by energy storage systems. There is some apprehension in the code enforcement community about the safety of the batteries. Education coordinated with fire and safety services will help alleviate concerns and increase confidence in the acceptance of innovative technologies. • Opportunities to further leverage and advance the guides and related resources include outreach, education, and jurisdictional support; updates to the resources to align with code cycle changes and local requirements; and advancements supporting emerging technologies.

14 SOLAR ENERGY

Utility Managed Distributed Energy Resources Intelligent Community - UDERMS iCommunity (Final Technical Report)

The Utility Managed Distributed Energy Resources Intelligent Community (UDERMS iCommunity) project, led by PacifiCorp and supported by the U.S. Department of Energy’s Building Technologies Office (Award No. DEEE0009782), aimed to demonstrate an integrated, utility-managed “behind-the-meter” distributed energy resource (DER) program connecting multifamily, commercial, institutional, and industrial buildings to deliver grid services and improve energy efficiency.

14 SOLAR ENERGY

Distributed Energy Resources and Storage [Slides]

This training offers an overview of distributed energy resources and storage, drawing on examples from the Energy Technology Innovation Partnership Project. Examples of community technical assistance projects included in this training include projects in Guam and Deer Island and Stonington, Maine.

24 POWER TRANSMISSION AND DISTRIBUTION

Harnessing Virtual Power Plants Reliably: Enabling tools for increased observability, controllability, operation, and aggregation of distributed energy resources

Harnessing virtual power plants enhances the integration of distributed energy resources into utility grids for a sustainable energy future. Virtual power plants (VPPs) aggregate DERs to enhance resource adequacy and reduce emissions. U.S. utilities are exploring various technologies to manage DERs effectively. FERC Order 2222 allows DERs to participate in both wholesale and retail markets. Enhancing observability and controllability of behind-the-meter (BTM) DERs is essential for reliable grid operations. A hierarchical control architecture can improve coordination among residential energy resources. Field tests showed nearly 20% energy savings and 30% peak power reduction during grid events. Effective management of DERs requires enhanced situational awareness to prevent grid congestion. Integrating DER management systems (DERMS) with existing planning tools can improve operational security. Near-real-time grid models can validate optimal resource set points against resource uncertainty. Traditional uninterruptible power supplies (UPS) can be upgraded to support grid services and become part of VPPs. Upgrading UPS systems can reduce costs by 75% and unlock significant battery capacity. New battery management systems and grid-aware controllers are essential for optimizing UPS performance. Continued research and development are necessary to address challenges in integrating DERs into utility grids. Encouraging customer participation in pilot programs is vital for the evolution of VPPs. Here, the shift towards price-responsive DERs and VPPs is expected to enhance energy distribution efficiency.

24 POWER TRANSMISSION AND DISTRIBUTION

Workshop Report: Rural Electric Cooperative Distributed Energy Resource Business Model Development Workshops

The United States' energy future is being shaped by decades of technology innovation, rapidly changing consumer requirements, and governmental focus on securing reliable, low-cost energy sources. With expanded electrification and increased emphasis on grid reliability coupled with the heightened complexity and risks associated with transmission infrastructure, the use of distributed energy resources (DERs) is more commonly being considered a safe, efficient, and cost-effective way to maintain grid resilience and reliability. Amidst improvements in performance, decreasing costs, and unprecedented federal policy support for DERs, electric cooperatives are considering new opportunities to use these assets to ensure secure and reliable operations for millions of customers. In light of these developments, a series of workshops were held to collaborate on the development of business models for DERs in rural electric cooperative ecosystems. The first workshop was held July 11, 2024, at the Tri-State Generation and Transmission Association Inc. headquarters in Westminster, Colorado (hereafter referred to as the "Tri-State Workshop"). The second workshop was hosted by PNGC Power on Oct. 9, 2024, in Portland, Oregon (hereafter referred to as the "PNGC Power Workshop"). These workshops convened representatives from G&Ts, distribution cooperatives,2 the energy industry, the financial community, the U.S. government, national and regional organizations, and national laboratories to share perspectives on the unique needs, challenges, and opportunities that they face as DERs are further integrated into the grid. The workshops were designed to address the following objectives: (1) develop the enabling attributes of electric cooperative DER business models, (2) explore pathways for generating community benefits from these assets, and (3) identify technical challenges and market risks for DERs in rural electric cooperative service territories. This report outlines key findings and major themes identified by workshop participants that federal agencies, G&Ts, distribution cooperatives, and other entities can consider to advance electric cooperative DER business models.

