Guidehouse Insights Explores Opportunities for Local Energy Markets to Expand Deployment of Renewables, Stabilize the Grid, and Increase ROI

Regulators and utilities should consider LEMs to assist with grid stabilization, increased flexibility to integrate more DER, and energy cost reductions for customers and DER owners

BOULDER, Colo., Dec. 8, 2022 /PRNewswire/ -- A new report from Guidehouse Insights reviews LEM functionality and describes opportunities for using local energy markets (LEMs) to provide greater grid flexibility, facilitate increased integration of DER, and help investors increase ROI.

A LEM is a geographically constrained, automated platform for trading electricity. The market platform is composed of physically proximate consumers and producers of electricity—prosumers—who trade and consume locally-produced energy from distributed energy resources (DER) using the existing distribution network.

The increased utilization of battery energy storage systems significantly reduces grid exports and imports. In turn, storage substantially reduces the number of transactions between the LEM and the distribution network, contributing to enhanced grid stability. According to a new report from Guidehouse Insights, LEMs could potentially contribute to greater grid flexibility, helping to facilitate increased integration of DER into retail and wholesale markets and can maximize ROI by eliminating or deferring CAPEX for major system upgrades and increasing the capacity of renewable resources that networks can integrate.

"LEMs optimize the efficient use of distribution infrastructure and when strategically deployed, can reduce phase imbalances and voltage instability," says Julia Benz, research analyst with Guidehouse Insights. "Regulators and utilities should consider LEMs to assist with grid stabilization, increased flexibility to integrate more DER, and energy cost reductions for customers and DER owners. They should also ensure that LEMs permit peer-to-peer trading of demand response resources."

Further integration of DER raises important challenges to grid stability and may limit the number of renewable resources distribution networks can safely interconnect. Guidehouse Insights recommends that aggregators should support LEMs to address distribution grid contingencies.

The report, Local Energy Markets Can Expand Deployment of Renewables, Stabilize the Grid, and Increase ROI, reviews LEM functionality and describes opportunities for using LEMs to provide greater grid flexibility, facilitate increased integration of DER, and help investors realize greater ROI. An executive summary of the report is available for free download on the Guidehouse Insights website.

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 15,000 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Local Energy Markets Can Expand Deployment of Renewables, Stabilize the Grid, and Increase ROI, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

Cecile Fradkin for Guidehouse
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights