Is now the time for DERs to scale? [re-published]

A decade ago, DERs were hot. The hype was that things like batteries, smart devices, and other distributed energy technologies would offset the need for expanding traditional grid infrastructure.

But DERs never took off, at least not at the scale that many hoped for. They had high price tags and short track records compared to the existing substations, transmission lines, and generation options that utilities were familiar with. In short, the market didn’t need them yet.

Fast forward 10 years, and things have changed. Load growth is increasing while major grid bottlenecks — like in transmission, interconnection, and supply chains — may be opening up a new opportunity.

So is the time finally right for DERs? In this episode, Shayle talks to his colleague Andy Lubershane, partner and head of research at Energy Impact Partners. Last week, Andy published a blog post making the case that DERs were a good idea that was just too early, but the market is ready now.  Original episode date: 9/18/2025.

Shayle and Andy cover topics like:

- What held DERs back a decade ago

- Why now is different, including falling system costs and growing grid bottlenecks

- The difference between demand response and virtual power plants

- The potential hurdles to scale, like supply chain bottlenecks, foreign entity of concern regulations, and fire codes

Resources:

Latitude Media: Can distributed energy answer AI’s power problem? 

Open Circuit: The grid flexibility solutions staring us in the face