24 POWER TRANSMISSION AND DISTRIBUTION

NFPA Distributed Energy Resources Safety Training (DERST) For Emergency Responders

The National Fire Protection Association, with support from the Department of Energy, executed a multi-year initiative to develop, enhance, and disseminate Distributed Energy Resources Safety Training (DERST) tools for U.S. emergency responders. As Distributed Energy Resources (DER)—such as solar photovoltaics, battery energy storage systems (ESS), electric vehicles (EVs), and associated infrastructure—become increasingly prevalent, the NFPA identified a critical need for up-to-date standardized, accessible, and effective safety training tailored for the fire service and related public safety professionals. The project delivered a comprehensive suite of educational resources to improve responders’ abilities to safely manage DER-related incidents. This included: • Revised Modular Training Courses: Updated classroom-based DER safety courses, now modular and accessible nationwide through fire academies and the North American Fire Training Directors (NAFTD) network. • Live Burn Testing & Research: A full-scale controlled burn of a DER-equipped residential structure provided real-world data and insights, forming the basis for updated best practices. • A Gamified Simulation Tool – Firefighters Incident Response Simulation Tool (FIRST): A first-of-its-kind, multiplayer, scenario-based simulation using the Unreal Engine 5.0 to train responders in a realistic virtual, multi-DER incident environment. • Field Familiarization Software Tools & Prop Guide: Digital DER field familiarization evolutions software guide and a prop development manual to support field-based DER training exercises, enhancing responders' hands-on familiarity with DER infrastructure and collaboration on virtual incident responses. • National Dissemination Strategy: Strategic partnerships with NAFTD, Vector Solutions, and others enabled wide-scale distribution, with over 5,000 departments accessing resources and 1,100+ departments adopting the simulator in the first seven months. Also provided a web portal for easy access to all training and simulation programs developed under this grant for the U.S. responder community. Key findings from the project—particularly from the burn test—led to paradigm shifts in fire response tactics. For example, traditional approaches to garage fires may be hazardous if DERs are present, due to explosive off gassing and thermal runaway risks. The new training emphasizes scene assessment, stand-off approaches, thermal imaging verification, and careful post-incident cooling of DER components to prevent reignition. This initiative has had a significant national impact, raising awareness, enhancing preparedness, and supporting safer DER incident response practices. Significant engagement from the media, public safety organizations, and PBS coverage has further amplified the reach and adoption of NFPA’s DER safety training, tools, and simulations.

14 SOLAR ENERGY

Distributed optimization and control for autonomous distributed energy resource power dispatch and frequency regulation considering communication failures

Distributed energy resources (DERs) can significantly enhance grid flexibility by supplying power and secondary frequency regulation (SFR) services. Yet, their large number and dispersed nature limit the effectiveness of traditional centralized power dispatch and frequency control schemes, and expose the system to single-point communication failures. This paper presents a unified distributed optimization and control framework for DER power dispatch and SFR provision. A transmission-loss-aware distributed direct current optimal power flow is first formulated to optimize DER power dispatch and reserve scheduling. On top of this, a fully distributed control scheme for DER autonomous SFR provision is developed to allocate automatic generation control signals cost-effectively while ensuring robustness to communication link disruptions. The framework is validated on IEEE 14-bus and 39-bus transmission systems with large-scale distribution feeders using transmission-distribution dynamic co-simulation, demonstrating reliable and autonomous DER power dispatch and SFR provision under diverse operating conditions and communication contingencies.

24 POWER TRANSMISSION AND DISTRIBUTION

Cybersecurity Standards for Distributed Energy Resources: Gaps and Harmonization Strategy

This report examines cybersecurity standards for Distributed Energy Resources (DERs) in light of their rapid growth and increasing integration into energy systems. It identifies critical gaps in existing frameworks, including inadequate coverage of DER-specific challenges, complexities in implementing comprehensive standards, integration issues with legacy systems, adoption hurdles for newer standards, and a lack of harmonization across regulatory landscapes. The analysis highlights vulnerabilities such as data integrity risks, unauthorized device control, and denial-of-service attacks across various DER technologies like solar PV, wind turbines, energy storage systems, and hydrogen fuel cells. The report proposes a harmonization strategy to address these deficiencies by developing unified cybersecurity requirements, certification programs, and training resources while fostering collaboration among stakeholders such as government agencies, industry groups, DER operators, manufacturers, and research institutions. A phased roadmap is outlined to refine and implement these measures through pilot testing and widespread adoption. Ultimately, the report underscores the urgent need for coordinated efforts to enhance DER cybersecurity and ensure the reliable operation of future energy systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Standards Library for Distributed Energy Resources

This presentation was presented at the Aggregation and Grid Security Workshop - held on June 17-18, 2025, at NREL in Golden, Colorado. The goal of the two-day workshop was to address the critical cybersecurity challenges for the future electric grid. This presentation overviews the evolution and need for harmonized distributed energy resource standards and a new distributed energy resource standards library.

29 ENERGY PLANNING, POLICY, AND ECONOMY