Chapter 01 · Climate & transitionEnergy & Transition

Distributed Energy Resources

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Definition

Distributed energy resources are small, modular energy generation and storage technologies, and increasingly controllable loads, located close to where electricity is used and connected to the lower-voltage distribution grid rather than the transmission system. Examples include rooftop and community solar, battery storage, electric vehicles, combined heat and power, small wind, and smart thermostats and appliances. Aggregated DERs can provide grid services, resilience and flexibility at scale.

References

IEAUnlocking the potential of distributed energy resources (2022)

system role and policy lessons

Overview

What it means

The grid edge becoming a resource: consumers double as producers and flexibility providers, upending the one-way power system.

How it is used

The term frames utility planning, interconnection standards, virtual power plants, net-metering policy and IEA analysis of power-system transformation.

Why it matters

DERs are central to decarbonising power while keeping it reliable and affordable — and they redefine who participates in the energy system.

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Meaning status
Established
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Last updated
18 Aug 2026
What the classifications mean

Meaning status: Established

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