 Distributed energy resource

A distributed energy resource is a localized source or store of electrical energy connected near the consuming part of an electric power system, commonly through electric power distribution. Examples include a nearby electrical generator, an array of solar cells, and an electric battery with its power-conversion equipment. Energy storage can either absorb or deliver power; calling it a resource does not make it a net source of energy over a complete charge-discharge cycle.^[ref]

For an original boundary calculation, a site consumes $50\mathrm{kW}$, its solar cells supply $30\mathrm{kW}$ at the stated output boundary, and an electric battery supplies $10\mathrm{kW}$. Neglecting site losses, the imported power isIf the same electric battery instead charges at $10\mathrm{kW}$, its signed supply is $-10\mathrm{kW}$ and import becomes $30\mathrm{kW}$. If solar output rises to $70\mathrm{kW}$ while storage is idle, the algebra gives $-20\mathrm{kW}$ import: an export, provided the connection and controls permit that operating point.

The location matters physically. Local generation can reduce upstream electric current when it offsets downstream consumption, but sufficiently large export can reverse the electric current. In a simplified resistive two-terminal branch, $V_s-V_r=RI$ for signed electric current from supply to site; negative $I$ makes the receiving-site electric potential difference higher. This is an illustrative direct current relation, not a complete alternating current feeder calculation.

A group of distributed energy resources becomes a microgrid only with an appropriate boundary and coordinated operation. Installed generating capacity alone does not establish that disconnected operation can regulate the local supply. A useful test records import or export together with each resource's signed power, so an apparent reduction in imported energy is not confused with a change in the consuming electrical loads.